Some types of preparation seem almost instinctive to many people. Every family seems to have a designated researcher. If preparation know-how doesn’t come naturally to you or your family, try to make a game of it. If you are entering a negotiation to buy or sell a product or service, pretend that you’re solving a mystery — the mystery of value. What is the product or service worth? Forget about the asking price — what is it really worth?Begin with these two important facts:
- Value is always in the eye of the beholder. When you finish with your research, only you can conclude the ultimate value a service or product holds for you. You’re the one who will be spending (or receiving) your money. You must decide.
- From diamonds to dime stores, experts compile price surveys and put out a report on what various items are fetching in the marketplace. These publications are how insiders know what’s going on in the world. Whether you’re buying a hotel or a holiday in a hotel, you can find insider information on the price of the purchase.
Don’t forget that values change over time. One important thing for you to decide, if you are a purchaser, is how long you’re going to keep the item you are buying. The longer you plan to keep your purchase, the longer it needs to hold its value. Information about normal depreciation is as available as information on current value — usually in the same place. Knowing the rate of depreciation for an item is certainly just as important as knowing its current value.
As you gather information, be sure to keep good notes. You can’t expect to keep all the facts you gather in your head. Good notes are easy to make as you go and can be invaluable as negotiations progress. Usually, one or two kinds of negotiation recur in your business. For those recurring negotiations, you may want to keep a separate notebook with the information you gather. For example, if you are a service provider or a consultant, your time is your inventory.
You may have a set fee (or fee range) depending on how much time you spend and how far away the contract takes you from your home base. (Remember: You usually can’t charge for jet lag recovery time, but you expend your time nevertheless.) Keeping accurate notes can help you determine whether your fee structure is adequate or whether you need to demand more during future negotiations.
As you gather information, be sure to keep good notes. You can’t expect to keep all the facts you gather in your head. Good notes are easy to make as you go and can be invaluable as negotiations progress. Usually, one or two kinds of negotiation recur in your business. For those recurring negotiations, you may want to keep a separate notebook with the information you gather. For example, if you are a service provider or a consultant, your time is your inventory.
You may have a set fee (or fee range) depending on how much time you spend and how far away the contract takes you from your home base. (Remember: You usually can’t charge for jet lag recovery time, but you expend your time nevertheless.) Keeping accurate notes can help you determine whether your fee structure is adequate or whether you need to demand more during future negotiations.
No comments:
Post a Comment