Saturday, May 31, 2008

Big Dog And Business Negotiation Techniques

Writen by Lance Winslow

When negotiating a business deal with a smaller up and coming company the larger company may wish to consider their position in the game and what the end goal for the smaller company is. That is to say what is the little company trying to achieve. For instance the little company wants PR value from being able to say they have the larger company as an account or is partnering with them.

Why? Well perhaps they wish to leverage this with a second round of venture capital funding or use it to sell more large accounts and often there are reasons of ego also involved. Being the larger company you can often all them to use public relations and tell others that they are doing business with you as that costs you nothing at all and gives them an influx of cash and this is a feather in your cap and can allow you to negotiate a lower price or better terms or additional services.

It pays to know who you are negotiating with and their motivation and especially those motivations which you can provide without costing you anything on your bottom line. Now that is truly a Western World win/win scenario and it makes sense to proceed this way. Just make sure you are certain of the little company's ability to perform and do what they say they are going to do. Be weary of over promising from cash poor start-ups with high burn rates. Consider all of this in your negotiations in 2006.

Lance Winslow

Friday, May 30, 2008

Setting The Climate For A Nonconfrontational Negotiation

Writen by Roger Dawson

What you say in the first few moments of a negotiation often sets the climate of the negotiation. The other person quickly gets a feel for whether you are working for a win-win solution, or whether you're a tough negotiator who's out for everything they can get.

That's one problem that I have with the way that attorneys negotiate-they're very confrontational negotiators. You get that white envelope in the mail with black, raised lettering in the top left hand corner and you think, "Oh, no! What is it this time?" You open the letter and what's the first communication from them? It's a threat. What they're going to do to you, if you don't give them what they want.

I remember conducting a seminar for 50 attorneys who litigated medical malpractice lawsuits, or as they prefer to call them, physician liability lawsuits. I've never met an attorney who was eager to go to a negotiating seminar, although that's what they do for a living, and these people were no exception to the rule. However, the organization that was giving the attorneys their business told them that they were expected to attend my seminar if they wanted to get any more cases from the organization. So the attorneys weren't too happy about having to spend Saturday with me in the first place, but once we got started, they became involved and were having a good time. I got them absorbed in a workshop involving a surgeon being sued over an unfortunate incident involving a nun and walked around the room to see how they were doing. I couldn't believe how confrontational they were being. Most of them started with a vicious threat and then became more abusive from that point on. I had to stop the exercise and tell them that if they wanted to settle the case without expensive litigation (and I doubted their motives on that score) that they should never be confrontational in the early stages of the negotiation.

So, be careful what you say at the beginning. If the other person takes a position with which you totally disagree, don't argue. Arguing always intensifies the other person's desire to prove himself or herself right. You're much better off to agree with the other person initially and then turn it around using the Feel, Felt, Found formula. Respond with, "I understand exactly how you feel about that. Many other people have felt exactly the same way as you do right now. (Now you have diffused that competitive spirit. You're not arguing with them, you're agreeing with them.) But you know what we have always found? When we take a closer look at it, we have always found that . ."

Let's look at some examples:

  • You're selling something, and the other person says, "Your price is way too high." If you argue with him, he has a personal stake in proving you wrong and himself right. Instead, you say, "I understand exactly how you feel about that. Many other people have felt exactly the same way as you do when they first hear the price. When they take a closer look at what we offer, however, they have always found that we offer the best value in the marketplace."

  • You're applying for a job, and the human resources director says, "I don't think you have enough experience in this field." If you respond with "I've handled much tougher jobs that this in the past," it may come across as, "I'm right and you're wrong." It's just going to force her to defend the position she's taken. Instead, say, "I understand exactly how you feel about that. Many other people would feel exactly the same way as you do right now. However, there are some remarkable similarities between the work I've been doing and what you're looking for that are not immediately apparent. Let me tell you what they are."

  • If you're a salesperson and the buyer says, "I hear that you people have problems in your shipping department," arguing with him will make him doubt your objectivity. Instead, say, "I understand how you could have heard that because I've heard it too. I think that rumor may have started a few years ago when we relocated our warehouse; but now major companies such as General Motors and General Electric trust us with their just-in-time inventories, and we never have a problem."

  • If the other person says, "I don't believe in buying from off-shore suppliers. I think we should keep the jobs in this country," the more you argue the more you'll force him into defending his position. Instead, say, "I understand exactly how you feel about that, because these days many other people feel exactly the same way as you do. But do you know what we have found? Since we have been having the initial assembly done in Thailand, we have actually been able to increase our American work force by more than 42 percent and this is why . . ."

    So instead of arguing up front, which creates confrontational negotiation, get in the habit of agreeing and then turning it around.

    At my seminars, I sometimes ask a person in the front row to stand. As I hold my two hands out, with my palms facing toward the person I've asked to stand, I ask him to place his hands against mine. Having done that and without saying another word, I gently start to push against him. Automatically, without any instruction, he always begins to push back. People shove when you shove them. Similarly, when you argue with someone, it automatically makes him or her want to argue back.

    The other great thing about Feel, Felt, Found is that it gives you time to think. Sometimes something will come up in a negotiation that you weren't expecting. You haven't heard anything like this before. It shocks you. You don't know what to say; but if you have Feel, Felt, Found in the back of your mind, you can say, "I understand exactly how you feel about that. Many other people have felt exactly the same way. However, I have always found . . ." By the time you get there, you'll have thought of something to say. Similarly, you sometimes catch other people at a bad moment. You may be a salesperson who is calling to get an appointment and the person says to you, "I don't have any more time to waste talking to some lying scum-sucking salesperson." You calmly say, "I understand exactly how you feel about that. Many other people have felt exactly the same way. However . . ." By the time you get there you will have recovered your composure and will know exactly what to say.

    Key points to remember:

    Don't argue with people in the early stages of the negotiation because it creates confrontation.

    Use the Feel, Felt, Found formula to turn the hostility around.

    Having Feel, Felt, Found in the back of your mind gives you time to think when the other side throws some unexpected hostility your way.

    Roger Dawson
    Founder of the Power Negotiating Institute
    800-932-9766
    RogDawson@aol.com
    http://www.rdawson.com

    Roger Dawson is the author of two of Nightingale-Conant's best selling audiocassette programs, Secrets of Power Negotiating and Secrets of Power Negotiating for Salespeople. This article is excerpted in part from Roger Dawson's new book - "Secrets of Power Negotiating", published by Career Press and on sale in bookstores everywhere for $24.99.

  • So Whats Your Argument

    Writen by Ken Nadreau

    Arguments aren't always bad things. Sometimes They're used to convince someone of an important point they may not yet realize.

    You've probably used arguments in this way most of your life in fact!

    Maybe you wanted to go somewhere and had to convince your parents that is was a good idea to let you go. So you argued your position with them.

    Maybe you wanted to buy a big ticket item and had to argue the value of buying it with your spouse!

    Arguments don't necessarily have to be shouting matches. They can simply be a device used to convince someone of something that you feel is important.

    It's funny then, how so few sales people use the art of arguing to sell their products. Wouldn't a person who wants someone to buy something from them want to try and convince that one that it'd be a good idea?

    Maybe it's because it's not such a good idea?

    Could be why so many sales pitches are designed to connive potential customers into buying rather than giving them a convincing argument instead.

    Let's face it . . .

    Who'd want to argue a losing point?

    After all, if a product is of little value, who in their right mind would want to take the position of trying to convince someone it had value?

    Maybe that's why so few try to convince rather than connive!

    But what is the difference between convincing and conniving anyway?

    A conniver is like the person in a movie or TV show that's holding something they probably shouldn't be. Suddenly, a cop pulls up and he quickly passes the object to the person next to him with the words, "Here, take this quick!"

    The poor unsuspecting by-stander is "left holding the bag", and doesn't know what hit him as he's dragged off to the pokey.

    So, to put it simply . . .

    A conniver is the person who tries to get you to do something without thinking about it. He creates a sense of urgency and force feeds it to you before you can say no.

    Now a convincer is quite the opposite. He wants you to know what you're getting into and is willing to spend the time going over it with you. He has a valid argument and has no qualms about letting you hear it.

    So, by the time he hands you the "bag", you know exactly what's in it, and you've been able to make a rational decision about whether you want to "hold" it or not.

    This leaves us with two important questions . . .

    If you're searching the Internet looking for product to buy, who would you rather run into?

    If you're trying to sell valuable products on the Internet, which of the above two do you think you should be?

    Hopefully, the argument is clear!

    About The Author

    Ken Nadreau is the author of "Power Suits for Online Marketers." A free report that explains the three most important aspects of sales, and how using them, turns the average marketer into a legitimate, "well dressed" professional.

    http://taoenterprises.com/powersuit/index.html

    krnadreau@taoenterprises.com

    Thursday, May 29, 2008

    Learn To Play The Reluctant Seller When Youre Negotiating

    Writen by Roger Dawson

    Imagine for a moment that you own a sailboat, and you're desperate to sell it. It was fun when you first got it, but now you hardly ever use it, and the maintenance and slip fees are eating you alive. It's early Sunday morning, and you've given up a chance to play golf with your friends because you need to be down at the marina cleaning your boat. You're scrubbing away and cursing your stupidity for ever having bought the boat. Just as you're thinking, "I'm going to give this turkey away to the next person who comes along," you look up and see an expensively dressed man with a young girl on his arm coming down the dock. He's wearing Gucci loafers, white slacks, and a blue Burberry's blazer topped off with a silk cravat. His young girlfriend is wearing high heels, a silk sheath dress, big sunglasses, and huge diamond earrings.

    They stop at your boat, and the man says, "That's a fine looking boat. By any chance is it for sale?"

    His girl friend snuggles up to him and says, "Oh, let's buy it, poopsy. We'll have so much fun."

    You feel your heart start to burst with joy and your mind is singing, "Thank you, Lord! Thank you, Lord!"

