1
00:00:08,560 --> 00:00:09,060
All right.

2
00:00:09,060 --> 00:00:11,130
So in reality, I
shouldn't even be

3
00:00:11,130 --> 00:00:13,980
teaching a chapter on
bargaining because if you listen

4
00:00:13,980 --> 00:00:17,060
to everything else,
you've negotiated great,

5
00:00:17,060 --> 00:00:18,960
and you're not going
to need to bargain.

6
00:00:18,960 --> 00:00:21,210
The deal will have made itself.

7
00:00:21,210 --> 00:00:24,300
In those instances,
we do need to get down

8
00:00:24,300 --> 00:00:26,520
to brass tacks bargaining.

9
00:00:26,520 --> 00:00:28,080
Here's some techniques.

10
00:00:28,080 --> 00:00:29,040
[MUSIC PLAYING]

11
00:00:34,800 --> 00:00:37,950
The Ackerman System
is a bargaining model

12
00:00:37,950 --> 00:00:40,500
attributed to a gentleman
named Mike Ackerman.

13
00:00:40,500 --> 00:00:42,780
I was taught this
bargaining model

14
00:00:42,780 --> 00:00:45,280
when I was doing kidnapping
negotiations with the FBI.

15
00:00:45,280 --> 00:00:48,670
And they laid out basically,
you have a target price

16
00:00:48,670 --> 00:00:50,840
you want to come to.

17
00:00:50,840 --> 00:00:52,580
Once you've picked
out your target price,

18
00:00:52,580 --> 00:00:55,820
you're going to come in
at 65% of that price.

19
00:00:55,820 --> 00:00:59,030
You're going to plan on
making three raises to get

20
00:00:59,030 --> 00:01:01,510
to the price that you wanted.

21
00:01:01,510 --> 00:01:04,030
And the first raise is
going to be 20% raise,

22
00:01:04,030 --> 00:01:05,680
the next raise is
going to be 10%,

23
00:01:05,680 --> 00:01:07,870
the last raise is
going to be 5%.

24
00:01:07,870 --> 00:01:13,470
Each one of your raises are
decreasing increments by half.

25
00:01:13,470 --> 00:01:15,510
And then when you get
to the very last number,

26
00:01:15,510 --> 00:01:18,150
you make sure you throw
out an odd number,

27
00:01:18,150 --> 00:01:23,520
and you also throw in
some non-monetary object

28
00:01:23,520 --> 00:01:25,950
that you know the other
side doesn't want,

29
00:01:25,950 --> 00:01:28,770
but it makes them feel like
they've really tapped you out.

30
00:01:28,770 --> 00:01:30,550
They've taken every last dime.

31
00:01:30,550 --> 00:01:33,900
You know, they've fought
you tooth and nail.

32
00:01:33,900 --> 00:01:36,600
They've felt the
decreases in increments.

33
00:01:36,600 --> 00:01:38,670
They still feel like
they're winning.

34
00:01:38,670 --> 00:01:40,180
You come in with
the last number.

35
00:01:40,180 --> 00:01:41,430
It's an odd number.

36
00:01:41,430 --> 00:01:44,430
It seems like that you
scratched for every penny.

37
00:01:44,430 --> 00:01:47,640
And consequently, they
worked so hard to get there

38
00:01:47,638 --> 00:01:48,928
that they want to cut the deal.

39
00:01:48,930 --> 00:01:50,280
They're not going to renege.

40
00:01:50,280 --> 00:01:59,180
All right, so I'm trying to
buy a coffee table for $100.

41
00:01:59,180 --> 00:02:00,430
And that's what I want to pay.

42
00:02:00,430 --> 00:02:02,770
They're asking $150,
they're asking $200.

43
00:02:02,770 --> 00:02:04,450
They might be asking $250.

44
00:02:04,450 --> 00:02:07,180
It doesn't matter.

45
00:02:07,176 --> 00:02:09,506
I'm going to see what their
reaction is when I throw out

46
00:02:09,509 --> 00:02:10,789
my initial price.

