Mastering Negotiations with the Ackerman Model
The Ackerman Model is a strategic approach to negotiations that helps you secure better deals by setting clear goals, using calculated offers, and leveraging psychological tactics. Below are the key steps to implement this model effectively:
- Set Your Target Price (Your Goal): Begin by defining your ideal outcome. This is the price or deal you aim to achieve by the end of the negotiation.
- Set Your First Price at 65% of Your Target: Start with an initial offer that is 65% of your target price. This anchors the negotiation in your favor, giving you room to maneuver.
- Calculate Three Raises with Diminishing Increments: Plan three incremental offers:
- 85% (20% increase): Your first counteroffer, which is a significant step toward your target.
- 95% (10% increase): A smaller step, half of the previous increment.
- 100% (5% increase): Your final offer, reaching your target with a minimal increment.
- Use Empathy and Varied Rejections: Employ empathy and different ways of saying “no” to encourage the other party to make a counteroffer before you raise your offer. This keeps you in control of the negotiation pace.
- Use Precise, Non-Round Numbers: When presenting your final amount, use a specific figure like $37,893 instead of a round number like $38,000. Precise numbers add credibility and suggest careful calculation.
- Include a Non-Monetary Item in the Final Offer: At your final offer, throw in a non-monetary item (that the other party likely doesn’t value highly) to signal that you’ve reached your limit.
By following the Ackerman Model, you can approach negotiations with confidence, structure, and strategic finesse, increasing your chances of achieving your desired outcome.