How would you like an extra $5,000 or more a year? This money can be earned simply by becoming a better negotiator, yet most people in the United States rarely take advantage of the power of bargaining, except on rare occasions when making large purchases like cars and houses. In other countries, like Asia, people there negotiate everything everyday and save thousands.
Negotiating is like a martial arts contest where power, leverage and timing can mean the difference between winning and losing. For instance, a martial artist would never go into a contest without first spying on his opponent to find weaknesses. In the same way, you can gain bargaining power by doing your homework. If you're buying a diamond ring, for example, find out how long the ring has been on display, the standard profit margin on jewelry and how badly the owner wants to sell it. Finding answers to questions like these could save a lot of money.
Before engaging in contest a martial artist warms up by stretching. Likewise, a savvy negotiator warms up by building rapport and finding common ground with the other party, because people like to do business with people they like.
Next, fighters will cautiously probe each other looking for weaknesses. In bargaining this is done by throwing offers onto the table to see how the other party reacts. Experienced fighters often use guile to lure their opponents into range by pretending a blow has hurt them more than it really did. Similarly, a negotiator could pretend to be shocked by an opponent's offer to get her to come up or go down in price. Visibly showing surprise or hurt is called flinching and it used by master bargainers to gain concessions without giving up anything.
Martial artists are taught to read the body language of their opponents so they can see a blow before it is unleashed. Experienced negotiators can literally read the other party's mind by watching body language and listening carefully. If a seller says, "My price is $500 but make me an offer" you know their price is flexible before you even start. Without saying a word their body language can also tell you if they like or dislike any offer you make.
Martial artists do not believe in win-win and neither should you. Even when sparring their best friend they want to give their best effort. When bargaining, fight for the best deal possible assuming that the other party will take care of themselves because they will.
Fighters are supremely aware of time and try to use it to their advantage by saving as much energy as possible for the last few seconds of a round when they can score points against a tired opponent. Black belt negotiators put their opponents under time pressure by setting deadlines. A car buyer might visit the dealership only an hour before a doctor's appointment so the dealer must give his best offer before the customer leaves, likely never to return.
In martial arts, as in life, there are unfair fighters who will do anything to win, so you must protect yourself at all times. Negotiators must be aware of unfair tactics such as nibbling, which is asking for concessions after an agreement has been reached. If this happens to you just remember this blocking technique, "Before you give a concession ? get a concession." For example, if a seller says, "Couldn't you give me just twenty five dollars more because I'm not making any money on this deal?" you can respond with, "If I did, would you throw in the extended warranty?"
Finally, when a contest ends, fighters will bow to each other as a sign of respect as if to say, "You were a worthy opponent" which makes both contestants feel good whether they won or lost. Negotiators should also congratulate the other party for having gotten a good deal. Otherwise he might change his mind and go back on the agreement.
Just like becoming an accomplished martial artist, achieving black belt status in negotiating takes practice. Every time you pull out your wallet ask yourself if this is an opportunity to hone your bargaining skills. If it is ? get out there and earn a black belt!
Copyright (c) 2007 Michael Soon Lee
Most people believe that Six Sigma is for large organizations and is not cost effective for small businesses. However, this is just a misconception because 6 Sigma concepts and methodologies can be tweaked to make them deployable in small business organizations as well. Deploying 6 Sigma in small businesses has been made possible with the development of new tools and techniques that can be altered to suit all types of processes, be it a simple process involving just two to three steps or a complex process having numerous sub-processes.
Small businesses just need to hire the services of Six Sigma professionals such as Black Belts who have the requisite qualification, skills and experience to handle Six Sigma implementation projects. Small businesses that do not have the requisite funds to pay for the services can opt for providing Black Belt training to existing employees. This is often more beneficial for small businesses because once the employees are trained, the organization will never have to pay for the services of Six Sigma professionals hired from the outside.
How Black Belts Are Effective
Black Belts can implement 6 Sigma concepts and methodologies in all types of small businesses, be it a manufacturing unit or a services company. During the initial phase of any 6 Sigma implementation program, the belts assess existing quality levels, which may be 1 sigma, 2 sigma, 3 sigma or 4 sigma. The aim is to make consistent improvements in quality until Six Sigma quality levels are achieved. In small businesses, the savings derived through Six Sigma implementations may not match the multi-million dollars savings generated in large organizations, but are certainly enough to make the small business more competitive in the marketplace.
Additionally, quality improvements help small businesses to offer cost-effective products or services to their customers, which ultimately leads to increased customer satisfaction. It helps them to develop customer loyalty and increase customer base, both of which are necessary for the long-term success of any business organization. It also provides a level playing field to small businesses, allowing them to compete with large business organizations that might be offering similar products or services.
Six Sigma implementations do help in increasing the efficiency of existing business processes, but before implementing the various concepts and methodologies, small organizations need to assess the monetary value of derivable benefits and compare it with the implementation costs. Implementations should be undertaken only when the benefits outweigh the implementation costs. Small businesses that follow this procedure are most likely to succeed in their Six Sigma initiatives and maintain competitiveness in the marketplace.
Both Michael Soon Lee & Tony Jacowski are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Michael Soon Lee has sinced written about articles on various topics from Stress Management, Self Improvement and Motivation. Michael Soon Lee, MBA, is the author of the new book "Black Belt Negotiating" (AMACOM Books, 2007), a world class negotiator and martial artist. He has bargained on everything from major real estate purchases to discounts on gas for his car. Michael shows. Michael Soon Lee's top article generates over 1900 views. to your Favourites.
Tony Jacowski has sinced written about articles on various topics from University, Six Sigma and Information Technology. Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online and certification classes for lean six sigm. Tony Jacowski's top article generates over 90500 views. to your Favourites.