by Brian Tracy

MCMLXXXVIII
Nightingale-Conant Corporation
www.nightingale.com
1-800-525-9000
751pg
1
THE INSTITUTE FOR EXECUTIVE DEVELOPMENT
NEGOTIATING
STRATEGIES
AND TACTICS
Twenty-one ideas, methods, and techniques
you can use to negotiate prices, contracts,
agreements, and disputes more
effectively and successfully.
THE EFFECTIVE MANAGER SEMINAR SERIES
This fast-paced series of 14 management seminars on DVD, with CD and workbook
accompaniment, has been designed to convey the greatest amount of usable information in the
shortest possible amount of time. The material in each program is based on management
seminars that have been developed for and presented to leading corporations for several years.
Each program is a condensation of 21 valuable ideas, methods, and techniques drawn from years
of practical experience. More than 100 hours of reading, research, and planning have gone into
each mini-seminar, giving you just the essential material that you need to be more effective
immediately.
Since people learn in three ways visually, auditorially, and kinesthetically these mini-seminars
are offered in DVD, CD, and workbook format to assure maximum learning and retention.
The learning process is flexible. You can take these seminars alone in your office or at home, on
DVD and then on CD, to review and reinforce the key ideas. You can follow along with the
workbook and use it as a planning tool for internalization and implementation.
As a busy executive, your most valuable resource is your time. With these DVD-based mini-
seminars, you can learn in one hour what might take you two or three days in a seminar or
workshop and save the cost of time off, travel, and other expenses.
Because these programs have been developed as presentations for live audiences, they are fast-
moving, entertaining, informative, and enjoyable to watch. Brian Tracy is a master of the video
medium; thousands of people in several countries attend his DVD seminars every month.
The idea behind this series was the discovery that 80 percent of the value of the information on
any subject is contained in less than 20 percent of the material available. In this series, you get
only the top 20 percent of ideas the techniques you can begin applying today to be more
effective and achieve better results.
You save time, you save money, and you get high-quality, low-cost professional instruction in the
key management areas where you must be knowledgeable if you want to fulfill your potential in
your organization.
The Effective Manager Seminar Series is a production of the Institute for Executive Development
and Nightingale-Conant Corporation.
2
HOW TO BENEFIT MOST FROM THIS PROGRAM
Negotiating Strategies and Tactics has been designed to save you time in learning the things you
need to know to be more effective.
Research in accelerated learning suggests several ways to learn faster and remember more. This
program is based on advanced learning techniques that can help make you a mini-expert in the
principles of effective leadership in a very short period of time.
You remember only about 5 percent of what you hear. You remember 20 percent of what you
see. You remember 40 percent to 50 percent of what you see and hear. You remember up to 80
percent of what you see, hear, write, and review. After six exposures to the material, spread
over a period of time, you can achieve almost total recall.
You also learn and remember more if you have a clear purpose for learning, a purpose that
affects you personally. If you set goals for applying what you learn, you will remember more.
You also learn faster if you discuss what you are learning and how it can be applied to your
personal situation.
Finally, you reinforce and expand upon what youve learned when you teach others.
Some Ideas for Learning and Retention
1. Review the workbook before viewing the DVD, to gain a quick overview.
2. As you view the DVD, follow along with the workbook, and jot notes in the appropriate
sections.
3. Stop and replay parts of the CD that are particularly relevant to you.
4. If watching with others, stop the DVD when appropriate, and discuss how the material could
be applied.
5. Review your workbook and notes some time after viewing the program think about your
answers to the questions.
6. Listen to the CD version in your car, for review.
7. Explain and teach to others the ideas you feel are most important. Encourage others to learn
this material also.
8. Continually think about how you can use these ideas to be more effective.
I hear and I think. I see and I remember. I do and I know.