47
00:02:10,789 --> 00:02:13,299
So I'm going to come in at
65% of where I want to end up.

48
00:02:13,300 --> 00:02:18,330
So I'm going to say, look,
you know, I got a price.

49
00:02:18,330 --> 00:02:20,720
I'll give you the price, but
you're not going to like it.

50
00:02:20,720 --> 00:02:21,930
I mean, it's going to be low.

51
00:02:21,928 --> 00:02:23,638
It's really going to be low.

52
00:02:23,640 --> 00:02:27,230
And I got a feeling that
when I give you this price,

53
00:02:27,230 --> 00:02:28,790
it's going to make
you really angry,

54
00:02:28,790 --> 00:02:31,060
and the last thing I
want to do is offend you.

55
00:02:31,060 --> 00:02:35,950
So I'm scared to
give you the price.

56
00:02:35,950 --> 00:02:38,170
Well, you're getting their
permission, you know.

57
00:02:38,170 --> 00:02:40,550
You're giving them some
emotional anchoring.

58
00:02:40,548 --> 00:02:42,338
What they're thinking,
like, this guy wants

59
00:02:42,340 --> 00:02:43,600
a coffee table for nothing?

60
00:02:43,600 --> 00:02:45,610
What's he going to give me,
$5.00 for the coffee table?

61
00:02:45,610 --> 00:02:46,650
They're going to
imagine something

62
00:02:46,650 --> 00:02:48,970
that's worse than what
you would ever throw out.

63
00:02:48,970 --> 00:02:51,070
So you finally
give me permission

64
00:02:51,070 --> 00:02:52,850
to give you the price.

65
00:02:52,850 --> 00:02:55,510
And I say, no, it's
going to make you angry.

66
00:02:55,510 --> 00:02:57,440
You know, I'm scared.

67
00:02:57,442 --> 00:02:58,902
I'm afraid to give
you this number.

68
00:02:58,900 --> 00:03:02,000
And they'll almost beg you
to give them the number.

69
00:03:02,000 --> 00:03:08,380
And then very apologetically,
you gotta say, $65.00.

70
00:03:08,380 --> 00:03:11,080
Now they're not going to
be happy with that price,

71
00:03:11,080 --> 00:03:13,770
but they asked you for it.

72
00:03:13,773 --> 00:03:15,943
They're not going to get
angry because you told them

73
00:03:15,940 --> 00:03:18,070
they were going to get
angry, and that diffused it.

74
00:03:18,065 --> 00:03:20,225
And you were deferential
the whole time.

75
00:03:20,220 --> 00:03:21,920
I mean, they feel powerful.

76
00:03:21,920 --> 00:03:23,710
You know, they feel bad for you.

77
00:03:23,710 --> 00:03:26,150
But after you throw your
number, then your next move

78
00:03:26,150 --> 00:03:28,240
has got to be tactical empathy.

79
00:03:28,240 --> 00:03:29,990
It's got to be the
application of empathy.

80
00:03:29,990 --> 00:03:31,320
It's got to be apology.

81
00:03:31,318 --> 00:03:32,858
They're going to
say, well, you know,

82
00:03:32,860 --> 00:03:33,930
that's not what I had in mind.

83
00:03:33,930 --> 00:03:34,690
You gotta do better than that.

84
00:03:34,690 --> 00:03:35,920
I mean, that's ridiculous.

85
00:03:35,920 --> 00:03:37,710
If they're a
seasoned negotiator,

86
00:03:37,713 --> 00:03:38,883
they're give you the flinch.

87
00:03:38,880 --> 00:03:41,430
They're gonna go, oh my
god, it's ridiculous.

88
00:03:41,427 --> 00:03:42,007
It's horrible.

89
00:03:42,010 --> 00:03:44,560
And that's where you gotta
ply them, say, you know,

90
00:03:44,560 --> 00:03:46,460
I'm so sorry.

