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April 27, 2020

Dumping in the Deal

In my last post, I talked about how you can establish multiple points of leverage at the start of a negotiation.

Why is that so important?

Let me answer that with another question.

Have you ever been in a negotiation where the salesperson tries to dump little things into the deal right at the end?

You’ve spent a while talking about the deal. Then, right at the end, they dump these little things in to try and add some value.

What does that feel like to you?

To me, it tells me that the salesperson’s desperate. They may have this idea that they’re leaving the best areas of value until last. But to the person at the other end of the table, they’re just saying:

“What I’ve said hasn’t worked so far. Here’s a last-minute offer that I’m making out of desperation.”

You see this a lot when you’re talking to car salespeople.

You walk onto the lot and see that the sticker price is $50,000. The salesperson comes over to you and says that they have a drive-away car available for $43,000.

Has that salesperson just created any value in the deal?

No.

They’ve jumped right to the end and tried to dump a $7,000 price decrease into the deal to try to get you to buy.

Looking at this from the salesperson’s perspective, they’ve just lost $7,000 on the deal.

That’s why it’s so important to establish points of leverage right at the start. 

By doing that, you create what I call a default value.

That means that the client understands the real value in the offer right from the start. And throughout the negotiation, you keep coming back to it.

Thus, you reinforce the value.

When you get to the end of the negotiation, you won’t have to dump stuff into the deal to try to make a sale.

Send or click here to get a copy of my 7 Psychological MistakesThat Sales People Make and How to Fix Them.