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Anchoring – How To Better Improve Your Negotiation Efforts – Negotiation Tip of the Week

Anchoring occurs in every negotiation in one form or another. To enhance your negotiation position, be aware of when it occurs, the intent of it, the mindset you adopt when observing it, and what response you or your negotiation counterpart will have to it. Those ingredients will drastically affect the flow and outcome of the negotiation. Consider the following.

Anchoring Intent:
Know the intent of anchoring. It should align with your negotiation plans. In some situations, it may be prudent to let the other negotiator anchor his position first. The justification would be based on him displaying more of his position than you displaying yours. Regardless of the option you choose, remember the person that anchors first sets a mile-marker that establishes a boundary in the negotiation.

Anchoring Tonality:
When considering how to implant your anchor, consider the tonality you’ll employ to assist your efforts. As an example, if you state your position with a timid sounding voice, you run the risk of sounding unsure and weak. On the other hand, if you convey your intent with a rich and deep voice, you’ll project the perception of authority. You’ll be more believable, influential, and convincing; a deep voice is commanding; It projects authority. In either case, be mindful of the perception your tone of voice has on your pronouncements.

Anticipate Response:
Unlike other tools in a negotiation, you should use anchoring judiciously. It will become the cornerstone upon which an easy or tough negotiation ensues.

Before choosing when and how you’ll anchor your position, consider what the response might be to it. When planning, assemble actions that will buttress up and progress your position, while keeping the negotiation away from quagmires.

You should always anticipate your counterpart’s next move. When anchoring, anticipate several future moves that he might make. Since anchoring establishes the foundation from which you’ll move forward, be more diligent in your timing, thought process, and implementation.

Mental Mindset:
Be aware of your mental state of mind when attempting to use anchoring as a viable tool in negotiations. If you’re mentally weak about making your offer, per how you’ll anchor it, assess why you have that mindset; more than likely, it won’t serve the goals you’re attempting to achieve. If you can’t muster the mental fortitude to deliver your offer in a manner that supports your efforts, it may be better not to anchor it at all. You don’t want to worsen your chance of acquiring a better deal.

Counter Anchoring:
If you’re aware of what your negotiation counterpart is attempting to achieve by anchoring you to his position, and you don’t like the position it places you in, counter to the extreme opposite. The subliminal message you’ll send is, there’s a wide gap to overcome. It will also serve to message that both of you will have to make a significant movement to advance the negotiation. You can signal that you’re willing to attempt that broach if he is, too.

The potential pitfall of responding to the extreme is to risk an impasse due to such a wide gap in anchors. Thus, you should be thoughtful about how you refute an anchor that’s established and whether you’ll set it first.

Anchoring is the persister that sets the boundaries that follow. It also foreshadows the strategies that will persist after its establishment. Used adroitly, it can be the first volley of an enhanced negotiation. Thus, if you use anchoring skillfully, you’ll be on a path to heightened negotiation outcomes… and everything will be right with the world.

Remember, you’re always negotiating!

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Retail Tips – Presenting and Demonstrating Your Products

The confidence and care you take in presenting and demonstrating products can set you apart not just from other retailers but also from the ever increasing competition from the internet. Here are some tips to help you stand out from the pack.

Get your customers involved
If it’s an item of clothing let the customer touch it and then encourage them to try it on. If its furniture, perhaps you’re showing them a sofa, invite them to sit on it. If you’re in a pharmacy and you’re reading information from the label on the back of the box pick up the second item and put it in their hand so that they have it as well. Wherever possible, encourage your customers to hold the item, try it on or use it in some way.

By letting them experience the product, it becomes more real to them. Also it is no longer your product, when it is in their hands or as they are trying it out it is potentially their product. They’ve moved a little closer to ownership of the item.

Handle with care
Have you ever been in a jewellery store and noticed how the staff present a precious diamond necklace or ring to the customer? Without even seeing the price you know it is expensive because of the reverence they show as they handle it.

They should also present a diamante necklace or ring in exactly the same way, yet very few sales people do this. It’s about being customer focussed rather than product focussed. You are handling this person’s potential possession so it should be treated as if it is precious.

Treat your merchandise with respect. Remember, you may be showing the product to its future owner.

I remember trying on a pair of squash shoes in a small sports store. It was busy and there seemed to be lots of pairs of sport shoes spread across the floor. After trying on a pair that didn’t seem quite right, the owner brought me another pair. He made room for me by sweeping aside the first pair and a couple of others with his foot as if they were rubbish to be put in the bin.

He probably thought he was just moving HIS ‘stock’ out of the customer’s way but to customers he is not only devaluing the product, he is treating THEIR potential product disrespectfully.