91
00:03:46,460 --> 00:03:48,270
You know, it's horrible.

92
00:03:48,270 --> 00:03:50,380
I can see that
I've offended you.

93
00:03:50,380 --> 00:03:52,120
And you're asking
a reasonable price,

94
00:03:52,120 --> 00:03:54,250
and I'm being ridiculous.

95
00:03:54,250 --> 00:03:56,890
And you just gotta
continue to hit them

96
00:03:56,890 --> 00:03:59,080
with versions of empathy.

97
00:03:59,080 --> 00:04:00,940
And you gauge their reaction.

98
00:04:00,940 --> 00:04:04,150
You know, you've got to push
them every step of the way

99
00:04:04,150 --> 00:04:07,480
because when you get to the
number that you've settled at,

100
00:04:07,480 --> 00:04:08,890
you need them to execute.

101
00:04:08,890 --> 00:04:12,080
You need them to be
happy with that number.

102
00:04:12,080 --> 00:04:14,130
So the next point is
you're not budging off

103
00:04:14,130 --> 00:04:16,460
your number until they
come off their number.

104
00:04:16,458 --> 00:04:18,748
Whatever amount of money they
come off of their number,

105
00:04:18,750 --> 00:04:20,040
then you've got to be grateful.

106
00:04:20,042 --> 00:04:21,882
Oh, you know, thank you.

107
00:04:21,880 --> 00:04:23,650
That was generous.

108
00:04:23,650 --> 00:04:26,830
You gotta enhance the
positive emotions.

109
00:04:26,830 --> 00:04:28,900
You know, they feel
like they've given in.

110
00:04:28,900 --> 00:04:32,380
You don't want them
to regret giving in.

111
00:04:32,380 --> 00:04:34,180
You tell them that
you appreciate

112
00:04:34,180 --> 00:04:37,030
that they were generous and
congratulate him on that.

113
00:04:37,030 --> 00:04:40,020
Now your next number
is going to be $85.

114
00:04:42,670 --> 00:04:44,920
They're going to feel like
that's still not where they

115
00:04:44,920 --> 00:04:47,620
want to be, but they're going to
feel a sense of accomplishment

116
00:04:47,620 --> 00:04:50,740
that you've come
from $65 to $85.

117
00:04:50,740 --> 00:04:52,180
And again, you gotta apologize.

118
00:04:52,180 --> 00:04:53,680
I'd like to give
you another number.

119
00:04:53,680 --> 00:04:55,510
I mean, I've worked
really hard at this.

120
00:04:55,510 --> 00:04:57,600
It's been difficult
for me to get to this.

121
00:04:57,600 --> 00:04:59,260
You know, as a matter
of fact, I gotta

122
00:04:59,260 --> 00:05:01,840
go back and check my finances
before I get this number.

123
00:05:01,840 --> 00:05:03,370
I gotta check with the people.

124
00:05:03,370 --> 00:05:05,170
I'm not sure I can cover this.

125
00:05:05,170 --> 00:05:09,630
So you've thrown out your $85.

126
00:05:09,630 --> 00:05:11,220
They're still
fairly disappointed,

127
00:05:11,220 --> 00:05:13,350
but they feel like
now they're hungry.

128
00:05:13,350 --> 00:05:15,140
They're making progress.

129
00:05:15,140 --> 00:05:17,190
You know, they feel that
the process with you

130
00:05:17,190 --> 00:05:20,570
is making progress.

131
00:05:20,570 --> 00:05:23,650
And as long as people
are making progress,

132
00:05:23,650 --> 00:05:26,600
it enhances their ability
to stay in the deal.

133
00:05:26,600 --> 00:05:28,120
Now your next move is at $95.

134
00:05:28,120 --> 00:05:30,370
Now they're going to feel
a sense of accomplishment.

135
00:05:30,370 --> 00:05:33,730
But they're going to know that
that last move that you made

136
00:05:33,730 --> 00:05:36,780
was smaller than the first one.

