How to Become a Better Negotiator: Crash Course Business – Soft Skills #8

How to Become a Better Negotiator: Crash Course Business – Soft Skills #8


Okay! Y’all have been working towards this moment
for weeks. You’ve learned about emotional influence. You’ve prepared your questions, alternatives,
and remember: clear goal, full hearts, can’t lose. If you need to brush up and rewatch those
videos… now’s your chance. Because it’s go time. It’s time for you to get your head in the
game and figure out your personal negotiation style. You gotta learn how to collaborate and what
cheap shots to watch out for. You have to learn the rules by heart: how
to start, pose a counter offer, avoid pitfalls, and make sure everyone is playing fair until
the deal is done. I’m Evelyn from the Internets. This is Crash Course Business: Soft Skills. And it’s time to negotiate. [INTRO MUSIC PLAYS] Negotiations are all about resolving conflict
through collaboration. You’re not actually trying to “crush
the competition.” I mean, sometimes, you’re in a completely
distributive negotiation with limited slices of proverbial pie. And there are a few things you can avoid to
make sure you don’t get the smallest piece. Say it was 1978 and you wanted to open an
ice cream parlor in Burlington, Vermont with a friend. Maybe you’ll call it something cute like… Ben and Jerry’s. You’ve found the perfect spot: an old gas
station in the central part of town. Since it’s a funky building that fits your
style and gets heavy foot traffic nearby, you’re willing to pay $1400 a month for
rent. I’m making this up, but work with me! And you’ve prepared for negotiation. So you know your alternative: a boring, smaller
storefront down the road for $1200 a month. And your target: $1400 a month. You need to start off strong. So, first, you shouldn’t start a negotiation
with a range of prices. If you offer a range, like $1200 to $1600,
you’ll lose leverage. Your negotiation partner will just pick the
price that works in their favor. Basically, they only hear $1600 a month because
that gets them more money. Don’t open with your target either, because
you probably won’t get it. Your collaborator is looking out for their
interests too, so they’ll try and counteroffer. Especially if it’s a situation where people
expect to negotiate, like over salary. That’s also why you shouldn’t take the
first offer you’re given. It’s probably not your collaborator’s
resistance point or their target, and you could get a better deal. The first number in a negotiation matters
because our brains are weird and don’t like randomness. We latch onto ideas and make up significance. It’s kind of like why we’re so good at
seeing shapes in clouds or coming up with constellations. Astronomers looked at a bunch of stars and
were like, “I mean, I guess that could be a scorpion.” In business negotiations, people get trapped
by anchoring. Even if a first offer is completely arbitrary,
your wacky brain is going to think that number is important and use it to inform the rest
of the negotiation. So if the owner of that old gas station starts
by asking for $2000 a month, take a breath and think about whether or not the offer is
fair. Because of anchoring and your irrational brain,
you may feel like you have to go closer to $2000, even if your original offer would
have been $1200. So don’t jump right in! Take time to propose a counter offer, and
don’t bargain against yourself by backing down right away. If you start with $1200, don’t go “wait…wait! $1500” just because they have a surly look
on their face. It doesn’t mean they’ve hit their resistance
point and are walking away. They’re probably just thinking! So be patient, be confident, and you may find
they’re willing to make a deal. And if you’re suddenly talking rental dates,
rental price, and refurbishment, try to move away from bargaining and toward an integrative
negotiation. To find those creative solutions, listen more
and talk less. Negotiations are scary. You may be nervous you won’t walk away with
what you need, or maybe you just really hate silence. But filling the gaps by talking a bunch isn’t