    Expressing that sentiment is not going to get you the best price for your boat, is it? How are you going to get the best price? By playing Reluctant Seller. You keep on scrubbing and say, "You're welcome to come aboard, although I hadn't thought of selling the boat." You give them a tour of the boat and at every step of the way you tell them how much you love the boat and how much fun you have sailing her. Finally you tell them, "I can see how perfect this boat would be for you and how much fun you'd have with it, but I really don't think I could ever bear to part with it. However, just to be fair to you, what is the very best price you would give me?"

    Power Negotiators know that this Reluctant Seller technique squeezes the negotiating range before the negotiating even starts. If you've done a good job of building the other person's desire to own the boat, he will have formed a negotiating range in his mind. He may be thinking, "I'd be willing to go to $30,000, $25,000 would be a fair deal and $20,000 would be a bargain." So, his negotiating range is from $20,000 to $30,000. Just by playing Reluctant Seller, you will have moved him up through that range. If you had appeared eager to sell, he may have offered you only $20,000. By playing Reluctant Seller you may move him to the mid-point, or even the high point of his negotiating range, before the negotiations even start.

    One of my Power Negotiators is an extremely rich and powerful investor, a man who owns real estate all over town. He probably owns real estate worth $50 million, owes $35 million in loans, and therefore has a net worth of about $15 million. Very successful-what you could justifiably call a heavy hitter. He likes wheeling and dealing.

    Like many investors, his strategy is simple: Buy a property at the right price and on the right terms, hold onto it and let it appreciate, then sell at a higher price. Many smaller investors bring him purchase offers for one of his holdings, eager to acquire one of his better-known properties. That's when this well-seasoned investor knows how to use the Reluctant Buyer Gambit.

    He reads the offer quietly, and when he's finished he slides it thoughtfully back across the table, scratches above one ear, saying something like, "I don't know. Of all my properties, I have very special feelings for this one. I was thinking of keeping it and giving it to my daughter for her college graduation present and I really don't think that I would part with it for anything less than the full asking price. You understand; this particular property is worth a great deal to me. But look, it was good of you to bring in an offer for me and in all fairness, so that you won't have wasted your time, what is the very best price that you feel you could give me?" Many times, I saw him make thousands of dollars in just a few seconds using the Reluctant Seller philosophy.

    Power Negotiators always try to edge up the other side's negotiating range before the real negotiating ever begins.

    I remember an oceanfront condominium that I bought as an investment. The owner was asking $59,000 for it. It was a hot real estate market at the time and I wasn't sure how eager the owner was to sell or if they had any other offers on it. So, I wrote up three offers, one at $49,000, another at $54,000 and a third at $59,000. I made an appointment to meet with the seller, who had moved out of the condominium in Long Beach and was now living in Pasadena. After talking to her for a while, I determined that she hadn't had any other offers and that she was eager to sell. So I reached into my briefcase, where I had the three offers carefully filed and pulled out the lowest of them. She accepted it, and when I sold the condominium a few years later, it fetched $129,000. (Be aware that you can do this only with a "For Sale by Owner." If a real estate agent has listed the property, that agent is working for the seller and is obligated to tell the seller if he's aware that the other side would pay more. Another reason why you should always list property with an agent when you're selling.) So, Power Negotiators always play Reluctant Seller when they're selling. Even before the negotiation starts, it squeezes the other side's negotiating range.

    Remember that when people do this kind of thing to you, that it's just a game that they are playing on you. Power Negotiators don't get upset about it. They just learn to play the negotiating game better than the other side.

    Key points to remember:

    Always play Reluctant Seller.

    Playing this Gambit is a great way to squeeze the other side's negotiating range before the negotiation even starts.

    The other person will typically give away half his or her negotiating range just because you use this.

    Roger Dawson
    Founder of the Power Negotiating Institute
    800-932-9766
    RogDawson@aol.com
    http://www.rdawson.com

    Roger Dawson is the author of two of Nightingale-Conant's best selling audiocassette programs, Secrets of Power Negotiating and Secrets of Power Negotiating for Salespeople. This article is excerpted in part from Roger Dawson's new book - "Secrets of Power Negotiating", published by Career Press and on sale in bookstores everywhere for $24.99.

    Making The Deal Women As Negotiators

    Writen by Madeline Lewis

    Negotiating is no game. It is not for the weak or the fragile. It takes assertiveness and someone who feels comfortable in the mano-a-mano world of business. Can women negotiate the deal as well as their male counterparts? Absolutely! In some cases, they may even do a better job. Women have a definite edge at the negotiating table because of their instincts and natural power of persuasion.

    Women usually look for a win/win in negotiations. In Getting to Yes, the classic book on negotiation by the Harvard Negotiation Project, it was reported that the win/win strategy work best in negotiations. In order to avoid future resentments, all parties should come away feeling good about the resolution of a problem.

    Traditionally, it is thought that whoever is on the other side in negotiations is the adversary. However, women tend to want to develop a relationship with the other person and take into account the needs and difficulties of both sides. Women also tend to collaborate and help one another if problems arise.

    What traditional businesses have missed for far to long is the understanding that personal relationships, not the contract, profit margin, or delivery date is what give one the competitive edge. Historically, women have been seen as poor negotiators because they are influenced by the other party's situation. But if the truth were told women will more often than not work with their adversaries to reach a solution that is good for everyone involved.

    Negotiating is a critical skill for all women aspiring to succeed in the business world. For those women who feel they are not good negotiators, they simply need to remember their natural talent of persuasion. Keep in mind even good negotiators will sometimes make mistakes. The key to avoiding these mistakes are: (1) attack the problem and not your adversary; (2) try to come up with several options; (3) never treat negotiations as a contest; (4) never threaten and (5) never give in to something that is contrary to what you believe is ethical.

    The playing field for women in this arena has never been level. But women who have empowered themselves with the skills, knowledge, and confidence to negotiate at top levels have chosen a path that ultimately challenge the entrenched structures which have always hampered them. Women from childhood have been conditioned to be excellent negotiators. So ladies, do not be afraid to step up to table and negotiate with the big boys. Master the art of negotiating, use it with confidence, and the only limits to what you can achieve will be those placed upon yourself.

    Ms. Lewis is President and CEO of The Deline Institute for Professional Development, a training organization which provides workshops and seminars geared toward businesswomen. Ms. Lewis is a native of New Orleans, Louisiana. She is an Adjunct Professor at National-Louis University, where she teaches Human Resource Management. Ms. Lewis has conducted training for the Federal government on Diversity, as well as EEO regulations and guidelines. Ms. Lewis is a certified trainer with the Professional Women Network, specializing in the area of Diversity with an emphasis in Women's Issues. Ms. Lewis is a member of the Professional Woman Network and Professional Woman Speakers Bureau; the National Association of Female Executives; The African American Federal Executive Association and Federally Employed Women. Ms. Lewis' knowledge of business and professionalism is supported by 21 years of work experience in the military and 18 years of continuous work experience as a civilian with the Federal government.

    Wednesday, May 28, 2008

    Negotiating Tactics How To Strike A Negotiable Opening Shot

    Writen by Sunny Tan TH

    There is no right or wrong to fire up your opening negotiation...

    There may be a lot of people who are uncertain about the right way to start off a fruitful negotiation with their counterparts. They tend to think or behave as though there is really a "right" way to start it off, which eventually will make them expect the magic word "yes" from their opponent. I speak from my experience. There isn't any blueprint on how or what you should follow throughout your negotiation tactics, but perhaps there are several ways which you may want to consider.

    Here are the 2 main important issues you need to consider when opening your negotiation talks.

    a) Hear, understand and tackle the main issues first and foremost

    b) Building a cooperative environment and getting the trust and respect from each other.

    Say no to guerilla negotiating...

    The first strategy is what I shall say, the most risky kind of tactic you shouldn't employ. If you demand too much in the first place, you may provoke and outrage the other opponent, which in the end may set your negotiations into a wrong direction. If things are so hard and difficult to come by for your opponent in the first place, do you think if by any chance that they will listen to you in the long run? They may not be aware of the significance of the main topics that you are bringing in, but tackling it later on will certainly save you a lot of time in the long run. Build rapport first.

    Fostering a closer relationship...

    If things are too difficult to handle in the first place, the safest bet you can take on is to look for points at the outset that might bring you closer to your opponent. For example, try to get to know them well, have a small talk on their thoughts and principles and what are their likes and dislikes. This is something like an information gathering sessions, for what you've gathered may actually help you handle issues that are raised subsequently.

    But you are advised to be cautious when using this tactic as the opponent may actually trying to outsmart you before they become more aggressive in the future. With this closer tie, try not to be too encouraged to give away information which you should not.

    The final part...

    Whatever tactics you may use for your opening negotiation, always try to give yourself an added advantage by kicking off the negotiation. You may be able to handle the proceedings well and to sum up matters which are more favorable to you.

    Sunny Tan
    CEO
    E Learning Avenue Inc
    http://www.elearning-avenue.com
    Personal Development Elearning Courses provider

    Sunny Tan is an experienced ERP Project consultant who specializes in Human Resources, Payroll and Training industry. He currently runs his own company E Learning Avenue Inc, http://www.elearning-avenue.com, which provides many top-selling Personal Development el

    The Value Of A Service Goes Down Quickly

    Writen by Roger Dawson

    The value of a service always appears to go down quickly as soon as those services have been performed. The value of any material object you buy may go up in value over the years, but the value of services always appears to decline rapidly after you have performed those services.

    Power Negotiators know that any time you make a concession to the other side in a negotiation you should ask for a reciprocal concession right away. The favor that you did the other side loses value very quickly. Two hours from now the value of it will have diminished rapidly.

    Real estate salespeople are very familiar with the principle of the declining value of services. When a seller has a problem getting rid of a property, and the real estate salesperson offers to solve that problem for a 6 percent listing fee, it doesn't sound as though it's an enormous amount of money. However, the minute the Realtor has performed the service by finding the buyer, then suddenly that six- percent starts to sound like a tremendous amount of money. "Six percent. That's $12,000!" the seller is saying. "For what? What did they do? All they did was put it in a multiple listing service." The Realtor did much more than that to market the property and negotiate the contract but remember the principle: The value of a service always appears to diminish rapidly after you have performed that service.

