Overview
A fast, powerful guide to getting what you want every time.
Whether it's at home or at work, so much of our lives involves
negotiating to get what we want. From negotiating a higher salary, to
lowering costs from suppliers, to hammering out a new contract with a
major customer, or even deciding where to go on vacation, the only way
to consistently arrive at successful conclusions is to master the art of
negotiation. Updated with completely new tactics and strategies,
How
to Become a Better Negotiator lets readers in on the same high-level
skills that experienced negotiators use.
Packed with fill-in-the-blank sections, tips, quizzes, and chapter
reviews, the book covers important topics such as listening,
assertiveness, and how to deal with hostile opponents. In addition, the
book now features new chapters on:
preparation, including identifying issues and interests, and determining
alternatives to a deal and reserve price • the five basic steps of
negotiation and "doing the deal? • and typical negotiating pitfalls and
how to avoid them.
About the Author
Richard A. Luecke (Salem, MA) is a freelance business writer and
publishing executive whose articles have been published by Oxford
University Press, John Wiley & Sons, and Harvard Business School Press.
He has negotiated over one hundred contracts with individuals,
businesses, and non-business institutions. He is the author of
The
Manager's Toolkit and
The Entrepreneur's Toolkit.
James G. Patterson (Tuscon, AZ) is a training consultant who has taught
leadership and communication skills for the U.S. Army Military
Intelligence School.
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Press Release
HEADLINE:How to Become a Better Negotiator:HEADLINE
SUBHEAD:New edition of AMACOM book shows readers how they can get what
they want every time.:SUBHEAD
Because so much of our work and personal lives involve resolving
differences, the ability to negotiate effectively is an essential life
skill. When we buy and sell material goods, sell one's ideas, and solve
problems that involve others, negotiation gets us what we want. It's a
way to get one's fair share, whether it's getting approval from a boss
on a new project, settling a dispute, or getting a new car.
Unfortunately, many people are uncomfortable with the act of
negotiating.
Updated with completely new tactics and strategies, HOW TO BECOME A
BETTER NEGOTIATOR, Second Edition by Richard A. Luecke and James G.
Patterson (AMACOM 2008) gives even the most negotiation-shy readers a
comprehensive, crash-course in the same proven strategies and methods
used by professional negotiators. Packed with fill-in-the-blank
sections, tips, quizzes, and chapter reviews, the book covers important
topics such as listening, assertiveness, how to deal with hostile
opponents, and much more.
Readers of every negotiation skill level will receive powerful guidance
that will allow them to arrive at a successful conclusion for every
situation. HOW TO BECOME A BETTER NEGOTIATOR lets novice
negotiators in on:
• the common characteristics shared by great negotiators;
• different tactics for handling conflict (and when to use each one)
• how to plan and carry out a successful negotiation strategy
• and proven methods for counteracting the tactics of others
As the book testifies, mastering the art of negotiation doesn't have to
be complicated or difficult. Anyone can learn simple, effective tactics
for getting what they feel is right. According to authors Luecke and
Patterson, anyone can learn to be a good negotiator if they know what
they want and what they are willing to give up; they know (or have a
good idea) what the other side wants and what it is willing to
give up; they come to the table with a "how can we both win" attitude;
and finally, they are skilled in problem solving, listening, basic
conflict management, and in the uses of tactics and strategies in
negotiating. These skills and more are covered in this practical guide.
In addition, the book now features new chapters on: preparation
(including identifying issues and interests and determining alternatives
to a deal and reserve price); the five basic steps of negotiation and
"doing the deal;" and typical negotiating pitfalls and how to avoid
them.
The art of negotiation is a key skill anyone can use to improve their
life and career. This updated edition of a trusted guide shows readers
how they can achieve anything they want.
About the Authors:
Richard A. Luecke has negotiated over one hundred contracts with
individuals, businesses, and nonbusiness institutions. He is a freelance
business writer and publishing executive whose articles have been
published by Oxford University Press, John Wiley & Sons, and Harvard
Business School Press. He lives in Salem, Massachusetts. James G.
Patterson is a training consultant who has taught leadership and
communication skills for the U.S. Army Military Intelligence School. He
lives in Tucson, Arizona.
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Excerpt
CHAPTER 1
WIN-LOSE OR WIN-WIN
Generally, negotiations fall into one of two types: win-lose or win-win.
It's important to understand the difference between these because each
requires a different attitude and set of tactics.
WIN-LOSE
In a win-lose negotiation, the matter at stake involves a fixed value,
and each party aims to get as much of that value as possible. Anything
gained by one party is achieved at the expense of the other, which is
why a win-lose situation is also known as a "zero-sum game." People
often use the example of a pie in explaining a win-lose situation.
Whatever you manage to carve out of that pie for yourself reduces the
amount of pie that the other person will get—and vice versa. So your job
in this game is to get as big a slice as you possibly can (Figure 1-1).
Win-lose situations are common in these circumstances:
* Price is all that matters.
* There is no expectation of a continuing relationship with the other
side.
