How to Trade Your Way to a Better Deal Without Moving Your Price | Ep 977
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What are the three contexts where negotiation skills apply?
Over my career acquiring and scaling businesses for acquisition.com, I've done a lot of deals.
What is the Multiple Equivalent Simultaneous Offers (MESOs) tactic?
A lot of these things I didn't actually learn from books. I learned them from mentors and actually seeing them do it and learning it like in the streets, in the real world. Most itty bitty tactics like don't actually drive the needle.
How can you use reciprocity in negotiation?
There's three contexts that you're going to use each of these skills with. The first is with employees, and this goes both ways. If you're an employee trying to negotiate with an employer, then that applies. The second is gonna be vendors.
What is the importance of framing offers as investments?
Now this also applies if you're a vendor who's dealing with customers. And then third, you've got what I would consider partners. This is when you do deals, M&A, things like that, investment. So these are kind of the three big vectors that all of this stuff applies to.
How can trading variables lead to better negotiation outcomes?
So if you're like, I'm not sure if this will work for me, You for sure, even if you don't have a business, you are an employee, and if you are an employee and you don't want to use that, you certainly have vendors that come to your house and do things for you. This is the fruit of life. You have to negotiate, and you get what you negotiate, not what you deserve. That may sound not fair, but it's also the truth. I learned this from a different mentor. They call it MISOs, but basically multiple equivalent simultaneous offers. So what does that mean? That means that I present offer A, offer B, and offer C, or just offer A and B, it doesn't really matter.
What role does culture play in negotiation tactics?
You can have two offers, you can have three offers, and each of these have different prices and terms associated with them. And so what happens is when you make multiple equivalent offers, it's like embedding reciprocity. It's like, hey, I'm trying to be reasonable. I just want to figure out what works best for you, because all three of these work for me, but which one's better? This is a way of actually teasing out what someone else's priorities are if they're not willing to tell you. Because a lot of times, you want to hold your card close and not say, what are the things that are most valuable to you? Now, over time, you build some trust, you build some rapport, and you will be able to share. Because ideally, something that's important to you is not important to them.
How can you leverage multiple offers to negotiate effectively?
And they give you this one. And something that's important to them is not important to you. You give to them. And that's fundamentally a good negotiation. And one of the big things that I misunderstood in the beginning is that I assumed negotiation was a zero-sum game. And it's never a zero-sum game. Because you're a different person, you have different needs. You're always going to have some things that will be more important to you than other people. And in that situation, it's like you want to just interlock the things that matter most to each person. That's where it becomes a positive. Both parties are better off from basically giving and taking in places that are less meaningful to them and more meaningful to the other person.
Journal of Personality and Social Psychology showed that presenting multiple equivalent offers simultaneously increases the likelihood of finding mutually beneficial solutions.
What are the psychological aspects of negotiation discussed in this episode?
This approach demonstrates flexibility while also maintaining your core interests because you're the one who's presenting all the offers. It's almost like a reverse assumed close. Hey, I'll do any of these three things and you just pick the one that works for you. And then the thing is they're picking all any of these I said already worked for me. Let me give you like a real world example. So let's say option A is lower monthly fee with a longer commitment. Option B is a higher monthly fee, but has premium support. And then option C is kind of like a pay as you go with slightly higher rates, but maximum flexibility. So all three options will give you similar overall value, but you might look at them and be like, I just want to know which one meets your needs better.
from their answers, you'll be able to understand their motivations.
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Chapters
8 chapters
1
What are the three contexts where negotiation skills apply?
0:00–0:04
2
What is the Multiple Equivalent Simultaneous Offers (MESOs) tactic?
0:04–0:13
3
How can you use reciprocity in negotiation?
0:13–0:26
4
What is the importance of framing offers as investments?
0:26–0:38
5
How can trading variables lead to better negotiation outcomes?
0:38–1:13
6
What role does culture play in negotiation tactics?
1:13–1:41
7
How can you leverage multiple offers to negotiate effectively?
1:41–2:17
8
What are the psychological aspects of negotiation discussed in this episode?
2:17–10:51