Curried Wealth Building
Finding an Edge

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The Art of the Deal
 
 
 
I went on vacation with two families and one of the guys was Andre.  He is a master at negotiations and haggling and I thought I'd share a few of his techniques and perhaps you can save a few shekels.  Watching him work the locals was a thing of beauty.  Here are some of his key points:
 
1.  Keep smiling.  No matter what happened during any haggle, Andre would continue to smile and emote a positive vibe.  This kept the other party "on his side" and kept things pleasant.  People are more likely to come to your offer, if they are happy.
 
2.  Let them go first.  Andre always let the other party set the baseline.  This allowed the most flexibility and sometimes a lower starting point than what you would think.
 
3.  Cut the offer in half.  Take whatever they offer and cut it in half.  I know this seems like a lot, but in most cases the seller will still make a decent profit.  This is especially true in a foreign country.
 
4.  Treat it like a game.  Don't go into to it like a confrontation, which is usually unpleasant, instead make it a game you are trying to win.  The more money you knock off, the more you "win".  Don't let it be upsetting, have fun.
 
5.  Be prepared to walk.  If you don't go into a haggle with the idea that walking away is an option, you've already lost.  You can't be emotionally attached to getting what they are selling.  If they won't deal, you must walk away.
 
6.  Don't take it personal.  No matter what happens, don't get mad.  This only clouds your judgement.  If the other person gets upset, remember #1.
 
7.  Read your opponent.  Watching their reactions can give you great insight.  Are they getting excited?  You're too high, lower your offer.  Are they getting mad?  Keep pushing, unless they have valid reason that the offer is too high, it's probably not.  They could be mad because you have found a fair price and they thought they were going to get much more from you.  "I can't go that low," isn't a good enough reason.  Making them explain why.  Ask how much they get paid and make and negiotate from that.  Make them work to justify their price. 
 
8. Express faith in them.  This was the biggest thing I saw in Andre.  He was constantly telling the other person, "I know you can do it."  Another one of his favorites is, "I believe in you."  For some reason people respond very well to this.  Perhaps they don't want to let you down after you say something like this.  It's almost like you are their parent and they don't want to disappoint you.  Really amazing how effective this is.