Negotiation 101

July 11, 2006 at 11:10 am 5 comments

I believe negotiation is one of the most important skill one needs to have to succeed in life. Unfortunately, I need more practice.

JLP found a great list of negotiation tips:

1. You can’t negotiate anything unless you absolutely know the market. Only then will you be able to recognize a good deal when you see it.

(Whole heartly agree. I personally would be too timid to negotiate if I don’t do the research first.)

2. If you can’t say yes, it’s no. Don’t sugarcoat it. Don’t talk yourself into yes just to seem like a nice person. No one ever went broke because he or she said “no” too often.

3. The biggest tool in any negotiation is the willingness to get up and walk away from the table without a deal.

(This is the hardest part when you become emotionally attached to the thing you’re negotiating for)

4. Before you begin any negotiation, look beyond the title and make sure the person you’re dealing with is in a position of authority to sign off on the agreement. If not, don’t deal until you can negotiate with someone who is.

(Good tip)

5. It’s not how much it’s worth. It’s how much people think it’s worth.

6. Many people listen . . . few actually hear. You can’t learn anything if you are doing all the talking.

7. In negotiation, the given reason is seldom the real reason. Find the real reason, and your probability of success goes up dramatically.

8. No one ever choked to death swallowing his or her pride.

9. In the long run, instincts are no match for information.

10. There’s no more certain recipe for disaster than a decision based on emotion. Or another way of saying this is: Make decisions with your heart, and you’ll end up with heart disease.
(doh)
11. A dream always is a bargain no matter what you pay for it. If it’s something you’ve always wanted, and this is your big chance to get it, go for it and make it work.

12. The most important term in any contract isn’t “in” the contract. It’s dealing with people who are honest. As the old adage goes: You lie down with dogs . . . and you get up with fleas.

13. There is no such thing as a “final offer.”

14. Try to let the other person speak first.

15. Never give an ultimatum unless you mean it.

16. You cannot get dealt in with a straight flush unless you are in the game.

17. Smile and say no, no, no, no, no . . . until your tongue bleeds.

18. Agreements prevent disagreements. You have to fight your guts out for an agreement, and then you won’t have a disagreement.
(I’m not sure I understand this)
19. If you can afford to buy your way out of a problem, you don’t have a problem.

20. More deals result from whom you know than from what you know. It’s not just whom you know but how you get to know that person.

21. The walls have ears. Don’t discuss any business where others can overhear. Almost as many deals have gone down in elevators as elevators have gone down.

22. People don’t plan to fail, they fail to plan. Top negotiators debrief themselves. They keep a book about themselves and their opponents. You never know when that information may be gold.

23. Your day usually goes the way the corners of your mouth turn. Your attitude determines your altitude.

24. People go around all their lives saying: What should I buy? What should I sell? Wrong questions. When should I buy? When should I sell? Timing is everything.

Mackay’s Moral 25: When a person with money meets a person with experience, the person with the experience ends up with the money and the person with the money ends up with the experience.

————–

A great example of negotiation: This guy trade one paper clip for a house!!! (Thanks Szu)

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Entry filed under: General.

The Fallacy of Goals FREE Summer Fun

5 Comments Add your own

  • 1. djbabylon  |  July 11, 2006 at 12:00 pm

    so what are you going to negotiate for? 🙂

    Reply
  • 2. JLP at AllFinancialMatters  |  July 11, 2006 at 4:29 pm

    I looked for an email address so that I could tell you this privately but there was none to be found.

    Anyway, I just wanted to tell you that you need to be careful copying entire newspaper articles and posting them on your blog. I’m not sure where you draw the line but I would hate for you to get into trouble for copyright infringement. It is best to just highlight one or two points from an article along with a link to the original work.

    Nice blog. Keep up the good work.

    JLP

    Reply
  • 3. Cindy  |  July 12, 2006 at 12:30 pm

    #18 Basically an agreement (contract) is written up to prevent any disagreements from arising because everything on the signed contact is paved in stone, so you’re making an agreement not to disagree later (hopefully). =)

    Really good tips which some I hadn’t heard before being in sales/marketing before. Cool!

    Reply
  • 4. clem  |  August 24, 2006 at 6:18 am

    A prospect has an existing agreement on copier machines. She needs to settle all ten machines. Now I need to get her sign a new deal with us.

    Reply
  • 5. The Penguin  |  August 25, 2006 at 11:53 am

    Not sure how I found this site, but this is an interesting article. Nevertheless, I read #18 to have a similar meaning to a tried-and-true sales technique. If you’ve ever seen “Boiler Room” you may remember it.

    The idea is to get a “Yes” to anything. Stringing together a few yeses will make you more likely to hear another.

    Do you like the car? Yes
    Is it the right color? Yes
    Did you like the way it handles? Yes
    Could you see yourself driving one every day? Yes
    Good. Let’s do a quick credit check and look at some finance options, OK?….(Ending a question in OK is a great way to get an OK in return. )

    Applied to negotiation I suppose the same holds true. The more common ground the better in almost any situation, save geo-political negotion, of course.

    Sorry to impose. Nice site. – The Penguin

    Reply

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