137
00:05:36,780 --> 00:05:41,130
Always increase by
decreasing increments.

138
00:05:41,130 --> 00:05:43,070
Always.

139
00:05:43,070 --> 00:05:46,040
You've got to manage the raises.

140
00:05:46,040 --> 00:05:48,150
Your next raise at $95.

141
00:05:48,150 --> 00:05:52,740
Now you go through the
whole scenario again,

142
00:05:52,740 --> 00:05:57,090
you know, the whole
dramatic scenario.

143
00:05:57,090 --> 00:05:59,280
The application of
empathy, the recognition

144
00:05:59,280 --> 00:06:01,650
that they were generous,
the recognition that you're

145
00:06:01,650 --> 00:06:05,110
probably making them angry.

146
00:06:05,110 --> 00:06:08,020
After $95, your last
move's at the number

147
00:06:08,017 --> 00:06:09,097
that you're going to give.

148
00:06:09,100 --> 00:06:10,840
The number's gotta
be an odd number.

149
00:06:10,840 --> 00:06:13,000
Everybody likes odd numbers.

150
00:06:13,000 --> 00:06:14,470
It's got to come
out reluctantly.

151
00:06:14,470 --> 00:06:18,280
If you had planned
on spending $100,

152
00:06:18,280 --> 00:06:24,890
then you really need
to come in at $97.43.

153
00:06:24,890 --> 00:06:26,630
If you have the
opportunity, ask them

154
00:06:26,630 --> 00:06:28,070
for a piece of
paper and a pencil

155
00:06:28,070 --> 00:06:29,450
and start writing numbers down.

156
00:06:29,450 --> 00:06:31,030
It doesn't matter
what you write down.

157
00:06:31,033 --> 00:06:32,123
Write down your birthday.

158
00:06:32,120 --> 00:06:33,560
Write down today's date.

159
00:06:33,560 --> 00:06:35,690
Write down how much you weigh.

160
00:06:35,690 --> 00:06:38,630
You know, make a show that
you're working really hard.

161
00:06:38,630 --> 00:06:40,530
You're tapping the
resources, where

162
00:06:40,533 --> 00:06:42,953
they're going to feel like
they worked really hard for it.

163
00:06:42,950 --> 00:06:44,450
They're going to
feel like they've

164
00:06:44,450 --> 00:06:46,930
tapped into your last dime.

165
00:06:46,930 --> 00:06:50,440
They're probably going
to try to take one more

166
00:06:50,440 --> 00:06:52,150
move at you to get
you off that number,

167
00:06:52,150 --> 00:06:56,980
and that's when you go, like,
ah, you know, ah, you know,

168
00:06:56,980 --> 00:06:58,230
I've got a really nice jacket.

169
00:06:58,230 --> 00:06:59,080
Would you like my jacket?

170
00:06:59,080 --> 00:07:00,670
Would you like the
shirt off my back?

171
00:07:00,672 --> 00:07:02,632
Effectively that's what
you're doing, you know.

172
00:07:02,630 --> 00:07:05,650
But you're playing into
the human nature aspects

173
00:07:05,650 --> 00:07:08,060
here, which is a little
bit of drama play.

174
00:07:08,060 --> 00:07:10,910
I realize but these are
people with emotions

175
00:07:10,910 --> 00:07:11,660
on the other side.

176
00:07:11,660 --> 00:07:15,260
Even sociopaths have emotions.

177
00:07:15,260 --> 00:07:16,790
So whoever's on
the other side, you

178
00:07:16,790 --> 00:07:19,190
need to make them feel a
sense of accomplishment

179
00:07:19,190 --> 00:07:22,070
that this was a victory,
a hard won victory.

180
00:07:22,070 --> 00:07:24,050
They got you there
every step of the way.

