Negotiating: The Power of MESOs

I learned a new acronym last week: MESO. Its’ one that’s worth adding to your sales vocabulary list.

It stands for Multiple Equivalent Simultaneous Offers, and here’s the basic idea:

When you’re negotiating, don’t just put one offer on the table. Give the buyer multiple packages to consider at the same time, all of which deliver the same bottom line to you. For example, you might offer (1) a low price with full payment up front, (2) a higher price with extended payments, and (3) a price in the middle that requires upfront payment but includes a service contract.

When buyers are given MESOs, good things happen, according to a study from Kellogg School of Management at Northwestern University:

• Buyers are more likely to accept one of these offers, rather than push you for additional concessions
• Buyers are more likely to be satisfied with their purchase later
• Buyers are more likely to see you as flexible and accommodating
• And you’re more likely to close the deal

The reason MESOs work, the researchers suggest, is because people value choice. So, all things being equal, an offer that includes multiple choices is perceived as more valuable than a take-it-or-leave-it offer – even if those choices are essentially equivalent.

MESOs create win-wins: You get your price, and your buyer is more satisfied with you and your product.[Click to tweet this quote]

Source: Medvec, V.H., et al. Choice and achievement at the bargaining table: The distributive, integrative, and interpersonal advantages of making multiple equivalent simultaneous offers.