LEARN NEGOTIATING!

Ten Negotiation Techniques

noreply@blogger.com (Scott G. Perry) — Mon, 23 Aug 2010 23:05:00 +0000

This just in from the negotiating Linked In group...

Ten Negotiation Techniques

1. Prepare, prepare, prepare.

Enter a negotiation without proper preparation and you've already lost. Start with yourself. Make sure you are clear on what you really want out of the arrangement. Research the other side to better understand their needs as well as their strengths and weaknesses. Enlist help from experts, such as an accountant, attorney or tech guru.

2. Pay attention to timing.
Timing is important in any negotiation. Sure, you must know what to ask for. But be sensitive to when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship.

3. Leave behind your ego.
The best negotiators either don't care or don't show they care about who gets credit for a successful deal. Their talent is in making the other side feel like the final agreement was all their idea.

4. Ramp up your listening skills.
The best negotiators are often quiet listeners who patiently let others have the floor while they make their case. They never interrupt. Encourage the other side to talk first. That helps set up one of negotiation's oldest maxims: Whoever mentions numbers first, loses. While that's not always true, it's generally better to sit tight and let the other side go first. Even if they don't mention numbers, it gives you a chance to ask what they are thinking.

5. If you don't ask, you don't get.
Another tenet of negotiating is "Go high, or go home." As part of your preparation, define your highest justifiable price. As long as you can argue convincingly, don't be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place.

6. Anticipate compromise.
You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it's better than you'd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get.

7. Offer and expect commitment.
The glue that keeps deals from unraveling is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment.

8. Don't absorb their problems.
In most negotiations, you will hear all of the other side's problems and reasons they can't give you what you want. They want their problems to become yours, but don't let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from.

9. Stick to your principles.
As an individual and a business owner, you likely have a set of guiding principles — values that you just won't compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without.

10. Close with confirmation.
At the close of any meeting — even if no final deal is struck — recap the points covered and any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.

Back to Negotiating

noreply@blogger.com (Scott G. Perry) — Fri, 22 May 2009 20:53:00 +0000

Man, I've been busy lately, but I promise to get back to posting at least once per week.

Sorry about that!

I'll have a good post for you by Monday!

Got The Itch For a New Car?

noreply@blogger.com (Scott G. Perry) — Thu, 05 Feb 2009 04:01:00 +0000

I can't believe the new car deals out there! If you have the cash, now is the time to negotiate for a new set of wheels. We're cash-only buyers here at the Perry household so we're not quite ready, but maybe you are.

If so, Mike at Negotiation Dynamics has a great outline of HOW TO BUY A NEW CAR that I find thorough and very helpful.

If this helped you out, let us know!!!

A Magazine For Us!

noreply@blogger.com (Scott G. Perry) — Wed, 04 Feb 2009 02:55:00 +0000

Take a look at this site!

Negotiator Magazine

They offer a free subscription to Negotiator Magazine if you sign up. There is a lot of good information here and I'll be digging through it over the next few days. They also have book reviews.

Book Review - How To Negotiate Like a Child

noreply@blogger.com (Scott G. Perry) — Mon, 02 Feb 2009 20:29:00 +0000

How To Negotiate Like a Child
By Bill Adler
ISBN-10: 081447294X
ISBN-13: 978-0814472941

Having a little negotiator running around my house, I did get a kick out of this book. While I'm not sure I'd use some of the tactics (it's a tactics book) I have had many of them used on me, including the temper tantrum.

Its a fun book with lots of interesting tidbits, but there is not much for the serious negotiator here.

Looking for a Raise?

noreply@blogger.com (Scott G. Perry) — Sun, 01 Feb 2009 02:47:00 +0000

The fine folks at SalesCareersOnline have offered up a list of seven tips to avoid selling yourself short in a salary negotiation. We suggest you take our offer or we'll walk!!!

Have you recently negotiated your salary? We'd like to hear what happened! Share a comment with us...

