by Brian Tracy©MCMLXXXVIII

Nightingale-Conant Corporationwww.nightingale.com

1-800-525-9000

751pg1

THE INSTITUTE FOR EXECUTIVE DEVELOPMENT

NEGOTIATINGSTRATEGIESAND TACTICS

Twenty-one ideas, methods, and techniquesyou can use to negotiate prices, contracts,

agreements, and disputes moreeffectively and successfully.

THE EFFECTIVE MANAGER SEMINAR SERIES

This fast-paced series of 14 management seminars on DVD, with CD and workbookaccompaniment, has been designed to convey the greatest amount of usable information in theshortest possible amount of time. The material in each program is based on managementseminars 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 yearsof practical experience. More than 100 hours of reading, research, and planning have gone intoeach 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-seminarsare 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 theworkbook 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 orworkshop — 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 videomedium; 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 onany subject is contained in less than 20 percent of the material available. In this series, you getonly the top 20 percent of ideas — the techniques you can begin applying today to be moreeffective and achieve better results.

You save time, you save money, and you get high-quality, low-cost professional instruction in thekey management areas where you must be knowledgeable if you want to fulfill your potential inyour organization.

The Effective Manager Seminar Series is a production of the Institute for Executive Developmentand Nightingale-Conant Corporation.

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HOW TO BENEFIT MOST FROM THIS PROGRAM

Negotiating Strategies and Tactics has been designed to save you time in learning the things youneed to know to be more effective.

Research in accelerated learning suggests several ways to learn faster and remember more. Thisprogram is based on advanced learning techniques that can help make you a “mini-expert” in theprinciples 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 yousee. You remember 40 percent to 50 percent of what you see and hear. You remember up to 80percent of what you see, hear, write, and review. After six exposures to the material, spreadover 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 thataffects 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 yourpersonal situation.

Finally, you reinforce and expand upon what you’ve 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 appropriatesections.

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 couldbe applied.

5. Review your workbook and notes some time after viewing the program — think about youranswers 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 learnthis 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

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CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Twenty-one Ideas You Can Use1. 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

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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 withothers. It is the way that individuals with differing values and interests find constructive ways tolive and work together in harmony. The ability to negotiate successfully is essential to success inall your interactions with other people.

Negotiating has been going on since the beginning of civilization. It is based on the fact that eachperson 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 webalance conflicting and competing wants to assure that each person achieves the best possibleoutcome for himself or herself.

Since value judgements are always subjective, there is never a right and final price or set of termsthat can be decided in advance. It always depends on the parties involved and their relative scaleof needs at the time of the transaction. Subjective valuations are what create the desire toexchange goods, services, money, and other things. “It’s differences of opinion that make a horserace.”

Brian Tracy has negotiated many millions of dollars worth of contracts involving residential,commercial and industrial real estate, including shopping centers, office buildings, and landdevelopment. He has negotiated the importation and distribution of more than $25 million worthof automobiles, plus contracts for printing, consulting, training, advertising, conventions andmeetings, and sales of thousands of items. In short, the material in this course is based onextensive experience. It works. If you systematically apply even a small part of what you are aboutto 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 arecurrently negotiating, you will be astonished at how much better the negotiation works out forboth you and the other party. Good luck!

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1. Everything Is NegotiableThere are very few fixed prices or terms on anything, even if they are written down orprinted.

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 toaccept 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: “It’s all just a game.” So get in there and play!

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TWENTY-ONE IDEAS YOU CAN USE

2. The Purpose of NegotiatingThe purpose of negotiating is “To reach an agreement so all parties have their needssatisfied to the degree that they are internally motivated to fulfill their commitments andenter 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 thenegotiation.

D. All parties are willing to “…enter into subsequent negotiations…” with one another.

3. Six Negotiating StylesFollowing are six negotiating styles between our two parties, A and B, and the results ofthose 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 ofboth.

Key point: This program focuses on win-win negotiating.

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4. The Uses of Power in NegotiatingNo one will negotiate with you seriously unless he feels that you have the power to helphim 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 withauthority, displaying courage (risk taking).

B. Power of commitment. You have an advantage if the other party perceives that you aretotally committed to getting the best deal — that you will do whatever is necessary. Howdetermined are you to achieve your goals?

C. Power of expertise. The person who is the most knowledgeable about the subject often has adistinct advantage.

D. Power of knowledge of the other’s needs. Knowing the needs of the other party gives you atremendous 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 person’s position orsituation. The expression of empathy gives you a lot of power because people are more aptto enter into agreements with people they like than with people they don’t.

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F. Power of reward and punishment. The ability to confer a reward, and the ability to punishthe other party financially by withdrawing a reward, will cause him to want to negotiatewith 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, thegreater the commitment to completion.

