Spoils To Be Gained By Negotiation Over The Phone

Back in 1996, we needed a car. Not one of those one with the gear shift and stuff because I really didn't get that. I'd married a man with a car I couldn't drive so now we were in the unique position of being penniless and needing a car. (Ah, the glory days.) I'm sure some of you can relate to this. One partner says 'used all the way' and the other one says 'no way, Jose!'

That's pretty much where we were with his firm belief a new car was best and I had to roll with it in the end.

I'll never forget going to the dealership to buy the car we wanted, knowing as I did that they had negotiated in the past with other customers for a lower price. I sat there and I tried to negotiate and the person completely shut me down. No negotiation. Now, I admit to having a temper when I feel like I'm being treated like a young'in or worse yet a girl. I see shades of prejudice and I am not a happy camper.

With my newfound ire, I picked up the phone and mercilessly dialed one car place after another, always repeating that I wouldn't name a price but I wanted the best deal. I always told them I would drive to wherever had the cheapest negotiated price and I meant over the phone. I never gave my name, my address, my phone number or really any other particulars than the car we wanted.

I repeated this over and over and over again until I thought I had the best price. Then, I phoned up my next place and gave them my guestimate of what would be rock bottom. They said that was impossible. So naturally, I went back to the one that promised me the lowest price and I was happy knowing it couldn't be beat. It translated into 1500 off the sticker price, no mere savings.

Years later, I did this with our second car. It worked both times and had become our way of buying a car.

Recently, I found the same holds true for dialing for rental spaces. I phoned around. I knew what I was willing to pay and I continuously lowered that price and asked for toilet paper to be included and a free cleaning at the end of the week when we were done with the place. My demands were totally unreasonable, especially as I needed the venue by Monday and it was Friday. Long story short, I immediately had one 'yes' over the phone, though in describing the place it was more of a fall back. I moved on to another few phone calls but it was literally two phone calls later to a massive place. Again, I was unreasonable over the phone, asking for approval in the next five minutes if I liked their prices and they included toilet paper.

Within seconds, we had a deal and she wanted me to immediately come down and fill in the paperwork and then hand over the cheque. Upon renting the facility and concluding the transaction that only cost me slightly higher than my demands, she told me that the place usually rents for over double, almost triple the price. And before you go thinking my unreasonable demands were motivated by higher profits, they really weren't. People were counting on this event running and for it to run, prices had to be modest.

People may discount the phone as a powerful tool of negotiation that it is but in all my experiences, it is highly useful. There's probably countless other instances but here are the reasons that it works.

1. It has the sense of immediacy. Things get done in minutes.

2. If you don't like the price of the deal, you can say 'good-bye' and hang up. Walking away is a breeze when you don't have a relationship with the person selling something. If you ever go and test drive vehicles, the sales person sits beside you and builds up the car, tries to get to know you. That is how sales work. Relationships. However fleeting, they are effective.

3. Anyone can use this technique and do well. People on the other side of the phone figuring if you're calling with a firm idea in mind that you are serious with parting with your money.

4. You have the capacity to interrupt anyone at anytime of day and use the element of surprise.

What are the basics?

1. Don't give away too much information about yourself.

2. Know what you want.

3. Make unreasonable demands that can't possibly be met to see how much the other person will come down in price. Ask them if they can remove mud flaps and car mats to save additional money. You don't have to go through with it but in the end, the more unreasonable demands the better.

4. Make it clear that you're willing to go to another business to fulfill your needs if you don't get what you need. Even mention the other business by name.

5. Consider the point of a negotiation is that both parties more or less get something out of the deal. The true power is with the consumer. The dealership gets to sell a car. The rental place gets to rent a place that would have sat vacant.

6. The quicker you say you'll be needing the service or product, the more likely you are to be taken seriously.

Try your next negotiaton for a product or service over the phone. You'll love it!

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