Synergy Negotiating - Knowledge is Confidence!

New upload of Latest Speaking Engagment!

2009-01-24T23:35:00.000-08:00

Last Friday morning, January 23rd, I had a wonderful time speaking with the Davis Sunrise Rotary Club in Davis, CA. They were a fantastic group. I spoke to them about the Powers of a Buyer in short-term negotiations. They were very attentive and had a number of great questions at the end. I look forward to going back in the future and speaking to them about the powers of a seller. Plus, I can see how many people used my information in real life and what the outcomes were.

In a first for me, I was able to use my new Christmas present from my wife and digitally record my ~25 minute speech, which I have since added a picture to in order to make it a "video", and have treid to upload it to YouTube.com. Unfortunately, it is too big at this point for them to successfully upload it, so until I get it pared down a bit to the core of the speech, I will have to wait to get it online. I will try to find another spot for it so everyone can hear the whole speech.

I have two more speaking engagements in February, one on the 3rd in West Sacramento and one on the 26th in Sacramento. I am looking forward to them and what I will be able to help them accomplish in negotiating.

Knowledge is Confidence!

Updates!

2009-01-08T14:40:00.001-08:00

I had a wonderful holiday season and new year celebration and am very excited about the opportunities in the future! I hope you all had a great holiday time, as well.

I have started writing a book on basic neogtiating skills for both business and life. I am very passionate about educating people on different ways and opportunities in there lives to use and perfect their negotiating abilities. From business ventures to buying cars to get a good deal at the health club to your family, I feel people need a guide for teaching and inspiring themselves to get out and negotiate. Given the state of the current economy, as well, negotiating skills are very important tools for making your budget stretch as far as it can go.

I knowI have been blogging about the buyer's side of negotiating in my previous blogs, for the most part. Starting with my next blog, I will focus on some tactics and strategies for sellers to use in negotiations. These will not only be counters to the buyers tactics, but also special tips for closing the deal. I hope you will stayed tuned.

Knowledge is Confidence!

The Holiday Shopping Season

2008-12-23T09:06:00.000-08:00

I read this today from the AP newswire. This supports my points that anyone can haggle, even if it is in a store where the price is "as marked" (which most stores are). I normally like to write my own articles, but I also know it is always nice to hear the exact same thing from someone else, too, for support.

Be forward about negotiating a discount when you're out this Christmas shopping season!

http://news.yahoo.com/s/ap/20081222/ap_on_bi_ge/desperate_retailers

Merry Christmas and Happy New Year!

Knowledge is Confidence!

Resolutions!

2008-12-19T16:31:00.000-08:00

With the end of 2008 upon us, and the economy is disrepair, we all know that now is the time for getting the most for your money. More bang for your buck. This is the time to actively improve your negotiating skills for increased potentially in buying, selling, and your personal life. A new year beckons us.

The beginning of the year always brings the inevitable resolutions. But like most diets and work-out plans, those resolutions turn into mush before you have a chance to say "Super Bowl". A resolution, according to Webster's Online Dictionary, is: 1) a resolve or determination: to make a firm resolution to do something, or 2) the mental state or quality of being resolved or resolute; firmness of purpose.

But you know that doesn't always happen. Most people don't follow through with those resolutions. I believe the reason most people lack that follow through to continue with diets or workout regimes is not due to a lack of want; we all want to be a little thinner and in better health. But it's due to a lack of planning and mindset. In other words, they don't have a specific, quantifiable goal along with the path they will take to get there.

Now, I know you may think, "I'm going to eat better" might be a qualifying goal, but it isn't. A goal isn't just a statement of an arbitrary amount or a desire for something to occur. You must have a mindset of your specific goal, with steps laid out, ON PAPER, to get you to the end successfully. No goal ever got disposed of so quickly as one which was never written down.

When I give negotiation workshops, at the end of the presentation we have a practice negotiation where the clients randomly partner up to negotiate over some material item. At the end of the alloted 20 minute planning and negotiation time, in which I give them time to write down their specific strategy and tactics, I take the results from the people who drove the best bargain purchases and those who made the highest sales. In the vast majority of cases, into 80%+ region, those buyers who had the lowest overall mindsets at what package they would purchase got the best overall purchase for themselves, while exactly the same for the sellers with holding out for the highest selling packages they could receive.

My holiday wish to you this coming year is to set your mind high and reach for the stars. Set a specific goal in your life and don't just hope you get there, but make a plan of thoughtful, constructive, written action and put it into effect. Resolve that this year will be the best year of your life...so far.

Happy Holidays!!

Knowledge is Confidence!

Short-Term Negotiating

2008-12-08T16:17:00.000-08:00

My presentation last night went wonderfully! I spoke to the approximately 40 guests about the powers of the buyers in short-term negotiations and some buyers tactics they could use. At the end of the presentation, the guests partnered up for a negotiation excercise which went very well. I was very happy with how the evening ran.

My speech focused on short-term negotiations because the vast majority of your negotiating situations fall into this category. Buying a car, appliance, computer, clothers, shoes, food -- most anything you do, is over a short-term. You go in, you negotiate, and you either leave with the item or not.

Since, if you do walk away from the negotiation without the item, the seller has the distinct possibility of you not coming back to their establishment. This gives you, the buyer, more power. Use that power to your advantage. Set your mindset before you go in that you are doing the business owner a favor by walking in the door, not the other way around. You are putting food on their table and sending their kids to college. Make sure you get something back for the privilege you're giving them of shopping there. You're the one in control. Embrace that confidence going in and you will see a marked increase in your buying results.

