Secret to Successful Negotiations

Title: Secret to Successful Negotiations
Date: 2006-05-02
Speaker: Joel Peterson, Stan Christensen
Link: Entrepreneurial Thought Leaders
 
You have got to this point in your life through negotiation.
Negotiation is how you navigate your way through life. It is a series of conversations.
Negotiation is the whole series of conversations and trade-offs you’ve made to get where you are.
A successful negotiation is to have successful, effective conversations with people to get what you want and to help them get what they want at a price that is acceptable to both.
Price is not necessarily monetized.
You only get crushed if you allow yourself to be crushed. You have to grant them the power to crush you.
In a successful negotiation you should be able to describe the other party’s interests as effectively as they can.
Saying what the other party wants to them helps them relax.
Do not yell in negotiations.
Establish your emotional baseline.
Base your price on analysis.
Say what you mean.
Think about the reputation you want to have.
Negotiations are all serial. They are not episodic. Your reputation follows you around.
A lot of commercial negotiations do not have trust but have mutual mistrust. Recognize that.
Trust is the lubricant for successful business transactions, for managing a career, and for managing relationships.
There is power in trust.
Trust is a function of character, competence, and empowerment.
Move to where you are trusted and where you can trust others.
If you have to refer to legal agreements then you’ve made your life shallower and you’ve made litigation more likely.
Attorneys are necessary. They are important.
A lot of attorneys have big egos. That can defeat what you’re trying to do. Find one whose ego is subordinate to the objective.
For your career all the things you think are important now (in college) are the things that aren’t.
The most important thing you do (for your career) is to choose a mentor.
Think about career–not job.
Getting somebody to lose is not a win for you.
Look at how you can help the other party win (at a price that works for you too).
You can both win by letting the other party have their victory.
With family members you can do win/lose rather than win/win.
Whenever you have a really long term relationship (such as with family) you want to make sure the other party wins.
Think beyond what people are asking to what they really want.
You’re not trying hard enough if you don’t have some failures in business.
Sleep on things.
Some things you only learn with experience–with failure.
Make clear where you stand.
Real estate contracts aren’t valid unless they’re in writing.
There are not very many people at the top of any industry. One mistake will undo your reputation.
People pick up non-verbal cues.
Mentors are obvious.
Make deposits (be nice to them, help them out) when you don’t have to negotiate. That will help you when you negotiate later.
Try to set the price early on (one you think is fair). Setting a price is an anchoring move. It can be difficult if the other party sets it.
It is VERY difficult to rebuild trust.
Everybody has something to teach you.