Read Never Split The Difference.

It will transform your negotiation.

What other books on negotiation do you recommend?

Summary:

Negotiation is all about positioning yourself in the right way and figuring out the “black swans” of your relationship with the other party. Figuring out what is under the surface that is keeping you from a deal. Whats the thing that isn’t being discussed?

Key Techniques:

1. Mirroring – When negotiating or talking with someone, repeat back the key word from the last thing they said or ask it as a question. The counterparty will keep talking and will gladly give you more information.

2. Labeling – Identify what your counterparty is feeling and label it. Tell them “I sense that you’re upset with me not moving on price” and then go from there. If you acknowledge their concerns you will be able to move forward

3. Say No or get them to No – If you say no you can then move to, ok but under what conditions would you say yes? It creates a more productive and specific discussion.

4. Make your problems their problem – Ask “How am I supposed to do that?” and have them brainstorm how to solve your challenges. They will either figure it out for you or they will give you valuable information, questions to do this include:
4.1 What about this is important to you?
4.2 How can I help to make this better for us?
4.3 How would you like me to proceed?What is it that brought us into this situation?
4.4 How can we solve this problem?
4.5 What’s the objective? What are we trying to accomplish here?
4.6 How am I supposed to do that?

5. Anchor – Don’t offer price first and if you do, be ridiculous about it. Make such an outrageous offer that they are completely thrown off. You can then negotiate from there but that’s the starting point and now they are more used to it.

6. Find the Black Swans – identify what the biggest hardest unspoken issue is between the two parties. Label it and resolve it. This will move everything forward drastically.

7. Get People to say “That’s Right” – the best words to hear from someone are “That’s right” this means that you’ve summarized to their liking what they believe and they are now fully committed to working with you to get to the goal.

8. Bend Their Reality – Make the other person think that what you’re giving them is amazing. Give them context about how in other situations it’s a lot more expensive.

9. Ask people to triple commit – If someone says they are going to do something, have them commit to it three times:
9.1 The initial, yes I’ll do it.
9.2 Get them to say “That’s right” after you summarized what they are going to do.
9.3 Ask, tell me how you are going to do it, have them walk you through it so that they have to think through all the steps that are involved

10. Negotiate HARD – Push push push until you get what you want. Simple process to do it:
10.1 Set your target price.
10.2 Set your first offer at 65% of target price.
10.3 Calculate three raises of decreasing increments (to 85, 95, 100%)
10.4 Use lots of empathy and different ways of saying No to get the other side to counter before you increase your offer.
10.5 When calculating the final amount, use precise, non round numbers like, say, $37,893 rather than $38,000. It gives the number credibility and weight.
10.6 On your final number, throw in a non monetary item (that they probably don’t want) to show you’re at your limit.

Preparing a Negotiation One Sheet (from the book):

1. Your Goal
Summary of known facts. What does the other party want?

2. Labels / Accusation Audit.
Prepare 3-5 labels to use on the counterparty to test assumptions.
2.1 It seems like ____ is valuable to you.
2.2 It seems like you dont like ___.
2.3 It seems like you value _____.
2.4 It seems like _______ makes it easier.
2.5 It seems like you’re reluctant to _____.

3. Calibrated Questions. Prepare 3-5 questions to reveal what the other party cares about.
3.1 What are we trying to accomplish?
3.2 How is that worthwhile?
3.3 What’s the core issue here?
3.4 How does that affect things?
3.5 What’s the biggest challenge you face?
3.6 How does this fit into what the objective is?

4. Questions to identify deal killers
4.1 How does this affect the rest of your team
4.2 How on board are the people not on this call?
4.3 What do your colleagues see as their main challenges in this area?

5. Questions to identify and diffuse deal-killing issues
5.1 What are we up against here?
5.2 What is the biggest challenge you face?
5.3 How does making a deal with us affect things?
5.4 What happens if you do nothing?
5.5 What does doing nothing cost you?
5.6 How does making this deal resonate with what your company prides itself on?

6. Non-Cash offers
Prepare a list of non cash items possessed by your counterpart that would be valuable.

^Day 188/90 1312 words

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