Book Review - Women Don't Ask

noreply@blogger.com (Scott G. Perry) — Sat, 31 Jan 2009 20:18:00 +0000

Women Don't Ask
By Linda Babcock and Sara Laschever
ISBN-10: 0553383876
ISBN-13: 978-0553383874

THIS IS AN EXCELLENT BOOK AND MANDATORY FOR ANY WOMAN TO READ regardless of whether or not she negotiates. In the procurement profession I've always wondered why women are paid 17% less than the men and it has always bothered me. This explains it! I often have trouble encouraging women to negotiate and they always tell me that "its not in their nature." Any woman with children is a top negotiator!

Ladies...time to play in the big leagues. Read this book and ASK!!!

My Supercharged Life - Guest Blog

noreply@blogger.com (Scott G. Perry) — Sat, 31 Jan 2009 14:09:00 +0000

Yesterday I was the guest-poster on the My Supercharged Life blog. My buddy Jeff was taking some much needed time off at the beach while I'm here freezing in Georgia and waiting for an ice storm to hit.

This post is a negotiating primer for people that aren't using negotiating to save money...so check it out and let me know what you think!

My Supercharged Life - Guest Blog

noreply@blogger.com (Scott G. Perry) — Sat, 31 Jan 2009 01:00:00 +0000

Today’s tip is a guest blog on my friend Jeff’s blog My Supercharged Life. He’s on vacation this week. Jeff’s blog is a favorite of mine and I read it daily. He’s got some great ideas, especially on small business and finance.

This particular blog is a primer on negotiating for consumers. So if you’ve never negotiated anything or only a few things, this is a great post.

Take a minute and check out my guest blog while Jeff suns himself in Cozumel! Don't forget to register for his RSS feed! I read it every day.

The "Balls" for Negotiating...

noreply@blogger.com (Scott G. Perry) — Fri, 30 Jan 2009 02:37:00 +0000

Business Balls is a site that I had not seen before and they have a negotiating webpage that has some helpful negotiating tips.

What do YOU think about this list? Give us a comment and let us know!

The Sales Professional's Negotiation Checklist

noreply@blogger.com (Scott G. Perry) — Wed, 28 Jan 2009 22:00:00 +0000

I found a site called Just Sell and it has a handy Sales Professional's Negotiation Checklist that you can review. This would be great for a new salesperson to print out and stick on their desk so they could read it each morning.

We want to hear what YOU think of this list!!! Post a comment...

Free Book On Negotiating!

noreply@blogger.com (Scott G. Perry) — Tue, 27 Jan 2009 22:00:00 +0000

I was looking at negotiating training sites and Patrick Henry, Inc. is offer a free REAL book for signing up on their site. I've already signed up so I'll let you know shortly if I get it and what they have to offer.

FREE BOOK OFFER

Book Review - The Art of Influence

noreply@blogger.com (Scott G. Perry) — Tue, 27 Jan 2009 00:47:00 +0000

The Art of Influence
By Chris Widener
ISBN-10: 0385521030
ISBN-13: 978-0385521031

I'm proud of the fact that I finished this. Usually I would just toss it. I gave it two stars only because I think people that don't like to read business books might like this parable as it is easy to read. It was completed the evening I picked it up at the library.

Essentially it is a fable about a business school student who gets to spend a couple of days with a young billionaire and he learns about business from him and his friends. Then when its over, the wealthy business man hands him a check for $50,000 and says "go ye therefore and prosper."

While I get the four laws of influence, I could have gotten them in a memo. I know that integrity is everything and I don't need rich Mr. Gold saying no to a $500 million opportunity because the CFO told his assistant to lie and say that the envelope shipped yesterday. Lot's of crap.

Don't waste your time or your money, unless the book is free and you hate reading business books.

There Are No Rules In Fight Club

noreply@blogger.com (Scott G. Perry) — Mon, 26 Jan 2009 20:15:00 +0000

The rule is: ignore the rules. I’m one of these people that thinks that rules are made to be broken or at least bent until they squeak. My wife hates this about me! So many rules we come up against are just arbitrary or put in our way to solve some other little problem that came up years ago. My policy is that the minute you hear the word RULE, POLICY, or PROCEDURE, challenge it.