181
00:07:24,050 --> 00:07:26,660
They felt the brakes coming
on the situation when

182
00:07:26,660 --> 00:07:28,340
each move was
less, until finally

183
00:07:28,340 --> 00:07:31,220
that odd number came out
there, and then the shirt

184
00:07:31,220 --> 00:07:33,450
off your back, whatever it is.

185
00:07:33,450 --> 00:07:35,660
And if they're going
to make the deal,

186
00:07:35,660 --> 00:07:38,190
they'll make it there because
they worked so hard for it.

187
00:07:38,191 --> 00:07:40,151
[MUSIC PLAYING]

188
00:07:44,580 --> 00:07:48,780
A lot of people are told
go first and go high.

189
00:07:48,780 --> 00:07:52,830
I think that's a bad
idea because it's

190
00:07:52,830 --> 00:07:55,840
forgoing the opportunity to
gather information first.

191
00:07:55,835 --> 00:07:57,965
I'm going to want to know
where you're coming from.

192
00:07:57,960 --> 00:08:00,440
When you throw a price
out and how you throw out,

193
00:08:00,440 --> 00:08:03,300
it's he's going to give me a
lot of information about you.

194
00:08:03,300 --> 00:08:04,950
And that's information
that I want.

195
00:08:04,950 --> 00:08:07,110
I love information.

196
00:08:07,110 --> 00:08:09,570
Every bit of information
I get in a negotiation

197
00:08:09,570 --> 00:08:13,030
makes me smarter
every step of the way.

198
00:08:13,030 --> 00:08:15,810
So if you go first, I
get information on you.

199
00:08:15,810 --> 00:08:18,420
You haven't gotten any
information on me .

200
00:08:18,420 --> 00:08:21,210
If somebody is really
pushing you to go first,

201
00:08:21,210 --> 00:08:24,420
it's also an opportunity
to pivot the terms.

202
00:08:24,420 --> 00:08:27,840
You can say, all right, so I'll
be happy to give you a number.

203
00:08:27,840 --> 00:08:29,820
Let's set that aside
for a few minutes

204
00:08:29,820 --> 00:08:31,320
and let's talk about
what it's going

205
00:08:31,320 --> 00:08:32,880
to take to make a great deal.

206
00:08:32,877 --> 00:08:34,707
I mean, what looks like
a great deal to you?

207
00:08:34,710 --> 00:08:36,730
What else do you
have to have in order

208
00:08:36,730 --> 00:08:39,210
to make any price that
I give you a good price?

209
00:08:39,210 --> 00:08:42,810
It's always good to prepare
some things beforehand so

210
00:08:42,807 --> 00:08:45,387
that you're not caught off guard
in the moment trying to think

211
00:08:45,390 --> 00:08:47,490
of what those things might be.

212
00:08:47,490 --> 00:08:50,700
And when you start to
prepare that list beforehand,

213
00:08:50,700 --> 00:08:54,090
realize that it's really
a brainstorming list.

214
00:08:54,090 --> 00:08:56,250
It's to trigger some thoughts.

215
00:08:56,250 --> 00:08:58,410
You really want to
engage in brainstorming

216
00:08:58,410 --> 00:09:02,430
with the other side because
nearly every circumstance, even

217
00:09:02,430 --> 00:09:04,630
in a one off
negotiation, there's

218
00:09:04,630 --> 00:09:07,350
going to be some stuff that
they could throw in that you

219
00:09:07,350 --> 00:09:09,000
might not know that they have.

220
00:09:09,000 --> 00:09:11,400
And if you engage in a
collaborative brainstorming

221
00:09:11,400 --> 00:09:13,410
session, between
the two of you, you

222
00:09:13,410 --> 00:09:16,240
may come up with some ideas,
again, to make a great deal.

223
00:09:16,235 --> 00:09:18,365
Yeah, you can use this when
you're buying your car.

224
00:09:18,360 --> 00:09:20,670
You can set the price off
to the side for the moment

225
00:09:20,670 --> 00:09:22,620
because there's always going to
be other inducements that they

226
00:09:22,620 --> 00:09:24,540
want to add and to get
you to make that deal.