5. The Impact of Emotions on NegotiationsEmotions — especially the emotions of desire, greed, fear, or anger — can help you orhurt 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 didn’t get it?

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D. “So what?” is a good question.

E. Rule: The person who gets the most emotionally involved in the negotiation has the leastpower.

F. Psychologically prepare. Practice detachment before and during a negotiation.

6. The Element of Time in DecisionsTime is a key factor in negotiating.

A. Urgency. The more urgent his need, the less effective the negotiator.

B. Rushing. Don’t 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 OptionsIn 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 WantThink 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 theperson who is vague or unsure.

9. Preparation Is the KeyEighty percent of success in negotiating is based on solid preparation.

A. Subject matter. What needs to be discussed?

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B. Objectives. What are your objectives? The other party’s 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 PositionsThink through your position in advance.

A. What are your essentials, your limits, your maximums, your minimums?

B. What are the other party’s 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 SituationTo give yourself a broader view of the negotiation, reverse the situation.

A. Try and see the situation through the other person’s eyes.

B. Argue the “case” from the other person’s 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?

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D. What are the other’s assumptions?

E. How can you clarify each other’s assumptions?

F. Use a fact-finding approach: Question the other party; gather data objectively — interviewfor 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 toaccomplish in this meeting?”

13. The Law of FourAccording to the law of four, there are usually four main issues to be decided in anynegotiation.

A. According to the Pareto principle (the 80-20 rule), 80 percent of the importance of anegotiation is contained in four issues or less.

B. For example, when you’re purchasing a car, four main issues include price, model and color,accessories, and timing of delivery.

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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 NegotiatorHow 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.

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E. He is creative versus competitive.

F. He is nonmanipulative, honest, direct.

15. Suggestive Elements in NegotiatingFollowing 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 you’re relaxed, you havea psychological advantage.

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E. Comfort. You’re more likely to make a better deal if your facilities (furniture, lighting, etc.)are comfortable and you’re rested. Also, note that all negotiations proceed better during orafter a meal.

F. Attitude. In a negotiation, a positive attitude — cheerfulness, optimism toward positiveresults — is much more effective than a negative attitude. And the best negotiators are verypatient.

16. Persuasion by ReciprocationReciprocity, giving and receiving, is the most powerful way to gain agreement andcommitment.

A. Use the Socratic method. Determine all areas of agreement first — agree, agree, agree.

B. A key phrase to use when you disagree is “Let’s 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 severalsmall 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 ProofUse 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 thereasonableness, fairness of your position.

C. Assertions are not proof. Provide documentation for your claims.

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18. Price-Negotiating TacticsPractice price-negotiating tactics until they become second nature.

A. Flinch: “That is too much!”

B. Question: “Can’t you do better than that?”

C. Assertion: “I can get it cheaper somewhere else.”

D. Question: “What’s 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 you’ve bought the main article, get something free thrown into thepackage.

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19. Walkaway Method of NegotiatingIn 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 KeysThe Harvard Negotiation Project has come up with four key elements to successfulnegotiating.

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.

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C. Options. Generate a variety of possibilities. Use brainstorming methods to developalternative 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 FinalThey 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.

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Good negotiators are made, not born. Negotiating is a lifelong process. You can learn to bean excellent negotiator by studying the subject, by applying what you have learned in thiscourse, and by practicing these techniques over and over until they become second nature.

In closing, remember the four essentials of negotiating, upon which all successfulnegotiations 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 AchievementCapitalize on skills and talents you never knew you possessed, after hearingthis outstanding program, showcasing Brian Tracy at his very best. Itmakes for fascinating listening, and you’ll marvel at the revelations.Through refined, easy-to-use mental-programming techniques, you willenjoy even greater success, prosperity, happiness, and peace of mind.Six CDs with Progress Guide — 5031CD

The Psychology of SuccessYou always expect more from Brian Tracy, and he always delivers more! Inaddition to 10 proven principles for winning, Brian shares with you: twothings to do right away for greater happiness, success, and wealth; ninebasic steps for problem solving and decision making; seven strategies forgetting help; three ways to achieve excellence in your chosen field…plusmore!Six CDs — 1911CD

The Psychology of SellingSelling is both an art and a science, as you’ll quickly learn from this best-selling, everything-you’ll-ever-have-to-know-about-selling program! Putyourself in line for top awards, greater commissions, and happiercustomers who always come back for more. Learn the secrets of qualifyingand motivating your prospects and closing more sales.Six CDs with Progress Guide — 1651CD

How to Start and Succeed in Your OwnBusinessIn your own business, the rewards can be simply sensational — freedom,success, status and, yet, fun! Learn all there is to know about “going italone” from Brian Tracy, a masterful and highly successful entrepreneur.Avoid pitfalls and start-up spurts and sputters. Place yourself on a steadyupward curve toward success and happiness.Six CDs — 451CD

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SUGGESTED LISTENING FOR FURTHER HELPFULINSIGHTS BY BRIAN TRACY

Call toll-free 1-800-525-9000 to place an order or to receive furtherinformation on any of these programs.