A hotel that I use for traveling charged me a ten dollar fee for parking my car in their uncovered parking lot outside. I told the person at the counter that I don’t think it is fair for me to be charged this fee since I can park for free across the street and the lot is neither covered or protected.

“Sorry, sir, but that is our policy,” replied the clerk.
“Who’s policy?”
“The Hotel’s policy,” she said.
I leaned over and spoke to the hotel wall with a giggle and said “Mr. Hotel, I’d like to talk to you about your policy!”
The clerk laughed and said “No, it is the manager’s policy!”
“Oh, ok. Can I speak to the manager?” I said.
“Well, he is out right now.”
“Fine, just have him call my room when he gets in, please,” I stated firmly and walked away before she could make an excuse not to have him call.

The manager called me and told me how the fee came about. Mainly it is to discourage people from bringing their cars and to use the transit system which leaves them less liable for damage to guests’ cars. Apparently the cars are broken into rather frequently and they have had to pay out some money for damages. I told him that my insurance would cover the cost of a break in and would he kindly put it in my file not to charge me for parking. He agreed.

A few things happened here. The most important is that I got to the root cause of why the policy was made and I demonstrated that it didn’t apply to my case. Secondly, I used humor with the clerk along with firmness to get her attention and to show that I was serious about questioning the policy. The third is that I didn’t take the policy at face value.

Question policies and demonstrate that it doesn’t apply to you and you’ll save money!

Have a question about negotiating? Send it to us at scott@rainydayfinances.com!

Antie Kate is Awesome!

noreply@blogger.com (Scott G. Perry) — Sun, 25 Jan 2009 22:00:00 +0000

Most of you know that I right for the blog Rainy Day Finances with my wife, the VERY frugal Marie. She is so cheap she saves the fur from brushing the dog to knit puppies. While researching for her I came across this Negotiating Guide for Timid People Who Hate Conflict from Auntie Kate The Resale Expert. The hardest thing I have come across are women that are reluctant to negotiate. So if you are, take a look at the list and tell Kate I said hi! If you need me, I'll be down at the consignment shop for Ferrari's.

Are you timid about negotiating? We'd love to know why! How about giving us a comment?

Splitting Hairs...

noreply@blogger.com (Scott G. Perry) — Sun, 25 Jan 2009 20:13:00 +0000

Split the split! How many times have you been negotiating with someone and you get down to something like $1,000 vs $1,200? The other person would say “ok, why don’t we just split the difference?” That sounds like a good deal, doesn’t it?

To me that is a signal that the other party is beginning to fatigue. I love to wear out the other side and I can keep things going forever if they let me. That drives the price down! Once I hear that I immediately come back to them with “I’ll do the deal right now if you’ll agree to split the split!” Almost naturally they’ll say ok, because they’ve already resolved to lose a little money to finish the deal, so what’s a little more. Well, for you it is $150!

Splitting the split will save you money!

Have a question about negotiating? Send it to us at scott@learnnegotiating.com!

I'm Going To Harvard!

noreply@blogger.com (Scott G. Perry) — Sun, 25 Jan 2009 03:56:00 +0000

Well, I'm going to their website, anyway. The Program on Negotation from the Harvard Law School is broadcasting on the net. You can hear it at POMcast. This is something you should really check out right now!

Here is the link for the Program on Negotiation - and they have a newsletter.

Let me know what YOU think!

Me? Make a Mistake? Never!

noreply@blogger.com (Scott G. Perry) — Sat, 24 Jan 2009 22:11:00 +0000

The Negotiating Guru has a great "Top Ten" list that I think everyone should pay attention to. Making sure you don't violate these will give you much greater success in your negotiating. This site appears to have gone to sleep but there are some good pieces of wisdom in the archives.

