100 unchanging rules for business success!
Part 8. The laws of negotiation
The most critical thing in a negotiation is to get inside your opponent’s head
and figure out what he really wants. ― Jacob Lew
To succeed in life as well as in business,
you need to have certain skills.
One of them is negotiation skills
– a way for people to agree
and discuss together.
It can be affirmed
that human life is always a process
of constant negotiation.
As a child,
you “negotiated” your parents’ attention
by crying out loud to be fed
or changed diapers.
What you use to “negotiate” is hugs
or kisses or simply a good night’s sleep
or being obedient.
When entering life,
in order to survive,
you are forced to negotiate more important issues
such as marriage,
work,
health,
finance,
family…
Every relationship has a form of negotiation determined.
In love and marriage,
you and your partner agree on hours of activity,
on sharing housework,
on leisure habits, etc.
In work,
you and your colleagues must clearly divide tasks,
you have to negotiate with your superiors
to get the desired income and benefits…
With family, parents
and children must understand each other’s responsibilities
and obligations, etc.
In business,
you love quality
to get convenient buying and selling transactions,
obtain favorable economic terms,
buy goods at a cheaper price
or distribute products to the right partners, etc.
Really, the problem is not with you.
Negotiable or not and how effectively you negotiate.
The main responsibility of your life is
to learn how to negotiate optimally for yourself.
Learning and practicing the rules of bargaining
in this chapter will help you easily
and quickly get more of what you really want.
If you know how to use these laws appropriately,
you will improve and enhance your life in many ways.
Sometimes with just a modest change in your bargaining skills,
you can still reap significant benefits,
even beyond your expectations.
By fighting you never get enough,
but by yielding you get more than you expected. ―Dale Carnegie
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73. The law of negotiation
Everything is negotiable.
The prices of all products as well as the terms
of sale are man-made
and do not follow any rules,
so they are obviously subject to change.
When you look at life
as a protracted negotiation process,
you’ll find that almost all situations contain elements
that you can negotiate to improve terms
and conditions for yourself as well like for others.
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1st Corollary :
Price is an accurate estimate
of what the market will accept.
The price set for a product
or service has little to do with objective reality,
i.e. the costs of production and marketing,
distribution, etc.
Price is arbitrary
and mainly reflects the what the market accepts about a product
or service at a given time.
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2nd Corollary:
People set prices,
so people can change prices as well.
I will illustrate you an example of this consequence.
Once, I walked into a high-end menswear store.
When it was February,
the end of winter.
The first thing
that caught my eye was a very nice cashmere coat,
priced at $500 but reduced to $350.
I bid $250.
The salesman frowned,
slightly surprised.
He said that high-end stores like this
don’t accept price negotiations.
Prices stated on the label are correct and unchanged.
I realized right away
that I was talking to someone who had no bargaining power.
Since the store manager was out,
I politely wrote $250 on my business card
and asked the salesman to pass it on to the manager
when he returned.
I add my suggested price will be valid until 3pm that day.
Then I went back to the office.
At 2:30 p.m.,
the phone rang and in a tone of surprise,
the morning clerk told me
that his manager had agreed to accept $250 for the coat.
Don’t be afraid of pre-written numbers.
They are all subject to change
and adjustment if you know how to make a request at the right time.
The first thing to decide before you walk into any negotiation is what to do
if the other fellow says ‘no’. ― Ernest Bevin
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74. The law of the future
The purpose of negotiation is to reach an agreement.
that can satisfy the needs of the parties,
and at the same time provide an incentive
to implement those agreements
and to conduct further negotiations in the future
with the same parties work.
This is the basic rule of negotiation,
especially applicable in cases
where you will have to continue to negotiate
with the other party.
In business,
you need to keep this future factor in mind
during each negotiation phase
because it is very common
for the other party
to withdraw from negotiations or transactions
that take place for a long time.
Let us interpret this law in three separate parts.
First, “the purpose of negotiation is to reach an agreement”.
Although this is not always successful,
negotiations are assumed on the basis
that the parties want to work together.
If one party does not want
and does not have the same purpose of negotiating,
the other party will surely face a great disadvantage.
