Secrets of Power Negotiating

Overview

• Summary of the book "Secrets of Power Negotiating" by Roger Dawson.
• Focus on asking for better deals and crucial negotiation strategies.
• Key topics include: bracketing, target prices, negotiation phases, body language, and counter-offers.

Key Negotiation Strategies

The Art of Bracketing

• Start negotiations by asking for better deals than expected.
• Avoid giving up too much ground early.
• Example: If target price for a car is $15,000 and seller asks for $18,000, make an initial offer of $12,200.
  • This creates a favorable midpoint.

Gambit Negotiation

• Use gambits to narrow the negotiation range.
• Example: Ask for unrealistic revisions in contracts to gain leverage.
• Play the role of a reluctant seller or buyer to gain advantages.

Importance of Body Language

• Body language can impact negotiations significantly.
• Techniques like bluffing and flinching create urgency.
• Use phrases such as "You'll have to do better than that" to pressure the other party.

Key Tactics in Negotiation

Never Accept the First Offer

• Refusing the first offer can lead to better deals.
• Prolonged negotiations can uncover valuable information.

Mastering Concessions

• Employ the bracketing technique to maintain target prices.
• Ensure concessions are tapered down gradually.
• Avoid making multiple concessions of equal size.

Trade-off Gambit

• Always ask for something in return for concessions.
• Example: If a buyer requests to move furniture, ask for a concession in return.
• This creates a win-win situation and avoids setting a dangerous precedent.

Middle Phase of Negotiation

Middle Gambits

• Use a fictitious authority figure to justify concessions.
• Position yourself as an ally to create a positive connection.

Breaking Through Deadlocks

• In tough scenarios, bring in a neutral third party or project the willingness to walk away.
• This strengthens your position and adds urgency.

Advanced Negotiation Techniques

Set Aside Gambit

• Focus on common ground issues before circling back to contentious points.

Nibbling Technique

• Ask for small concessions at the end of negotiations to take advantage of the opponent's investment.

Withdrawal Gambit

• Withdraw an offer to create urgency and prompt concessions.
  • Example: If a buyer asks for a lower price after an agreement, withdraw the previous offer citing external factors.

Positioning for Easy Acceptance

• Offer a small concession or freebie at the end to encourage goodwill and acceptance.

Conclusion

• Roger Dawson emphasizes the psychological dynamics of negotiation.
• Mastering strategies like bracketing, flinching, and trade-offs can lead to successful outcomes.
• Maintaining goodwill is essential for fostering a non-adversarial negotiation environment.
• Equipped with these strategies, one can tackle any negotiation challenge confidently.