* One side has greater bargaining power than the other.
For example, think about that new car you bought last year. Having done
your homework, you knew exactly which model you wanted, your color
preferences, and the options that appealed to you. A little research
told you what price the different dealers were asking for that model
and, thanks to some online research, you knew what those dealers paid
for that model (dealer invoice price) and the different options. Another
online search gave you a good idea what you might expect for a trade-in
of your old car.
Chances are that every dealer visit you made included some haggling
about price. When the objective of the negotiation is a commodity-like
product, such as a particular car model, price is generally the main
issue. If Dealers A, B, C, and D each had the car you wanted, there
wasn't much besides price to negotiate about.
Your relationship with the car salesperson and the dealer didn't matter
either. It was clear to you that the salesperson and his boss were
trying to get as much out of the deal as possible—charging as much as
they could for the car, trying to "upsell" you on expensive options you
didn't want or need ("For only $700, we can protect your investment by
installing the patented Gotcha! theft-deterrent system"), and lowballing
the value of your trade-in ("Our mechanic has found lots of problems
with your car"). So you weren't planning to do business with these
people again. You were after the car.
In win-lose deals, relationships don't matter.
Simply put, your job was to come away with the greatest possible value—a
win-lose proposition—and the salesperson was trying to do the same.
Participants in win-lose negotiations perceive a fixed amount of value.
As they carve up the value "pie" each tries to carve out as big a piece
as possible for himself. And every gain by one party represents a
one-to-one loss to the other.
WIN-WIN
Very few negotiations involve a fixed value or a commodity product.
There's generally at least one or more ways that the parties can alter
the value of the deal or product or service at the heart of their
negotiations—in effect, enlarging the pie. In these situations, price is
only one of several issues that matter. The quality of the product or
service, the reliability of the other party, or the importance of one's
relationship with the other party may be just as important as price.
In win-win deals, relationships often matter.
Consider a negotiation between MakeCo—a manufacturer—and one of its
long-term suppliers, WidgetWorks. MakeCo is trying to negotiate a
purchase agreement for 10,000 widgets built to its specifications for $5
apiece, to be delivered in lots of 1,000 units as needed. WidgetWorks
wants to keep MakeCo's business but needs a higher price—say $5.50—to
earn an acceptable profit for itself and its shareholders. Getting this
higher price will be difficult since several other competitors are
asking for less.
On the surface, this might be just another win-lose situation, with each
trying to get the best price. But it's possible that MakeCo and
WidgetWorks have a relationship that's worth more than price per widget.
For example, MakeCo appreciates and values WidgetWorks's reliability.
When WidgetWorks says, "We will have 2,000 units at your receiving dock
by Friday morning," MakeCo's production planners know from experience
that they can rely on those units being there when they need them.
"Other vendors are quoting a lower price," says MakeCo's purchasing
manager, "but their reliability hasn't been demonstrated. Who knows?
They might be out of business in six months, leaving us in a real jam."
Further, the two companies—buyer and supplier—have been working together
so long that their engineers are accustomed to collaborating on the
design of new widgets and the materials used to make them.
For its part, WidgetWorks has every reason to want MakeCo to succeed in
its business. "They've been a valued customer for over 12 years now,"
says WidgetWorks's CEO. "When they win, we win." And so, as they
negotiate, each company is motivated to reach an agreement that will
satisfy the interests of both parties.
In some cases it costs little or nothing to satisfy the interests of the
other party, even as you do well for yourself. This is achieved by
creating value through trades—that is, giving up something that is of
little value to you, but that the other party values highly. Consider
this example:
When Boston Brewing Company, maker of Samuel Adams beer, first went into
business, it didn't have enough orders to financially justify a
multimillion-dollar, state-of-the-art plant. Meanwhile, a brewery in
Pennsylvania found that it had more production capacity than it could
use; part of its costly plant was idle.
These two companies saw an opportunity to create value through trade.
For the Pennsylvania brewery, every case of Samuel Adams beer it bottled
using that company's unique recipe would produce revenue it could use to
cover the fixed costs of its plant. As long as it charged enough to
cover the added cost of labor and ingredients (variable costs), it would
be money ahead. For Boston Brewing Company, contracting production to
the Pennsylvania facility would eliminate the need to build a
multimillion-dollar plant of its own. At the same time, it knew that it
would get consistently high quality for its customers.
So the two companies struck a deal. The Boston company sent its
brewmeister to Pennsylvania, where he supervised production of Samuel
Adams beer. The price it paid for each case was far less than the cost
of producing beer in its own facility. The brewery was equally pleased
with the deal; its idle capacity was now making money.
The deal struck by these two companies produced a win-win.
WHAT ABOUT YOU?
Can you think of win-win examples from your own experience? Perhaps
you've asked your boss for a raise. "I don't have the money in my budget
for a raise," she says, "but I can offer you something more valuable. I
can assign you to a project that will broaden your experience and
skills, making you more promotable in the future." You will gain
something of value in this trade at no cost to your boss. A win-win.
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