The second component is
“the needs of the parties are satisfied”.
This means that if one party feels
that it is losing out on an agreement,
the negotiation does not meet the basic requirement of success.
Both parties must feel
that they are more profitable.
The last component is
“creating incentives to make agreements
as well as to conduct further negotiations in the future
with the same partner”.
This means that both parties are satisfied
with the results achieved,
so they will be motivated to fulfill
any commitments they have made
and feel optimistic about the agreement,
so they are ready to negotiate further
and work towards those commitments,
new agreement in the future.
Your task in every negotiation is
to show goodwill for a long-term cooperation
in order to create trust in your partner
so that they can continue to do business
with you in the future.
People will pay more for a great attitude than they will for a great product.
The individual who combines a great attitude with a great product.
Becomes unstoppable!
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75. The law of winners
A negotiation is only successful
when both parties are completely satisfied
with the results achieved,
both feel like they are the “winners”.
Be consistent and determined
when entering into negotiations to maintain a good
and long-term relationship
between the parties.
You should also try to find an outcome
that pleases both sides.
Any settlement
or agreement
that makes either party unsatisfied will bring you bad results later
that you cannot foresee.
Before entering into a negotiation,
you need to inform yourself in advance
that you want and expect a solution
that satisfies both parties.
If the end result does not lead to a win for both of you,
you should refuse to make any agreement.
When you are determined
to reach a win-win solution with an open,
receptive,
and flexible attitude during the discussion,
it is likely that you will discover a third solution
that neither side has thought of yet.
That is a better solution
than what you or your partner proposes.
This third type of solution is not too difficult to achieve,
as long as you have to brainstorm
and think in the most positive direction.
Even though you have decided
that only one solution is acceptable to all parties,
you still have the flexibility to be flexible as needed.
Once you have a clear understanding
of your values and goals,
you are in a position to leverage all available strategies
and tactics to get the best deal
– a deal that is to the satisfaction of all parties.
One of the best ways to persuade others is by listening to them. – Dean Rusk
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76. The law of endless possibilities
You can always get a better deal if you know how.
No one is forcing you to accept the outcome
of a negotiation
if you feel dissatisfied or unsatisfied.
You can absolutely get better deals,
prices or terms if you know how.
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1st Corollary :
If you want a better deal,
boldly ask.
“Ask” is the most powerful word in business and negotiation.
Most people hesitate to make a request out of fear
of rejection or disapproval.
But good negotiators will not accept this situation.
They always calmly and confidently ask
for any kind of price
or terms they want,
even if those requests are almost out of bounds.
In many cases,
your request will be quickly reviewed
and approved by the partner
One of the students who graduated
from my seminar was a real estate agent
who needed to buy a home.
He sets a specific price range
and only finds homes on the market
for sale within that range.
His strategy is simple.
Whatever the bid,
he offers to pay 50 to 60% of it in cash
with no other conditions.
Your proposals have a certain deadline.
Many times,
he was rejected.
Not only refused,
some people also used offensive words against him.
However, he persisted in following his strategy.
About every hundred times he contacted homeowners,
he found someone who wanted
to sell their home immediately for some reason,
and they quickly agreed to the proposal he made.
He then mortgaged his main property
to pay for the house.
After the house was in his possession,
he sold or rented it out for more
than the bank mortgage interest.
His secret is simple.
It’s just daring to ask for a much lower home price
than any other real estate agent.
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2 nd Corollary :
Whatever the offer,
you should react with surprise
and disappointment.
The prices people offer are often much different
from the actual value.
People tend to push prices up
when they want to sell and lower
when they want to buy.
In any case,
when the other party offers a price,
you should be hesitant at first
and react no matter what the price or offer is.
Then ask:
“Is that the best proposition you can come up with?”
and completely silent.
Usually, every price has a set discount,
and the seller will lower the price
when you show hesitation.
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3rd Corollary:
Let the other party know
that you can get a better deal elsewhere.
Nothing brings a seller down faster
than saying you can get the same item somewhere else
for a lower price.
This will shake the confidence of salespeople,
making them feel that if they don’t decide early,
there is a chance they will lose customers.