Confucius
3
CONTENTS
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Twenty-one Ideas You Can Use
1. Everything Is Negotiable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
2. The Purpose of Negotiating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
3. Six Negotiating Styles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
4. The Uses of Power in Negotiating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
5. The Impact of Emotions on Negotiation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
6. The Element of Time in Decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
7. Developing Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
8. Know What You Want . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
9. Preparation Is the Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
10. Clarifying Your Positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
11. Reversing the Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
12. Questioning Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
13. The Law of Four . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
14. The Successful Negotiator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
15. Suggestive Elements in Negotiating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
16. Persuasion by Reciprocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
17. Persuasion by Social Proof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
18. Price-Negotiating Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
19. Walkaway Method of Negotiating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
20. Harvard Negotiation Project: Four Keys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
21. Negotiations Are Never Final . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
4
INTRODUCTION
Life may be viewed as one long, extended negotiating session, from the cradle to the grave.
Negotiation never stops. It is a major part of the business of living and communicating with
others. It is the way that individuals with differing values and interests find constructive ways to
live and work together in harmony. The ability to negotiate successfully is essential to success in
all your interactions with other people.
Negotiating has been going on since the beginning of civilization. It is based on the fact that each
person has an interest in improving his or her relative position in life in six key areas: security,
comfort, leisure, love, respect, and fulfillment. Compromising, trading, negotiating is how we
balance conflicting and competing wants to assure that each person achieves the best possible
outcome for himself or herself.
Since value judgements are always subjective, there is never a right and final price or set of terms
that can be decided in advance. It always depends on the parties involved and their relative scale
of needs at the time of the transaction. Subjective valuations are what create the desire to
exchange goods, services, money, and other things. Its differences of opinion that make a horse
race.
Brian Tracy has negotiated many millions of dollars worth of contracts involving residential,
commercial and industrial real estate, including shopping centers, office buildings, and land
development. He has negotiated the importation and distribution of more than $25 million worth
of automobiles, plus contracts for printing, consulting, training, advertising, conventions and
meetings, and sales of thousands of items. In short, the material in this course is based on
extensive experience. It works. If you systematically apply even a small part of what you are about
to learn, you can bring about a major improvement in the quality and quantity of your results.
If, with the help of this workbook, you take the time to think through one issue that you are
currently negotiating, you will be astonished at how much better the negotiation works out for
both you and the other party. Good luck!
5
1. Everything Is Negotiable
There are very few fixed prices or terms on anything, even if they are written down or
printed.
A. Continually look for opportunities to improve the deal or situation in your favor.
B. Method: Ask your way to success. Ask for better terms, to get more, to get it cheaper.
C. The fear of rejection the fear of being told No! holds people back and causes them to
accept less than they need to.
D. All prices are set arbitrarily; therefore, all are negotiable.
E. Overcome the fear of rejection over and over until it becomes automatic.
F. Key point: Its all just a game. So get in there and play!
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TWENTY-ONE IDEAS YOU CAN USE
2. The Purpose of Negotiating
The purpose of negotiating is To reach an agreement so all parties have their needs
satisfied to the degree that they are internally motivated to fulfill their commitments and
enter into subsequent negotiations and transactions with the same part.
A. The purpose of negotiating is To reach an agreement
B. All parties ...have their needs satisfied
C. All parties are internally motivated to fulfill their commitments as a result of the
negotiation.
D. All parties are willing to enter into subsequent negotiations with one another.
3. Six Negotiating Styles
Following are six negotiating styles between our two parties, A and B, and the results of
those styles:
A. Win-lose. A gets what he or she wants. B does not.
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B. Lose-win. B gets what he or she wants. A does not.
C. Lose-lose. Neither party gets anything he or she wants from the negotiation.
D. Compromise. Some wants of each party are fulfilled. Others are not.
E. No deal. Both parties agree to disagree.
F. Win-win. The parties work together to discover a third alternative that satisfies the needs of
both.
Key point: This program focuses on win-win negotiating.
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4. The Uses of Power in Negotiating
No one will negotiate with you seriously unless he feels that you have the power to help
him get something he wants, or the power to hurt him in some way.
A. Create the perception of power be feigning indifference, suggesting scarcity, acting with
authority, displaying courage (risk taking).
B. Power of commitment. You have an advantage if the other party perceives that you are
totally committed to getting the best deal that you will do whatever is necessary. How
determined are you to achieve your goals?
