Last
week we started a series on what it takes to be a good negotiator (in case you missed it:http://emmanuelgreat.blogspot.com.ng/2016/04/the-absolute-unbreakable-laws-of.html) ...... We shall continue on the next laws of how to be a good negotiator
6. The
Law of Expediency:
“People
act to get the
very most of
the things they want the fastest
and easiest way possible without regard to the secondary consequences of their actions.”
This is the umbrella law that explains much of how
the world really works, and why things happen the way they do. This law
explains virtually all human character, all marketing and sales, all government
actions and all relationships. It largely explains happiness and unhappiness,
success and failure in all areas of human endeavor.
The first proposition of the Law of Expediency says:
“People are naturally and
normally lazy and greedy in everything they do.”
This is the way people behave in a state of nature.
It is neither good nor bad. It is simply a fact. It is value free. It is only
how a person manifests these natural instincts that makes them either positive
or negative. These qualities exist in every negotiation, on both sides.
The happiest people are those who accept this law
as a basic operating principle for individual character. They are not surprised
when people act consistent with this law. They expect it. They are amazed and
pleased when people act otherwise, perhaps motivated by a higher value or principle,
but they don’t become upset when it doesn’t happen.
The Law of Expediency explains the way the world
works. It is often called the “law of least resistance.” Everyone in the world
is driven in every conceivable way to seek the fastest and easiest way to get
the things they want, right now without concern for the long-term consequences
of their actions.
Examine your character honestly and objectively. In
what ways do you act expediently to get the things you want? Is this tendency
helping you or hurting you?
Examine the character of the people you negotiate
with. In what ways does the Law of Expediency explain their character?
Study your business. Look at your products and
services, your sales and marketing. In what ways are your promotional activities
in harmony with the natural tendencies of your customers to act expediently?
How could you change your ways of doing business so that they conform more to
the real way your customers make buying decisions? How could you make your
business offerings faster, easier and cheaper for your customers?
7. 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 their agreements and enter into
further negotiations with the same party in the future.”
This is a foundation law of negotiating and applies
especially to negotiations where you will be dealing with the same party again.
In business, it is quite common for people to be in and out of business transactions
and negotiations with each other for many years. This fundamental futurity must
be kept in mind at each stage of each negotiation.
Let’s break this law down into its constituent
parts.
First, “the aim of
a negotiation is to enter into an agreement.” It is assumed, but not always
true, that both parties want to do business together. If one does not and is
merely negotiating for some other purpose, the other party can be at a
considerable disadvantage.
The Second part says,
“such that both parties have their needs satisfied.” This means that an
agreement where one or the other party feels that he or she has lost does not
fulfill the basic requirement of a successful negotiation. Both must feel that they
have come out ahead. This law then goes on to say, “.. And are motivated to fulfil
their agreements and enter into further negotiations with the same party in the
future.”
This means that both parties are satisfied enough
with theoutcome that they are motivated
to fulfill whatever commitments they have made and they feel positively enough
about the agreement reached that they are willing to negotiate again and enter into
subsequent agreements in the future.
Analyze your current negotiating style. In what
areas have you been more focused on “winning” in the short term without really considering
the long term damage that you might be doing to the relationship? What could
you do to change this immediately?
Look for ways to make the final agreement more
acceptable to the other party. Think of negotiating with this party again in
the future based on the terms and conditions you are finalizing today. How
could you improve the terms without sacrificing things that are important to you?
8. The Law of Win/win or No Deal:
“In a successful
negotiation both parties are fully satisfied with the result and feel that they
have each “won” or no deal should be made at all.”
You should always seek an outcome that satisfies
both parties to the negotiation if you are going to be doing business with this
party again in the future. Remember, you always reap what you sow. Any settlement
or agreement that leaves one party dissatisfied will come back to hurt you
later, sometimes in ways that you cannot predict. In every ongoing negotiation
you should aim for a win/win solution, or no deal. When you enter into a
negotiation where you will be dealing with this person again, you should be
clear in advance that you are committed to reach a solution that is satisfactory
to both. If it does not entail a win for both parties, you should simply refuse
to make any deal at all.
When you are determined to achieve a “win/win”
solution to a negotiation, and you are open, receptive and flexible in your discussions,
you will often discover a third alternative that neither party had considered
initially but which is superior to what either of you might have thought of on
your own.