Help others achieve their dreams and you will achieve yours. ―Les Brown
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77. The law of number 4
Any negotiation should focus on four main issues.
Everything else depends on these issues.
Many details can be worked out in a complex deal,
but typically the success
or failure of a negotiation will depend on no more than four factors.
I once participated in a complex discussion
that lasted three days,
the details of which were covered in fifty pages,
only to be reduced to four main issues.
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1st Corollary:
80% or more of the negotiation will revolve
around four main issues.
This rule of 4 and 80% seems to hold true in all cases.
No matter how long or complicated a negotiation,
no matter how many terms,
conditions,
and details,
you will eventually find
that most of the most important points
of the negotiation revolve around four basic problems.
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2nd Corollary :
Of the four main issues of any negotiation,
there will be one major issue
and three sub-problems.
For example, you plan to buy a new car.
The four main factors
that govern your decision can be price,
superior value to the vehicle you are using,
color and spare parts.
Warranty and service policies are also important
but secondary to you.
Usually, before buying a new car,
you will consider about ten different cars
and visit about ten different car dealerships.
You will end up choosing a model
that is sold by three car dealerships.
You will then base your decision on a combination
of these four factors,
where price may be the main issue,
while the other three’s importance varies depending on
individual circumstances
or your hobby.
Rule number 4 can be very influential if
both parties arrange the importance
of the four factors in different orders.
One party may care more about the price
and the other may care more about the terms.
This can lead to a great win-win solution
while satisfying each side’s most important requirements.
“Spend a lot of time talking to customers face to face.
You’d be amazed how many companies don’t listen to their customers.” – Ross Perot
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78. The law of decided time
Every negotiation has a moment
that determines its success or failure.
Always make a strategic plan
and calculate the time to negotiate in the most beneficial way.
Almost every negotiation situation has a “too early”
or “too late” milestone and a decisive moment.
When you calculate
and allocate your time correctly,
you have a better chance of getting a better deal.
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1st Corollary:
The more urgent the need,
the less effective the bargaining power.
When you’re impatient to close a deal,
your chances of negotiating in your favor are markedly reduced.
And conversely,
if the other party is eager to strike a deal,
they are at a disadvantage
that you can effectively exploit.
For example,
most commercial companies have monthly,
quarterly,
and annual sales targets.
Sales managers are tasked
with achieving these target levels.
They depend on those quotas for work,
income,
and bonuses.
Every salesperson also has a sales quota for each month.
So, when you’re planning to buy an expensive item,
you’re most likely to get the best deal if you wait
until the end of the month
when pressure is on to hit sales targets.
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2nd Corollary :
Don’t be in a hurry to negotiate.
Using time pressure is a common negotiating tactic
that involves forcing you to make a quick decision.
When you find yourself in this situation,
you should stay awake,
unwavering,
and persistently ask questions to find out
if the problem is really urgent.
If your partner forces you to make an immediate decision,
you can respond by saying,
“If you need me to answer right now,
the answer is no.
But if I had had time to think,
the answer might have been different.”
On the other hand,
you can flexibly use this tactic to your advantage
by pressuring the other person to run out of time
and make decisions on your terms.
But try not to let others do this to you.
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3rd Corollary :
80% of the important issues of any negotiation are usually decided
in the final 20% of the time.
Most important issues in a negotiation
fall into the late stages of discussions.
There seems to be a natural human tendency
to delay deciding on the most important things
until this moment of negotiation.
This requires the negotiating parties to be patient enough
and willing to focus their minds on important issues
to be resolved at the last minute.
Planning and decision deadlines will help.
If important issues are resolved quickly
and sooner than expected,
it is a pleasant surprise.
But this is just the exception.
One last thing regarding decision timing:
Whenever possible,
you should delay making an important decision.
Try not to let others use timing tactics
to force you to make an early decision.
All matters involving large amounts of money,
long product life cycles, etc.,
require a relatively long enough time
to make an accurate decision.
Use time as a weapon to strengthen your position
and improve your ability to make better decisions.
