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NEGOTIATING
STRATEGIES
AND TACTICS
Twenty-one ideas, methods, and techniques
you can use to negotiate prices, contracts,
agreements, and disputes more
effectively and successfully.
by Brian Tracy
©MCMLXXXVIII
Nightingale-Conant Corporation
www.nightingale.com
1-800-525-9000
751pg
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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.
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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 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 you’ve learned when you teach others.
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CONTENTS
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
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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 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. “It’s 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!
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TWENTY-ONE IDEAS YOU CAN USE
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.
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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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.”
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.
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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.
F. Win-win. The parties work together to discover a third alternative that satisfies the needs of
both.
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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 other’s 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 person’s 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 don’t.
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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.
B. How badly do you want it? How badly does the other party want 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 least
power.
A. Urgency. The more urgent his need, the less effective the negotiator.
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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.
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B. What are you prepared to give to get it?
F. The person who knows exactly what he or she wants has a distinct advantage over the
person who is vague or unsure.
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B. Objectives. What are your objectives? The other party’s objectives?
A. What are your essentials, your limits, your maximums, your minimums?
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D. What tie-in concessions can you require to achieve agreement or to get concession?
A. Try and see the situation through the other person’s eyes.
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D. What are the other’s 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?”
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 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.
A. The successful negotiator views negotiation as a lifelong process — that is, never ending.
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E. He is creative versus competitive.
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 have
a 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 or
after a meal.
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.”
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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.
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.
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18. Price-Negotiating Tactics
Practice price-negotiating tactics until they become second nature.
D. Question: “What’s the very best you can do if I make a decision today?”
F. Nibble, or add on: After you’ve bought the main article, get something free thrown into the
package.
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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.
A. People. Separate the personalities from the problem, the issues at hand.
Stay unemotional. Keep your eye on the negotiation, off the personalities.
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C. Options. Generate a variety of possibilities. Use brainstorming methods to develop
alternative approaches.
E. Agree on boundary conditions in advance. What are you trying to avoid, achieve, preserve?
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 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:
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SUGGESTED LISTENING FOR FURTHER HELPFUL
INSIGHTS BY BRIAN TRACY
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SUGGESTED VIEWING FOR FURTHER HELPFUL
INSIGHTS BY BRIAN TRACY
10 Keys to a More Powerful Personality
64 Minutes Viewing Time
Enjoy Brian Tracy’s dynamic and forceful personality on video as
he shares a lifetime success system with you. It’s the 10 Cs of
success: clarity, competence, concentration, common sense,
creativity, consideration, consistency, commitment, courage, and
confidence. Learn to put them to work in your life, and
accomplish more than you ever thought possible.
One Videocassette (or DVD when available) — 5711V
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