The Chilling Power of Persuasion: Cool Negotiating Strategies

I am the first to admit I know little about mechanical things.

Cars.

Appliances.

Lawn mowers.

Tools that make scary, buzzy whirring sounds.

On a recent regular checkup of my heating and air conditioning systems, the service technician told me that my 11-year-old AC system was leaking and to fix it would cost $4,000.

A chill came over me. It caused me to shiver; It wasn’t from my air conditioner.

The HVAC company I have worked with for thirty years has a clever sales policy – the service technician can’t leave if I mention that I might want to buy a new system instead of repairing the old one. I had to schedule an appointment to have someone come out and quote me a new system.

This company does a great job of training technicians to take advantage of the moment. Respect.

An appointment was set for the next day.

And like any human being would do in my situation, I googled what a new AC system would cost to cool the square footage of my home.

Ms. Google said it should cost about $5-6K, depending on the seer rating – which I also had to look up. In case you think it could be tonight’s final jeopardy question, the seasonal energy efficiency ratio is what that stands for.

Knock, Knock

The sales fellow arrives and informs me this process will take 90 minutes.

I didn’t have 90 minutes, but I knew I needed to do something before the typical North Carolina day hits 103 degrees and 192% humidity.

You know, climate change and all that stuff.

The salesperson, who I’ll call Wilbur, looked around at vents and square footage and other stuff he needed to give me a quote. And like any well-trained organization, he went through his multiple guarantees before the selection. They were printed on heavy stock paper to make me confident they were reliable. I think four guarantees were overkill, but that’s marketing for you.

Did I mention I have been using them for 30 years?

Finally, we get to the pricing – and he provides me with a good, better, and best. The difference is the SEER rating. He also spent about 5 minutes explaining inflation and sharing that the new AC systems are more expensive because of some blah, blah, blah law that I didn’t quite believe. This was the part where he was preparing me to be shocked.

He revealed the good, better and best pricing:

My jaw dropped – $12k, 10K and $9k.

Yikes. That’s more than I paid for college and grad school.

When I asked if he could do any better on the price for the basic model, he got the price down to $8,400.

I told him that I’d look around and get back to him. And I remained quiet.

He said, “Let me call my supervisor.” He did, and his supervisor reduced the price down to $7,700.

I said I’d look around. And I remained quiet.

The supervisor went to the GM and asked permission to give a long-term customer a break.

My new price is $6000.

I know I could buy a unit for less and hire someone to install it. But I also recognize how this company has stood behind its workmanship for 30 years.

In this situation, the price dropped by 40% by being quiet and saying no, I’ll look around.

Ten Pieces of Negotiating Advice

I have been negotiating deals and pricing for a long time and know a few things about how to negotiate.

Here are ten top pieces of advice for negotiating a contract or price in a business setting:

1. Do your research: Gather as much information as possible about the product, service, or contract you’re negotiating, including the competition and the current market trends. I knew what a reasonable price would be for what I was buying.
2. Define your objectives: Determine your goals and priorities for the negotiation and be clear on what you want to achieve. I was willing to gamble and wait to get a few quotes. We could live for a few weeks if the system failed since it was just May.
3. Establish your position: Determine your starting point and the limits of what you are willing to offer or accept. I didn’t want to pay more than $6K.
4. Listen actively: Listen carefully to the other party’s needs, concerns, and objectives. The HVAC supervisor said he had 12 teams and needed to keep them busy in the slow months. So, I realized that I had some leverage because he needed to keep trained technicians alive and working.
5. Communicate clearly: Be clear and concise in your communication, and avoid making assumptions or jumping to conclusions. By saying, I’ll look around and then shutting up – I signaled my intentions.
6. Be flexible: Be prepared to make concessions, but ensure that any compromises align with your objectives and goals. I was open to several options from them – but didn’t feel pressured.
7. Build rapport: Establish a positive and respectful relationship with the other party, and seek to understand their perspective. I was always respectful – I didn’t threaten or argue with them. To make the apparent dad pun, I stayed cool.
8. Keep emotions in check: Stay calm, patient, professional, and objective during the negotiation, and avoid reacting emotionally to any offers or statements. Silence is a terrific way to lower prices, especially when service technicians or factory workers must fill capacity. I knew I could buy some time – my system was working but would probably freeze up and die in a month or two. It isn’t that warm this spring in NC.
9. Avoid ultimatums: Refrain from making threats or ultimatums, which may damage the relationship and hinder the negotiation process. I know how important it is never to draw a red line.
10. Review the final agreement: Review the final agreement carefully after the negotiation. Ensure that all terms and conditions are clearly defined and that both parties are satisfied with the outcome. Of course, I read the fine print.

Negotiating is about information, listening, patience, and a calm approach.

I was shocked to get a 40% discount because it makes me wonder how high their margins are to give away that kind of profit. But, on the other hand, I’m a proven long-term customer with a lifetime value that they knew they didn’t want to lose to a competitor.

Over thirty years, I have replaced multiple AC, water heaters, furnaces, and other plumbing-related problems.

My top advice is to go into a negotiation you can walk away from.

Find other options.

Gather information.

Be prepared.

Best of all – be calm. It helps make you a better negotiator every time.

You can set up a time to chat with me about your marketing challenges using my calendar. Email me jeffslater@themarketingsage.com Call me. 919 720 0995. The conversation is free, and we can explore if working together makes sense. Watch a short video about working with me.