10 Keys to a More Powerful Personality64 Minutes Viewing TimeEnjoy Brian Tracy’s dynamic and forceful personality on video ashe shares a lifetime success system with you. It’s the 10 Cs ofsuccess: clarity, competence, concentration, common sense,creativity, consideration, consistency, commitment, courage, andconfidence. Learn to put them to work in your life, andaccomplish more than you ever thought possible.One Videocassette (or DVD when available) — 5711V

24 Techniques for Closing the Sale65 Minutes Viewing TimeEver the consummate salesperson, Brian closes you with 24super-effective closing techniques. If you’re not in sales, don’tdismiss the thought of ordering this video for yourself. It’sdynamite when you’re seeking a new job, asking for a raise,buying a car or home, or even negotiating a loan.One Videocassette (or DVD when available) — 5681V

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SUGGESTED VIEWING FOR FURTHER HELPFULINSIGHTS BY BRIAN TRACY

Call toll-free 1-800-525-9000 to place an order or to receive furtherinformation on any of these programs.

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Setting Business StrategyNow you can think strategy, plan strategy, implementstrategy, and live strategy, secure in the knowledge thatyou’ve touched all the bases, covered all eventualities . 744

Leadership: The Critical DifferenceBrian Tracy captures the very essence of leadership — nosmall task — and presents it for all to see and understand.You learn the seven steps to becoming a truly effectiveleader, plus much more. . . . . . . . . . . . . . . . . . . . . . . . . . 745

The Excellent ManagerWhat to do... how to do it... when and where to do it... it’sall here! Discover the 21 steps to becoming an excellentmanager. Concentrate your powers, and master the sevenvital functions of a manager . . . . . . . . . . . . . . . . . . . . . . 746

How to Hire; How to FireAt last, someone has taken the mystery out of hiring.Here’s how to greatly improve your odds of getting andkeeping the top people you need. And how to vastlyimprove the situation — for both the other person andyourself — when you fire an employee. . . . . . . . . . . . . . 747

Delegating and SupervisingI t ’s not what you know about these vital areas that gets youin trouble — it’s what you don’t know. Never get swamped,backlogged, or overworked again, as you learn and practicea l l the ins and out of these two crucial skills . . . . . . . . . 7 4 8

Motivating People Toward PeakPerformanceLearn the one overriding key factor in getting the mostfrom people. Become a whiz at multiplying youreffectiveness, and watch your career soar. Feel free tocommit your people to big assignments, knowing they’llcome through. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749

Managing Meetings That Get ResultsConducting great meetings is like giving great parties —everybody leaves satisfied. Get the most from yourmeetings by giving the most. Learn the key to results-oriented, effective meetings. . . . . . . . . . . . . . . . . . . . . . . 750

Negotiating Strategies and TacticsWhy argue when you can agree? Learn the four secretsdiscovered in the Harvard Negotiation Project, plus muchmore. Never again dread bargaining, and learn how youcan want more and win. . . . . . . . . . . . . . . . . . . . . . . . . . 751

Executive Time ManagementDeep in your heart, you know whether or not you’re agood time manager. Most of us aren’t. And we all couldimprove. With this video as your guide, prove to yourselfyou can manage your time much more effectively — andreap BIG rewards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752

Marketing Strategy for Fast GrowthHere’s a program that could make, or save, you thousandsof dollars. Put your product or service through the pacesBrian suggests. Then, and only then, decide if you want toenter it in the big race (read marketplace). . . . . . . . . . . . 753

How to Sell WellIs your company realizing virtually all possible sales? Orare you somehow missing out? You’ll never know until youcompare your approaches with these proven methods forselling more, faster, and enhancing your bottom line. . 754

The Creative ManagerDon’t back off and claim you’re not creative and never willbe — until you give this program a try. Then exerciserestraint in the bragging department. You can be highlycreative, and Brian Tracy shows you how.. . . . . . . . . . . 755

Superior Sales ManagementLearn the skills of being a friend, a counselor, a confidant,a stern taskmaster, a cheerleader, and a business-orientedexec. Anyone, from a sales manager to an accountant,benefits from this people-oriented analysis. . . . . . . . . . 756

Pathways to Personal ProgressLearn to develop the key requirements for success whileridding yourself of habits and deficiencies that could beholding you back. Travel down the “right” path for you,and do it at an accelerated pace. . . . . . . . . . . . . . . . . . . 757

Choose One...Several... or Allof Brian Tracy’s Exciting,Pragmatic, Multimedia SeminarsCall toll-free 1-800-525-9000 to place an order or toreceive further information on any of these programs.