Monday, August 23, 2010

Ten Negotiation Techniques

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.

Friday, May 22, 2009

Back to Negotiating

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!

Wednesday, February 4, 2009

Got The Itch For a New Car?

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!!!

Tuesday, February 3, 2009

A Magazine For Us!

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.

Monday, February 2, 2009

Book Review - How To Negotiate Like a Child

How To Negotiate Like a Child
By Bill Adler

ISBN-10: 081447294X
ISBN-13: 978-0814472941



How to Negotiate Like a Child: Unleash the Little Monster Within to Get Everything You Want

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.

Saturday, January 31, 2009

Looking for a Raise?

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

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

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!

Friday, January 30, 2009

My Supercharged Life - Guest Blog

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.

Thursday, January 29, 2009

The "Balls" for Negotiating...

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!

Wednesday, January 28, 2009

The Sales Professional's Negotiation Checklist

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...

Tuesday, January 27, 2009

Free Book On Negotiating!

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

Monday, January 26, 2009

Book Review - The Art of Influence

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


The Art of Influence: Persuading Others Begins With You

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

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!

Sunday, January 25, 2009

Antie Kate is Awesome!

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...

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!

Saturday, January 24, 2009

I'm Going To Harvard!

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!

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

“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!

Friday, January 23, 2009

Open For Business

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.