    I'm sure you've experienced that, haven't you? A person with whom you do a small amount of business has called you. He's in a state of panic because the supplier from whom they get the bulk of their business has let them down on a shipment. Now their entire assembly line has to shut down tomorrow unless you can work miracles and get a shipment to them first thing in the morning. Sound familiar? So you work all day and through the night, re-scheduling shipments all over the place. Against all odds, you're able to get a shipment there just in time for the assembly line to keep operating. You even show up at their plant and personally supervise the unloading of the shipment, and the buyer loves you for it. He comes down to the dock, where you are triumphantly wiping the dirt off your hands and says, "I can't believe you were able to do that for me. That is unbelievable service. You are absolutely incredible. Love you, love you, love you."

    So, you say, "Happy to do it for you, Joe. That's the kind of service we can give when we have to. Don't you think it's time we looked at my company being your main supplier?"

    He replies, "That does sound good, but I don't have time to talk about it now because I've got to get over to the assembly line and be sure that it's running smoothly. Come to my office Monday morning at 10 o'clock and we'll go over it. Better yet, come by at noon and I'll buy you lunch. I really appreciate what you did for me. You are fantastic. Love you, love you, love you."

    So all weekend long, you think to yourself, "Boy. Have I gotten this one made. Does he owe me." Monday rolls around, however, and negotiating with him is just as hard as ever. What went wrong? The declining value of services came into play. The value of a service always appears to decline rapidly after you have performed the service.

    If you make a concession during a negotiation, get a reciprocal concession right away. Don't wait. Don't be sitting there thinking that because you did them a favor, they owe you and that they will make it up to you later. With all the goodwill in the world, the value of what you did goes down rapidly in their mind.

    For the same reason, consultants know that you should always negotiate your fee up front, not afterward.

    Plumbers know this, don't they? They know that the time to negotiate with you is before they do the work, not after. I had a plumber out to the house. After looking at the problem he slowly shook his head and said, "Mr. Dawson, I have identified the problem, and I can fix it for you. It will cost you $150."

    I said, "Fine, go ahead."

    You know how long it took him to do the work? Five minutes. I said, "Now wait a minute. You're going to charge me $150 for five minutes work? I'm a nationally known speaker, and I don't make that kind of money."

    He replied, "I didn't make that kind of money either-when I was a nationally known speaker."

    Key points to remember:

    The value of a material object may go up, but the value of services always appears to go down.

    Don't make a concession and trust that the other side will make it up to you later.

    Negotiate your fee before you do the work.

    Roger Dawson
    Founder of the Power Negotiating Institute
    800-932-9766
    RogDawson@aol.com
    http://www.rdawson.com

    Roger Dawson is the author of two of Nightingale-Conant's best selling audiocassette programs, Secrets of Power Negotiating and Secrets of Power Negotiating for Salespeople. This article is excerpted in part from Roger Dawson's new book - "Secrets of Power Negotiating", published by Career Press and on sale in bookstores everywhere for $24.99.

    Monday, May 26, 2008

    Negotiation Tips

    Writen by Peter Fisher

    Having been in business for over 25 years I have seen some excellent negotiators. The way they operate is to work with your concerns and show they understand your position. To these operators, negotiation is both a skill and an art and some have developed it to such a high degree that you could even think it is a science. We all negotiate every day in some way or another so becoming more skilled is something that would beneft us as individuals, and benefit our businesses and organisations. Mostly the outcomes are not earth-shattering but when the negotiation is important follow this advice to reach the best outcome for all parties.

    Whenever we want something we almost always enter a negotiation, unless a straightforward purchase in a shop; but even there I know several people who will attempt to negotiate as a matter of principle.

    The simplest thing to understand therefore, is that for the negotiation to be successful, both parties need to be involved in the outcome, and both parties need to feel that their interests were not only protected but satisfied.

    Before attempting any negotiation, make sure you are up to date and aware of your customer/client/co-negotiator's current needs.

    Be prepared to walk away without an agreement if you feel that either party's needs are becoming overlooked.

    When you next need to enter a negotiation, check your strategy here first. It just may make all the difference!

    Peter Fisher is an expert Author and Publisher. He coaches and writes for people undergoing career change. To find information dedicated to bringing you the best negotiation tips and advice take a good look at Negotiation Tips - you are sure to find some negotiation tips that fit your situation.

    How To Negotiate When The Other Person Tells You That They Dont Have The Authority To Decide

    Writen by Roger Dawson

    One of the most frustrating situations you can run into is trying to negotiate with the person who claims that he or she doesn't have the authority to make a final decision. Unless you realize that this is simply a negotiating tactic that's being used on you, you have the feeling that you'll never get to talk to the real decision-maker.

    When I was president of the real estate company in California, I used to have salespeople coming in to sell me things all the time: advertising, photocopy machines, computer equipment, and so on. I would always negotiate the very lowest price that I could, and then I would say to them, "This looks fine. I do just have to run it by my board of directors, but I'll get back to you tomorrow with the final okay."

    The next day I could get back to them and say, "Boy, are they tough to deal with right now. I felt sure I could sell it to them, but they just won't go along with it unless you can shave another couple of hundred dollars off the price." And I would get it. There was no approval needed by the board of directors, and it never occurred to me that this deception was underhanded. I and the people with whom you deal see it as well within the rules by which one plays the game of negotiating.

    So when the other person says to you that they have to take it to the committee, or the legal department, it's probably not true, but it is a very effective negotiating tactic that they're using on you. Fortunately, Power Negotiators know how to handle this challenge smoothly and effectively.

    Your first approach should be trying to remove the other person's resort to higher authority before the negotiations even start, by getting him to admit that he could make a decision if the proposal was irresistible. This is exactly the same thing that I taught my real estate agents to say to the buyers before putting them in the car, "Let me be sure I understand, if we find exactly the right property for you today, is there any reason why you wouldn't make a decision today?" It's exactly the same thing that the car dealer will do to you when, before he lets you take it for a test drive, he says, "Let me be sure I understand, if you like this car as much as I know you're going to like it, is there any reason why you wouldn't make a decision today?" Because they know that if they don't remove the resort to higher authority up front, then there's a danger that under the pressure of asking for a decision, the other person will invent a higher authority as a delaying tactic. Such as, "Look, I'd love to give you a decision today, but I can't because my father-in-law has to look at the property (or the car), or Uncle Joe is helping us with the down payment and we need to talk to him first."

    One of the most frustrating things that you encounter is taking your proposal to the other person and having her say to you, "Well, that's fine. Thanks for bringing me the proposal. I'll talk to our committee (or our attorney or the owners) about it and if it interests us we'll get back to you." Where do you go from there? If you're smart enough to counter the Higher Authority Gambit before you start, you can remove yourself from that dangerous situation.

    So before you present your proposal to the other person, before you even get it out of your briefcase, you should casually say, "Let me be sure I understand. If this proposal meets all of your needs (That's as broad as any statement can be, isn't it?), is there any reason why you wouldn't give me a decision today?"

    It's a harmless thing for the other person to agree to because the other person is thinking, "If it meets all of my needs? No problem, there's loads of wriggle room there." However, look at what you've accomplished if you can get them to respond with, "Well, sure if it meets all of my needs, I'll give you an okay right now." Look at what you've accomplished:

    1. You've eliminated their right to tell you that they want to want to think it over. If they say that, you say, "Well, let me go over it one more time. There must be something I didn't cover clearly enough because you did indicate to me earlier that you were willing to make a decision today."

    2. You've eliminated their right to refer it to a higher authority. You've eliminated their right to say, "I want our legal department to see it, or the purchasing committee to take a look at it."

    What if you're not able to remove their resort to higher authority? I'm sure that many times you'll say, "If this proposal meets all of your needs is there any reason why you wouldn't give me a decision today?" and the other person will reply, "I'm sorry, but on a project of this size, everything has to get approved by the specifications committee. I'll have to refer it to them for a final decision."

    Here are the three steps that Power Negotiators take when they're not able to remove the other side's resort to higher authority:

    Step number one-appeal to their ego. With a smile on your face you say, "But they always follow your recommendations, don't they?" With some personality styles that's enough of an appeal to his ego, that he'll say, "Well, I guess you're right. If I like it, then you can count on it." But often they'll still say, "Yes, they usually follow my recommendations but I can't give you a decision until I've taken it to the committee."

    If you realize that you're dealing with egotistical people, try preempting their resort to higher authority early in your presentation, by saying, "Do you think that if you took this to your supervisor, she'd approve it?" Often an ego-driven person will make the mistake of proudly telling you that he doesn't have to get any body's approval.

    The second step is to get their commitment that they'll take it to the committee with a positive recommendation. So you say, "But you will recommend it to them-won't you?" There are only two things that can happen at this point. Either she'll say, yes, she will recommend it to them, or she'll say, no she won't-because . . . Either way you've won. Hopefully, you'll get a response similar to, "Yes, it looks good to me, I'll go to bat for you with them." But if that doesn't happen, and instead they tell you that they won't recommend it because, you're still ahead, because any time you can draw out an objection you should say, "Hallelujah" because objections are buying signals. For example, nobody will object to your price unless buying from you interests them. If buying from you doesn't interest them, they don't care how high you price your product or service. For a while I dated a woman who was really into interior decorating. One day she excitedly dragged me down to the Orange County Design Center to show me a couch covered in kidskin. The leather was as soft and as supple as anything I'd ever felt. As I sat there, she said, "Isn't that a wonderful couch?"

    I said, "No question about it, this is a wonderful couch."

    She said, "And it's only $12,000."

    I said, "Isn't that amazing? How can they do it for only $12,000?"

    She said, "You don't have a problem with the price?"

    "I don't have a problem with the price at all."

    Why didn't I have a problem with the price? Right. Because I had absolutely no intention of paying $12,000 for a couch, regardless of what they covered it with. Let me ask you this: If buying the couch interested me, would I have a problem with the price? Oh, you had better believe I'd have a problem with the price!

    Objections are buying signals. We knew in real estate that if we were showing property, and the people were "Ooooing and aaahing" all over the place, if they loved everything about the property, they weren't going to buy. The serious buyers were the ones who were saying, "Well the kitchen's not as big as we like. Hate that wallpaper. We'd probably end up knocking out that wall." Those were the ones who would buy.