going to give you any more control — you’re just showing your hand without getting anything
in return. Not to mention, you’re missing out on opportunities
to understand the other person’s side. Like my boy Powerline says: “If we listen
to each other’s heart / We’ll find we’re never too far apart / And maybe love is a
reason why / For the first time ever, we’re seeing it eye to eye” For a truly innovative solution, just look
at when Stevens Aviation and Southwest Airlines both used the same slogan, “Just Plane Smart.” Instead of spending thousands of dollars and
years in court, they realized they both just wanted brand recognition. So they competed in a televised arm wrestling
match for the slogan, and both got huge bumps in sales. Y’all, I’m serious. That’s what happened. Look up the “Malice in Dallas” Now, you probably won’t be solving any slogan
disputes anytime soon, but negotiation strategy matters a lot when you’re figuring out
salary. Sometimes, companies offer bonuses instead
of higher pay. And any money is great, especially if you’ve
got student loans. But having a higher annual salary will help
your bank account more than a one-time bump. So it’s better to negotiate. Let’s go to Thought Bubble. You’ve just graduated from U.C. Santa Barbara with a degree in criminology. And you got an offer from the area’s premiere
psychic detective agency. Even though it’s a relatively small firm,
you think you could get your salary raised by another $5000 per year. You’re not in the interview anymore. They want to hire you, so you’ve got some
power. Every person brings value to a company, and
you deserve to get paid what you’re worth. So now it’s time to talk about what you
bring to the table… without acting like a hostile Lassiter. And the ‘I-We’ strategy can help. It sort of flips the script. You still advocate for yourself — that’s
the “I” part. But you focus the conversation on how your
skills benefit the company and how the negotiation serves everyone’s interest — that’s the
“We” part. When the HR coordinator, Burton “TT Showbiz”
Guster, offers you a $5000 signing bonus, you bond over your shared Super Sniffer abilities. You listen carefully to all he’s offering,
but then counter with a $5000 dollar salary bump. You talk about how your honed psychic skill
set could give your boss a break from interrogating perps and give him time to sip pineapple smoothies
on the beach. Then, mention how your negotiation skills
could help the agency get into crime scenes without resorting to hopping fences. By the end of the conversation, the HR coordinator
is convinced, and offers you that pay bump. You’re a big believer in giving everything
a good night’s sleep. So the next morning, you accept the offer
of an extra $5,000 a year… and a day off for Scare Fest to boot. Thanks, Thought Bubble! Any job offer is exciting, and you may want
to take it right away. But it’s worth taking time to think, weigh
your options, and prep if you want to negotiate more. If you want to talk about an offer at home
first, it’s never okay for a company to ask who you’re talking to. You could talk to your cat for all they’re
concerned. But not everyone got the memo that you should always play nice in a negotiation. Just like with emotional influence, there
are unscrupulous characters who will try to use hardball tactics to convince you to take
a not-so-good offer. It’s tempting to act like the tough guy
if you’re afraid of losing out or aren’t used to asserting yourself, but hardball tactics
erode trust and don’t always work. We want to teach you to fend them off like
an experienced negotiator. So it’s time for a bit more defense against
the dark arts. Ultimatums — like “if you don’t buy this
remembrall now, I’m out of here” — and other bluffs are risky, because you’ll lose
credibility if you don’t follow through. They’re also just… annoying. Remember how you hated “my way or the highway”
as a kid, even though you did need to eat your veggies? If someone gives you an ultimatum, downplay
