The Power of Negotiation – Brian Mudd’s Eight Keys for Success
Bottom Line: As part of my annual series, Eight Keys for Success, here’s The Power of Negotiation...
Negotiation where there’s an opportunity to do so is important and extremely valuable. First, a question for you. If you attempted to negotiate better terms on a purchase or financial product, what do you think your odds are of having success? Ready to be surprised? Over 80% of the time you negotiate you’ll be successful in obtaining better terms. That applies to your credit cards, your salary, a car – you name it. But here’s the thing, 60% of adults don’t attempt to negotiate better terms when there’s the opportunity to do so. What’s the financial impact of not negotiating?
The average difference for those who negotiate, compared to those who don’t, amounts to more than $2,400 per year. That’s not a mistake. Want the equivalent of a $2,400 raise annually? Don’t forget to negotiate. Need any additional motivation to begin to build your negotiation skills? The opportunity cost of not negotiating anything over the course of your life is now greater than $3 million (based on taking the negotiated savings and investing then in the S&P 500 at average annual returns of 10%)! I’m not kidding. That’s the power of negotiation.