    If you're in sales, think about it. Have you ever in your life made a big sale where the person loved your price up front? Of course not. All serious buyers complain about the price.

    Your biggest problem is not an objection, it's indifference. I would rather they said to you, "I wouldn't buy widgets from your company, if you were the last widget vendor in the world, because . . ." than have them say to you, "I've been using the same source on widgets for 10 years, and he does fine. I'm just not interested in taking the time to talk about making a change." Indifference is your problem, not objections.

    Let me prove this to you. Give me the opposite of the word love. If you said hate, think again. As long as they're throwing plates at you, you have something there you can work with. It's indifference that's the opposite of love. When they're saying to you, like Rhett Butler in Gone With the Wind, "Quite frankly, my dear, I don't give a damn." -that's when you know the movie is about over. Indifference is your problem, not objections. Objections are buying signals.

    So when you say to them, "You will recommend it to them, won't you?" they can either say, yes they will, or no they won't. Either way you've won. Then you can move to step three:

    Step Three: The qualified "subject to" close. The "subject to" close is the same one that your life insurance agent uses on you when he or she says, "Quite frankly, I don't know if we can get this much insurance on someone your age. It would be "subject to" you passing the physical anyway, so why don't we just write up the paper work "subject to" you passing the physical?" The life insurance agent knows that if you can fog a mirror during that physical, he or she can get you that insurance. But it doesn't sound as though you're making as important a decision as you really are. The qualified "subject to" close in this instance would be: "Let's just write up the paper work 'subject to' the right of your specifications committee to reject the proposal within a 24-hour period for any specifications reason." Or, "Let's just write up the paper work 'subject to' the right of your legal department to reject the proposal within a 24-hour period for any legal reason."

    Notice that you're not saying subject to their acceptance. You're saying subject to their right to decline it for a specific reason. If they were going to refer it to an attorney, it would be a legal reason. If they were going to refer it to their CPA, it would be a tax reason and so on. But try to get it nailed down to a specific reason.

    So the three steps to take if you're not able to get the other person to waive his or her resort to higher authority are:

    1. Appeal to the other person's ego.

    2. Get the other person's commitment that he'll recommend it to the higher authority.

    3. Use the qualified subject-to close.

    Being able to use and handle the resort to higher authority is critical to you when you're Power Negotiating. Always maintain your own resort to higher authority. Always try to remove the other person's resort to a higher authority.

    Key points to remember:

  • Attempt to get the other person to admit that he could approve your proposal if it meets all of his needs. If that fails, go through the three counter gambits:

  • Appeal to his ego.

  • Get his commitment that he'll recommend to his higher authority.

  • Go to a qualified subject-to close.

  • If they are forcing you to make a decision before you're ready to do so, offer to decide but let them know that the answer will be no, unless they give you time to check with your people.

  • If they're using escalating authority on you, revert to your opening position at each level and introduce your own levels of escalating authority.

    Roger Dawson
    Founder of the Power Negotiating Institute
    800-932-9766
    RogDawson@aol.com
    http://www.rdawson.com

    Roger Dawson is the author of two of Nightingale-Conant's best selling audiocassette programs, Secrets of Power Negotiating and Secrets of Power Negotiating for Salespeople. This article is excerpted in part from Roger Dawson's new book - "Secrets of Power Negotiating", published by Career Press and on sale in bookstores everywhere for $24.99.

  • Sunday, May 25, 2008

    Winning Arguments

    Writen by Kurt Mortensen

    Plato stated that every message should have a structure like an animal (head, body and feet), so too must our arguments follow an understandable pattern. A confused mind says "no." If the audience can't follow your facts or the substance of your message, then their brains will not accept your message. That's because there is no clear message to accept.

    At one time or another, you have probably been in a classroom where the teacher has completely lost you. You had no idea where the topic was going or where it had been. When this happens, your mind stalls and the learning process stops. Confusion is a state of mind that creates tension. We all hate to be confused. When, as persuaders, we create this mental confusion in our audience, we are shooting ourselves in the foot. Most uneducated "rookie persuaders" follow Harry Truman's advice: "If you can't convince 'em, confuse 'em." This manual aims to help you avoid making such a mistake in your persuasive efforts.

    Before we jump into the meat of this topic, remember as you prepare your persuasive message that you want to focus on one defined issue. Keep in mind that you are not there to persuade your audience on ten different points. Stay focused and steer clear of sensitive issues that aren't integral to your original agenda. In other words, don't inadvertently offend your audience on one issue when your focus is on another. The structure of your persuasive message should follow the pattern discussed below.

    1. Create Interest.

    You have to generate an interest in your chosen topic. Your audience needs a reason to listen to you. In other words, why should they care? What's in it for them? How can you help them? A message that starts with a really good reason to listen will grab the attention of the audience, thereby enabling you to continue with your presentation. Without this attention, there is no hope of getting your message across.

    2. State the Problem.

    You must clearly define the problem you are trying to solve. The best pattern for an effective persuasive speech is to: 1) find a problem and 2) relate to the audience how it affects them. In this way, you show them a problem they have and why it is of concern to them. That is, you illustrate why this issue is a problem to your audience and then you reveal to them how this problem affects them.

    3. Offer Evidence.

    This is the support you give to back up your argument. Evidence validates your claims and offers proof that your argument is correct. It allows your audience to rely on other sources besides you. Evidence can include examples, statistics, stories, testimonies, analogies and any other supporting material that is used to enhance the integrity and congruency of your message. When you include different supporting material (examples, statistics, stories, testimonies, analogies) in your presentation, you can individually target different personality types. Everyone resonates with different supporting material, so the more pieces of evidence you incorporate, the more audience members you'll convince.

    4. Present a Solution.

    You have gained your audience's interest and you have provided evidence in support of your message. Now you must solve their problem. In leading up to the resolution, you present the argument you want your audience to believe and then satisfy the need you have earlier identified or created. In so doing, you have created dissonance in your audience's mind and now you are providing them with the solution. How can your product meet their needs and wants? How can it help them achieve their goals?

    5. Give a Call to Action.

    A persuasive message is not true persuasion if your audience does not know exactly what they need to do once they walk away from you. When presenting your call to action, be specific and precise. In order to complete the solution to your audience's problem, you must spur them to take action. This is the climax of your presentation, the peak of your logic and emotion. Keep in mind that the prescribed actions must be feasible for your audience. Make your call to action as easy as possible.

    Using this type of call-to-action structure facilitates people's acceptance of your message and clarifies what you want them to do. We all have a logical side to our mind, which results in our need for order and arrangement. If we don't sense some sort of structure, we tend to become confused. In response to this confusion, we create our own organizational flow-thus creating our own solution. If you can't be clear, concise and orderly in your call to action, your prospects will find someone else who is.

    Learning how to persuade and influence will make the difference between hoping for a better income and having a better income. Beware of the common mistakes presenters and persuaders commit that cause them to lose the deal. Get your free report 10 Mistakes That Continue Costing You Thousands and explode your income today.

    Conclusion

    Persuasion is the missing puzzle piece that will crack the code to dramatically increase your income, improve your relationships, and help you get what you want, when you want, and win friends for life. Ask yourself how much money and income you have lost because of your inability to persuade and influence. Think about it. Sure you've seen some success, but think of the times you couldn't get it done. Has there ever been a time when you did not get your point across? Were you unable to convince someone to do something? Have you reached your full potential? Are you able to motivate yourself and others to achieve more and accomplish their goals? What about your relationships? Imagine being able to overcome objections before they happen, know what your prospect is thinking and feeling, feel more confident in your ability to persuade. Professional success, personal happiness, leadership potential, and income depend on the ability to persuade, influence, and motivate others.

    Kurt Mortensen's trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.

    If you are ready to claim your success and learn what only the ultra-prosperous know, begin by going to http://www.PreWealth.com and getting my free report "10 Mistakes That Continue Costing You Thousands." After reading my free report, go to http://www.PreWealth.com/IQ and take the free Persuasion IQ analysis to determine where you rank and what area of the sales cycle you need to improve in order to close every sale!

    5 Steps To Getting A Better Contract A Better Offer Or Even A Better Deal

    Writen by Gerry Oginski

    You have something someone else wants. Usually it's money. Sometimes, it's the work you perform. You want a car, but you don't want to spend a lot. You have a job, but you feel you deserve a raise. You want to sell your house, but you've rejected each offer.

    Here are the 5 steps you need to climb to becoming a better negotiator:

    1. Figure out what the value of your car is; what your services are worth in the marketplace (ask friends, relatives or colleagues what people like you earn in the private sector); ask a few real estate agents to give you a straight-forward assessment of your home.

    a. Once you know the approximate value of these things (also called research), you're well on your way to understanding how to obtain them for the price you want to pay or receive.

    b. Your goal is to maximize the value of your car, home or services.

    c. The buyer's goal is to obtain these things for the least possible amount. The seller's goal is to sell the item for the most possible. The key is figuring out where each side is willing to come to in order to reach their goal.

    2. Armed with that research, you ask your boss for a few minutes of his time to discuss your progress with a project you're working on. Explain how much you've done recently to improve the bottom line for your company. Show how your efforts have increased productivity while keeping down costs. Put your best foot forward. If you've had some pitfalls while at work, or have not interacted well with some co-workers, don't hide that fact. Your boss will undoubtedly know. Instead, turn it around.

    "You know, I had some difficulty with Jim and Sam while running this project, but I've learned from my mistakes, and I'm proud to say I'm a better person for it." Be humble, but also be forceful. "With all the effort I'm putting into this project, and all the extra hours I'm needed here at the office, it would be great if you could see your way to increase my salary by 'x' dollars per week. I've saved the company a truckload of money…and I'd like you to know that I'm eager to take on more responsibility…I'm here for you, and I know you support the effort we're making for the company. Any extra income would be a great incentive to work even harder."

    Don't put him on the spot. Instead suggest, "I know you didn't expect this, so I don't expect an answer right away. But if you could let me know your answer by the end of the week, that would be great." Even if you don't get your raise that week, you've let your boss know that you're a team player, and you're making the company money by your efforts.