C. Power of expertise. The person who is the most knowledgeable about the subject often has a
distinct advantage.
D. Power of knowledge of the others needs. Knowing the needs of the other party gives you a
tremendous amount of power. How much do you know about what the other person needs?
E. Power of identification. Be able to genuinely empathize with the other persons position or
situation. The expression of empathy gives you a lot of power because people are more apt
to enter into agreements with people they like than with people they dont.
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F. Power of reward and punishment. The ability to confer a reward, and the ability to punish
the other party financially by withdrawing a reward, will cause him to want to negotiate
with you. What can you do to or for the other person?
G. Power of investment. The more time and money that have been spent on the deal to date, the
greater the commitment to completion.
5. The Impact of Emotions on Negotiations
Emotions especially the emotions of desire, greed, fear, or anger can help you or
hurt you.
A. Desire is usually the critical element in negotiating.
B. How badly do you want it? How badly does the other party want it?
C. Would your life end if you didnt get it?
10
D. So what? is a good question.
E. Rule: The person who gets the most emotionally involved in the negotiation has the least
power.
F. Psychologically prepare. Practice detachment before and during a negotiation.
6. The Element of Time in Decisions
Time is a key factor in negotiating.
A. Urgency. The more urgent his need, the less effective the negotiator.
B. Rushing. Dont allow yourself to be rushed or hurried.
C. Deadlines. Whenever possible, set deadlines for decision making.
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D. Delay. Whenever possible, put off serious decisions for 24 hours.
7. Developing Options
In a negotiation, you are only as free as your developed options.
A. The more alternatives you have, the stronger your negotiating position.
B. The fewer your options, the less room you have to negotiate.
C. Do your homework. Develop as many alternatives as possible, on paper, thought through,
before the negotiation.
8. Know What You Want
Think through your ideal desired outcome in advance.
A. Clarity is essential. What outcome do you desire?
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B. What are you prepared to give to get it?
C. Write a description of your goals from the negotiation.
D. Discuss your desired outcome with others, if possible.
E. Determine clearly the least you will accept.
F. The person who knows exactly what he or she wants has a distinct advantage over the
person who is vague or unsure.
9. Preparation Is the Key
Eighty percent of success in negotiating is based on solid preparation.
A. Subject matter. What needs to be discussed?
13
B. Objectives. What are your objectives? The other partys objectives?
C. Issues. Where do you differ in wants and/or needs?
D. Positions. What are the starting positions of each party in negotiation?
10. Clarifying Your Positions
Think through your position in advance.
A. What are your essentials, your limits, your maximums, your minimums?
B. What are the other partys essentials and limits?
C. What are you willing to concede?
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D. What tie-in concessions can you require to achieve agreement or to get concession?
11. Reversing the Situation
To give yourself a broader view of the negotiation, reverse the situation.
A. Try and see the situation through the other persons eyes.
B. Argue the case from the other persons viewpoint.
12. Questioning Assumptions
Errant assumptions lie at the root of most failures.
A. What are your assumptions? Known and hidden?
B. What if your assumptions were not true?
C. How could you test your assumptions?
15
D. What are the others assumptions?
E. How can you clarify each others assumptions?
F. Use a fact-finding approach: Question the other party; gather data objectively interview
for information, feed it back to him in your own words.
Ask this key question: Why do you feel we are here, and what would you ideally like to
accomplish in this meeting?
13. The Law of Four
According to the law of four, there are usually four main issues to be decided in any
negotiation.
A. According to the Pareto principle (the 80-20 rule), 80 percent of the importance of a
negotiation is contained in four issues or less.
B. For example, when youre purchasing a car, four main issues include price, model and color,
accessories, and timing of delivery.
16
C. Of four main issues, one is usually primary; the other three, secondary.
D. Identify the main issues in advance. Think them through.
14. The Successful Negotiator
How can you tell if you are one?
