The Negotiator's Secret

James Patton, CRS

Special Thanks to Robert L. Kuhn & Roger Dawson The Negotiators' Negotiators

How To Get Your Price Or Your Terms
(And Sometimes Both)

As The Seller:

1. Differentiate your product.
2. Stimulate bids.
3. Make a positive change in the product when the price is raised.
4. Offer price.
5. Offer terms.          ("My Price, Your Terms")

As The Buyer:

1. Shop around to get a sense of price.
2. Start your bid with one you would love to have accepted.
3. Come back with a sweetener when you reject a counter offer.
4. Offer price.
5. Offer terms.          ("Your Terms, My Price")

In Size, if you are:

Stronger, then take your time, go for the complex, allow no pressure, don't condescend.
Weaker, then propel the process, strive for simplicity, appeal to fairness, don't flatter.

In Power, if you are:

Stronger, then be slow to change on demand, quick to press agreement on your term; be willing to allow face saving concessions.
Weaker, then be careful conceding points, make sure concessions count and that they become progressively smaller; try toughness as a surprise.

In Flexibility, if you are:

Stronger, do not hesitate to add complexities, alter issues, change
agendas, move schedules, postpone meetings.
Weaker, do not hesitate to simplify, contain issues, maintain agendas, keep to schedules.

In Needs, if you are:

Stronger, go slower, avoid pressure, be meticulous.
Weaker, don't show the need for the deal; move the deal along without showing excessive concern or anxiety.

In Expertise, if you are:

Stronger, use knowledge quietly; less overt is a stronger influence.
Weaker, learn quickly. Use lack of information as a negotiating tactic.

In People, if you are:

Stronger, do not hesitate to have face-to-face contact or encourage more or larger meetings. Discourage written communications.
Weaker, avoid face-to-face contact. Encourage smaller, less frequent meetings; communicate in writing when practical.

In Time, if you are:

Stronger, proceed at the correct pace. Don't anger the other side by arbitrarily moving slowly.
Weaker, move the deal along without showing anxiety.

In Insight, if you are:

Stronger, trust your instincts; do what you feel and believe.
Weaker, let the other side lead, learn as you go; test new ideas.

Common Pitfalls

Faulty Information: Be sure information is accurate & appropriate.
Premature Threats: Threats may be useful, but time them carefully.
Unplanned Anger: Rage without reason does more harm than good.
People Antagonisms: Don't blame the other side.
Cozy Relations: Don't get too friendly with the other side.
Talking Too Much: "Out of the open mouth drops money."
Fear: Preparation is the best antidote to fear.
Anxiety: Keep cool. Assume the other side is anxious but not showing it.
Feeling Inferior: All are equal at the bargaining table--act like it.
Early Weakness: Don't show weakness at least until relations are formed.
Being Nibbled: Consider all proposals at once, not one at a time.
Excessive Logic: Too much head--Don't miss the forest for the trees.
Excessive Emotions: Too much heart--Don't ignore the trees.
Too Little Principle: A lifetime builds a reputation, a second destroys it.
Too Much Principle: Better than too little! Be careful it is not ego, a great destroyer of what could have been good deals.
Personal Insults: Don't. What goes around comes around.

Whose Stakes Are Higher?

* The side with the higher level of decision-maker.
* The side paying greater attention.
* The side requesting meetings more frequently.
* The side setting schedules and deadlines.
* The side showing signs of stress or exaggerated temper.

A Reminder From Coco Isle Realty

"Complexity kills deals. It takes needed time and strength and rarely gives a good deal back in return. The more likely a deal is to close, the more likely it was simple and straightforward." --James Patton

(Epilogue) "Know what you want to achieve. Discern what the other side wants. Good deals are good for all. Think alternatives and Multiply your options. Seek win-win solutions."

Oh Yes, Think On The Negotiator's Mantra:
My Price...Your Terms...Your Price...My Terms...

Negotiating Columns 1, 2, 3, 4