I purchased this painting for 2K Baht and the painter was originally asking 3K Baht.

When traveling to third world countries you can either negotiate or be a sucker.  You can negotiate hotel rates, taxi rates, retail prices, food prices, basically anything that is for sale.  Below are some tips on how to negotiate when traveling in the third world or even back home:

- No.  No.  No.  Using the word no puts you in the power position.  When you use the word no you have to stay firm.  Just continue saying no!  When mixed with elapsed time, the word “no” will help you win a negotiation.

- Elapised time will help you win a negotiation.  When engaging in a verbal negotiation don’t be afraid to remain silent for an elapsed period of time.  Most third world salesman are experienced pros is getting you to pay as much as possible.  Their greatest trick: time, they aren’t afraid to let you sweat.

- Smile smile smile.  Then grimace.  Most people are very receptive to a warm smaile and want to engage in a transaction with you.  Then when you don’t get the price you want.  Grimace, and grimace hard.  You will completely throw them, because when you initially smiled chances are they reciprocated and smiled at you.  When mixed with the previous two suggestions you should win the negotiation.

- When you first make contact with the seller, act coy and don’t come off as being loud or arrogant.  Humility is your friend.

- When you are first told the price reply with, “Wo! why so much”  I have seen a shrewd negotiator make many salesman laugh with this remark and ultimately win the negotiation.

- Take into consideration the salesman’s cost and realize that they aren’t going to sell to you at a loss or a break even price point.  When I was on the beach and negotiation the price of a jet ski I was asking for a price below even the cost of fuel.  Consider the salesman’s fixed costs and make an offer 10% above that.

- Silence is one of your greatest tools.  Silence is nothing more then elapsed time, but silence is the shrewd negotiators best tactic.  Silence for 80% of people makes them feel very uncomfortable.

- When negotiating look directly into the salesman’s eyes.  Direct eye contact is like putting a needle into the eye of your salesman.  Again, 80% of people are unable to keep direct eye contact with you.  Utilizing the aforementioned tactics with strong and relentless eye contact will surely help you win your negotiation.

Negotiations - whether high level or low level utilize many of the same principles.  When negotiating advertising rates, an automobile, the purchase of a home, time share, travel agency rates, etc… Using these simple negotiation tactics will surely help you save money and give you the mental satisfaction of knowing that you got a good deal.  Now go forth and negotiate successfuly!

Tags: che guevara, elapsed time, fixed costs, how to negotiate, negotiating tactics, Negotiations, silence, smiling

This entry was posted on Tuesday, May 13th, 2008 at 7:42 am
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