Most people think of negotiating as something that happens only when major transactions are taking place (buying a car, a new house, forming a business partnership, etc).  That’s a shame, because those situations are rare, and because the other side of the table has more experience, you’re at a significant disadvantage (which could cost you lots of money).

It doesn’t have to be that way though.  Negotiation in a skill, and with more practice you become better.  Why not negotiate everyday things?  The extra practice could be worth a ton.

Try to see the world through this new lens.  The rules are simple (and important):

• must be friendly
• must be ethical
• must obey the law
• …anything goes

The goal is simple:

• gain something if the negotiation succeeds, lose nothing if it doesn’t

Just practicing, and pushing yourself out of your comfort zone is a benefit even if you don’t succeed.  Plus it can be fun to challenge friends to negotiate for things.

Here’s a couple of recent examples:

1)  Driving out of the REI parking lot and really don’t feel like paying the $6 parking fee, so I challenge my friend to negotiate for free parking.  Upside: $6 parking.  Downside:  none!   Winning strategy:  asked for the discount and found a way to relate to the parking attendant on a personal level (my friend and the attendant are both immigrants, so he says “hey you’re an immigrant too, right?  cut me a break”)

2)  In a 7-11 and want a slurpee, but think sugar + ice is a rip off at the price.   Upside: save money.  Downside:  none.  Winning strategy:  my dog was with me and seemed curious about the counter attendant, so I said “I think my dog likes you” before simply asking for a discount.  Result: 50% off slurpee plus a free hot dog for my dog.

3)  DSL service.  Upside:  save money.  Downside:  none.  Winning strategy:  called up my DSL provider and said “Hi, I was just calling because with the economy and everything…um, can I get a discount on my service?  Or else I might switch to another provider”  Without any hesitation, the person on the other line took $5 / month off my bill.   Less than on minute of my time for a $5 / month annuity is a fantastic ROI!

4)  Bought a bike and negotiated the price to come in below the lowest online price I could find, plus had them throw in another $70 worth of gear free to “close” my sale (tire kit, seat bag, water bottle mounts, water bottles).  Arguments used:   I’m advertising to my friends since the water bottles are branded with the store’s name and throwing in the tire kit and bike seat would “close me right now.”

Honestly, I wish I would push myself more to look for everyday negotiation opportunities.

Related posts:

1. LeadsCon: a crash course in “show me the money!!”
2. Unexpected Startup Lesson #2: Channel your Inner VC to Understand Startup Valuations
3. Today's Triathlon (reflections)

In his book, “Pour Your Heart Into It”, Howard Schultz describes his life story and the story of how Starbucks was built.  Great book, btw.  In it, he mentions being inspired by Italian cafes that function as gathering places and are part of the daily routine of people in the neighborbood.

That is certainly an aspirational vision for Starbucks, but I think implementation totally misses the mark.  What Starbucks has actually created is a gift shop.  It’s the exact same gift shop that you might find at The Museum of Coffee, if there was one — packed with overpriced coffee-related trinkets, contrived art books and specially packaged music CDs — and instead of a museum they have a coffee bar.

So I’m wondering, why does the world need nearly 20,000 Museum of Coffee Gift Shops?

Related posts:

1. Crowdsourcing Meetup Notes