    3. "I'll give you $500,000 for your house," said the prospective buyer.

    "My asking price is $600,000," answered the homeowner. "But the house needs renovations, the basement leaks, the roof is damaged, the house hasn't been painted in 20 years, the hot water heater looks as if it's on its' last legs…" says the potential buyer.

    "Ah, but what house doesn't have its' faults? Look at the neighborhood. Property values have doubled lately. So what's a little touch-up here and there. You know the blemishes in the house. You know it's a great location, the school district is incredible, and this property is huge. You also know that in a few years this property will be worth at least $200,000 more than you're going to pay. It's a great steal at $600,000," replied Mr. Take-it-or-leave it.

    a. Well, here's the dilemma: Do you increase your offer?

    You know you want the house, otherwise you wouldn't have offered $500,000. But you're also trying to save money, because you know that you'll have to do a lot of major work to the house even before you move in. My suggestion: Try again to point out the "blemishes" and the costs associated with all of the renovations and repairs needed. Go the extra mile, and get actual estimates of what it would cost to get those repairs done. Then present the costs to Mr. Stuck-in-a-hole mentality, and make sure you add in some extra to cover your time and effort to get those repairs done. By the end, your number will probably come close to the $600,000 the buyer wanted to begin with.

    b. If he's still not willing to budge, you have to determine if it's financially worth the extra money to be in that house, in that neighborhood. If not, move on. If yes, good luck, and before you plunk down your hard earned money, go rent the movie "The Money Pit" with Tom Hanks and Shelly Long. It's a comedy about a young couple that buys a clunker of a house in the suburbs and spends endless amounts of money fixing it up.

    4. When negotiating, do not yell and scream. Instead, remain polite, firm and forceful. Do not back down on your principles, but acknowledge when a weakness has been exposed. Use it to your advantage. "Sure, it's a weak point, but just look at our strong points…" If your requests are rejected, ask them to reconsider. Explain why your position is a better position than theirs.

    5. Meanwhile, at the car dealer, Mr. Buy-it-for-a-bargain is looking at that brand-new SUV that just came on the market. He really likes the car. The sticker price is $20,000. "I'll give you $15,000," says Mr. Buy-it for-a-bargain.

    "That's below my cost," replies Mr. Sleazy Dealmaker. "I'll lose money. How about $18,500…my best deal…my manager will kill me for offering this fully loaded car at this price," says Mr. Dealmaker.

    a. What do you do? Get up and walk out? Hope the salesman will stop you in your tracks and plead for you to return, giving you the car below his cost? Unlikely in today's market.

    b. Counter-offer. Tell him you can get a better deal across town. To really put the screws to him, tell him the exact number you were quoted across town, and if he says no, then you can go buy your car across town. At least you've given him the opportunity to match his competitor's price. (You better make sure that you actually got a number, and are not simply trying to make up a number to use for negotiating. Lying won't work well during negotiation. Facts are always much, much better.)

    The line in the sand

    -------------------------------------------------
    In every negotiation there is an endpoint at which you have determined not to step over, regardless of what's being offered. "I'm not paying more than $17,000 for that car." "I'm not paying more than $500,000 for that house." "I'm not going to continue working here unless I get at least a salary increase of 'x' dollars per week."

    That line in the sand is your breakpoint. If you reach that point, you must be able to walk away and evaluate your other options. If you don't walk away, you lose credibility (you lose face) and both sides know it. But again, it all boils down to what are you willing to accept, and do you have acceptable alternatives that can carry you through the day? Only you can answer that question.

    I hope I've been able to impart some useful information about negotiating and by doing so, improve your chances for a better deal.

    Attorney Oginski has been in practice for 17 years as a trial lawyer practicing exclusively in the State of New York. Having his own law firm, he is able to provide the utmost in personalized, individualized attention to each and every client. In our office, a client is not a file number. Client's are always treated with the respect they deserve and expect from a professional. Mr. Oginski is always aware of every aspect of a client's case from start to finish.

    Gerry represents injured people in injury cases and medical malpractice matters in Brooklyn, Queens, New York City, the Bronx, Staten Island, Nassau and Suffolk Counties. You can reach him at http://www.oginski-law.com, or 516-487-8207. All inquiries are free and totally confidential.

    Saturday, May 24, 2008

    Negotiation The Win Win Strategy

    Writen by Manu Tripathi

    Negotiation takes two parties to carve some outcomes based on mutual interests. This mutual interest can be some dealing or even can be some dispute. But as in this topic I will only consider dealings not disputes. A good negotiator is one who produces a WIN-Win situation between both parties. Gerard I. Nierenberg, author of The Art of Negotiation, argued that "everybody wins" is better than "winner takes all" approach. This WIN-WIN philosophy assures that all parties benefit from the negotiation process.

    With the global business, distances are shrinking and we have created a global village. Merger, dealing, employing and procurements are taking more and more time of management. Lack of better negotiation can lead to failure. So, firms throughout the world are concentrating on negotiation skill of their employees. In past it was considered that negotiation skill is a personality trait and the person having such skills can only do good business. They also believed that anyone can't achieve it as it is god gifted. But in my opinion negotiation is not a personality trait at all; anyone who has zeal for it can achieve it. This article will try to give out the best negotiation strategy, which once followed will generated WIN-WIN situation.

    The process of negotiation

    Different literatures talk about different steps of negotiation. I will try to put up the optimal from them. We can classify negotiations in three chronological steps – before, during and after.

    1. Preparing for the negation –

    a. Know your goals. Negotiation can be of vivid shades like, you want to approve your conditions, you want to take agreement of someone or you have to win a better price tag. All these must be clearly stated in your mind. Also draw out flexibility in your goals.
    b. Set floor and ceiling. Any agreement has some points to ponder, and each point has a range. First chart out all the points in the negotiating agreements and also the floor and ceiling of each point. Like, if you are a human resource manager and you have to negotiate for an employee, the salary and benefits ranges should be set, before going in negotiations.
    c. Know your authority limits. If you are negotiating on behalf of someone else like for your company, you also know what exactly what are your capabilities and what are your limitations. See, when you are negotiating for your company always remember that you are not the company, but you are only the employee of that company, so, don't take anything personal.
    d. Fix a meeting. This is obvious point, but it is worth mentioning. Make sure that your meeting time, place and person to meet should be well decided. The time and place chosen must be comfortable to both the parties. Also make sure that you are communicating directly to concerned authorities not to mediators.

    2.Negotiating Process

    a. Generating the best deal for you. Always make sure that you got the most from the negotiation. Even if you have some compromise, the over all outcomes are in your favor. This should be the first policy of your whole negotiation.
    b.Communicate directly to concerned stakeholder. Whatever your communication media be (face to face, telephonic, mail or online), always talk directly to the concerned authorities. If you are communicating to middle man (like secretaries or receptionists) you can never final a deal.
    c. Let them speak first. This is helpful in some cases when the other party is making more favorable deal than what you have thought of. If you speak first they will change their tone. This is also applicable in your side.
    d. Setting wins conditions of the other party. See what points are WIN conditions for the other party. Sometimes other party is more concerned about some less useful part of agreement; you can take advantage of it by popping up that portion as core issue and make them feel that they have won the agreement.
    e. Be trust worthy. Do not try to dodge your opponents in negotiation, try to make them understand you and trust you. And when I said "make them" I never mean "fake them", so, you must be trustworthy and this is one quality that will help you most in getting the 'YES'.

    3. The aftermath of negotiation

    a. Nothing should be considered as a full and final in any agreement. Verify that the outcomes are exactly according to the agreement of negotiation, if they are not, we can go for a further step in the negotiations.
    b. Analyze the negotiation. We can learn from old experiences, this also works in negotiation. Try to analyze whole process, "what worked what not", "what went wrong" these should be analyzed, so that we can improve our skills for future negotiations.



    New research in the field

    Now some more topics are added and being researched in negotiation skill. One of such topic is "adding emotions to win negotiations." Anything that makes you win your goals must be considered in business dealings, so this can also be tried.

    Conclusion

    Negotiation is something that can only be won by will power and confidence. Your thinking of better alternatives and understanding the limits of your negotiation can help you most. Any negotiation is called successful only when both parties win, "Winner takes all" approach is not a better negotiating policy.

    Manu Dutt Tripathi is a young energetic computer professional working as a consultant DBA in leading IT firm of Bangalore, India. He has a master degree in computer science. He is an active member of many technical forums and help users and computer professional through out the world.

    Friday, May 23, 2008

    Negotiators Should Use Basic Business Management Skills

    Writen by Eric Jones

    Negotiations essentially are dysfunctional small groups. They need to be managed to determine a common goal, establish objectives and set a course to obtain the desired results. Mediators are trained to manage such small groups and lead them to resolution. Negotiators and parents can adopt mediation techniques to improve their skills at handling conflict.

    A mediator delegates responsibilities not only to get the job done but also to give everyone a vested interest in the outcome. By directing and delegating, the mediator effectively makes both parties more equal and more likely to be able to come to an agreement. In the right situation, using inclusion to integrate everyone's needs into the solution can yield very positive results.

    Mediators are masters of group manipulation. They must get warring parties to set aside their differences and reach an accord. Most people are used to being told what is right to do. A mediator is unable to make the decision for the group. He does not function as a judge or jury. He must enable each of the parties to make their own settlement decisions.

    To succeed mediators must make others want to do things they don't always want to do. Managers and leaders are often accused of being masters of manipulation. Getting people to do things they would not ordinarily want to do can involve, among other things, manipulation. But this is typically a subset of the use of effective leadership and management skills. While manipulation has a bad connotation of trickery or deceit, it can be simply good negotiating. When managing the negotiating process you are seeking to maneuver the other person into agreeing to your terms. You achieve this by informing, educating and convincing them of your arguments. If a little manipulation will get them to consider your arguments is required, then it is well suited to the purpose.

    Being able to lead others, convincing them to hear what is being said, and to consider options is a mark of a good leader. Tricking others into doing your will is not. Use of trickery will likely lead to agreements that fall apart after the test of time.

