Negotiation strategies that make money

Emotional labour is a process, your own emotions are modified to achieve a better negotiation outcome. As we practice to recognize our own and the other party's’ emotions and learn how to regulate them we build emotional competence. This helps to automate emotional regulation, protecting cognitive resources and raise our awareness in a negotiation. Being resilient in a tough negotiation is not easy. Emotional competence can be used in negotiations to achieve the best deal. #1 Recognize your own emotions. Reflect the origin and cause of uncomfortable emotions that can be counterproductive in a negotiation. Learn how to deal with them more constructively through role play and preparation. #2 Recognize the emotions of the other party. Listen, show empathy and view the issues from their perspective. #3 Regulate your own emotions. Re-frame the situation to re-evaluate a complex negotiation. By doing this you distance yourself from the situation emotionally regulating your impu...

The trigger for this post was a headline I read in the paper “Cashed-up older buyers pay $325k over reserve”. A 3-bedroom house in Brunswick, a suburb of Melbourne, was sold at auction in December 2019 for 325,000 $ above its reserve. The auction must have been frantic with the auctioneers playing the potential buyers off against each other and creating a competitive environment. This is dangerous as people then lose sight of the true value and the want to win takes over and subsequently people end up paying too much. So, what is happening to us when we are in an auction and why do we tend to overbid? A study conducted by a team of neuroscientists and economists at the NYU tried to understand exactly that question. Our prefrontal cortex is the part of our brain where our logical and complex decisions are performed. Our unconscious decision-making process is performed in a different part of our brain which is called the Striatum. This also the part of where our fight or flight...