or reword it with something like, “I know you’re reluctant to pay more than 100 galleons
for this old wizarding journal, but it really is a rare item.” That way your negotiation partner saves face,
because they probably weren’t going to walk away. People may also may try to skew a negotiation
in their favor by lowballing or highballing you with a ridiculous offer. Remember anchoring? It’s really easy to fall prey to, even if
you try to avoid it. Our irrational brains, y’know? If you’re offered 50 galleons for your 600-galleon
Firebolt to “get it off your hands,” that’s lowballing. And if someone says they won’t take less
than 1500 galleons for a 600-galleon Firebolt because it has “sentimental value,” that’s
highballing. Either way, don’t get swayed by the dramatics. Use research to show you know your offer was
reasonable, like the other broom prices in Diagon Alley thrift. Or re-anchor the negotiation with the price
you were originally going to offer. And just like there are loyal Hufflepuffs
such as myself, there are also Slytherins who may be a little more… intentionally
deceptive. Your gut may tell you when something feels
off, so be on the lookout for people who avoid your questions, change the subject, answer
a question with a question, or use their charisma to flatter you. If you’re buying a home, asking about problems,
and are suddenly directed away from the elegant marble bathroom, you may want to press
harder. You may not have any Veritaserum,
but liars don’t really practice their stories. So if you ask the same questions different
ways and take notes, you may spot contradictions. But even the most noble of us can fall victim
to bad behavior. Nobody’s perfect. Negotiations are stressful, so if you panic
a little, you might start evading questions. If your brain really starts to go haywire,
you can take a quick break. To avoid misdirecting people or looking like
you’re trying to hide something, prepare answers to difficult questions ahead of time. And sometimes, there are things you just can’t
give away, like your target or resistance point. But you still want to be honest and upfront. Maybe you’ve got an NDA and are selling
12 Grimmauld Place. If someone asks who the owner is, you could
say “I… can’t answer that question, but I could talk about other ways to accommodate
your interests.” And don’t think of yourself as the bad guy,
just because you want to negotiate. It may feel a bit uncomfortable at first,
especially if you’re not used to asserting yourself. And that’s OKAY. You have every right to own your space on
this planet and ask for what you’re worth. And I’m telling you now if you haven’t
heard it recently: you’re worth a whole lot. You don’t have to be great at negotiation
to come away with a higher salary, a cheaper broom, or the perfect ice cream store. You’ve got nothing to lose, plenty to gain,
and just have to be willing to try. So if you remember nothing else: Nothing ventured, nothing gained. Be willing to negotiate. Ice Ice Baby: Stop, collaborate, and listen. Take time to counter, don’t bargain against
yourself, and avoid getting caught in anchoring. Don’t play hardball. Good cop, bad cop is for the movies, not the
negotiation table. Defend yourself against deception and other
unscrupulous dealings by paying attention and asking questions. We already know you’re working hard to get
where you want to go. So next time, we’ll help you work smarter
by setting some effective goals. Crash Course Business is sponsored by Google
and it’s made with the help of all these nice people and Thought Cafe is our amazing
animation team. Crash Course is a Complexly production. If you wanna keep imagining the world complexly
with us, you can check out some of our other stuff like the Dear Hank and John podcast,
where John and Hank Green give dubious advice to listeners’ questions. Also, if you’d like to keep Crash Course
free for everybody, forever, you can support the series at Patreon; a crowdfunding platform
that allows you to support the content you love. Thank you to all of our patrons for making
Crash Course possible with their continued support.

