I am reminded of the three negotiations in the film pretty woman with Richard Gere and Julia Roberts. We can all learn a lot from these three cameo negotiations, both for our business life and also for our private life.
1 – Gere ask Roberts for the way to the Beverley Wilshere hotel. She says $10. He says you can’t charge me for directions. She says yes I can, you need the information and I have it. That’s $10. She then says make it $20 and I’ll get in your car with you and show you the way. When we have information and someone else doesn’t have it, that is the time we can charge for the information. Brokers do it, investment advisors do it and so do many other people. Information is power.
What information do you have that you are not trading? In the case of knowledge, skills or qualifications these can be used to leverage higher salaries or fees.
2 – They negotiate in his room at the Beverly Wilshere hotel, how much for her to stay the night. He asks her “how can i buy clomid at cvs much”. Her eyes move as they do when people are thinking through a situation. She says “you couldn’t afford me” – he says “try me” – she says “$300″ he says”OK”. Then her body language says “oh I should have asked for more”
What can we learn from this? Always have a best position and start at your best position. Rather than your target position which is where Julia started. You can always come down in a negotiation, if you pre qualify it – by saying something like “my normal price for X,Y and Z is….”
3 – The final negotiation is when they are laying in the bath discussing the negotiation above. He says he would have paid more, she says she would have taken less.
The learning point is never disclose to the other side what you might or might not have done. Maybe you will be negotiating with them again soon. They will remember how you negotiated. Secondly they may not be happy with how the negotiating went and try and renegotiate the deal.