“The more you engage with customers,
the clearer things become
and the easier it is to determine what you should be doing.” – John Russell
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79. The law of terms
Payment terms can be more important than price in a negotiation.
There are many products,
such as homes and cars,
that are sold primarily based on payment terms
and interest rates rather than on actual price
or even the product itself.
If paid in installments,
customers often buy the most expensive homes.
If paid monthly,
customers will choose to buy a high-end car.
The flexibility to change terms depending on the type of customer
is the key to sales success.
I still remember the first time I bought a Mercedes-Benz.
The salesman enthusiastically introduced the car in detail
and even let me test drive it.
I really liked the design and was impressed
with the style of the car
but when I heard the price,
I knew I couldn’t afford it even if I
can pay the car in installments
for three years as normal sales regulations.
The salesperson quickly recognized my problem
and was flexible enough to allow me to defer payments
for five years instead of three years like others.
In addition, he also told me
that if I buy a car in the name of the company,
I can get a discount and interest.
Then he calculated the monthly amount
I would have to pay.
As soon as I saw the actual number,
I decided to buy the car immediately,
although it would have to spend more money than I originally planned.
In this case,
it was the payment terms,
not the price,
that underpinned my purchase decision.
In another example,
I have a friend who is very successful in the role of General Manager
of Sales of a construction
and real estate company.
My friend found that most people don’t buy homes,
but actually buy payments and payment terms.
Therefore, he did not use the strategy
of advertising the attractiveness of homes
and prices as competitors do,
but he advertised the monthly payment to own a new home.
This strategy caused his sales to skyrocket
and he became one of the highest paid people in his business.
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1st Corollary:
You can agree to almost any price
if you can decide the terms.
If you are negotiating and really want to buy
or sell a product
but are stuck on the price,
move on to agreeing on other terms
so that the price factor can be easily accepted.
Here is a true story to illustrate this strategy:
There were two entrepreneurs in Tuscon
who owned two very large parcels of land.
One of them decided to sell his property for $1 million.
A friend of mine who is in the real estate business also wants
to buy the second businessman’s land.
This land lot is not as good as the first lot,
the location is not as convenient,
but the second person,
for the sake of face,
put the suggested price of 1 million dollars.
However, he still hesitated
because he really didn’t want to sell the land
but wanted to save it for his children and grandchildren.
In addition,
the proceeds of this sale will adversely affect his income tax status.
After considering all the factors
and issues of the client,
my friend agreed to pay $1 million for the plot,
but not in cash but through low annual installments
and one final debt payment
after twenty years.
On that basis,
Mutually beneficial.
My friend only paid a very modest annual fee for the plot
even though the sale price was stated at $1 million.
The businessman does not have to pay extra taxes
and can save a large sum of money
for future generations twenty years from now.
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2nd Corollary:
Never accept the first offer,
no matter how tempting it may be.
Don’t be in a hurry to accept your partner’s first proposal,
even if it satisfies all you’ve asked for.
No matter how good the first offer is,
you can still get a better deal if you persevere,
consider it,
and ask for more time to think.
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3rd Corollary:
Never turn down an offer right away,
no matter how absurd it may sound at first.
An offer that doesn’t sound very appealing can
still result in a good deal
if you can decide on the payment terms.
You might say,
“That’s a great proposition,
and it’s what I thought it would be.
But let’s see if there’s a way we can make this proposal
more realistic for both sides.”
Information is a negotiator’s greatest weapon. – Victor Kiam
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80. The law of precautions
Your preparation will determine 80%
or more of the success of any negotiation.
Acting without planning in advance is the cause of all failures.
Negotiating without preparation is the root cause
of every bad deal you incur.
The best negotiators take the time
to thoroughly prepare and think through the situation
before officially entering the negotiation.
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1st Corollary:
Truth is everything.
For matters that are too complex and extensive,
the difficulty in negotiating often lies in the details.
So, before you start negotiating,
make sure you have all the information
and facts about the issue.
Do not be satisfied with facts that seem obvious,
facts that are assumed,
expected to be true,
or assumed to be true.
Emphasize on facts because truth never deceives,
Avoid the temptation to accept superficial answers
or incomplete,
unsubstantiated numbers.
