Everybody what's going on with this section we're going to talk about bargaining but specifically Eckermann
bargaining.
So the reason why we want to use a.m.-I bargaining is because it's going to be a powerful strategy you
can use to avoid meeting in the middle.
The challenge with bargaining sometimes is sometimes you give them a number that you're willing to pay.
They're going to give you their number and then you counter they counter you counter the counter and
then you eventually meet in the middle.
Now the difficulty a lot of people have with that is rather than meeting in the middle and compromising
Inkerman bargaining it's going to give you a framework you can use to get the price you actually want
versus meeting in the middle.
And this part I'm going to explain to you exactly how the agreement bargaining technique works from
a strategic point in the next life we're in to give you some real numbers so that you have an example
of how we are going to use it.
So the Aickman bargaining the first step you want to do is you want to set your target price which is
your goal and that's the price that you are willing to pay.
Next you want to set your first offer that you make to the other party at 65 percent of your target
price.
Meaning if you want to buy something at $10000 you want to make the first offer at six thousand five
hundred dollars in step three.
You want to calculate the three raises of decreasing increments to 85 percent.
Ninety five percent and 100 percent.
Meaning if you want to sell something for $10000 you're first going to calculate that Sixty five percent
which is six thousand five hundred dollars.
Then an increment of eight thousand five hundred nine thousand five hundred and eventually ten thousand.
And don't worry we're going to go over specifically how the numbers will work out after we go through
the entire strategy of Inkerman bargaining and the next slide we're going to show you all the numbers.
So it's up for what you want to do is you want to use a lot of empathy and a lot of different ways of
saying no.
So you can get the other side to counter before you increase your offer.
Meaning once you set your first offer at six thousand five hundred the other person may say no.
Rather than raising your offer immediately at whatever response they give back to you you could say
I just can't do that right now or that's something I can accept and moving on to Step Number five when
you're calculating your final number you want to be sure to use precise numbers like nine thousand eight
hundred seventy five.
And this is very different from using a number like $10000 because the more specific you can make it
the more realistic it looks and the more calculated it looks.
And so once you give out a number like that it's a lot more believable rather than looking at a round
number.
And the final step.
Step 6 is when you are at your final number what you can do is you can throw in non-monetary items to
show that you are at your limit meaning you could do things like if they do the deal you'll sign a deal
right then and you'll pay or you might add some free bonus products that you don't really care about
why you're doing this is because by adding in non-monetary items you're showing that you just cannot
increase the price any.
And they will stop trying to increase the price.
If you're trying to buy something for a lower price.
So either you have the strategy of where a.m. borrowing is about let's go ahead and look at some real
numbers on how you can use this.
OK.
So the Aickman bargaining example.
So step one let's say you want to buy a used car for $10000 and using odd numbers precisely nine thousand
eight hundred and seventy four.
And step two you want to calculate 65 percent of your offer which is six thousand five hundred.
And this is what you are going to make your first offer at to the other party.
You know you want to calculate the decreasing increments of 85 percent 95 percent and eventually 100
percent.
So it's going to be eight thousand five hundred nine thousand five hundred.
And finally nine thousand eight hundred seventy four.
So in this situation you started out we're offering $6500 dollars and they may say no to your offer
and they may counter offer you with something like $13000.
If that's the case what you ought to do instead for is you want to say no.
In different ways like I'm sorry.
That's just not going to work for me.
And so rather than increasing your offer immediately by just saying no.
In different ways you might get the other person to decrease their offer and you might get a better
price that way.
And so this back and forth continues of you saying no and then you increase your offer when it seems
like nose not working.
And so let's say you say no you say I'm sorry that's not going to work for me.
They decrease their offer to $12000 and then you increase your offer to eight thousand five hundred
dollars at this back and forth increase decrease thing begins.
And so then you start meeting in the middle and then in the end you eventually are going to arrive at
your number nine thousand eight hundred seventy four.
Now I said in the middle but in reality you know that you're not actually meeting in the middle because
this is the price that you were willing to pay in the very beginning.
And the other party's eyes it feels like you're meeting in the middle.
They are compromising you're compromising and it's a done deal and both people walk away happy.
However you know that you actually won the negotiation because you basically used the A.I.M. bargaining
technique to lowball this person at six thousand five hundred and increase increments all the way to
the price you actually were willing to pay.
And now a lot of times when you're negotiating and trying to settle on a lot LA Times you may actually
get a better deal than what you are willing to pay for.
For example if you increase your offer to 8500 sometimes your counterparts may actually take the deal
right there so you don't really know the situation until you actually try it.
But in this strategy this is a really good way to meet in the middle.
But really you're winning the negotiation.
And finally when you're at the end of your limit let's say you're at the 9900 somebody for what you
can do if the person is not satisfied with that number is offer in non-monetary items like signing a
deal today or adding bonus items to show that you are at your limit and that you do not have any money
to offer.
So by giving up non-monetary items that you don't care about it just creates the illusion that you are
at your limit and a lot of times people will stop pressing for money and just accept the offer as is.
So with that said That's everything you need to know about the increment bargaining strategy.
And in this example I showed you what it was like if you were buying something.
However if you are selling something it's going to be the exact same thing except in reverse where you're
going to start high and then you make decreasing increments until you get to the number that you actually
want to buy something at.
So that said I'll go ahead and see you guys in the next lesson.