    In any dispute those involved make up a small group and are subject to traditional group dynamics. Groups need to be lead or managed. Filling this role is what makes mediators effective at resolving disputes. Similarly, negotiators who take the initiative to become the informal group leaders are most likely to have the best track record of achieving their goals.

    The author is an assistant editor at How-to-Negotiate.com, a site featuring articles about business management skills required in the dispute settlement process and how people negotiate everything in their daily lives be it personal issues, parenting matters, social conflicts, or business or work related challenges. The site promotes the fact that conflict is a natural aspect of everyone's life and we should all work at improving our ability to negotiate the curves life throws our way.

    Secrets Of The Trade Revealed Bartering For Business

    Writen by Joanne Levine

    In its simplest form, bartering involves an equal trade. One business swaps a good or service for another. A lawyer, for example, may swap a few hours of legal assistance for a stay at an out-of-town hotel.

    Through professional barter exchanges, where members pay a commission for goods or services traded, more complicated trades are possible. Here's how it works: A business lists a good or service for trade through the exchange. In return, the business receives a trade credit based on the dollar value of the good or service offered. The business can then use its trade credits to "purchase" goods or services offered by other members. The result is that the business is hooked up with a network of actively bartering businesses.

    Bartering enables businesses to trade excess time or inventory for the products and services they need. Trading excess inventory can be a great way for companies to supplement their advertising budgets. For example, if a company has merchandise in excess inventory, it can liquidate those products. Or, it can trade the products through an exchange where it often will receive trade credits for the full wholesale value of those products. The company can then use those trade credits to purchase advertising. So, by bartering, the company is gaining on two fronts: it's receiving top dollar for excess inventory and it's able to do more advertising that it would otherwise be able to do.

    Take a radio station that wants an economical way to entertain its top advertising clients. The station may offer advertising time and trade its barter credits in for meals at a local restaurant. The restaurant might trade its credits in for computer equipment. And the computer company might trade its credits in for radio ads. Three separate businesses have taken part in a buy and sell transaction without ever exchanging a dime.

    The network of goods and services available through barter is growing. Today's barter exchange may have as many as a few thousand members nationwide. As bartering becomes more popular, some barter exchanges are starting to trade with each other, further expanding the bartering opportunities available to their members.

    By bartering, businesses can acquire the goods or services they need without tapping into their cash flow. Bartering also bolsters the bottom line by enabling businesses to trade away excess inventory or resources. A hotel, for example, can fill empty rooms during its off season, a print shop can run jobs during what would normally be a slow time or a newspaper can fill up its advertising space.

    Bartering also provides another way of advertising your business. By bringing together buyers and sellers who may not have used each other's services before, bartering can introduce your company to new customers. These may be one-time customers or people who come back to purchase goods or services once they've become acquainted with the business.

    Companies that actively barter may do as much as 5 to 10 percent of their business annually through trades. That adds up. The National Trade Association, based in Niles, Illinois, is one of the nation's largest barter exchanges. And the ability to barter is not limited by size. The corporate giant all the way down to the one-person, at-home business--and everyone in between--all can use barter as part of their business transactions.

    Barter exchanges typically charge a one-time membership fee. Some exchanges also may extend a line of credit to new members. That way, they can start using credits before they've sold anything through a successful trade. Barter exchanges also offer the advantage that they don't require an even trade. You can use credits accumulated for one item to trade for several different items that together add up to your total credits. So you can use the credits you earn by trading carpeting to one company to secure, say, a rental car, a hotel room and a meal at a restaurant.

    Business people who want to get involved in trading should remember that there is no tax advantage to bartering. Barter and cash transactions are the same in the eyes of the Internal Revenue Service--both are taxed equally. In fact, bartering exchanges must report goods and services sold through barter to the IRS.

    Bartering also offers no guarantees. Some trades may happen quickly, others may take some time. An item a lot of people want, such as airline tickets, may be snapped up right away, while carpeting may take a few months to trade.

    And you can't always count on getting what you want when you want it through barter. The amount of certain goods and services available for trade may fluctuate during the year. For example, a computer technician trading his services may not be available to fix your computer on a moment's notice. He's going to be offering his services during his downtime, which might not coincide with your computer breakdown. Likewise, a carpet store may offer enough carpeting in trade to cover your office floors, but the carpet selection may be limited. And you'll probably be hard-pressed to find a Florida hotel room over the Easter holiday.

    But you have to weigh the disadvantages against the advantages. Bartering turns your downtime or excess inventory into valuable commodities. It increases your sales while enabling you to purchase goods or services you need without dipping into your cash.

    So while bartering may impose some limits, it can still provide advantages to the business traveler. You may not be able to trade for a hotel room or car rental during peak travel seasons, but you'll probably be able to pay for at least some of your travel expenses during the year through trade. Bartering may also provide an added bonus: You may discover a great restaurant or comfortable hotel you might have otherwise overlooked if it weren't for bartering.

    Remember, to make bartering work, you have to be patient, you have to persevere and you have to pick and choose what you want to purchase through barter.

    And don't think that you have to limit bartering to business. Bartering may be a great way for a busy business owner to take a vacation. There's no rule that says that the trade credits you rack up for selling excess inventory has to go toward carpet for your office or dinner out with a client. You can trade those credits in for an out-of-town hotel stay--just for the fun of it!

    Jack Schacht is president of the National Trade Association, one of the country's leading barter exchanges headquartered in Niles, Illinois, http://www.ntatrade.com. He can be reached by contacting JoannePR@aol.com.

    Thursday, May 22, 2008

    Top 7 Issues With Franchise Arbitration Clauses

    Writen by Lance Winslow

    It is often argued in the franchising industry that the arbitration clauses in franchise agreements tend to benefit the franchisee because they allow them to compete against the more well-financed franchisor in disputes arising from the franchising agreement. This is true in many cases because the cost of litigation these days is absolutely insane.

    However there are often franchisees who complain that the Franchisor has the upper hand in arbitration disputes. Some franchisee attorneys and sophisticated franchisees state such things as: "Over the years I can assure you that it has been with in their best interest to make sure big business includes an arbitration clause in every contract."

    One problem I have seen is when the franchisors are heavily community driven and they draw the arbitrators from that community where the franchisor is based. Generally in the franchise agreement the Franchisor pre-stipulates arbitration and where that arbitration will take place, the exact city and venue. If a franchisor is well known and gives back to that community then anyone in franchising with experience who even knows enough to hear such a case has connections or pre-concieved notions for the franchisor.

    Although one might assume that if these franchise expert arbitrators hear enough cases of abuse they will soon start to turn against the franchisor. Most franchisors from larger areas such as any large MSA will be fairer, but then they slip to "the poor franchisee" syndrome, which I believe helps the franchisee more than the franchisor in arbitration cases. This debate rages on in the Franchising Industry and is up for discussion.

    Some franchisee attorneys will say that; "The theory that arbitration is fast track and affordable is a myth." And they tell stories of franchisees who put out close to $40,000 before their case is even heard. Once there case is heard the average fees for AAA Arbitrators is an hourly rate of $300.00 an hour. Further many folks complain both before and after the fact or rendered decision that; "Arbitrators are not even required to have a legal back ground."

    So, you can imagine the problems this causes. Arbitration clauses in franchising agreements are very common and both parties agree in advance to binding arbitration and this causes huge conflicts at times and yet both parties save thousands of dollars in litigation costs. Please consider all this in 2006.

    Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

    Wednesday, May 21, 2008

    Valuing Yourself

    Writen by Regina Barr

    During the past few months, I have had the opportunity to talk with many women about pricing and valuing - both themselves and their businesses - when delivering two of my popular seminars: profitable pricing and negotiation. The ability to value yourself, coupled with strong negotiation skills, are critical in terms of determining your own worth and value, and the value which others place upon you.

    Society typically determines value through monetary measures - what you make in terms of salary if you work within the corporate realm, or revenue generated by your business if you are an entrepreneur. In a recent newsletter, I asked subscribers to respond to the question of whether or not there were disparities in the value that society places on work performed by women. Over 65% of them agreed that there were indeed disparities. Not surprising when you look at the differential in earnings between men and women.

    Yet, I also find that women help to perpetrate some of the devaluation that occurs. Does this make me mad? You bet. So, how do we perpetrate the cycle? Let me give you some examples.

    Think back to the last time you changed jobs, asked for a promotion or submitted a bid on job that you wanted and perhaps, desperately needed. When it came time to ask for the salary you wanted or the fee you deserved, what did you do?

    Many women I talk to tell me that they are guilty of what I term the "psychological" one-down. Instead of asking for what they wanted, they had a conversation with themselves telling themselves why they wouldn't get what they wanted. The outcome: they wound up asking for less than what they wanted or deserved, and in many cases, less than what they would have been able to receive. This sends a subtle message that we don't value ourselves and therefore, society doesn't need to either.

    So what can we do to stop this cycle of devaluing women's work and worth in society?

    First, take inventory of yourself and determine your unique value proposition. Second, determine the skill sets that you need and make time to practice those skills regularly. Third, help other women by placing a high value on the contributions that they make. And finally, remember believe in your value and others will too!

    Regina Barr is a business consultant with a passion for helping companies develop their full potential by focusing on their most valuable asset: their people. For more information on her programs and services, check out her website, http://www.RedLadder.com and sign up for her free email newsletter, Developing People...Inspiring Success.

    Whats Managements Role In Pricing

    Writen by Bill Lee

    Pricing is one of the most difficult and frustrating duties a manager must deal with. Pressure comes from all sides. Both the sales force and the customer base can be extremely vocal. Managers never hear that their prices are too low. They usually hear that the competition will provide equal service and quality for a lower price.

    This question plagues many managers: What should the manager's role be when it comes to pricing? Some managers exert almost total control, while others abdicate pricing decisions to the sales force.

    The outside sales force naturally wants pricing authority and often feels insulted if the manager doesn't "trust" them enough to give them at least some degree of pricing flexibility.

    Giving pricing authority to salespeople can quite often be a real detriment to the company's gross margin. There are several reasons I believe this is true. One reason is that most poorly trained or inexperienced salespeople tend to lower the price when they receive price resistance.