A. The successful negotiator views negotiation as a lifelong process that is, never ending.
B. He is open-minded, adaptive to a changing situation.
C. He is flexible quick to identify mutual goals in the negotiation.
D. He is cooperative versus combative.
17
E. He is creative versus competitive.
F. He is nonmanipulative, honest, direct.
15. Suggestive Elements in Negotiating
Following are suggestive factors that influence your thinking, feelings, emotions,
opinions:
A. Location. Negotiate on your turf or neutral turf.
B. Personality. Be warm, friendly, empathetic.
C. Positioning. Sit side by side not across the table from each other.
D. Timing. If the other party is in a hurry to come to a conclusion and youre relaxed, you have
a psychological advantage.
18
E. Comfort. Youre more likely to make a better deal if your facilities (furniture, lighting, etc.)
are comfortable and youre rested. Also, note that all negotiations proceed better during or
after a meal.
F. Attitude. In a negotiation, a positive attitude cheerfulness, optimism toward positive
results is much more effective than a negative attitude. And the best negotiators are very
patient.
16. Persuasion by Reciprocation
Reciprocity, giving and receiving, is the most powerful way to gain agreement and
commitment.
A. Use the Socratic method. Determine all areas of agreement first agree, agree, agree.
B. A key phrase to use when you disagree is Lets come back to that.
C. Agree slowly, reluctantly, but with an air of reasonableness, fairness.
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D. Tit for tat ask for, expect, concessions on your issues in exchange for agreeing on several
small issues of the other party.
E. Be willing to give in order to get.
F. Win-win negotiating is based on mutual cooperation and mutual benefits.
17. Persuasion by Social Proof
Use social proof to influence the other to accept your arguments.
A. Use facts, numbers, names, statistics to show that others are making similar agreements.
B. Similar others in similar situations who have made similar decisions demonstrate the
reasonableness, fairness of your position.
C. Assertions are not proof. Provide documentation for your claims.
20
18. Price-Negotiating Tactics
Practice price-negotiating tactics until they become second nature.
A. Flinch: That is too much!
B. Question: Cant you do better than that?
C. Assertion: I can get it cheaper somewhere else.
D. Question: Whats the very best you can do if I make a decision today?
E. Low ball: Offer cash right now!
F. Nibble, or add on: After youve bought the main article, get something free thrown into the
package.
21
19. Walkaway Method of Negotiating
In most cases, the walkaway method is a powerful way to get the lowest possible price.
A. If you are buying, ask what is the very least that the person will accept.
B. If selling, set your price at the very least that you will accept.
C. Be prepared to get up and walk away if the price is unacceptable.
20. Harvard Negotiation Project: Four Keys
The Harvard Negotiation Project has come up with four key elements to successful
negotiating.
A. People. Separate the personalities from the problem, the issues at hand.
Stay unemotional. Keep your eye on the negotiation, off the personalities.
B. Interests. Identify the underlying needs of the other party.
22
C. Options. Generate a variety of possibilities. Use brainstorming methods to develop
alternative approaches.
D. Criteria. Agree to base the result on some objective criteria.
E. Agree on boundary conditions in advance. What are you trying to avoid, achieve, preserve?
21. Negotiations Are Never Final
They are an ongoing process.
A. With new information, ask to reopen the negotiation.
B. Start with thinking through the benefits that the other will enjoy by renegotiating.
C. If you are unhappy with the results of the negotiation, go back and ask for changes.
23
Good negotiators are made, not born. Negotiating is a lifelong process. You can learn to be
an excellent negotiator by studying the subject, by applying what you have learned in this
course, and by practicing these techniques over and over until they become second nature.
In closing, remember the four essentials of negotiating, upon which all successful
negotiations are based:
1. Get the facts; prepare in advance.
2. Ask for what you want.
3. Seek win-win solutions.
4. Practice, practice, practice!
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The Psychology of Achievement
Capitalize on skills and talents you never knew you possessed, after hearing
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Six CDs with Progress Guide 5031CD
The Psychology of Success
You always expect more from Brian Tracy, and he always delivers more! In
addition to 10 proven principles for winning, Brian shares with you: two
things to do right away for greater happiness, success, and wealth; nine
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Six CDs 1911CD
The Psychology of Selling
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Six CDs with Progress Guide 1651CD
How to Start and Succeed in Your Own
Business
In your own business, the rewards can be simply sensational freedom,
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Six CDs 451CD
25
SUGGESTED LISTENING FOR FURTHER HELPFUL
INSIGHTS BY BRIAN TRACY
Call toll-free 1-800-525-9000 to place an order or to receive further
information on any of these programs.