Don’t rush to conclusions
and don’t expect too much.
Study, ask questions,
listen and take careful notes.
This can make a significant difference to the final result you get.
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2rd Corollary:
Always be well prepared.
Sometimes a small detail can determine the success of a negotiation.
Renowned trial lawyer Louis Nizer explains the secret
to success in his book My life in court.
According to him,
it is thanks to his careful preparation
that he has helped many of his clients win in fatal cases.
Sometimes,
just a small fact
that he discovered after hours of research changed things,
forcing him to investigate in a completely different direction.
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3rd Corollary:
Always test assumptions
because incorrect assumptions are
at the root of most mistakes.
Most people entering a negotiation assume
that the other side wants to reach an agreement first.
This is not always the case
and you need to revisit this assumption.
Sometimes the other party has cooperated
with someone else or decided not to make any purchases.
They may also just skim
through the offers in the negotiation
to see what favorable deals they can get.
It is also possible
that the other party has been offered a similar proposal
by someone else
with your best suggestions.
Or the other party may be negotiating
but does not have the authority
or responsibility
to pursue any agreed-upon agreement.
Remember to check your assumptions
before investing too much time or effort.
“If you would know who controls you see who you may not criticise.” ― Tacitus
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81. The law of justice
You can only successfully negotiate
with an authorized person
who accepts the terms
and conditions you agree to.
One of the more common bargaining tactics
is to arrange for an “uncommitted agent”
– someone who can agree terms
with you but has no power to make the final decision.
This person is supposed to report back to an authorized person
before they can confirm all the terms of the contract.
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1st Corollary:
You have to find out
if the other party’s bargaining agent has decision-making authority.
The easiest way is to ask the other party directly
if the bargaining representative is authorized
to act on behalf of the company or the client.
If not, you need to be careful about your position
and the concessions you make.
The Russians are notorious
for sending unauthorized personnel
to international negotiating conferences on arms control,
trade or foreign relations.
In contrast,
American negotiators are always given full authority to make deals.
Surely you already know the outcome
of arbitrage negotiations like these.
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2nd Corollary:
When negotiating with someone without authority,
you also have to present yourself as someone
who doesn’t have the final say.
Use the tactic of “smashing your back with the stick”.
If the other party announces
that they cannot make a final decision,
say that you are in the same position.
This tactic levels the playing field
and increases your flexibility in the event
of an unacceptable counter-proposal.
“The two most powerful things in existence:
a kind word and a thoughtful gesture.” – Kenneth Langone
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82. The law of location switching
Putting yourself in the other person’s shoes allows you
to negotiate more effectively.
For complex issues or large transactions,
you can use the lawyer’s “swapping position” method to negotiate.
This is an extremely effective method
to sharpen your negotiating skills.
Law school students often do practice exercises
by placing themselves in the role of prosecutor
and defense attorney in the same case.
Students are taught how to prepare facts,
evidence,
information so that no matter what role,
students are determined to win.
You should also do the same.
Before you start negotiating, write down
and categorize any issues
that you think may be relevant
to the other party.
This helps you to cover the problem
and minimize the possibility of missing details.
Once you’ve identified the key concessions
you think the other party will want,
you can think about what you might offer.
From there, you’ll see your own strengths
and weaknesses to identify areas of compromise.
Preparing through a position swap like
this is the professional way of doing great bargains.
A very effective tactic you can use to start a negotiation is to ask,
“What do you think is the purpose of today’s negotiation
and what do you expect from this negotiation?” .
This question will demonstrate your interest
in achieving results in search
of a mutually satisfying solution.
When you start with a well-intentioned question,
the other party will respond with a cooperative answer
and you’ll be surprised at how quickly
and efficiently you both get into the crucial discussion.
Show up early, treat people with respect and perform at the highest levels
till the world can’t deny you. – Grant Cardone
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83. The law of power
In any negotiation,
you will get a better deal with the person with more power,
whether it is formal or informal power.
The ability to recognize
both your own power
and the other’s power is critical to your success
in the negotiation process.
Not what the other side shows on the outside accurately reflects
the level of power they have.
