Never Split the Difference
I watch YouTube way more than I watch regular TV, and I listen to podcasts way more than I listen to music. This past weekend, while working in my shop, I was listening to one of my regular “pods” and the host was interviewing the author Chris Voss, who wrote a book titled, “Never Split the Difference.” Chris is an X-International hostage negotiator for the FBI, and has a front-row seat to winning life and death negotiations. And, of course, I also love reading so I bought the book.
During the conversation, he talked about what the title of his book meant, explaining that, in a negotiation, no one is ever happy when splitting the difference. If you give up 20% to 50% to make the deal, then you’re always looking to get that 20% to 50% back on the next deal or with the next customer.
One of the other important points he made was that winning a negotiation is all about selling the delivery (value) and not what something costs (price). What you’re delivering has a value connected to it, and if you don’t sell the value, the cost is what you’re measured against.
The question is, what value are you delivering for that cost? If your customer doesn’t preserve the value in your cost, then they will always compare you with price. That’s why you should always sell what VALUE (delivery) you bring to the market, and never sell price.
Which is to say, don’t let your price (cost) be the only measurement your customers have to compare you with. Make sure you’re selling your value, what you deliver for the cost of your product or service. After I finish this book, I’ll share my thoughts with you further.
I’ll say it again and again, people NEVER buy price, they always buy value.
The larger question is, does your company have a measurable value proposition that can be communicated and sold? This is what I’d like to take up in my next blog.
As always, my two cents.
Hi John. This may be the strangest comment you’ve ever received, but here goes. I attended either an AAMA or BEC meeting years ago where a speaker was talking about integrity in business and he gave an example of a Plano fence company he used. I remember I was impressed with the topic and, oddly enough, I have several times since then have wished I could remember the name of that fence company. Was that you by any chance? Can’t remember exactly the year, but I’m going to guess 2015 or before.
See, I told you this was the strangest comment….
Excellent read, I love the book!
First thing after reading the book, I saved $220 at the dealership getting my car repaired and everyone was happy!
Greg, yes that was me, it was at a BEC conference in Las Vegas, I don’t remember the name of the fence company but it was a great example!
Thanks for the note, and no it was not strange.
Thanks Gloria, I’m looking forward to reading it!