When I negotiate prices and whatnot and it seems to go bad, I always think: "What would Donald Trump do?" and it actually works 99% of the time.
That's interesting Marcel. Could you give an example of a situation you faced a price negotiation and the thinking process you applied as DT?
A few times based on what I consider some of his tactics
Hyperbole Yes, it might be expensive. But this is going to be the most fantastic thing we've ever build and believe me we've build things like this for a long time but none as good as this. (we actually won an award with this thing while we were ill equipped to build it - the company later shut down because they had construction work and loans for non-existing theme parks on the books. So our bluff was minor in comparison ;) )
Cost increase / take it or leave it "You broke our contract and agreement by adding all these requirements and we're nearly out of time. I don't think we can do this project anymore unless you increase the budget. If you don't, find someone else to finish it and no one will take that risk or meet the deadline. The launch is the day after tomorrow, the quote is in the mail, the clock is ticking." (they basically overplayed their hand by demanding more and more changes at the last minute and never expected that we'd shut the whole thing down in response)
Thanks for the examples Marcel. From your stories I understand that you used these two negotiation tactics mostly to increase revenue. While I know that it might be a very significant factor, I see negotiations as relationship builders. It's a nice idea to ask yourself: "Will this client be happy to work with us again after this?", "Will he order another design work?" If you think long term, you might find yourself negotiating more, making more revenue in a longer period of time. The Lean Negotiation is a tool to create those relationships, gain trust. In my opinion, you are taking a risk with the described negotiation methods. You even called it a bluff - eventually clients will understand it's a bluff, right?
My advice is be transparent, gain trust and more than anything think like your client, understand his or her objectives - make their company successful and you'll be a part of this success :)
You're welcome :)
I use it with moderation and prefer trust/partnerships/transparency but it can be tough because..
Competitors do it as well, some almost all the time without batting an eye.
Cultivating/building relationships is nice but in some industries people come and go at a rapid pace (with one project I've had 3 different project managers on the client side) Often new people bring in their own contacts or hire new teams for no reason but to shake things up and impress management. So you really need to secure your own position on the long term.
Sometimes you have to protect clients from themselves and be dominant in the negotiations. I've seen people negotiate deals which at first looked great for the client because they got all they wanted at a massive discount but in the end turned sour for all parties involved.
Clients rarely reward you with loyalty. You can give them discounts, be the best partner in the business and all that but if they're bored of their website after three years they will work with someone else just as likely. At some point you get a call from a different agency/freelancer asking to move the domain of one of your best and most trusted clients. And you will make those same calls to your competition as well.
Not only do you need to make your clients successful, you also need to find some way to profit from that success as they won't remain your client 'forever'. That allows you to invest in better technology, skills, people and make your clients even more successful.
One of these days I'm gonna combine two buzzwords, write a 120 page book about it and live of the workshop/keynote speaker bookings for the rest of my life
Good Luck. BTW, behind those two buzzwords there's a lot of thinking, hard work and many people you affect and impact. I hope you will do something like that - if it will help at least one entrepreneur or designer it would be worth it.
Sorry if it came of as a critique Illai - it wasn't and I think it is an interesting article. I was simply making fun of all the new methods emerging these days combining two terms from other methodologies