Tuesday, December 15, 2009

How to be a smarter negotiator

Every time I enter a negotiation it feels like the first time. I can rehearse, prepare and strategize, but if I really want something or have any emotional stake in the deal, all the wisdom I think I’ve collected over the years starts jumbling together. (For example, “Never start the money conversation,” mushes together with “Name your price first to make sure you’re negotiating from your number, not theirs.”)  And if negotiating requires a long waiting game, my impatience gets the best of me as all I want to do is get the deal sealed.

I decided to talk to a pro to see if I could improve my ways, so I rang up Jim Camp whose latest book, “No: The only Negotiating System You Need for Work and Home,” just landed on my desk. Camp is a seasoned negotiations coach who has trained the FBI on how to negotiate in hostage crises, so I figured my usual fare would present beginner-level challenges.

“So what’s your system?” he asked me.  I’m not much for systems or rules, letting my gut take me pretty much where it wants to go. So I mumbled something about how I try to assess the other party’s needs, whether I can fulfill them, and whether I’d even want to (which I thought sounded pretty good.) “And what is your system’s first rule?” he asked, explaining that all systems need to have rules. “Hmmm,” I responded.

Camp says that I’m not the only one who gets derailed by emotions. And he told me that whether it’s a new client, a job negotiation or a hostage crisis, there is one common thread -- the need to have a system to quell emotions.

Here are a few things he suggested:
  • Try to respond to a question with a question, so that you can gather information from the other person. (Camp did this repeatedly during our call when he seemed like he wasn’t sure I was getting what I needed out of the interview).
  • Figure out how to increase your perceived value.
  • Alllow yourself veto power (As in, "If it’s not going to be a good fit, it’s okay if I don’t take this job/client/deal.")
  • Don’t fixate on who names a dollar amount first. Instead focus on developing your perceived value so that by the time a number is named, regardless of who names it, it will be higher. 
  • Practice quelling your emotions in situations where the stakes seem low.
Without directly saying so, Camp convinced me that perfecting one’s negotiating style is way too complex a problem for a quickie blog post offering a few tips. Which is why I’m off to finish his book and try the exercises he suggests. Based on that, I’m guessing he’d call our interview a successful negotiation.

What do you think? Do you have a system that works for you in negotiations -- and if so, what are its inviolable rules?
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From the Community…

Comments 1-10 of 38
  • Mauna's Avatar
    Posted by Mauna Fri Aug 28, 2009 6:02am PDT

    That was my most used word when I was a young child....Look at that it has turned into a book.

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  • Micah's Avatar
    Posted by Micah Fri Aug 28, 2009 8:08am PDT

    My best negotiating tool has always been to know what my limit is (in whatever form that comes) and to walk away from the negotiation if a stalemate is reached. If it's clear that my limit is not going to be enough and the other party is not willing or able to budge on their terms, continuing the negotiation could potentially show the other party that you might weaken on your terms. Just walk away.

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  • Arian Mossa's Avatar
    Posted by Arian Mossa Fri Aug 28, 2009 9:15am PDT

    Negotiating is all about win win situations. If you are dealing with business clients...if you negotiate too hard, you may have won that battle, but you just lost a good repeat client.

    Be firm on your stand but make sure you are not robbing the other party...this could be suited to anything in life.

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  • Jim's Avatar
    Posted by Jim Fri Aug 28, 2009 12:08pm PDT

    I find that it is not about negotiating hard or easy, it is about creating vision of what you bring to the negotiation. Have you ever heard the term, the decision they made makes no sense? To often I'll bet. Well, the mistake in that statement is the brain makes decisions emotionally driven by vision and not by intellect and what makes sense.

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  • Customstep's Avatar
    Posted by Customstep Fri Aug 28, 2009 12:09pm PDT

    You know everybody is a negotiator, Weman are the best there is. Here's something that you should negotiate. The fact that you have a position that allows you to address a very large audience. With all the real issues going on in this world, this is all you can come up with to talk about. You can't even negotiate with your self.

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  • SFgal's Avatar
    Posted by SFgal Mon Aug 31, 2009 2:16pm PDT

    Some good advice I read somewhere was to name your price (or salary, or whatever) and then shut up. Don't say anytyhing or fill the uncomfortable silence that follows with an apology or "but, that's just my ideal...i'm open to blah blah" It might not work but the silence gives you power

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  • ganesh's Avatar
    Posted by ganesh Mon Aug 31, 2009 10:05pm PDT

    To be a good negotiator be a smart listener if you do so, u almost won the battle

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  • paul's Avatar
    Posted by paul Mon Aug 31, 2009 11:19pm PDT

    Negotation can be successful when parties involved get more liking to each other

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  • Tessy's Avatar
    Posted by Tessy Fri Sep 4, 2009 9:52am PDT

    I really could use some advice. I was thron off in an interview yesterday. I have had about 6 interviews with the same company in the last 12 months. I was shocked when asked about what I wanted in the way of money. I knew it would come up sooner or later,but I thought it would be later. I was so surprised, I'm having second thoughts as I think I went too low. What now? Can I fix it somehow?

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  • pandian's Avatar
    Posted by pandian Fri Sep 4, 2009 9:41pm PDT

    As a negotiator, he should have complete knowledge of what the negotiation is all about and freedom.

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Comments 1-10 of 38

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