Don't be greedy!

Here are a couple of quotes that illustrate the importance of thinking long-term in your business negotiations:

"One last thing to learn from the negotiations. Don't be greedy. I might have gotten more money, but would it have been worth it? Always remember the straw that broke the camels back." Mark McCormick

"My father said, 'You must never try to make all the money that's in the deal. Let the other fellow make some money too, because if you have the reputation for always making all the money, you won't have many deals." J. Paul Getty

Perceptual Power

I recently celebrated another birthday and one of the comic cards I received illustrates a great negotiation lesson. Picture a small goldfish swimming in the fish tank. Strapped to the goldfish is a shark's fin, which protrudes out of the tank several inches.

Now, how much power does this little goldfish have? If the other occupants of the tank accept that fin as real, has the goldfish grown real power or perceptual power?

How much value is there in perceptual power? It is easy to dismiss perceptual power as bluff or fake, but you might be interested in some other's thoughts:

· Re Jesse Helms: "…he plugs into no important levers, controls no important network, has relatively scant rewards to offer and penalties to impose on his own." "…such power as he has is strictly a function of their own willingness to let him push them around." Meg Greenfield, Newsweek, August 1, 1997

· The idea of power lies in the mind of those involved in the bargaining. J. Winkler

· (Power) It is relative to the assumed power of the other party. J. Winkler

· Their power exists if you accept their power. Karrass

· In an Article titled, "Cheney: Not What He Used to be" in THE WEEK magazine, November 11, 2005, re Cheney losing power in W.DC, "…in a city where power is the appearance of power."

Too many people quit in the planning stage of a negotiation because, "I don't have anything to work with." They move quickly into damage control and away from finding the best agreement for both parties. The RESULT BECOME self-fulfilling. We can't afford to respond soley to our evaluation of our real power and our estimate of the other party's power.

From now on, think about how to grow the perception of our power and test our estimates of the other party's power.

Jim Sauerwein

Mark Twain on Negotiating

Back to the subject of helping the other party earn their outcome:

In The Adventures of Tom Sawyer, Mark Twain tells us of Tom getting his reluctant friends to paint Aunt Polly's fence.

You all know the story, so I'll just remind you of the lesson it teaches. In Twain's words, "He had discovered a great law of human action, .....namely, that in order to make a man or a boy covet a thing, it is only necessary to make the thing difficult to attain."

Quick and easy negotiations often sow discontent in the mind of the other party. Satisfaction is what we are seeking!

Jim Sauerwein

Quotations for Negotiators

In our presentations I use a lot of quotations to make certain points. Here are a few favorites:

Planning:

• Charting the course is the key to maintaining control. Wachovia Wealth Management advertisement, 2004
• No battle plan ever survives contact with the enemy. Chinese military axiom
• Don't tell me what unless you can tell me how. An old boss of mine
• Before you can improve the fruit, you must first improve the root. Steven Covey

Ethics:

• Character is doing what is right when nobody's looking. J.C. Watts, politician
• Always do right. This will gratify some people, and astonish the rest. Mark Twain
• Ethics must begin at the top of an organization. It is a leadership issue and the chief executive must set the example. Edward Hennessey, Jr.

Aspire:

• Don't be afraid to go out on a limb, that is where the fruit is. unk
• Only those who risk going too far will ever know how far one can go. T. S. Elliott
• If you want a kitten, start out asking for a horse. e-mail thoughts
• Big goals get big results. No goals get no results or somebody else's results. Mark Victor Hansen

Earn concessions:

• The manner in which it is given is worth more than the gift. Pierre Corneille
• When someone gets something for nothing, someone else gets nothing for something. Leadership booklet, June 2004
• If you give it away, demand is unlimited. Chester Karrass
• What we achieve too cheaply, we will esteem too lightly. Thomas Paine

Silence:

• I have often regretted my speech, never my silence. Publilius Syrus, Maxims
• Silence creates the impression of confidence in your position. Haggler's Handbook
• It is better to remain silent and be thought of as a fool than to open your mouth and remove all doubt. A. Lincoln, popularized by Mark Twain

Deadlock:

• Never cut what you can untie. Jobert
• A "no"deal is better than a bum deal! Sauerwein

Jim Sauerwein

Note from the Author . . .

We are very pleased with the readership of this site, but we would like to ask a favor.

If you don't have a comment on a particular article, how about a question regarding negotiation?

Perhaps you would share with the readership a difficult negotiating problem you have or are encountering.

We would like to hear from you. Is there a topic you would like us to discuss?

Jim Sauerwein

From Henry Kissinger . . .

"The optimum moment for negotiations is when things appear to be going well.

To yield to pressures is to invite them; to acquire the reputation for short staying power is to give the other side a powerful incentive for protracting negotiations.

When a concession is made voluntarily, it provides the greatest incentive for reciprocity."

From The White House Years by Henry Kissinger

Jim Sauerwein

Be Willing To Walk Away Empty!

In the December 2006 issue of INC. Magazine there was a great article by their columnist, Norm Brodsky. His title tells the story: AFTER SPENDING DECADES BUILDING HIS BUSINESS, OUR COLUMNIST MANAGED TO NEGOTIATE THE OFFER OF A LIFETIME --- BY REFUSING TO NEGOTIATE.

One of his venture capital partners offered to buy his company. He replied that he would give them an "open book" to the company, but he wouldn't negotiate.

A couple of quotes from Brodsky

"I don't care if I sell the business or not. And therein lies a paradox. The less interest you have in doing a deal, the more likely you are to get one you will find difficult to refuse."

(VC Friend) Mitch: "I've been talking to (potential buyer) Greg. He was surprised we haven't heard back from you about his offer.

"Listen, Mitch, here's the deal. I told Greg there would be no negotiations. He's as terrific guy, but I'm not negotiating with him. I don't care if I sell the business or not."

Two days later, Greg called me. "We'll pay you what you want."

I will never get a deal like this again. If you've ever negotiated to buy or sell something, you know that you're much more likely to get a good deal if you are willing to walk away empty-handed.

What his quotes don't tell us is that Brodsky made sure, before they opened their books to the buyer, that this transaction would be incredibly valuable and a perfect fit to the buyer.

Jim Sauerwein