A skilled negotiator knows how to create and manage perceptions. It’s important to keep in mind that negotiating is not just about getting the best price, but also about creating the perception that your opponent has achieved the best result.

Before you begin negotiating, make sure all your finances are pre-approved, and be clear about what price you’ll walk away from. When the vendor indicates their asking price, respond with an initial offer to test the waters. It’s better to start somewhere below your walk-away price and move your offer upwards bit by bit. Always remember that negotiation is a psychological process.

If you make the vendor believe they’ve achieved the best offer they can get from you then, in most cases, they will accept your offer. If the vendor believes that you’re still offering short of your final price, they will tend to stick to their guns and be more reluctant to accept your offer.