Similarly, you can flexibly exploit the power
you hold in many different aspects.
You need to be clear about both of these factors.
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1st Corollary:
The other side will stop negotiating
when they see that you do not have enough power
to influence or influence them.
In a negotiation,
you need to demonstrate your own position
by either possessing what the other side wants,
or demonstrating the ability to withdraw
what the other side is waiting for,
to force them to respect you.
Put yourself in the other person’s shoes to see the situation
from their point of view to get the most out of it.
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2nd Corollary:
Power is a matter of perception and is seen
from the point of view of the holder of power.
In certain situations,
it is possible to create a perception of power in some way.
Whenever I encounter poor service quality on a flight
or at a certain hotel,
I usually take out a pen and paper
and ask the waiter politely but coldly:
“Please let me know name?”.
This will startle the person and make him feel uneasy.
They would hesitate to say my name
while trying to figure out who I might be,
why I would ask that,
and what I plan to do next.
Not stopping there,
I also asked to spell the name correctly
and clearly write the title
or employee number on the piece of paper and then put it away.
And from that point on,
the service improved dramatically.
My attitude has more
or less affected the behavior of employees.
Although the employee did not know who I was,
the employee was alert and could not act recklessly
because maybe I could be a senior figure in the company
or someone who had a personal relationship
with the leadership.
The three most important factors in negotiation are power,
preparation and timing.
Of these three factors,
power is the most important and persuasive factor.
There are ten different types of power
that you can develop and use individually
or in groups to influence
and persuade the other side in any negotiation.
The more important the issue,
the more time you should spend considering how you can use one
or more of these power factors
to strengthen yourself and your position.
The first type of power is indifference.
Sometimes, you should act
as if you don’t really care much about the outcome of the negotiation.
This will make the opponent lose direction,
lose control of the situation
and you easily overwhelm the opponent later.
The second type of power is scarcity.
You can influence the negotiation in your favor
by making suggestions
or implying that the product you are selling is a scarce item,
so the possibility of selling this product is very high and fast.
A fairly common sales tactic is to suggest to the customer
that the product
they want to buy is the last item in stock at the time
and that this is a very popular,
popular product,
so there is always a shortage of goods.
Sometimes,
customers don’t realize how much they want an item
until you tell them they probably won’t buy it
if they don’t decide early.
The third type of power is authority.
When you have an impressive title or your style,
image, and behavior is like a person with
decision-making power,
the other party will be more or less shy
and respectful
and the negotiation will take place in your favor.
In his book Winning through Intimidation,
author Robert Ringer tells how he invited two lawyers
and a real estate agent to join him in the deal
for a real estate transaction.
The presence of these three people helped him boldly ask
and get prices and terms much better than
if he had entered the deal alone.
As far as showing authority is concerned,
a powerful image can do wonders for you.
Always pay attention to the outfit.
Use clothes with classic colors to show strength,
elegance and politeness.
This thorough preparation of your appearance
helps you make a good impression on the other party
because it partly reflects who you are
and how much you value the importance of the negotiation.
The fourth type of power is courage.
You can give the impression of courage
by communicating clearly,
forcefully,
decisively,
without ambiguity.
You are always ready to sit at the negotiating table
when it is necessary or ready to leave
and terminate the agreement
if you see things going in a negative direction.
Whenever you act courageously
by clearly stating and asking
for what you want,
and determined to defend your claims,
then you have demonstrated your courage,
giving yourself a powerful image.
The fifth type of power is commitment.
When you show your wholehearted commitment
to a successful negotiation,
your commitment to find a way
to overcome any obstacles
to reaching an agreement,
you yourself demonstrate a force calling for cooperation
and everyone’s consent.
The sixth type of power is expertise.
The power of mastery is reflected in the amount of knowledge
and skills that you equip for the issue being negotiated.
When you are seen as a trusted expert in any situation,
power will come naturally to you.
The seventh kind of power you can create is understanding
the other person’s needs.
You build this kind of power
by getting all the information
you can about the other party
before you start negotiating.
The more you know about the other party,
the more dominant you are
when negotiating
The eighth type of power you can exert is empathy.
