Your sitting in front of the car salesman. The sticker price is $35k. You tried offering $25k but they said $32k is the lowest they can do. What do you do now?

After reading Never Split the Difference by Chris Voss I realized there is a lot of nuance to negotiation. In the heat of the moment, what you need is a clear strategy to follow.

That’s why Chris teaches the Ackerman Method. The Ackerman Method combines all the key components of great negotiation into an easy-to-remember 4-step process.

Here's how it works:

Step 1: Set your target price

Your target price is the most you want to pay.

Step 2: Set your offers

Set your initial offer at 65% of your target price (Yes, this is an intentional lowball offer).

Next, calculate three raises at 85%, 95%, and 100% of your target price. For example, if your target price is $25k, then your initial offer would be $16,250 (65%), and your raises would be $21,250 (85%) and so on.

Step 3: Use “no” to get your counterpart to make a offer

Say "no" without saying "no."

For example, if the car salesman says the best he can do is $32k, you might say "that is really a great offer, but I just can't do that." Try a few variations of this question and if they don't budge you can use one of your raises mentioned above and repeat step 3.

Step 4: Use a precise number

Non round numbers imply you gave a lot of thought to come up with your number.

Once you've said "no" many different ways and are about to make your final raise, use a non round number like $25,244 to give the impression that you've thought this out.

What makes this process so powerful is it includes all the components of great negotiation without the need to remember them.

In the next essay, I’ll give a real-world example of this method in action so you can use it the next time you have to negotiate.