If you could, wouldn’t you negotiate yourself a better deal on that nice car or on that business transaction? Well new research conducted by Columbia Business School finds that if you ask for the exact dollar amount rather than an estimate you are more likely to get what you want.
The research was conducted by Malia Mason and Daniel Ames, professors, along with Alice Lee and Elizabeth Wiley, students at the school. They looked at 1,254 bogus negotiators to see who had the upper hand during deal negotiations was it the guy with the exact amount or the guy with the estimated amount.
Negotiators took the streets to bargain over a used car price. In a car deal one negotiator would ask for the exact amount such as $6,234 while another would ask a rounded amount like $6,000.
The results demonstrated that the negotiators who bade the exact dollar amount were seen as more intelligent because it was perceived that they knew more about the car.
“The practical application of these findings – signaling that you are informed and using a precise number – can be used in any negotiation situation to imply you’ve done your homework,” says Ms Mason.
Be smart, next time remember to stay away from those rounded numbers.