By the way, it is a good tactic to immediately remove from sight any product that the customer has rejected – though not ones they are just a bit doubtful about – so, the sports store owner was doing something right. It’s just how he did it that was wrong!

Demonstrating a product
We’ve already covered some key points appropriate to demonstrating a product in the previous sections on handling the product with care and getting your customer involved.

The more interactive you can make the shopping experience, the more inclined your customers will be to buy. And if you can provide them with evidence via this interaction they will have proved to themselves that the product can do what you say.

With many products, an ounce of demonstration is worth a ton of words especially if your customers can try out the product for themselves. Research has shown that when a customer is given the opportunity to use a product or see it in operation the chances of closing the sale increase by 17%.

There are a couple of additional rules to bear in mind.

1. Check any products first to make sure they work. This should be done in advance of your customers coming into the store. There is nothing more embarrassing than attempting to demonstrate a product that has a faulty part that doesn’t work.
2. Make sure you can demonstrate with confidence by rehearsing in advance. Take turns at demonstrating products with your colleagues.
3. Be completely familiar with any safety considerations associated with the product.

Case Study: Piano Virtuoso
When my daughter was 7 or 8 years old she expressed an interest in learning to play the piano. So we headed out on a shopping expedition to purchase a piano. Having no experience in anything musical, I relied on the knowledge of the salesperson in the retail store. What would be best for her as a beginner? Which makes and models held their value best in case she didn’t maintain her interest? And so on.

In one store we came across a knowledgeable salesperson who clearly enjoyed seeing a child being introduced to a musical instrument. He answered my questions, translated the features into benefits and took an interest in my daughter as well as me. He almost had us there… then he blew it!

He sat down at the piano to demonstrate and proceeded to stun us by playing the most amazing piece. Then he got up and asked my daughter to have a go. She wouldn’t go near the piano. He had totally intimidated her with his virtuoso performance.

We politely excused ourselves and a few days later bought the same piano from another retail store where my daughter didn’t feel intimidated.

The lesson from this is that whether you are demonstrating a new computer gizmo or an electrical guitar if you concentrate on showing off your skills rather than demonstrating ease of use, you may intimidate the customer. And if they are unwilling to try it they are unlikely to buy it.

These tips come from Jurek Leon’s new two volume, ‘Retail Selling: The Complete Do-It-Yourself Training Programme’. Check the Terrific Trading website for more tips and information on the DIY program.

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Great Retirement Presents Under $50

A retirement gift is a great way to show appreciation to an employee or congratulate a friend! While you certainly should give a little gift to the soon-to-be retired guy or gal, you definitely don’t want to break the bank. Traditionally a company would offer their retiring employee a gold watch as a farewell gift, but those days are long gone. Nowadays, you can be really creative with the type of farewell gift you would like to offer the retiree.

Engraved Plaque or Frame
An engraved plaque or frame is a really wonderful way to show your appreciation to an employee or co-worker. A plaque has plenty of room for you to offer your thanks for a retiree’s service or a special message about retirement. For a great co-worker who is retiring, you might consider a nice engraved picture frame that has a picture of you and the co-worker at your favorite lunch spot or a group shot of your co-worker’s favorite office friends with a special or even humorous message about retirement.

Mini Gift Basket
If your retiree lives far away, but you would still like to get him or her something special for retirement, then consider a mini gift basket full of goodies. There are lots of themed gift baskets that can be ordered online and delivered right to your retiree’s home. A fun themed gift basket for a new retiree might be “breakfast in bed” because now he or she will be able to sleep in until whenever they want! And gift baskets don’t always have to filled with chocolate and cookies, there are even great healthy gift baskets for retirees who are watching what they eat. So it will be fun to find a great gift basket that matches your retiree’s personality and they will be thrilled to receive such a thoughtful gift.

Make Your Own Mini Gift Basket
If you can’t find a gift basket that would be perfect for your favorite retiree, then consider putting together your own! A coffee related gift basket can be full of new gourmet coffee flavored beans, a cool coffee mug, and maybe some candies. Or a fun beach themed gift basket can include a nice beach blanket, sunscreen, healthy snacks – all tucked into a new beach bag! Making your own gift basket can be cost effective and you might even get your friends and co-workers in on the deal to create a mega gift basket where each person contributes a little something for the retiree!

Personalized Hobby-related Goods
Retirement is all about fun! So if you know what drives your retiree to wake up in the morning, then consider getting a fun hobby-related retirement present. If your retiree loves to go fishing, then consider a nice fisherman’s hat with the retiree’s name embroidered on it. If your retiree loves to workout, then a new personalized gym bag would make a great gift. Finding a hobby related gift may be a little more difficult than finding a traditional retirement gift, but it will mean so much to the retiree that you went to the trouble to make their gift memorable.

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