Starting with NO and Getting to YES

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Starting with NO and Getting to YES
Strategies for Successful Negotiations
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Today we will 1. Discuss the negotiation
process and overall rules for negotiation 2.
Learn common negotiation tactics 3. Learn
strategies for negotiation success
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Interactions with others are about
negotiations We are not taught the art of
negotiation. We learn to be skilled negotiators
through trial and error.
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True or False Some people are born
negotiators True or False You can learn to be
an effective negotiator True or False Becoming
an effective negotiator takes work and experience
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We all are experienced negotiators. We
negotiate all the time - at home, at school, at
work. Negotiation is a big part of our
lives. We used to be great negotiators as
children.
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Negotiation Rules RULE 1 - Everything is
negotiable all the time. No such thing as a
non-negotiable
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RULE 2 - Negotiation is about compromise At
end of negotiation, everyone should be mutually
uncomfortable
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RULE 3 - No such thing as a fair price or
the right price Fair Market Value is about
a WILLING Buyer and a WILLING Seller
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RULE 4 - You will never get more than your
first offer OR, You wont get if you dont
ask Start high - seek to come to
compromise. Dont count on throw ins
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RULE 5 - Negotiation is Acting Play your
part Practice the flinch Recognize that you
are being psyched out and that you can psych
out the other person.
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RULE 6 - The person with the most
information usually does better. Learn as much
as you can before you start negotiating Keep
asking questions during negotiation.
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Negotiation depends on the skill of both
parties in coming to an agreement. A car sales
person will sell you the car at just about any
price - the rest is a game. The commission on 0
is 0.
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FOCUS Negotiation for Associate/Independent
Contractor positions Negotiation with Bank for
Loan Negotiation for Practice Purchase
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Pre-negotiation 1. Gather information - about
situation, about other person (wants, needs,
expectations) 2. Establish your criteria 3.
Evaluate your leverage 4. Establish rapport
and comfortableness
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• 1. Gather information
• The situation
• In purchase
• In employment
• In loan application

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• 2. Gather information about
• The other party
• In purchase
• In employment
• In loan application

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Who is this person? What does he... Want? Need?
What are this persons expectations and fears?
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Doctor selling a practice Banker looking at
your loan application Doctor considering hiring
you
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Difficult to get to real motives Stated
reasons / Real reasons People will NOT tell you
the real reasons Playing Chess psyching out
opponent Do you feel uncomfortable with this
discussion?
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2. Establish Your Strategy A. Establish your
bottom line - non-negotiables (but be prepared
to give them up) Ex I will never date a
smoker For each situation employment, loan,
purchase
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2. Have a BATNA - Best Alternative to a
Negotiated Settlement What will you do if this
deal falls through? Be prepared to walk away.
Control Your Neediness.
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3. Evaluate your leverage How will you leverage
your power in this situation? What do you have
that the other person wants?
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IF you ... Know your Bottom Line Know your
BATNA Know your Leverage You can proceed to
negotiations with confidence.... and one more
thing
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4. Establish Rapport, Make Other Party
Comfortable If someone has to be not OK it
needs to be you. The other party MUST feel OK
about the deal the whole way through.
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Negotiation Tactics Openers 1. First Offer -
NEVER jump at the first offer, no matter how good
it looks
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2. The Vise Youll have to do better than
that. And just how much better do I have to
do?
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Middle Gambits 1. A Higher Authority Ask Do
you have the authority to make a decision? If
not, we need to bring in the higher
authority. Dont give in to pressure. Think
about it before you sign.
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2. Take it or Leave it Never Say It. Dont
Believe It. Negotiation means finding something
else to talk about.
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If we find exactly the right terms, is there any
reason why you wont be able to make a
decision?
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2. Splitting the Difference Dont do it.
(real estate example)
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3. Playing Dumb (Columbo) Ask questions Ask
to define terms What does that mean to
you? Ask about numbers How did you get that?
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4. Hot Potato, or My wife will never go for
that. NEVER let other people make your
problems their problems. Its not my problem.
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Ending Gambits 1. Walk-Away Willpower Be
prepared to walk away rather than accept the
unacceptable. You have a Bottom Line and a
BATNA.
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• If you are willing to walk away
• You might get the person to do the deal on your
  terms
• 2. If there is no deal, you are still OK
• If you are not prepared to walk away, youll
  never know.

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2. Good guy/bad guy Talk to the bad guy. You
may find out whats really going on. Or you
might find out who is power is.
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3. Withdrawn Offer Is a dangerous gambit
dont fall for it. Find something else to talk
about.
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4. There is something wrong.... Indication
that the offer might be withdrawn, to get you to
raise your price, agree to the other persons
terms.
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4. The Nibble Just when you are ready to
sign This includes X, doesnt it? How about
throwing in X? We will have to go back and
talk about that....
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MASTER NEGOTIATOR BEHAVIORS 1. LISTEN. Dont
talk. Talking shows weakness, neediness. You
learn more by listening than by talking. 2.
Give up your neediness. Remember, you have a
Bottom Line and a BATNA. Greatest weakness is
NEEDINESS.
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3. Control Your Emotions. Focus on controlling
your behavior. (Never argue!) 4. No is
Great. Yes is Bad. Maybe is Worse! (What
is the opposite of love?)
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3. Never ASSUME Always seek to clarify. Ask
questions, seek information and
understanding. BTW If it is not in writing, it
does not exist. PERIOD.
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4. Keep Dialogue Open/Seek Small Victories to
Build Momentum If one avenue of discussion
doesnt work, move to another. No such thing
as impasse.
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5. Work from a position of STRENGTH. Remember
your leverage, and think of what the other person
has to lose if this deal doesnt go through.
(Does he have a BATNA?)
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4. There is no such thing as a One Issue
negotiation Look for other issues. Keep other
issues on the table until the very end. Work on
trade-offs.
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5. Its never just about the money. Money isnt
Everything. No such thing as a non-negotiable.
Keeping multiple issues in play lowers the
pressure about money. What does this person
want? for kids? Name on building?
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6. Its not about WIN-LOSE. Its about KINDA OK
and KINDA OK.
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Negotiating Situations 1. Bank Loan 2.
Employment 3. Buying a Practice
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In the end, Your skill as a negotiator will
come down to 3 factors 1. Your ability to
control your emotions and overcome neediness. 2.
Your ability to overcome power tactics and work
from your strength.
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And, most important 3. Your ability to
understand the other person and to give him what
he wants, so you can get what you want.
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PRACTICE PRACTICE PRACTICE Dont wait for the
big negotiation to learn how to negotiate.