10 Mistakes You Should Avoid In Your Negotiations: A Guide for Business Executives, Entrepreneurs and Lawyers

Policy Police

noreply@blogger.com (Scott G. Perry) — Sat, 24 Jan 2009 20:11:00 +0000

“That’s our policy!” I love this one. When negotiating with stores you’ll hear this one a lot and for most of us it stops us in our tracks. Who are we to question THEIR policy? Policy sounds a lot like law, doesn’t it. Let’s go to the library…

At the library I was found guilty of damaging a book with water. Actually the culprit was my tiny daughter who dumped her water bottle all over Curious George. The judge at the public library, who is properly called a Media Specialist, informed me that I would have to pay the replacement cost of the book at THEIR rate. I opened the cover and showed her that the actual cost of the book was several dollars lower and that since the book was used and it was my fault that I would gladly pay the book’s cover price. “Our POLICY is that you pay replacement cost!” Ok, let’s negotiate.

Librarians that I’ve met over the years are firm and fast rule keepers. Since my negotiating was giving her heartburn I decided to stroke her ego a little bit by going back to the damage at hand. I asked her was the book really damaged so badly that they couldn’t use it? I got a lengthy lecture on what happens when a book gets water damaged pages, learned about the spine of the book, about mold and mildew and many other things. I told her I was amazed at how much she knew about books! With this information I then gently challenged her as to whether or not the book was useable in its condition to which she replied that they could use it but it would take some work. When I asked her how much the work would cost she replied “we don’t have a policy for repairing books”. Ok, another dead end.

So we went back to negotiating about the cost and I decided to use another tactic, the stall tactic. I had plenty of time as my daughter was reading in the children’s book section, but the Librarian had a line forming behind me. We laboriously discussed the replacement cost. I even told her that if I was responsible for replacing it that I’d just go get them a replacement book and pay a lot less. “Our policy won’t allow that.” Rats.

Ok, by now I’m getting a little steamed, but I’m going to keep my cool. This is a $3.00 negotiation with a Librarian, but a great exercise, so I’m going to continue. The next tactic I pulled out of my bag was the “fairness” tactic. I approached her with the statement that “I am guilty of damaging the book but it is not fair to financially penalize me for the infraction more than the value of a book to replace it. You wouldn’t pay more than a book was worth, would you?” Jackpot! She looked at me with a very puzzled look. “Certainly, I would never do that.” She then agreed to accept my payment of the books cover price which saved me $2.90. We then argued about my right to take the book home since I just paid for it. I told her it was MY POLICY to take what I pay for!

Now, you are going to say that this was stupid, right? Why beat up a librarian for $2.90? There are several reasons that I did this. The first is to make it known to the library that their policy is not quite fair. The second is that I don’t like people waving policies in my face just to make their lives simple. The third is that I need the practice. You can see from the description that I used several negotiation tactics and even changed my strategy. Believe it or not, doing this with the librarian is no different than doing this with a million dollar contract, which I do daily. My policy is to practice, practice, practice and you’ll save money, too!

Open For Business

noreply@blogger.com (Scott G. Perry) — Sat, 24 Jan 2009 02:24:00 +0000

Today we are splitting the Rainy Day Finances Blog and removing the negotiating sections. We're finding out that women don't want to read it but that it is getting a following all its own. There are not many blogs on negotiation and I think this will be a smash hit! We'll move the bookstore, too.

Trip To The Car Lot...

noreply@blogger.com (Scott G. Perry) — Fri, 23 Jan 2009 20:09:00 +0000

What time is it? Time to negotiate! The factor of time can really influence your deal. Always be aware of your time constraints and those of the other party.

Let’s go buy a car. You really don’t need to close a deal on a new car for several weeks. The new car dealer knows that if he doesn’t close you in three days or less that statistically he/she won’t sell you a car. So what time of the week do you go to the dealer? Monday? Saturday? It will depend on the dealer but often you see the sales advertisements coming out on Friday, so Friday is often a good day.

Thus, if I go to negotiate for a new car, I’m likely to go Friday and to go very late in the day. If I know what I want, I’m going at 30 minutes before closing time. The dealer doesn’t want to be stuck at the office late on a Friday night and 30 minutes gives them just enough time to work you a deal. As the clock ticks, the pressure is on them to close the sale. Be sure to tell them that you have all day Saturday to look at car dealerships if you don’t buy one today!

