Good morning and welcome to The Closer, the newsletter all about deals. Today’s edition is short and sharp — one tactic, backed by research, to help you negotiate smarter. No headlines, no noise — just a Nugget you can deploy by lunchtime.
If you have a friend trying to work something out – a big deal, a tricky negotiation – please forward this to them.
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INFORMATION
ASYMMETRY
Closer Tactic #62 • Deal Psychology
Most people assume equal information.
Winners exploit knowledge gaps.
The Nugget
Superior information creates negotiation advantages, but only if used strategically.
When Amazon acquired Ring in 2018, they had access to smart home market data that Ring's founders didn't. Amazon knew Ring's growth trajectory would accelerate with their distribution network, making the $1 billion price actually a bargain. However, Amazon didn't reveal this analysis—they let Ring's team reach their own valuation conclusions based on their limited market view.
How to Deploy
• Research information your counterpart likely doesn't have
• Ask questions that reveal their knowledge gaps
• Share information strategically to shape their perceptions
Avoid showing off your superior information—let them reach conclusions that favor you.
Takeaway
Information is power, but only if you don't show all your cards.
Reply with a time superior information gave you an edge—
we might feature you (and send a mug).