How to Negotiate A Better Deal

Discovering a super-cute end table at a flea market or a gorgeous necklace at a vintage jewelry shop is pretty much the best feeling ever—unless you end up paying way more than you’d bargained for because the seller out-negotiates you. Luckily, recent research can help you barter like a pro:  Choosing a precise number instead of rounding could help you come out on top during your next bargaining session, according to a new study that will be published in the Journal of Experimental Social Psychology.

Researchers from Columbia Business School set up six different fictional negotiation scenarios, like buying a used car, selling a textbook, or purchasing jewelry, and asked participants to offer either a rounded number or a specific number. The people who used a precise number—like offering $ 20.15 for a textbook instead of $ 20—ended up receiving a counter-offer closer to the number they originally put forth.

According to the researchers, specificity tells negotiators that you actually know what you’re talking about and can’t be easily tricked.

“Round numbers traditionally connote some kind of approximation and uncertainty,” says Alice Lee, one of the doctoral students that helped conduct the study. “By using a more precise number, you’re giving the impression that you did your homework, your market study, and that you didn’t just throw out a random number.” This makes them believe they’ll have less wiggle room when it comes time for their counteroffer.

One caveat: You can’t suggest just any number and expect it to work—it has to be something reasonable. Keep in mind, after all, that the seller knows the true value of the item, so bluffing isn’t going to do you any favors.

Your best bet: Do your research to come up with an approximate value for the item (this can be on your smartphone if you’re in a time crunch), and then choose a more specific number that’s close to that rounded value, suggests Elizabeth Wiley, the other doctoral student that worked on the study. This’ll help give you an edge while ensuring you stay within a range that actually makes sense.

Photo: iStockphoto/Thinkstock

More from WH:
How to Negotiate Your Salary
How to Win an eBay Auction
Haggle Your Way to a Better Bargain

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