When we approach negotiations by tactically reacting to customers’ requests, by merely giving in because they ask us to do so, seemingly disparate transactions have the effect of “rolling upward” and defining our negotiation strategy. We teach the marketplace, our customers and our competitors, who we are based on the deals we do. By rolling over in negotiations, we run into several problems:
1. Customers believe the initial offer was a lie and don’t know where the truth really begins.
2. We fan the fire of irrational marketplace competition by setting up bidding wars.
3. We prove through our actions that while we sell on value, we negotiate on price.
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