Secrets of Power Negotiating | Roger Dawson

Summary of: Secrets of Power Negotiating: Inside Secrets from a Master Negotiator
By: Roger Dawson

Introduction

Unlock the secrets of power negotiating with this engaging and instructive summary of the book ‘Secrets of Power Negotiating: Inside Secrets from a Master Negotiator’ by Roger Dawson. In this book, Dawson provides valuable insights into asking for a better deal than you expect to receive and understanding the crucial strategies of bracketing target prices, employing initial offers, and effectively navigating the three phases of any negotiation. By learning key negotiating gambits, effective utilization of body language, and the importance of never accepting an initial offer, readers will equip themselves with the tools required to succeed in the art of negotiating.

Power Negotiating: The Art of Bracketing

When negotiating, it’s important to avoid giving up too much ground too early. To start negotiations off on the right foot, always ask for a better deal than you expect to receive. This allows you to avoid the common mistake of giving away too much before the negotiation has really started. And by making an initial offer that brackets your target price, you can secure a great deal. For example, if you want to buy a car for $15,000 but the salesperson is asking for $18,000, make an initial offer of $12,000. This turns your target price into the midpoint of the negotiating range, giving you the best chance of getting exactly what you want.

The Art of Gambit Negotiation

Learn how to use gambit negotiation to your advantage in all types of deals, from buying real estate to political negotiations. This technique involves asking for more than you expect to receive, such as an unrealistic number of revisions to a contract. By doing so, you narrow the negotiating range in your favor. Another gambit is playing the reluctant seller or buyer, which can also be used to gain an advantage in negotiations. Keep in mind that these tactics can apply to both sides of a negotiation and are meant to simplify and clarify complex situations.

Mastering Negotiation: The Power of Body Language and Phrases

Negotiating is an art, and bluffing is at its core. The vise technique and flinching are both powerful tools that can make a real difference in a negotiation. When used correctly, these techniques can create a sense of urgency and compel the other party to make better offers, effectively widening your negotiating range. Additionally, body language plays an important role in negotiations, and reacting visibly to an initial offer can often lead to a better counteroffer. Finally, don’t forget to use phrases such as “You’ll have to do better than that” to put pressure on the other party. With these tips in mind, you can become a successful negotiator and get what you want out of any negotiation.

Never Accept the First Offer

In negotiations, it is critical to refuse the first offer from the other party. Counteroffers can lead to better deals and uncover unexpected information. By engaging in a more prolonged negotiation, both parties may walk away feeling satisfied with a mutually beneficial outcome.

Mastering Concessions in Negotiation

When negotiating, use the bracketing technique to maintain your target price and ensure concessions taper down gradually. During the middle phase of negotiation, the aim is to converge on a deal by making counteroffers. However, be mindful of the value of concessions when making them and ensure they decrease in size as the negotiating range narrows. Avoid making multiple concessions of equal size and make sure the last one you make is not a large one to create a credible impression of reaching your limit.

The Power of Trade-offs in Negotiation

Negotiation in the middle-phase involves smart concessions and the use of the trade-off gambit. Always ask for something in return for giving a concession to avoid setting a dangerous precedent.

Negotiating is an art that requires skillful tactics to achieve a beneficial outcome. In the middle-phase of negotiating, making shrewd concessions is essential. One should be careful not to give up too much too quickly while insisting on receiving an equal or greater amount of ground in response. The trade-off gambit is an effective strategy that should be employed in this phase. It’s a rule that proposes you should never give a concession without asking for one in return.

For instance, if you are selling a house and the buyer asks to move some furniture into the garage before taking ownership, do not give away this concession without a trade-off. Ask the buyer, “If I can give you what you’re asking for, what will you give me in return?” This stimulates the buyer to propose a higher trade.

There are two significant reasons why a trade-off is preferable in negotiation. Firstly, when the other party asks for a concession, it’s a natural opportunity to gain something in return. This creates a win-win situation. The second and more critical reason is that making a concession without requesting something in return creates a dangerous precedent. The other party will perceive that they can make requests without offering any concessions in return. Continuously making concessions without requesting a trade-off encourages the other party to be greedy.

Negotiators who use the trade-off gambit wisely can nip this problem in the bud. Establishing a pattern that every time the other party asks for a concession, an exchange is required, compels them to consider their requests carefully. In conclusion, employing the trade-off gambit is a powerful tactic that can aid in achieving desired negotiation outcomes.

The Art of Middle Gambits

Imagine you’re in the middle of a negotiation with a client who demands a significant concession without offering anything in return. What do you do? This is where the middle gambit comes in handy. By pretending there’s another authority figure who needs convincing, like your boss or a committee, you’ve created a buffer that can deflect rejection and buy you time. The more vague the authority figure you invoke, the better. You can even cleverly position yourself as the client’s ally and use the imagined authority as a mutual obstacle that you’re both trying to overcome. By doing this, you can avoid free concessions and create a positive connection with the client.

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