    Another reason is that once a hard-bargaining, price-oriented customer figures out that the salesperson has pricing authority in his or her hip pocket, the salesperson often becomes putty in the customer's hands.

    The key, I believe, is the difference between cost and price. Customers say that they want a lower price, but I believe what they really want is a lower cost. If the sales force is adept at explaining the difference, perhaps it's not all that negative to give them pricing authority. But if they don't possess this skill, perhaps pricing should be left in the hands of the manager.

    Price is what the customer pays for your product or service on the face of the invoice. Cost is what he pays for your total "offering," which includes service, quality, the salesperson's personal expertise, etc.

    On an assignment with a Northwest lumberyard, I was working with a group of salespeople on how to deal with pricing issues when one of them volunteered, "I lost a framing order to one of my builder customers because my price was only $200 higher than the competition." He went on to say, "I knew that our service was superior to the competitor and I was right. The builder had nothing but problems with that job."

    "What kind of problems?" I asked.

    "Well, for one thing, the [my competitor's] initial delivery was over four hours late."

    "How many framers did he have on the job?"

    "He had a pretty good size crew. He had a seven-man crew."

    "How much would you guess that he pays his crew per hour?"

    "I'd guess pretty close to $20."

    "And how late was the delivery?"

    "If I remember correctly, it was about four hours late."

    "So what you're telling me is that this particular framer had seven men on the job for four full hours doing nothing while they waited for the framing to arrive, is that right?"

    "You heard me right."

    "Well, let's do some simple arithmetic. Seven men times four hours per man is 28 man-hours. And 28 man-hours times $20 per hour would come to $560. What other problems did he experience?"

    "Well, this is a pretty good example of the difference between cost and price. It sounds as if your customer's framing crew had to wait around for a late delivery cost him $560 to save $200. Your customer made the same mistake a lot of builders have made, he didn't take into consideration the total cost of doing business with a new supplier whose service commitments were unproven. All he considered was the price on the face of the invoice."

    "I wish I had had the presence of mind to explain this difference [between cost and price] when this first occurred."

    "Well, you can't change history, but you can remember to make this point the next time your prices are a few dollars higher on the face of the invoice. Just remind him that there's a big difference between cost and price."

    MY ADVICE

    If it were my business, I wouldn't give pricing authority to my sales force. I would place that authority with someone who was more objective. It's next to impossible for salespeople who get feathers in their caps for making sales to hold the line on pricing, especially when an order is at stake.

    But if I were to give pricing flexibility to my sales force, I would make sure of one thing inparticularly:

    #1. I would make sure that my salespeople were trained to negotiate. I believe it's a bad idea to put pricing authority in the hands of a group of salespeople who haven't been schooled in the art of negotiating.

    I do both consulting work and training for a 16-location distribution chain. It's this company's management policy to allow the individual managers to run their locations as if they were their own. So it's a highly decentralized company.

    One particular manager in this chain has by far the highest gross margin in the company even though he operates in a market that is no less competitive than many others where the chain operates. What's the big difference? This manager makes 100% of all pricing decisions. If his salespeople run across a competitive situation, they are required to report it to him. In some cases, he authorizes the salesperson to meet the price. But in others, he chooses to go out and visit with the customer. In still other situations, he may pass on the business altogether.

    What about in your business? Are your salespeople trained well enough to have pricing authority?

    Bill Lee is author of Gross Margin: 26 Factors Affecting Your Bottom Line ($29.95) and 30 Ways Managers Shoot Themselves in the Foot ($21.95) plus $6 S&H for the first book and $1 S&H for each additional book. See Shopping Cart at www.BillLeeOnLine.com

    Monday, May 19, 2008

    Subliminal Persuasion

    Writen by Steven Gillman

    Subliminal persuasion? It is simply influencing people at a level below their conscious recognition. Many people don't even realize they are being influenced by a smile, making even that a subliminal technique. Here are two more subtle methods.

    Subliminal Persuasion Using Inflection

    It is easy to assume that a sentence like "I can't promise you that price." has only one meaning. In reality, though, inflection provides much of the actual meaning. Look at the each of the sentences below, each with a different word emphasized, and followed by the implied meaning.

    I can't promise you that price. (But maybe someone can.)

    I CAN'T promise you that price. (There's no way.)

    I can't PROMISE you that price. (But maybe you'll get it.)

    I can't promise YOU that price. (But I can promise someone else.)

    I can't promise you THAT price. (But maybe a good price.)

    I can't promise you that PRICE. (But I can promise something.)

    The meaning of our statements is determined by which words we emphasize, and it is a subtle process. If you can't promise him that price, you can tell him "I can't promise you that PRICE," and he may still feel good about the situation, especially if you immediately follow with what you can promise him. You probably know what you want to say. Understanding the subtle and often subliminal power of inflection will mean you actually say it.

    Subliminal Persuasion Using Their Own Words

    Restate what a person has said they want, and then show them how you can give them that. We all need to have some internal consistency, so we don't like to act against what we say. This is why, as long as you have what they need, this technique works well. For an example, we'll suppose you are selling a prospect a vacation.

    After listening to what they want, you find something that fits their needs, and then say, "If I remember right, you said you wanted a warm beach, under $2,000 for the week, and with nearby nightlife. I think we're in luck. Both of the packages we just looked at fit your criteria, so do you like Cancun or the Bahamas better?"

    It is tough for someone to say they are not interested when you just found exactly what they said they wanted, and reminded them of their words. They probably won't even notice that you are using their exact words. They'll just feel uncomfortable contradicting what they said, and find it easier to agree. That's subliminal persuasion.

    Steve Gillman has been hunting down obscure knowledge and useful secrets for years. Learn more subliminal persuasion techniques, and get a free gift at: The Secret Information Site (http://www.TheSecretInformationSite.com)

    Contract Rates Do You Charge Enough

    Writen by Matthew Keegan

    I read with interest this morning the plight of one of our corporate flight attendant forum members, GalleyKat and her discussion about contract rates. It seems that she hasn't been charging extra for international work, something that several respondents have urged her to do.

    Of particular note were the comments by Betty Boop concerning base rates. As BB noted, GK's base rate is on the low side, even below the rate of newbies in this business.

    One thing I have tracked over the years in an informal way are business aviation salaries. Having worked with corporate flight attendants for nearly 15 years I can tell you that salaries are, indeed, all over the place. Still, if you are not asking enough for yourself for contract work, you could be losing out.

    Figure that every time you fly for $50 less, that is $750 per month or $9000 per year fewer bucks for you, if you average 15 flight days per month. I don't know about you, but maybe it is time for you to give yourself a raise.

    Could it be time for you to reexamine your rates? No matter what industry you are involved in, a periodic adjustment of rates can spell the difference for you.

    Copyright 2006 – For additional information regarding Matt Keegan, The Article Writer, please visit his blog for wit, quips, and freelance writing tips.

    Sunday, May 18, 2008

    The Art Of Business Negotiation In The Middle East

    Writen by Lance Winslow

    You know it seems to me having done much business with Arab Gentlemen that if you do not BS a little they really do not respect you much, and the problem is that under US law you have to be truthful. They like to catch you in a tall tale, it makes them feel smart and then they BS back and everyone laughs and they say; "You know I like you."

    It really is a cultural thing, it is not really lying it is more like creating falsehood after falsehood until everything is so G-darn convoluted you don't know what's up anymore. It is fun in a way to negotiate like that, but it is nearly impossible for written contracts, because the negotiation really starts once you have already signed the agreement you see or once you have already been had by some rather intriguing line of reason.

    Next after signing an agreement they will of course hold you to your obligations, but find convoluted reasons why they will not honor their obligations due to some other interesting made up misrepresentation, embellishment and basically BS. But it is how they do it. It used to bug the crap out of me really. Now I understand how it works it is kind of funny really? Most people get way uptight, I just laugh.

    The problem is most Arab Business people are really okay once you get to know them, but they have scoundrels too out to really stick it to you, like the scam artists in the western world. I guess every nation has their fraudsters really. Those are the ones you need to watch out for, but once you learn who they are and deal with them appropriately it ain't all that bad. But check six.

    In negotiating with Iran it is a much different story. As Reagan use to say, "trust by verify" no matter who you negotiate with whether they pound their fists on the table and mean it or whether they are just giving you a round of horse crap; "good guy, bad guy" you see? It's all fun, but when you play at that level you cannot afford to lose so you keep the cards close to the vest and if someone cheats, well shoot first and don't miss. I think that is what the Iran deal is coming down too really? Too bad the cultural differences so easily lead mankind to war. Consider all this in 2006.

    Lance Winslow

    Friday, May 16, 2008

    A Better Salary Negotiate Your Way

    Writen by Peter Fisher

    You can't force your boss to stump up more money, but you can attempt to negotiate a better salary. Here are some simple strategies that are easy to use and that will boost your case if used carefully.

    1. Choose the best and most receptive time for your boss. Ask for a meeting midweek, when the initial issues of the week have been dealt with and the end of the week is in sight. Most people are in a slightly more amenable frame of mind at the midweek point;

    2. Make sure you have all your performance statistics at hand to show how you have added value. Your boss is only interested in paying for results, so what can you show?

    3. Don't go in aggressively or in an adversarial frame of mind however much you need the extra money. Start pushing and you may as well forget it;

    4. Use friendly language and gestures - the issue needs to be a "what can we do?" discussion, rather that a "what will you do?" confrontation;

    5. Be prepared to chat about general business subjects before getting down to business;

    6. Try to arrange your seat at an angle or around the corner of the table rather than directly face-to-face.

    Negotiations can break down over the smallest misunderstanding; so if there is any doubt over a statement or quoted fact make sure you query and get it clarified immediately.

    Before you enter the negotiation, check your strategy here first. It just may make all the difference! To find the right information, negotiation tips and advice take a good look at A Better Salary - you are sure to find some negotiation tips that fit your discussion.

