Notes on the 100 Laws
The Laws of Negotiating
73.
The Universal Law of Negotiating : Everything is negotiable.
- Prices are best-guess estimate of what the customer will pay.
- Every price was set by someone and can therefore be changed by someone.
74:
The law of Futurity : The purpose of a negotiation is to enter into an agreement such that both parties have their needs satisfied and are motivated to fulfill thier agreements and enter into further negotiations with the same party in the future.
75:
The law of Win-Win or No Deal : In a successful negotiation, both parties should be fully satisfied with the result and feel that they have each "won" or no deal should have been made at all.
76:
The law of Unlimited Possibilities : You can always get a better deal if you know how.
- If you want a better deal, ask for it.
- Whatever the suggested price, react with surprise and disappontment.
- Always imply that you can do better somewhere else.
77.
The law of Four : There are 4 main issues to be decided upon in any negotiation; everything else is dependent on these.
- Eighty percent or more of the content of the negotiation will revolve around these four issues.
- Of the four main issues in any negotiation, one will be the main issue and three will be secondary issues.
78:
The law of Timing : Timing is everything in a negotiation.
- The more urgent the need, the less effective the negotiator.
- The person who allows him/herself to be rushed will get the worst of the bargain.
- You resolve 80% of the vital issues of any negotiation in the last 20% of the time allocated for the negotiation.
79:
The law of Terms : The terms of payment can be more important than the price in a negotiation.
- You can agree to almost any price if you can decide the terms.
- Never accept the first offer, no matter how good it sounds.
- Never reject an offer out of hand, no matter how unacceptable it sounds when you first hear it.
80:
The law of Anticipation : 80% or more of your success in any negotiation will be determined by how well you prepare in advance.
- Facts are everyting
- Do your homework; one small detail can be all you need to succeed in a negotiation.
- Check your assumptions; incorrect assumptions lie at the root of most mistakes.
81.
The law of Authority : You can negotiate successfully only with a person who has the authority to approve the terms & conditions you agree upon.
- You must determine in advance if the other party has authority to make a deal.
- When dealing with someone who cannot make the final decision, you must represent yourself as also being unable to make the final decision.
82.
The law of Reversal : Putting yourself in the situation of the other person enables you to prepare and negotiate more effectively.
83.
The law of Greater Power : The person with the greater power, real or imagined, will get a better deal in any negotiation.
- People will not negotiate with you unless they feel you have the power to help them or hurt them in some way.
- Power is a matter of perception; it is in the eye of the beholder.
Types of Power via:
1. Indifference
2. Scarcity
3. Authority
4. Courage
5. Commitment
6. Expertise
7. (Inside) Knowledge of the needs of others
8. Empathy
9. Rewarding/Punishing
10. Investment (time/money)
84.
The law of Desire : The person who most wants the negotiation to succeed has the least bargaining power.
- No matter how badly you want something, you should appear neutral and detached.
- The more you can make the other party want it, the better deal you can get.
85.
The law of Reciprocity : People have a deep subconcious need to reciprocate for anything that is done to or for them.
- The first party to make a concession is the party who wants the deal the most.
- Every concession you make in a negotiation should be matched by an equal or greater concession from the other party.
- Small concessions on small issues enable you to ask for large concessions on large issues.
86.
The Walk Away Law : You don't know the final price and terms until you get up and walk away.
- The power is on the side of the person who can walk away without flinching.
- Walking out of a negotiation is another form of negotiation.
87.
The law of Finality : No negotiation is ever final.
- If you are not happy with the existing agreement, ask to reopen the negotiation.
- Use zero-based thinking on a regular basis by asking yourself, If I could negotiate this arrangement over again, would I agree to the same terms?