This kind of third alternative solution is almost
always achievable if you are willing to look for it. It simply requires a commitment
to “win/win.” Once you’ve decided that you are only going to agree to a settlement
that is satisfactory to both parties, this doesn’t mean that you have to accept
any arrangement that you consider second best.
With your values and your intentions clear, you are
now in a position to utilize every strategy and tactic available to you to get
the very best deal for both of you, one that assures that you both end up happy
with the arrangement.
Think win/win in all your interactions with others,
at work and at home. Actively seek a middle way that satisfies the most
pressing desires of both parties. Be creative in suggesting alternatives that
get both you and the other person more of what you want.
Examine any situation you are in today that you are
not happy with. How could you restructure the terms and conditions in such a way
that the other person gets more of what he or she wants in the process of
giving you more of what you want?
9. The
Law of Unlimited Possibilities:
You
can always get a better deal if you know how.
You never need to settle for less or feel
dissatisfied with the result of any negotiation. There is almost always a way
that you can get better terms or prices, whether you are buying or selling. Your
job is to find that way.
The first proposition of this law says:
“If you want a better deal, ask
for it.”
The word “ask” is the most powerful word in the
world of business and negotiating. Most people are so paralyzed by the fear of rejection
and disapproval that they are afraid to ask for anything out of the ordinary.
They just accept what is offered to them and hope for the best.
But this is not the case with the best negotiators.
The top negotiators will quite calmly and confidently ask for any kind of price
or terms that are remotely within reason. You will be quite astonished at the
better deals you will get by simply asking for a lower price if you’re buying,
and asking for a higher price if you’re selling.
The second proposition of this law is:
“Whatever the suggested
price, react with surprise and disappointment.”
Remember, most people have plucked the price out of
the air. They are always asking for more than they expect to get, or offering less
than they expect to pay. In either case, you should flinch and react with mild
shock, no matter what the price or the offer. Appear hurt, as if the person has
just said something cruel or unkind that was totally uncalled for. Then ask,
“Is that the best you can do?” And remain perfectly silent.
Very often, when you ask a person how much an item
is, and you flinch when they give you the price, they will lower the price immediately.
Almost every price has a built in cushion of available discount and very often
the salesperson will drop to that price with one painful flinch on your part.
The third proposition of this law is:
“Always imply that you can
do better somewhere else.”
There is nothing that causes a seller’s price to
drop faster than for you to tell him that you can get the same item cheaper from
another source. This shocks him and shakes his self-confidence. He immediately
feels that he is going to lose the deal and often cuts the price quickly.
Do your homework. Check around and ask about other
prices that are available. The more examples you can offer when you demand
lower prices, the faster the other party will come down to a price that is
acceptable to you.
10. The
Law of Four:
“There are four main
issues to be decided upon in any negotiation; everything else is dependent on these.”
There may be dozens of details to be ironed out in
a complex agreement but the success or failure of the negotiation will rise or
fall on no more than four issues. I have spent two and three days in negotiating
sessions with teams of skilled businesspeople on both sides of the table,
discussing fifty pages of small and large details, only to have everything boil
down to four key issues at the end.
The first proposition of the Law of Four says:
Eighty percent or more of
the value of the negotiation will revolve around these four issues.
This Law of Four and this factor of eighty percent
turn out to be true in almost every case. No matter how long or complex the negotiation,
no matter how many clauses, sub-clauses and different details, terms and
conditions, at the end, most of the discussion, and the most important points
of the negotiation, revolved around four basic items.
The second proposition of the Law of Four says:
“Of the four main issues
in any negotiation, one will be the main issue and three will be secondary
issues.”
For example, you may decide to buy a new car. The
four main issues to be decided might be price, trade-in value of your existing car,
color and accessories. Warranty and service policies will be important but
secondary.
The Law of Four only really works when the other
party’s order of importance of the four issues is different from yours. One
party may be more concerned about price and the other party may be more concerned
about terms. This can lead to an excellent win/win solution that satisfies the
most important needs of each party. Think of something expensive and complex
that you have purchased in the past. What were your four key considerations?
What were the considerations of the other party? How did you finally reach an
agreement?
Think of an upcoming negotiating situation in your
work. Make a list of all your considerations and then order them by importance
to you. Make a list of the other party’s considerations in order of importance.
How can you use this information to get a better deal?
...... to be cont'd
