Secrets of Power Negotiating by Roger Dawson

Overview

• Author: Roger Dawson
• Focus: Strategies for effective negotiation
• Key Insight: Always ask for a better deal than you expect to receive.

Key Strategies for Negotiating

1. The Art of Bracketing

• Avoid Early Concessions: Don't give up too much ground too early.
• Initial Offer: Always ask for more than your target price.
  • Example: If target price is $15,000 and asking price is $18,000, start with $12,000.
• Midpoint Strategy: Your target price becomes the midpoint, improving negotiation outcomes.

2. Gambit Negotiation

• Definition: Asking for more than expected to narrow the range in your favor.
• Reluctant Buyer/Seller: Create a facade of reluctance to gain an advantage.
• Application: Useful across various negotiation types, including real estate and politics.

3. Mastering Body Language and Phrases

• Bluffing and Flinching: Use these techniques to create urgency in negotiations.
• Body Language: React visibly to offers to encourage better counteroffers.
• Phrases: Use assertive phrases like "You’ll have to do better than that" to apply pressure.

4. Never Accept the First Offer

• Refusal of First Offer: Critical to avoid settling for less.
• Benefits of Counteroffers: Can lead to better deals and gather more information.

5. Concessions Management

• Bracketing Technique: Maintain target price while tapering down concessions.
• Concessions Strategy: Concessions should gradually decrease in size.

6. Trade-offs in Negotiation

• Concession Rule: Always ask for something in return when giving a concession.
  • Example: If a buyer asks to move furniture, ask for an equal concession in return.
  • Creates a win-win situation and avoids setting a dangerous precedent.

7. Middle Gambits

• Using Authority Figures: Pretend there’s another authority to convince, creating buffers.
• Positive Connection: Position yourself as an ally to avoid free concessions.

8. Breaking Through Negotiation Walls

• Neutral Third Party: Bring in someone to offer a new perspective.
• Power Projection: Indicate the willingness to walk away to strengthen your position.

9. Tactics for Stalled Negotiations

• Shake Things Up: Change the setting or mood to re-engage.
• Set Aside Gambit: Focus on common ground issues before revisiting problematic topics.

10. The Art of Nibbling

• Nibbling Technique: Ask for small concessions near the end to ensure the other party concedes.
• Counteracting Nibbling: Preemptively address potential extra requests.

11. Withdrawal Gambit

• Power of Withdrawal: If negotiations stall, withdraw an offer to incite urgency.
  • Example: Withdraw agreement over price when buyer asks for lower prices.

12. Positioning for Acceptance

• Easy Acceptance Gambit: Offer a small concession to gain goodwill and save face for the other party.
• Last Concession: Be the last to concede, fostering a sense of victory for both parties.

Conclusion

• Master Negotiator: By understanding psychological dynamics and using the strategies discussed, one can become a successful negotiator.
• Goodwill Importance: Maintain a positive, non-adversarial environment to foster win-win outcomes.