Practical Negotiating Tips

Matthew Waymire CPA

MatthewWaymire@hotmail.com702-279-0831

Simple Negotiation Process

1. Identify that we are in a negotiation

2. Map out my desired outcome

3. Gather Information as you build rapport

4. Guess at their motivations, desires, wants outcomes

5. Think through my negotiation strategy1. Develop Bargaining Chips

6. Trade, persuade, modify and reach an agreement

All negotiations are explorations

Dynamic – Everything will change during the course of the negotiation

You don’t know anything until you propose something

You can’t help but make assumptions, so:

Be aware of your assumptions Test your assumptions Be ready to change your assumptions based

on new evidence Be aware of their assumptions

All negotiations begin with a “NO”

Reframe for yourself the meaning of no– The first response is only the opening position– Any statement they make as to their position may

or may not be true

Divest yourself of the need to be liked– You never need to accept a bad deal– Directness moves the deal along

But remember to use softeners

It is ridiculous to expect anyone to be convinced on the first presentation

It’s not how brains work X number of times or y length of time Freedom not to panic or press The first response is only the opening

position

All major deals fail at least 5 times before succeeding

– There is a reason they are still yelling at you from across the table

– No reason to get too excited – No reason to push too hard

Avoid Neediness at all costs

Humans are Predators Number one neediness – need to do this deal

– Don’t spend the money till the deal is actually done

But Many Other Neediness– Need to be right– Need to be smart– Need to win– Need to be liked

Never take the first deal

Natural reaction of the other side– I could have offered less– He agreed too quickly what is wrong– This person is a push over (too needy) – I will

renegotiate later on

Scarcity = Value– People value what they have to pay for, what they

work for

All major negotiations are emotional roller coasters

Remember you are dealing with human beings who have– Strengths / weaknesses– Desires / needs / wants– Baggage

Understand your baggage as well as theirs

Negotiation is akin to a game

Football Poker

– Create chips

Guess at what game the other side is playing– Most people have only one negotiation style

They are going to be running plays– Are they playing a game or is it real for them

Examples of Plays

Nibbling Higher Authority Good Guy / Bad Guy Red Herring Wear Down Flinch Walk away Emotional Explosion

Power of the Walk Away

Develop your BATNA Wonderfully concentrates the mind Demonstrates non-neediness

Other Points

You never have to decide right now

If both sides want to do the deal the deal will get done

Closing a deal – just keep solving problems one after another

Other Points

New circumstances – you have the right to change your mind– You never have to agree to a bad deal– If you do go back to the table.

Learn about and keep learning about the other side

“Win-Win”

I believe in “Satisfactory+ for me and I am not going to fleece or cheat for you”

You are an adult – it is up to you to decide if you want to do the deal

Areas of Agreement

Agreements in which both sides feel good about the deal are better than those whereby both sides don’t

It is never in your long term best interests to enter into a deal if you think the other side will fail

If one side feels it was cheated then:– Lawsuits – Non-performance– Loss of reputation

Cheating is not good for the soul

Agreement with Win - Win

Creating more value in the deal is the skill of a brilliant negotiator– Costs little– Builds goodwill and momentum– Helps create a sense of both sides being on the

same side

Problems with “Win-Win”

90% of people polled will say they engage in win/win but in reality only 5% actually do

– Human nature will triumph Incredibly presumptuous to assume you know what is best for

the other side– They are adults– You don’t really know their real situation nor are they going to tell

you In trying to get to “yes” you end up negotiating against yourself Its easy to assume the other side is on the same win/win page

as yourself