Time can be your enemy as well. If you are in a hurry to buy something and the salesperson figures this out, you won’t get a price break. Instead, act is if you have plenty of time. Don’t act like you are rushed and be sure to avoid any high-pressure closes like “if I can get that in gray for you will you take delivery tomorrow?”

Time is money. Be aware of time, because the money you save could be used to buy that next new car!

Loser!

noreply@blogger.com (Scott G. Perry) — Thu, 22 Jan 2009 20:08:00 +0000

Loosing is hard on me. It’s hard on everyone. But I no longer look at a “failed” negotiation as loosing. Let’s start with definitions. A “failed” or “incomplete” negotiation as I prefer to call it is one in which neither buyer or seller (both parties) were able to see their needs met. This is also called a lose/lose negotiation.

I see a lose/lose situation as my fault, not the other parties. It is a chance for me not to feel sorry for myself or the failed negotiation, but as a opportunity for me to hone my skills and discover what it was about my preparation, strategy, tactics or goals/objectives that were not properly configured for the deal.

Someone in one of my classes the other day mentioned that they had carried cash to a car purchase and were trying to get the sale price down from $6,000 by $300 through displaying the lower amount in hard cash to the seller. He was disappointed that he had failed. In this situation I would not have felt bad about the deal but I would have spent time analyzing what I had done wrong. My suggestion to my friend is that maybe he didn’t take the time to understand the needs of the seller. Maybe he had a bill to pay or a down payment to make on another car that was precisely $6,000. Or maybe the seller didn’t really need to sell the car and could effectively use the “walk away” tactic. Still another option is that the car had great sentimental value and the seller mentally could just not part with it.

What probably went wrong is that the buyer did not take time to build some rapport with the seller. Just a little “small” talk and some pointed questions might have gotten the other party to demonstrate what it was about the car that would keep him/her from selling at the lower price.

Still, if you get to the end and it looks like the deal won’t happen, try the “hat and the door” tactic. I got this one from Zig Ziglar and it is fantastic. When you both agree the deal is not going to happen and you turn to leave (putting on your hat and reaching for the door) just stop and turn back to the seller. Ask them “I realize that we couldn’t come to an agreement, but I’m just curious. What is it about the car or the price that made you hold your ground so firmly?” More often that not the seller will tell you specifically why they wouldn’t come down on price! It is amazing how well it works. Often, when the negotiation is over the seller will drop their guard. “Well, this car is the one I used to date my wife and I asked her to marry me in it!” “Oh, well why didn’t you say so! Didn’t I tell you that I wanted to preserve this car and restore it to its original condition? This car will live forever! I just needed the $300 discount to make sure I had some extra money left over to get started on the minor repairs.”

Take the time to build rapport, and never feel like a negotiation is a loss. Every negotiation teaches you something and you’ll save money over time.

Neanderthal Negotiating?

noreply@blogger.com (Scott G. Perry) — Wed, 21 Jan 2009 20:06:00 +0000

Negotiating isn’t fighting. I really don’t like negotiating books and trainers that use the term adversary, opponent or even combatant as I read in one book recently. Many will even use military terms like battle, war and “shooting the other guy.” While the person or team on the other side of the table might be hostile, looking at the negotiation as a fight for “my needs” or as a battle is an equation for losing. You may win today, but you almost always loose in the long run.

I prefer Gerard I. Nierenberg’s style of looking at a negotiation as a collaboration. You can order his book The Art Of Negation in our bookstore. He says it is two parties trying to satisfy their needs in a way that benefits both parties. Once a negotiation turns adversarial emotions become involved and things get out of control. Should you feel that things have become adversarial, stop and try to understand why the other party is upset and why you are upset. Put yourself in their shoes and think how they would feel in the situation. Then try to correct it.

