Save to My Latticework unsave

How to Get a Better Deal
How to Get a Better Deal
save0 saved view11.7K views
(1)
Share this with your network
Share this with your network
Overview

Are you trying to negotiate a deal, influence a stakeholder, or even make a sale?

Sure it's complicated and no single mental model will save you. But, together, this growing list of models will help you expand your toolkit and help you to make a better deal. 

Be sure to check back regularly as there are more models we're keen to add to this Playbook.

[Please note - while a lot of our content is free, about 25% of models on ModelThinkers are currently premium content for members only. It just so happens that many of the models in this Playbook happen to be on that premium list. Find out more about accessing all our member options by joining ModelThinkers here.]

 

This Playbook includes the following sections, select a heading to jump to that section.
Features vs Benefits
lock
A fundamental sales based model that differentiates between your description of features versus benefits that capture the 'What's In It For Me' of the person you are negotiating with. This is another premium content model, for members only.
Find out more about Features vs Benefits and add it to your Latticework of Mental Models here.
Loss Aversion
lock
When negotiating and phrasing your deal, remember that losses count more than gains. This will help when posing opportunity costs as losses, and encourage you to highlight the cost of doing nothing. And another members only model.
Find out more about Loss Aversion and add it to your Latticework of Mental Models here.
Value Proposition
Building on the previous model, Value Proposition encourages you to frame up your offer in clear terms to your targeted audience. A worthwhile exercise in any negotiation to be clear on what you're offering to whom, where it's value lies, and how it differs from competitors.
Find out more about Value Proposition and add it to your Latticework of Mental Models here.
Challenger Sales
And finally, a pure and unashamed sales model. Challenger Sales takes a modern approach to selling in complex environments by leading with insights and challenging the status quo to better position your sale.
Find out more about Challenger Sales and add it to your Latticework of Mental Models here.
Sunk Cost Fallacy
lock
How much have you invested in this deal? It might be time, money, or even emotional attachment. Either way, be sure you're not a victim of the Sunk Cost Fallacy. Also a members only model.
Find out more about Sunk Cost Fallacy and add it to your Latticework of Mental Models here.
Opportunity Cost
lock
This foundational economic model looks at the potential loss of the next best choice. Use it to understand what you will settle for, but also as part of your pitch by understanding your stakeholder's opportunity cost in not making the deal. A member's only model.
Find out more about Opportunity Cost and add it to your Latticework of Mental Models here.
Cialdini's Six Principles of Influence
lock
One of the most classic, persistent and, dare I say, influential models in this space. It's cheating because it's really six models wrapped up into one — Cialdini's ground breaking work is still relevant today. Note, this model is premium content for members only.
Find out more about Cialdini's Six Principles of Influence and add it to your Latticework of Mental Models here.
Availability Heuristic
On the topic of unconscious biases and potential negotiating/ deal-making fallacies, you'd have to consider the Availability Heuristic. Be aware of what has been planted in your mind and in the mind of your opponent as potential influencers over the negotiation.
Find out more about Availability Heuristic and add it to your Latticework of Mental Models here.
BATNA & ZOPA
lock
Building on Opportunity Cost, this core model for negotiation encourages you to do the research so you know your opponent's Best Alternative to the Negotiated Agreement and the resulting Zone of Potential Agreement. This is another member's only model.
Find out more about BATNA & ZOPA and add it to your Latticework of Mental Models here.
Divide and Conquer
In any negotiation or sale, use this flexible model to either breakdown and approach a group of stakeholders and/or to overcome objections a piece at at time.
Find out more about Divide and Conquer and add it to your Latticework of Mental Models here.
Anchoring Heuristic
lock
Strongly related to the Availability Heuristic, Anchoring might involve ensuring that you're the first one to offer a price range, so you 'anchor' the rest of the negotiation on your terms.
Find out more about Anchoring Heuristic and add it to your Latticework of Mental Models here.
Hyperbolic Discounting
lock
When trying to offer value to a stakeholder, remember Hyperbolic Discounting and the fact that immediate small rewards generally are more motivating than long term pay offs. So, what's the immediate (small) sweetener that you can offer to tilt the scales in your direction.
Find out more about Hyperbolic Discounting and add it to your Latticework of Mental Models here.
Categories:

Premium content

Please do login or sign up to see premium contect

Subscription expired!

Please renew your subscription to access this feature.
note My Notes
    Nothing here yet. Join ModelThinkers and login to be the first to comment.

You Might Also Like:

You Might Also Like:

- Actionable summaries of the world's most powerful ideas.