Motivational Articles & Stories - Harvey Mackay

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Negotiating in a Nutshell

By Harvey Mackay

I got a phone call from a Fortune 500 CEO last week whom I had never
met. After decades of begging the government to relax their
regulatory grip and let his industry experience the joys of
competition, his wish had been granted -- and his bottom line had
plummeted.

He wanted me to talk to his top executives for two hours and zero in
on negotiating strategies.

A bit overwhelmed, I said, "I'm very flattered but frankly, I don't
know if I can talk for two hours on negotiating."

Then I realized I was actually negotiating with myself. As my brain
finally reconnected, I cut myself off. "Well, let me sleep on it and
I'll get back to you."

Later that evening, I began to write down some of my negotiating
experiences and saw that my problem was going to be holding the
speech down to two hours.

I'd already brushed up against the first and second laws of
negotiating that morning in my conversation with the CEO.

Never accept any proposal immediately, no
matter how good it sounds.

Never negotiate with yourself. You'll
furnish the other side with ammunition they might never have
gotten themselves. Don't raise a bid or lower an offer without
first getting a response.

Here are some more rules of the road:

Never cut a deal with someone who has to
"go back and get the boss' approval." That gives the other side
two bites of the apple to your one. They can take any deal you
are willing to make and renegotiate it.

If you can't say yes, it's no. Just because
a deal can be done, doesn't mean it should be done. No one ever
went broke saying "no" too often.

Just because it may look nonnegotiable,
doesn't mean it is. Take that beautifully printed "standard
contract" you've just been handed. Many a smart negotiator has
been able to name a term and gets away with it by making it
appear to be chiseled in granite, when they will deal if their
bluff is called.

Do your homework before you deal. Learn as
much as you can about the other side. Instincts are no match for
information.

Rehearse. Practice. Get someone to play the
other side. Then switch roles. Instincts are no match for
preparation.

Beware the late dealer. Feigning
indifference or casually disregarding timetables is often just a
negotiator's way of trying to make you believe he/she doesn't
care if you make the deal or not.

Be nice, but if you can't be nice, go away
and let someone else do the deal. You'll blow it.

A deal can always be made when both parties
see their own benefit in making it.

A dream is a bargain no matter what you pay
for it. Set the scene. Tell the tale. Generate excitement. Help
the other side visualize the benefits, and they'll sell
themselves.

Don't discuss your business where it can be
overheard by others. Almost as many deals have gone down in
elevators as elevators have gone down.

Watch the game films. Top players in any
game, including negotiating, debrief themselves immediately
after every major session. They always keep a book on themselves
and the other side.

No one is going to show you their hole
card. You have to figure out what they really want. Clue: Since
the given reason is never the real reason, you can eliminate the
given reason.

Always let the other side talk first. Their
first offer could surprise you and be better than you ever
expected.

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