My favorite way to get things to simmer down is taking a break. I’ll make an excuse to leave the room and will go get a drink of water or pretend to talk on the phone. This gives me time to reflect on the discussions and to think about the other party. When I’ve collected my emotions I’ll go back to the table, often with my purpose and objectives clearly put back in my mind.

Many times I find that the other party is not frustrated with what is going on during the negotiation, but at something entirely unrelated. I had one negotiation get so out of control that both sides were calling each other names. We took a break and when I was walking out of the room the other team leader blew his nose and took a pill. I asked him if he had a cold and he said he should be in bed and that he’s had the flu for several days. I postponed the negotiation for a week and when he felt better, we closed the deal.

Don’t fight ‘em, delight ‘em. Be alert to anger and frustration as the break you take can save you money.

Get Your Money Back!!!

noreply@blogger.com (Scott G. Perry) — Tue, 20 Jan 2009 20:05:00 +0000

Lately I’ve been using a lot of my negotiating skills to get my money back. For some reason Marie and I are finding that we are being overcharged more, fined more, penalized more and just being plain old ripped off. I’m spending about 35% of my personal finance time just trying to get back what is owed me. Here are some key tips to help you get back what is due.

1. Keep watch over your accounts. Marie and I watch our bank statement closely and always question any charge that we don’t understand. Most of the time it is just a charge that one of the two of us made and didn’t bring the receipt back for the file. Other times it is an incorrect charge or a bank fee. Make sure you know where your money goes and question any charge, no matter how small. $5 per month in unknown fees is $60 per year!

2. Fight! We made a rule here at our household that no one takes money from us for goods or services we didn’t receive. I will go after any amount regardless of the size. When I opened up a new on-line money market account and made my first transfer, they executed the transfer twice by accident. Since it was for a large sum, it wiped out my bank checking account and caused it to bounce. I received a $50 fine from the checking account bank and another fine from the MMA for not having the funds, even though I did nothing wrong. I started with the bank first and spoke directly to the bank manager. After finally threatening to withdraw all my accounts immediately they reluctantly gave my $50 back. Then I began to argue with the MMA and did get my $50 credited after several phone calls and emails. My time to do this was well over the $100 that I was charged but it is important to let banks know that you won’t let them steal from you.

3. Make your utility companies explain their billing until you understand it. Recently we found out (when comparing bills with our neighbors) that our water bill was much higher than theirs. I examined the bills and they seemed logical but I didn’t understand everything. The water company was very nasty when I questioned them, but I held my ground. They said they would investigate but that they would charge me $50 to do so. I took the risk and agreed. We found out that our new water meter was defective and after a few more weeks of fighting got over $700 in refunds from the water company.

4. Don’t use credit cards. I’m finding that now that we’ve gotten rid of all our credit cards I don’t get accidentally billed all the time. There for about a year I got one incorrect charge each month on a credit card. Reoccurring fees that I didn’t authorize and “membership renewals” were the worst. Now that the cards are gone, life is much easier. If you still use cards, be sure to change your card numbers once a year.

Tenacity is the key to getting your money back. Use supporting documents, negotiate face to face when possible and document any promises and problems. Doing this helps your family save money!

Book Review – Negotiation Boot Camp

noreply@blogger.com (Scott G. Perry) — Mon, 19 Jan 2009 20:03:00 +0000

How to Resolve Conflict, Satisfy Customers, and Make Better Deals
By Ed Brodow
ISBN 0-385-51849-8

Ed Brodow is a negotiation coach. His book (which is available in our bookstore) is set up like his 10 week negotiation training classes. Basically, this book is a rehash of most of the classics in negotiating and doesn’t offer any really new insights to negotiation, unless you want to study the sex lives of Bonobo monkeys. It is a very good book for a new salesperson and outlines most of the basics of negotiation in a sales type setting. Brodow is known for his books on selling. One thing I particularly don’t like about the book is that he embraces the old school “opponent” or “combatant” type of style then turns around and pushes win/win on you without clarifying that these are really different strategies for negotiating. I think it is a good read for someone that just wants to learn a little before they take on a new sales position.