227
00:09:24,540 --> 00:09:26,780
You know, what kind of
follow-up service do you want?

228
00:09:26,778 --> 00:09:29,068
What are they willing to
throw in at this point in time

229
00:09:29,070 --> 00:09:31,370
to try to get their price?

230
00:09:31,370 --> 00:09:33,090
They're probably
going to be a lot more

231
00:09:33,090 --> 00:09:36,900
flexible on the other terms,
on the follow-up service.

232
00:09:36,900 --> 00:09:39,900
Free car when you come in
for its routine maintenance.

233
00:09:39,900 --> 00:09:42,630
Do you get a rental car to
drive around while you've

234
00:09:42,630 --> 00:09:45,840
got your car in their shop?

235
00:09:45,840 --> 00:09:47,670
What are the other
maintenance add-ons

236
00:09:47,670 --> 00:09:50,560
that they might be willing
to throw in to make the deal?

237
00:09:50,557 --> 00:09:52,137
And that's actually
a really good move

238
00:09:52,140 --> 00:09:53,910
because people
can get so focused

239
00:09:53,910 --> 00:09:57,920
on price that they forget that
it's going to be the terms that

240
00:09:57,917 --> 00:09:58,497
make the deal.

241
00:09:58,500 --> 00:10:00,290
The price will break
the deal, but the deal

242
00:10:00,292 --> 00:10:02,612
is made on the strict terms.

243
00:10:02,612 --> 00:10:04,592
[MUSIC PLAYING]

244
00:10:08,570 --> 00:10:11,330
Well, setting a
range is a great way

245
00:10:11,330 --> 00:10:14,990
to not exactly name
price first also.

246
00:10:14,990 --> 00:10:18,260
You can do a range of what's
going on in the market.

247
00:10:18,260 --> 00:10:21,600
You can do a range of what
you might be willing to pay.

248
00:10:21,600 --> 00:10:25,110
Understand that whenever
you throw out a range,

249
00:10:25,110 --> 00:10:28,310
the other side is going
to settle on the end

250
00:10:28,310 --> 00:10:31,040
that most favors them.

251
00:10:31,040 --> 00:10:32,960
Then I gotta
compromise and meet you

252
00:10:32,960 --> 00:10:34,160
in the middle of that range.

253
00:10:34,160 --> 00:10:35,540
You threw out a
range hoping they

254
00:10:35,540 --> 00:10:37,480
come in and pick the
number in the middle

255
00:10:37,483 --> 00:10:38,903
because they're
trying to be nice.

256
00:10:38,900 --> 00:10:40,340
That's not going to happen.

257
00:10:40,340 --> 00:10:44,210
They're going to pick the end
on that range that favors them.

258
00:10:44,210 --> 00:10:45,950
You better be willing
to accept that.

259
00:10:45,950 --> 00:10:48,630
If you come off of
that, then they're

260
00:10:48,630 --> 00:10:50,460
going to be able to
accuse you of bad faith

261
00:10:50,460 --> 00:10:52,510
bargaining for good
reason because you

262
00:10:52,507 --> 00:10:54,837
gave the impression if you
threw that number, that you'd

263
00:10:54,840 --> 00:10:55,540
take it.

264
00:10:55,542 --> 00:10:57,002
But a range is
going to be dictated

265
00:10:57,000 --> 00:11:00,120
by two things, what's
going on in the market

266
00:11:00,120 --> 00:11:02,620
and what you can pay.

267
00:11:02,620 --> 00:11:05,020
What you can pay may
not line up with what's

268
00:11:05,020 --> 00:11:07,300
going on in the market.

269
00:11:07,300 --> 00:11:10,250
And there's always a possibility
that other terms still

270
00:11:10,250 --> 00:11:13,070
might make your number work.

