How a famous inventor negotiated a 20X price increase
By doing (almost) nothing.
The guy was Thomas Edison.
And here’s what he did.
He and his partner were presenting a new invention to a renowned banker.
The ticker tape machine.
"What the hell is that?" You may ask.
It provided stock quotes from the NY Stock Exchange in real-time.
(It was hugely valuable back then)
So he showed up to the meeting - set up the machine and let it do its thing.
Without saying a single word.
The banker saw what it did and he was immediately bought.
“$5,000” he offered.
Edison frowned at the offer, clearly disappointed.
“Ok, ok, $10,000”
He was still silent - he seemed confused in fact.
“Oh I see, you’re playing hardball” said the banker.
“25 thousand dollars”
Edison did not bat an eye at the offer.
(He had not yet said a word)
However, he noticed how impatient the banker was getting.
The banker assumed negotiations would be tough.
He offered: “$100,000 and not a penny more”.
Edison was still frowning.
He quietly looked at his partner and then nodded to the banker.
Deal closed.
“Ha! I would’ve paid $150,000” boasted the banker.
Edison finally spoke.
“And I would’ve taken $10,000”
He got the banker to go from $5,000 to $100,000.
By remaining dead-silent.
Simply observing the person in front of him.
Next time you sell or pitch something…
Show the value.
And don't do all the talking.
Control your emotions and be non-needy
You will win.