• The author argues that win-win occurs so rarely in
business that we should discount it altogether.
• "Power Negotiating" – Is a way in which one
negotiates so that their opponent believes he or she
has won.
• There are several "moves" or negotiating positions
we can use to create this appearance to the other
side.
Ask for More than You Expect to Get
• Henry Kissinger "Effectiveness at the negotiating
table depends upon overstating demands."
• Asking for more than one expects raises the
perceived value of what you are offering and prevents
deadlocking.
o (ex. Persian Gulf War: President Bush gave Saddam
Hussein a clear and precise opening position leaving
no room for movement – the goal was not to negotiate
but deadlock Hussein giving justification for attack)
• Avoid inadvertently creating deadlocks by not asking
for more than you expect to get (if the other side
expect you to move and you can't then there is no room
to negotiate).
• Start with your Maximum Plausible Position and imply
flexibility; MPP is the most one can ask for and still
seem credible. Opponent may think, "That's outrageous
but there does seem to be some room to move…"
Never Say Yes to the First Offer
• Weakens a position by suggesting two things:
o Opponent could have done better.
o Something must be wrong.
1. Flinch
? Always react with shock and surprise at the other
side's proposals.
? If one doesn't flinch it makes the other person a
tougher negotiator.
? With about 70% of people the visual overrides the
auditory.
2. Avoid Confrontation
? Get in the habit of agreeing initially, use the
"Feel, Felt, Found" formula:
• "I understand exactly how you feel about that. Many
people have felt exactly the same way. But you know
what we have always found? When we took a closer look
we found… [they changed their minds]"
Play the Reluctant Buyer or Seller
• "Wish number" (ideal highest price) and "walk away"
price, typically an offer will fall between these
prices on the second offering.
• Counter argument to above: "I don't think there's
any flexibility in our price, but if you tell me what
it would take to get your business, I'll take it to my
people (using a higher authority as a foil) and see
what I can do for you with them (setting up to play
good guy/bad guy)."
The Vice Technique
• Often just saying: "You'll have to do better than
that," can garner surprising results.
• However, skilled negotiators will retort, "Just how
much do I have to do?"
Don't Worry About Price
• Price is a bigger concern to the seller than the
buyer. Often if we can explain selling features
adequately, price is no object.
Set It Aside
• Place hot-button items on the back burner and
address them when rapport has been established.
• If a stalemate is reached, try to regain momentum
by: changing negotiating teams (esp. someone who may
have irritated the other side), or considering a
different venue (dinner or lunch). Also, explore:
extended credit, reduced deposit, restructured
payments, or specification changes, in addition to
packaging or alternate delivery methods. Discuss ways
of risk sharing.
The Art of Concession
• Don't set up a pattern in the way you make
concessions. Equal-sized concessions will accustom the
other side to expect more.
• Never make a large last concessions, it doesn't look
final if it's too big, and refusal to make further
small concessions aren't viewed well.
Make Time Your Ally
• 80% of concessions will occur in the last 20% of the
time remaining, so keep in mind the following:
• The longer you spend in negotiations with an
opponent, the more likely they will come around and
see your view bit-by-bit.
• Be cautious, the same can apply to your stance as
well – don't fall into the same trap.
• Deadlines are valuable pieces of information, use
them to your advantage, but disclose only with great
discretion your own.
The Most Dangerous Moment
• People are most vulnerable at the point when they
think the negotiations are over. Watch your emotions,
some tend to give in on items they would not
otherwise.
• Rationalizing, "If I give in on this one small
piece, I won't have to renegotiate or risk loosing the
sale," is very dangerous.
• Best rebuttal: "I don't have the authority to make
any concessions now." If other side persists, show
them the hard price in writing.
Your Most Powerful Weapon
• Learn to develop walk-away power, that is to say
never let the thought of loosing an
sale/item/house/price/etc. become so ingrained
as a must have that you loose the ability to walk away
from the table.
• If you can't do this at any time, the other side
knows it and will use it to their advantage.
• "There's no such thing as a sale you have to make at
any price, or the car or home for you, or a job or
employee you can't do without. The minute you think
there is, you've lost."
-Del
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