271
00:11:13,070 --> 00:11:15,740
And that's why the brainstorming
with your counterpart

272
00:11:15,740 --> 00:11:19,070
is extremely important because
there may be something really

273
00:11:19,070 --> 00:11:21,290
valuable that you
could do that's not

274
00:11:21,290 --> 00:11:23,190
reflected in the market.

275
00:11:23,190 --> 00:11:25,310
Great collaboration,
it creates success

276
00:11:25,310 --> 00:11:29,120
for both sides in the
future is always valuable.

277
00:11:29,120 --> 00:11:31,790
So understand what
your ranges are,

278
00:11:31,790 --> 00:11:33,990
what the market ranges
are, and then go out

279
00:11:33,986 --> 00:11:36,046
and try to make a great deal.

280
00:11:36,048 --> 00:11:37,968
[MUSIC PLAYING]

281
00:11:41,800 --> 00:11:45,710
An anchor is a price
that you throw out

282
00:11:45,710 --> 00:11:50,460
that's quite some distance
from where you expect to land.

283
00:11:50,460 --> 00:11:53,960
So if you want to pay
$100 for something,

284
00:11:53,960 --> 00:11:58,600
I may throw out right off
the bat that I can pay $20.

285
00:11:58,600 --> 00:12:01,100
I'm going to throw something
out that's quite some distance,

286
00:12:01,100 --> 00:12:03,440
gives me a lot of
room to maneuver.

287
00:12:03,440 --> 00:12:08,060
Makes you feel like you won when
you get me to my actual price.

288
00:12:08,060 --> 00:12:10,940
So you're going to
get a lot of advice

289
00:12:10,940 --> 00:12:14,090
that you should anchor extreme.

290
00:12:14,090 --> 00:12:17,080
You should go high,
you should go low.

291
00:12:17,082 --> 00:12:19,542
And people are going to tell
you over and over again that's

292
00:12:19,540 --> 00:12:22,430
going to give you better deals.

293
00:12:22,430 --> 00:12:25,160
What it's really going to do
is make a lot of deals go away.

294
00:12:25,160 --> 00:12:27,410
The terms make the deal.

295
00:12:27,410 --> 00:12:30,460
Make great deals,
don't extreme anchor,

296
00:12:30,455 --> 00:12:32,335
and you're going to go
a lot farther and have

297
00:12:32,330 --> 00:12:34,430
a lot more people doing
business with you,

298
00:12:34,430 --> 00:12:36,970
and you will not drive
deals away from the table.

299
00:12:36,965 --> 00:12:38,845
I'm more concerned with
the emotional anchor,

300
00:12:38,840 --> 00:12:41,900
the emotional
reaction to my price.

301
00:12:41,900 --> 00:12:45,740
If I go with a high
price with no warning,

302
00:12:45,740 --> 00:12:49,550
the emotional reaction from
you is going to be negative.

303
00:12:49,550 --> 00:12:53,420
Negative reactions
leave a toxic residue

304
00:12:53,420 --> 00:12:58,060
that, by and large, long term,
are bad for relationships.

305
00:12:58,063 --> 00:13:00,233
Now on the other hand, I
will characterize my number

306
00:13:00,230 --> 00:13:02,750
before I throw it out because
I want you to actually

307
00:13:02,750 --> 00:13:05,480
be relieved when I
give you my number.

308
00:13:05,477 --> 00:13:07,307
So I'm going to say,
look my number is high.

309
00:13:07,310 --> 00:13:09,350
Don't expect anything
other than that to be high.

310
00:13:09,350 --> 00:13:11,600
It's going to be higher than
you expect, probably more

311
00:13:11,600 --> 00:13:15,500
than you plan to pay,
maybe more than you have.

312
00:13:15,500 --> 00:13:17,130
Now by the time I
drop that number,

313
00:13:17,130 --> 00:13:19,670
you're not going to
overreact to the number.

314
00:13:19,670 --> 00:13:22,310
It may still be more
than you plan to pay,

315
00:13:22,310 --> 00:13:25,030
but you're not going
to be mad about it.