Monday, August 25, 2008

Secrets of Power Negotiating: Inside Secrets From a Master Negotiator, Second Ediiton


Beginning Negotiating Gambits: Avoid Confrontational Negotiation

Key Points to Remember
1. Don't argue with people in the early stages of the negotiation because it creates confrontation.
2. Use the Feel, Felt, Found formula to turn the hostility around.
3. Having Feel, Felt, Found in the back of your mind gives you time to think when the other side throws some unexpected hostility your way.

Beginning Negotiating Gambits: The Reluctant Seller and the Reluctant Buyer

Key Points to Remember
1. Always play Reluctant Seller.
2. Look out for the Reluctant Buyer.
3. Playing this Gambit is a great way to squeeze the other side's negotiating range before the negotiation even starts.
4. The other person will typically give away half of his or her negotiating range just because you use this.
5. When it's used on you, get the other person to commit, go to higher authority, and close with good guy/bad guy

Beginning Negotiating Gambits: Use the Vise Technique

Key Points to Remember
1. Respond to a proposal or counter-proposal with the Vise Technique: "You'll have to do better than that."
2. If it's used on you, respond with the Counter Gambit, "Exactly how much better than that do I have to do?" This will pin the other person down to a specific.
3. Concentrate on the dollar amount that's being negotiated. Don't be distracted by the gross amount of the sale and start thinking in percentages.
4. A negotiated dollar is a bottom-line dollar. Be aware of what your time is worth on an hourly basis.
5. You will never make money faster than you will when you're Power Negotiating.

Middle Negotiating Gambits: Handling the Person Who Has No Authority to Decide

Key Points to Remember
1. Don't let the other side know you have the authority to make a decision.
2. Your higher authority should be a vague entity and not an individual.
3. Even if you own your company, you can still use this by referring down through your organization.
4. Leave your ego at home when you're negotiating. Don't let the other person trick you into admitting that you have authority.
5. Attempt to get the other person to admit that he could approve your proposal if it meets all of his needs. If that fails, go through the three Counter Gambits: Appeal to his ego, get his commitment that he'll recommend to his higher authority, go to a qualified 'subject-to' close.
6. If they are forcing you to make a decision before you're ready to do so, offer to decide but let them know that the answer will be no, unless they give you time to check with your people, and if they're using escalating authority on you, revert to your opening position at each level, and introduce your own levels of escalating authority.

Middle Negotiating Gambits: The Declining Value of Services

Key Points to Remember
1. The value of a material object may go up, but the value of services always appears to go down.
2. Don't make a concession and trust that the other side will make it up to you later.
3. Negotiate your fee before you do the work.

Middle Negotiating Gambits: Never Offer to Split the Difference

Key Points to Remember
1. Don't fall into the trap of thinking that splitting the difference is the fair thing to do.
2. Splitting the difference doesn't mean down the middle, because you can do it more than once.
3. Never offer to split the difference yourself, instead encourage the other person to offer to split the difference.
4. By getting the other side to offer to split the difference, you put them in a position of suggesting the compromise. Then you can reluctantly agree to their proposal, making them feel that they won.

Middle Negotiating Gambits: Handling Impasses

Key Points to Remember
1. Don't confuse an impasse with a deadlock. True deadlocks are very rare, so you've probably reached only an impasse.
2. Handle an impasse with the Set-Aside Gambit: "Let's just set that aside for a moment and talk about some of the other issues, may we?"
3. Create momentum by resolving minor issues first, but don't narrow the negotiation down to only one issue.


For more Information
* Business Negotiation Skills, Business Skills, Business Collaboration, Personality Type, *

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