    Peter Fisher is an expert Author and Publisher. He coaches and writes for people undergoing career change. Everything from deciding what you want to do and how to do it; visit the website at http://www.negotiation-tips.com

    Thursday, May 15, 2008

    Power Negotiators Understand The Importance Of Gathering Information

    Writen by Roger Dawson

    Henry Kissinger was once asked if he already knew what the Soviets would propose at an upcoming summit meeting. He said, "Oh, absolutely-no question about it. It would be absolutely disastrous for us to go into a negotiation not knowing in advance what the other side was going to propose."

    Can you imagine the cost of getting that kind of information? The budget of the C.I.A. is top secret, but experts think it is almost $4 billion a year, even now that the Cold War is over. So, governments think it's important enough to spend that kind of money. Doesn't it make sense that we at least spend a little time to find out more about the other side, before we go into negotiations? Why do countries send spies into other countries? Why do professional football teams study the replays of their opponents' games? Because knowledge is power and the more knowledge one side is able to accumulate about the other, the better chance that side has for victory. If two countries go to war, the country that has the most intelligence about the other has the advantage. That was certainly true in the Persian Gulf War-the C.I.A. spies had photographed every building in Baghdad, and we were able to completely take out their communication systems in the first few bombing runs.

    If two companies are planning to merge, the company that knows the most will usually end up with the better deal. If two salespeople are vying for an account, the salesperson who knows more about the company and its representatives stands a better chance of being selected for the account. Despite the obviousness of the important role that information plays in a negotiation, few people spend much time analyzing the other side before starting a negotiation. Even people who wouldn't dream of skiing or scuba diving without taking lessons will jump into a negotiation that could cost them thousands of dollars without spending adequate time gathering the information they should have.

    Rule One: Don't be afraid to admit that you don't know

    Why are people reluctant to gather information? Because to find things out, you have to admit that you don't know, and most of us are extraordinarily reluctant to admit that we don't know.

    So the first rule for gathering information is: Don't be over confident. Admit that you don't know and admit that anything you do know may be wrong.

    Rule Two: Don't be afraid to ask the question

    I used to be afraid to ask questions for fear that the question would upset the other person. I was one of those people who say, "Would you mind if I asked you?" or "Would it embarrass you to tell me?" I don't do that any more. I ask them, "How much money did you make last year?" If they don't want to tell you, they won't. Even if they don't answer the question, you'll still be gathering information. Just before General Schwarzkopf sent our troops into Kuwait, Sam Donaldson asked him, "General, when are you going to start the land war?" Did he really think that the General was going to say, "Sam, I promised the President that I wouldn't tell any of the 500 reporters that keep asking me that question, but since you asked I'll tell you. At 2.00 AM on Tuesday we're going in"? Of course, Schwarzkopf wasn't going to answer that question, but a good reporter asks anyway. It might put pressure on the other person or annoy him so that he blurts out something he didn't intend to. Just judging the other person's reaction to the question might tell you a great deal.

    If you want to learn about another person, nothing will work better than the direct question. In my own experience-now that I'm no longer afraid to ask-I've met only a few people who were seriously averse to answering even the most personal questions. For example, how many people get offended when you ask them, "Why were you in hospital?" Not very many.

    It's a strange fact of human nature that we're very willing to talk about ourselves, yet we're reticent when it comes to asking others about themselves. We fear the nasty look and the rebuff to a personal question. We refrain from asking because we expect the response, "That's none of your business." Yet how often do we respond that way to others?

    When you get over your inhibitions about asking people, the number of people willing to help you will surprise you. When I wanted to become a professional speaker, I called up a speaker I admired, Danny Cox, and asked him if I could buy him lunch. Over lunch, he willingly gave me a $5,000 seminar on how to be successful as a speaker. Whenever I see him today, I remind him of how easy it would have been for him to talk me out of the idea. Instead, though, he was very encouraging. It still astounds me how people who have spent a lifetime accumulating knowledge in a particular area are more than willing to share that information with me without any thought of compensation.

    It seems even more incredible that these experts are very rarely asked to share their expertise. Most people find experts intimidating, so the deep knowledge that they have to offer is never fully used. What a senseless waste of a valuable resource-all because of an irrational fear.

    Rule Three: Ask open-ended questions

    Power Negotiators understand the importance of asking and of taking the time to do it properly. What's the best way to ask? Rudyard Kipling talked about his six honest serving men. He said,

    I keep six honest serving-men.
    (They taught me all I knew);
    Their names are What and Why and When
    and How and Where and Who.

    Of Kipling's six honest serving men, I like Why the least. Why can easily be seen as accusatory. "Why did you do that?" implies criticism. "What did you do next?" doesn't imply any criticism. If you really need to know why, soften it by rephrasing the question using what instead: "You probably had a good reason for doing that. What was it?" Learn to use Kipling's six honest serving men to find out what you need to know.

    You'll get even more information if you learn how to ask open-ended questions. Close-ended questions can be answered with a yes or a no or a specific answer. For example, "How old are you?" is a closed-end question. You'll get a number and that's it. "How do you feel about being your age?" is an open-ended question. It invites more than just a specific answer response.

    "When must the work be finished by?" is a closed-ended question. "Tell me about the time limitations on the job," is an open-ended request for information.

    Rule Four: Where you ask the question makes a big difference Power Negotiators also know that the location where you do the asking can make a big difference. If you meet with people at their corporate headquarters, surrounded by their trappings of power and authority and their formality of doing business, it's the least likely place for you to get information.

    People in their work environment are always surrounded by invisible chains of protocol-what they feel they should be talking about and what they feel they shouldn't. That applies to an executive in her office, it applies to a salesperson on a sales call, and it applies to a plumber fixing a pipe in your basement. When people are in their work environments, they're cautious about sharing information. Get them away from their work environments and information flows much more freely. And it doesn't take much. Sometimes all that it takes is to get that vice-president down the hall to his company lunchroom for a cup of coffee. Often that's all it takes to relax the tensions of the negotiation and get information flowing. And if you meet for lunch at your country club, surrounded by your trappings of power and authority, where he's psychologically obligated to you because you're buying the lunch, then that's even better.

    Rule Five: Ask other people-not the person with whom you will negotiate If you go into a negotiation knowing only what the other side has chosen to tell you, you are very vulnerable. Others will tell you things that the other side won't, and they will also be able to verify what the other side has told you.

    Start by asking people who've done business with the other side already. I think it will amaze you-even if you thought of them as competition-how much they're willing to share with you. Be prepared to horse trade information. Don't reveal anything that you don't want them to know, but the easiest way to get people to open up is to offer information in return. People who have done business with the other side can be especially helpful in revealing the character of the people with whom you'll be negotiating. Can you trust them? Do they bluff a great deal in negotiations or are they straightforward in their dealings? Will they stand behind their verbal agreements or do you need an attorney to read the fine print in the contracts?

    Next, ask people further down the corporate ladder than the person with whom you plan to deal. Let's say you're going to be negotiating with someone at the main office of a nationwide retail chain. You might call up one of the branch offices and get an appointment to stop by and see the local manager. Do some preliminary negotiating with that person. He will tell you a lot, even though he can't negotiate the deal, about how the company makes a decision, why one supplier is accepted over another, the specification factors considered, the profit margins expected, the way the company normally pays, and so on. Be sure that you're "reading between the lines" in that kind of conversation. Without you knowing it, the negotiations may have already begun. For example, the Branch Manager may tell you, "They never work with less than a 40 percent markup," when that may not be the case at all. And never tell the Branch Manager anything you wouldn't say to the people at his head office. Take the precaution of assuming anything you say will get back to them.

    Next, take advantage of peer-group sharing. This refers to the fact that people have a natural tendency to share information with their peers. At a cocktail party, you'll find attorneys talking about their cases to other attorneys, when they wouldn't consider it ethical to share that information with anyone outside their industry. Doctors will talk about their patients to other doctors, but not outside their profession.

    Power Negotiators know how to use this phenomenon because it applies to all occupations, not just in the professions. Engineers, controllers, foremen, and truck drivers; all have allegiances to their occupations, as well as their employers. Put them together with each other and information will flow that you couldn't get any other way.

    If you're thinking of buying a used piece of equipment, have your driver or equipment supervisor meet with his counterpart at the seller's company. If you're thinking of buying another company, have your controller take their bookkeeper out to lunch.

    You can take an engineer from your company with you to visit another company and let your engineer mix with their engineers. You'll find out that unlike top management-the level at which you may be negotiating-engineers have a common bond that spreads throughout their profession, rather than just a vertical loyalty to the company for which they currently work. So all kinds of information will pass between these two.

    Naturally, you have to watch out that your person doesn't give away information that could be damaging to you. So be sure you pick the right person. Caution her carefully about what you're willing to tell the other side and what you're not willing to tell-the difference between the open agenda and your hidden agenda. Then let her go to it, challenging her to see how much she can find out. Peer-group information gathering is very effective.

    Power Negotiators always accept complete responsibility for what happens in the negotiations. Poor negotiators blame the other side for the way they conducted themselves. Many years ago, I was conducting a negotiating seminar in the San Fernando Valley, and comedian Slappy White was in the audience. During the break, I told him how much I admired comedians. "It must be fun to be successful like you," I told him, "but coming up through those comedy clubs with all their hostile audiences must be sheer hell." "Roger," he told me, "I've never had a bad audience."

    "Oh, come on, Slappy," I replied, "When you were starting out, you must have had some awful audiences."

    "I've never had a bad audience," he repeated. "I've only had audiences that I didn't know enough about."

    As a professional speaker, I accept that there is no such thing as a bad audience, there are only audiences about whom the speaker doesn't know enough. I've built my reputation on the planning and research that I do before I'll get up in front of an audience.

    As a negotiator, I accept that there's no such thing as a bad negotiation. There are only negotiations in which we don't know enough about the other side. Information gathering is the most important thing we can do to assure that the negotiations go smoothly.

    Roger Dawson
    Founder of the Power Negotiating Institute
    800-932-9766
    RogDawson@aol.com
    http://www.rdawson.com

    Roger Dawson is the author of two of Nightingale-Conant's best selling audiocassette programs, Secrets of Power Negotiating and Secrets of Power Negotiating for Salespeople. This article is excerpted in part from Roger Dawson's new book - "Secrets of Power Negotiating", published by Career Press and on sale in bookstores everywhere for $24.99.