Your every word or action is more or less emotional.
When the other side feels
that the person they are negotiating with empathizes
with their situation and situation,
they will become more flexible
and comfortable in that negotiation.
Most excellent negotiators are empathetic,
calm,
win-win,
solution-oriented,
and are always on the lookout for a mutually agreeable solution,
please all parties.
The ninth type of power you can use
is reward and punishment.
The other person will be more willing to cooperate
when you see you have the ability to influence them in
both positive and negative aspects:
either you help,
support or you harm,
affect their interests their.
The tenth and final kind of power
is the right to invest money or time,
or both.
When you demonstrate
that you have invested a great deal of effort,
time,
or money in the matter being negotiated,
you gain a certain form of power over those
who spend so little time and effort.
When I decided to buy my current house,
I met the owner directly
and said that my wife
and I had seen dozens of homes
and this was the first home that we felt satisfied
and decided to bid on.
The seller quickly realized our goodwill and seriousness,
so he agreed to negotiate officially
and the two sides had a really satisfied purchase
and sale transaction.
If we said that this was the first house we saw,
his attitude would certainly be completely different.
The choice of bargaining power
depends on the negotiating situation
or the course of the negotiation
with the primary aim of influencing
or constraining the other side’s control.
The more elements of power you develop
and use to your advantage,
the more persuasive
and effective you will become in negotiations.
“You must expect great things of yourself before you can do them.” –Michael Jordan
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84. The law of desire
The more you expect a successful negotiation outcome,
the less bargaining power you have.
It is the impatience to reach an agreement early
when negotiating that will leave you vulnerable
to adverse situations created by the other party.
Experienced negotiators know how to show disinterest tactfully,
sensitively enough to let the other side understand
that they have many other options,
each of which is as compelling as the situation at hand.
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1st Corollary:
Regardless of your level of desire,
always present yourself as neutral and independent.
The more important the negotiation issue,
the more calm you must be,
not agitated to avoid being easily “read your mind”
by the other party.
Don’t show concern in any way,
but let the other person waver.
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2nd Corollary:
The more you make the other person want to make a deal,
the more likely you are to get a deal that works for you.
Desire is the key to a successful sale.
Therefore, you should put all your efforts into building value
and pointing out the benefits
that the opponent will enjoy when they buy or sell the product.
Chinese jade sellers, according to longstanding custom,
maintain a completely expressionless
and enigmatic countenance
whenever they show potential customers each jade.
By experience, they found that
when customers really like the piece of jade,
the pupils in the eyes will dilate.
When carefully observing
and noticing this sign,
the seller immediately knows
which piece of jade is most popular
with the customer and chooses
to negotiate effectively to make a sale.
“Everything in life is a sale
and everything you want is a commission.”– Grant Cardone
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85. The law of compatibility
Deep in people’s subconscious is the desire to return
what they have received.
This reciprocal law reflects and explains human behavior.
No one wants to feel indebted.
When we receive,
we will seek to give proportionately.
This is the basis of the law of contract
and the glue that binds almost all human relationships.
In negotiation,
this rule is most applicable
when there is a need to make concessions.
Any concession
by one party should be met
with a corresponding concession from the other side.
Finding and making concessions
is often the cornerstone of a negotiation.
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1st Corollary:
The first party to make concessions is the one
that wants to get the deal most.
So you try to avoid being the first to make concessions,
even if it’s a small issue.
Be friendly and interested instead,
but keep quiet.
The first to make concessions will often make further concessions
without even requiring reciprocity.
Most buyers and sellers are aware of this.
They realize that early concessions are a convenient opportunity
for the other side to capitalize on
and overwhelm them.
So be careful.
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2nd Corollary:
Any concession you make should be exchanged for a larger
or equivalent concession from the other side.
If the other party asks for a concession,
you can agree in which case you will receive an equivalent concession.
Otherwise,
the concession you make will be worthless
and will not help you much for the rest of the negotiation.
If a person asks for a price
that is more favorable to them,
suggest that you can accept the price
but you will have to reduce the quantity
or delay the delivery date.
Even if the concession actually doesn’t cost you
or add any value to you,
you still have to show the importance of the issue.