10 Keys to a More Powerful Personality
64 Minutes Viewing Time
Enjoy Brian Tracys dynamic and forceful personality on video as
he shares a lifetime success system with you. Its the 10 Cs of
success: clarity, competence, concentration, common sense,
creativity, consideration, consistency, commitment, courage, and
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accomplish more than you ever thought possible.
One Videocassette (or DVD when available) 5711V
24 Techniques for Closing the Sale
65 Minutes Viewing Time
Ever the consummate salesperson, Brian closes you with 24
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dynamite when youre seeking a new job, asking for a raise,
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One Videocassette (or DVD when available) 5681V
26
SUGGESTED VIEWING FOR FURTHER HELPFUL
INSIGHTS BY BRIAN TRACY
Call toll-free 1-800-525-9000 to place an order or to receive further
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27
Setting Business Strategy
Now you can think strategy, plan strategy, implement
strategy, and live strategy, secure in the knowledge that
youve touched all the bases, covered all eventualities . 744
Leadership: The Critical Difference
Brian Tracy captures the very essence of leadership no
small task and presents it for all to see and understand.
You learn the seven steps to becoming a truly effective
leader, plus much more. . . . . . . . . . . . . . . . . . . . . . . . . . 745
The Excellent Manager
What to do... how to do it... when and where to do it... its
all here! Discover the 21 steps to becoming an excellent
manager. Concentrate your powers, and master the seven
vital functions of a manager . . . . . . . . . . . . . . . . . . . . . . 746
How to Hire; How to Fire
At last, someone has taken the mystery out of hiring.
Heres how to greatly improve your odds of getting and
keeping the top people you need. And how to vastly
improve the situation for both the other person and
yourself when you fire an employee. . . . . . . . . . . . . . 747
Delegating and Supervising
I t s not what you know about these vital areas that gets you
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a l l the ins and out of these two crucial skills . . . . . . . . . 7 4 8
Motivating People Toward Peak
Performance
Learn the one overriding key factor in getting the most
from people. Become a whiz at multiplying your
effectiveness, and watch your career soar. Feel free to
commit your people to big assignments, knowing theyll
come through. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749
Managing Meetings That Get Results
Conducting great meetings is like giving great parties
everybody leaves satisfied. Get the most from your
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oriented, effective meetings. . . . . . . . . . . . . . . . . . . . . . . 750
Negotiating Strategies and Tactics
Why argue when you can agree? Learn the four secrets
discovered in the Harvard Negotiation Project, plus much
more. Never again dread bargaining, and learn how you
can want more and win. . . . . . . . . . . . . . . . . . . . . . . . . . 751
Executive Time Management
Deep in your heart, you know whether or not youre a
good time manager. Most of us arent. And we all could
improve. With this video as your guide, prove to yourself
you can manage your time much more effectively and
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Marketing Strategy for Fast Growth
Heres a program that could make, or save, you thousands
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How to Sell Well
Is your company realizing virtually all possible sales? Or
are you somehow missing out? Youll never know until you
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The Creative Manager
Dont back off and claim youre not creative and never will
be until you give this program a try. Then exercise
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Superior Sales Management
Learn the skills of being a friend, a counselor, a confidant,
a stern taskmaster, a cheerleader, and a business-oriented
exec. Anyone, from a sales manager to an accountant,
benefits from this people-oriented analysis. . . . . . . . . . 756
Pathways to Personal Progress
Learn to develop the key requirements for success while
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Choose One...
Several... or All
of Brian Tracys Exciting,
Pragmatic, Multimedia Seminars
Call toll-free 1-800-525-9000 to place an order or to
receive further information on any of these programs.