From the course: When Negotiation's about More than Money: How to Negotiate (Almost) Anything

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The effect on the bottom line

The effect on the bottom line

From the course: When Negotiation's about More than Money: How to Negotiate (Almost) Anything

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The effect on the bottom line

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- Negotiating can have a huge effect on the bottom line on the profitability of your organization. In fact, it probably has more effect on the profit than how much you sell. They're both really important but I think negotiating is probably the most important. I'll explain why. Now most commercial companies make between 5 and 10% profit. And let's just think about those two numbers, 5 or maybe 10% profit. And just imagine if you're selling, if you're making a 5% profit imagine if you can get the price up by 5% by being good at negotiating. Perhaps you try for 10% increase and you reluctantly get negotiated down by only 5. So by being good at negotiating, imagine if you could get another 5% on the price. Your 5% profit becomes 10. So if you're selling it for 100 and it's costing you 95, if you can get the price up to 105 you can double the profit you're making and that's a lot easier than selling twice as much. 'Cause…

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