You May Also Like

About the Author: Oren Garnes

97 Comments

  1. 🍔I'm like a smart person I know the biggest words believe me I'm a very stable genius

  2. Honestly, the first few minutes of the video gave me pause, and I was ready to disagree. But nuances came along and this sounds like pretty darn good advice. Listen till the end. CrashCourse delivers.

  3. If you're fresh out of college, a good signing bonus might matter more than salary. Job hopping is common now, and some industries even expect it (which is its own topic). Who cares if you would make more over 3 years, when you might not make 18 months before going to another company? Gone are the days of the 25 year anniversary gold watch.

    Two good, relatively cheap as well, books on negotiation are 'Getting to Yes' and 'Getting Past No', by William Ury. They cover the negotiation as collaboration, and define the different parts of negotiation and signs that a negotiation is breaking down or stalling. I have found that knowing how to reset part of a negotiation can do a lot to fix an error or a stall in communication.

  4. Found her presentation style a bit distracting at first but about half way through I really started to enjoy it 🙂

  5. Evelyn??!!!! Its' me – your internet cousin! I can learn and watch Evelyn from the Internets?? The world is too kind!

  6. If you want to learn something I'd advise look elsewhere. Take this advice and you'll get chewed up in the business world.

  7. The guy I ask for more money from is ex Romanian military from the Cold War era. He stares a hole through my head.

  8. Number 8: the last time to negotiate, send in your seconds see if they can set the record straight

  9. > clicks on video about business skills and negotiation

    > host is young, sounds like shes reading out of a college textbook, and talks about "love" and recites poetry.

    Love crash course, but may skip this series

  10. subtitles are only catching 90% of the words for some reason, at 2am I can't use speakers : ( guess I need to negotiate for headphones. hehe, can you please fix the subtitles?

  11. Awesome video! Garage sales and flee markets (or craigslist and letgo) are awesome places to practice because for a $20 laptop, who cares if you practice negotiations by saying "would you take $15" or "would you trade $10 plus this lamp I have" There's so much less at stake, but you get to practice concentration, consideration, and politeness all while under the influence of negotiation adrenaline. Never pay full price simply because lose the opportunity to practice your negotiation muscle.

  12. Evelyn is actually my favourite host after John (sorry Hank). She is doing a tremendously good job and she is just so likeable! Keep going!

  13. charming and funny..realy enjoy your videos… they're soo practical and applicable to real life..your videos are really changing my life ..im applying your instructions in just about every aspect of life….always count me among those ppl who r experiencing positive effect in their lives thru Ur videos

  14. I'm currently int the process of looking for a new position or another job, so this advice is truly valuable. I always had low self-esteem but I'm suspecting that less hard working colleagues in my current team are earning more and enjoy more benefits than I do. so I'll practice for my next interview going through these tips again. ❤❤

  15. This might be a weird idea, but how about Crash Course: Debate Skills? I feel like it would touch on similar skill areas to this series

  16. Another fantastic episode! Even for those that have been doing this a long time, it's so great to just remember the basics; like a refresh to the process you've built over time! Great!!!

  17. Make sure that when you negotiate take good notes
    And read the entire agreement before you sign anything

  18. All of this sounds very vague and nonhelpful. You keep referencing things like “resistance point” without no explanation as to what that is, and you keep referencing keeping your intentions hidden without ever explaining why or how that works or how that’s supposed to make any sense.

  19. man… that voice is so soft. and the pronunciation – the "t", the "s" – never cuts the ear. even when she talks aloud – she is never loud.

  20. I love the Soft Skills videos! Can y'all make on a video on managing up? I need help with my boss . She is very tradional and kinda old school. HELP! 😉

  21. Messing up with the brain…
    Seller : How much were you ready to pay for this rare item ?
    Me : Oranges
    Seller : Wait, what, huh, arrrrgh…[Chucking to death]

  22. I will say this about employment, I had a case where someone tried to negotiate their salary with my organization. He failed and didn't get the job, why? Because there were about 3 or 4 people waiting to take his place. So I would like to add, think of the size of the organization you are applying to as well as the rarity of your skill set – both determine how much the company needs YOU. I am not saying don't negotiate, but just be careful about jacking up your salary too much, it can backfire dramatically.

  23. Sorry, but this isn't right. People don't latch on to the first number because they think it's important – they latch onto it because they don't know their own market value. People who know how much they're worth aren't likely to accept a number lower than their market value. Uncertainty is the reason for accepting that first offer – not a 'dislike of randomness'.

  24. Oh, why you do Lassiter wrong like that!

    Also, if Gus could get on a crime w/o jumping a fence, he'd trade Shawn for you in a heartbeat XD

  25. My natural negotiation style is to not ask for more, which I know I’m not “supposed to” do, but when you’re a newcomer in a saturated field and you get rejections for years, you take what you can get.

  26. This video was clearly not made with knowledge of actual business majors. If you know what you're worth, a starting offer has nothing to do with being latched onto because of a perceived "dislike of randomness". If someone offers a finance major $45,000, they're about $10,000 below a respectable starting salary, and any good finance major knows it.

Leave a Reply

Your email address will not be published. Required fields are marked *