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3r Corollary:
Making small concessions on small issues makes it easier
to make big concessions on big issues.
One of the most effective bargaining strategies
is being willing to give something in return.
When you appear to have gone to great lengths
to make concessions on an issue
that actually doesn’t matter much,
you give yourself an advantage to later demand equal
or greater concessions.
“To attract attractive people, you must be attractive.” — Jim Rohn
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86. The law of ready to give up
You will never know the final price and terms
until you are ready to get up and give up.
You will probably discuss many times,
argue many details related to the matter to be negotiated,
but you will not really know what the best deal is
until you have made it clear
that you are willing to cancel negotiate.
When I was in Mexico,
I used to trade and buy goods in markets
and grocery stores.
I realize that you can look at the item
for as long as you want,
but you never know how much the salesperson will lower the price
until you shrug,
thank the salesperson,
and walk away.
Once, when I had walked about a block away
without looking back,
the store owner tried to run after me,
stopped me,
and sold me the item for the last price I paid.
***********************
1st Corollary:
The bargaining chip will go to the person
who is willing to give up without hesitation.
When you give up negotiating,
stay cheerful,
polite,
and thank the other side for their time
and attention.
Give yourself the opportunity to return
to the negotiation later in a confident and worthy position.
***********************
2rd Corollary:
Giving up on negotiation is sometimes part of a bargaining strategy.
Some of the best negotiators are skilled at getting up
and ready to give up negotiating.
They will leave that room,
building,
city,
or even country,
if necessary,
to strengthen their position
and increase their perceived power in a negotiation.
Another tactic often used is
when two sides are in a heated argument,
one or more key figures express an angry attitude,
stand up,
quickly rush out of the room
and swear never to return.
However, they will leave someone to find a way to reconcile
with their partner and invite them
to continue the discussion.
The rest will be friendly
and easy to cooperate with.
Another form of this tactic is called “good guy-bad guy”.
Accordingly, there will be two negotiators
or two investigators,
if in police investigations,
one will be tough and constantly make demands
while the other is friendly and easygoing.
One person will makes no sense
while the “good guy” will try to smooth things over
by giving you a step.
These are all roles in a game
and you need to be on the lookout for anyone
who might use this tactic against you.
In sales, the point is not that you’re selling the product,
you’re ‘selling’ yourself. – Aysa Angel
***********************
87. The law of life
No negotiation is final.
Often when the negotiation is over,
one or both parties will review the issues
that they feel have not been satisfactorily resolved.
Not every negotiation has the desired outcome.
There will certainly be cases
where one party is not very satisfied
with the outcome of the negotiation
and feels that they have “lost”.
This is something that should be avoided
if the two sides are contemplating negotiating
and promoting further agreements in the future.
***********************
1st Corollary:
If you’re not satisfied with any of the results,
ask for renegotiation.
If you feel that you are not satisfied
with a particular term or condition,
ask the other side to renegotiate it together,
especially those that involve large amounts of money
or long execution times.
Think about the benefits your partner will get
from making these changes.
Don’t be afraid to change
because the purpose of the negotiation is
to find a more fair and reasonable agreement.
***********************
2rd Corollary:
Ask yourself,
if you could renegotiate,
would you agree to the same terms?
Be prepared to review your previous decisions objectively
by asking yourself:
“Given the previous negotiations,
if I had the opportunity to go back,
would I still agree to those terms? ”.
The ability to continually re-evaluate past decisions,
not overestimate one’s ego,
and realistically see the situation at hand are the hallmarks
of an excellent negotiator.
Almost every relationship in life involves negotiation,
Negotiating is a natural
and normal skill of life
but to become proficient
and an expert in brand negotiation
You have to put in more effort yourself.
The key to excellence is to practice negotiating
whenever you get the chance
Be bold enough to ask for what you really want.
Ask for a fair price,
ask for better terms,
better terms,
lower interest rates,
generally everything can get better.
When you become excellent
and effective at negotiating,
you can save yourself years of hard work.
“In order to achieve goals you have not achieved
before you have to become someone you haven’t been before.” — Jim Rohn