Knowledge is Confidence!

Speaking Update!

2008-12-05T10:00:00.000-08:00

Just an update on speaking engagements:

I will be speaking about negotiating, along with my colleague Paul Wineman, this coming Sunday, December 7th, at a college fraternity to it's members and guests. I think it is a fantastic opportunity for teaching young minds the power and necessities of building their negotiating skills in order to have a more successful life.

College age students are a vital part of the future of this country, as everyone knows, and they should be given the knowledge to succeed in business and their personals endeavors. I believe negotiating should be part of every young persons trainig, and I am looking forward to being able to speak with them about this topic.

Keeping it short today. :)

Knowledge is Confidence!

So Easy a Two Year Old Can Do It!

2008-11-24T09:32:00.000-08:00

So a quick story:

Having just gotten married, I now officially have two little nephews, James and Max. James just turned two last August, and being two he is into that "terrible twos" phase. Not only can he ran away, but he can talk, as well, with his favorite word being "No!" I won't go into the words he learned at day care last week!

The other day my wife, Lori, and mother-in-law, Sue, we're watching the boys one afternoon. James has very good speech skills for his age and knows how to use them. It was lunchtime, so Sue told James that if he ate all his lunch (cheese, grapes, and milk), they would then go to the park. James was to have none of that, so he said "No, Gramma Sue-Sue, no! No like cheese!"

Sue reiterated that he would have to eat all his lunch first before they could go to the park. So then he said, "One piece, maaaaaybe two, then we go park!"

To me, this was incredible! Here is this two year old boy, and already he is using negotiation skills to try and get what he wants! He can barely string together a sentence, yet he uses a natural instinct to negotiate for his needs and wants. I can't think of a better example of natural negotiating skills, something we ALL have within us.

Now, on the other side, Gramma Sue-Sue is no pushover, so James did eat all his lunch before going to the park. But just that he tried is exceptional.

We all have it within ourselves to negotiate. My goal is try motivate everyone to use those inate skills and create better opportunities for ourselves, our businesses, and our families!

Knowledge is Confidence!

It's Not the Price, It's the Package!

2008-11-06T22:31:00.000-08:00

This is the phrase I keep on the front screen of my cell phone. "It's Not the Price, It's the Package!" This is a constant reminder that negotiating isn't always about money.

It's surprising to hear that for some people. But price is just one aspect of a negotiation. Think of purchasing a refrigerator. What can you negotiate (and, yes, you can negotiate a refrigerator!)? Sure, price. But what about free delivery, taking away your old refrigerator, no interest financing, or an extra toss-in item like an additional ice tub? Price is only one thing that matters, and sometimes it's not even the most important part.

A seller needs to get out of his house because his job across the country starts in two weeks and he HAS to be there? Do you think he may be more flexible on the price to someone who might be able to come in with cash or close very quickly? Sure he can. Solving a person's problems with package negotiating can spell success in many otherwise unsuccessful negotiations.

Price is just one aspect. Make sure you negotiate the WHOLE package, even if the other party doesn't realize what all the package might entail. And if the opposition didn't prepare to negotiate for the whole package beforehand themselves, that usually means some good bargaining chips just got added to your corner. NEVER underestimate the power of preparation!

Knowledge is Confidence!

Timing

2008-10-31T15:35:00.000-07:00

I apologize for the recent delay in updating the posts. Actually, I got married in the middle of the month and just got back from my honeymoon on Wednesday! So I'm getting back into the swing of things and will continue to post negotiating nuggets as often as possible.
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While on my honeymoon in Cabo San Lucas, Mexico, my wife and I happened upon a late Saturday night police checkstop. We had not been drinking, so I had no worries about that. However, unbeknownst to me the car we were driving, owned by a friend of ours, did not have recent registration tags. As a matter of fact, they were two years out of date.

This actually is nothing new in Mexico, but I was surprised to be told this nonetheless. The policeman then asked for my license and the registration of the car. The license I had, the registration I didn't. So, as he took my license, he explained in broken English how he would hold onto my license at the police station until the ticket was paid, which opened on Monday, and "would be around $40". It is a well-honored pasttime in Mexico that traffic tickets can be "paid" at the time of it being given out.

Now, I love Mexico, and I have great respect for its' citizens as honest, hard-working, loyal, intelligent, and being really good negotiators, too. This story says absolutely nothing about the Mexican people. It's just a story to make a point.

Explaining to the policeman that the license was important to me, but since I wasn't leaving until Wednesday I would be able to pick it up at the courthouse on Monday, no problem. I even asked for detailed directions to the location. But in order to save him the trouble, would it be possible to take care of the ticket right now? I only have 200 pesos on me, would that be enough to cover it? No, probably 300 pesos, was his response. Oh, well let me check with my wife...she has only 70 more, so how does 270 pesos sound? That's really all we've got.

And you have yourself a deal. However, if I had been in charge of the situation timing, I would have only had 50 pesos to start in my wallet and would have been better prepared with a story why we couldn't have paid any more. While it only might have saved me maybe $15-20 right then, over time that makes a difference.

The moral is: You might not always know when you're going to be called upon to negotiate. So wouldn't you like to be in charge of the situation instead of reacting to it? Use timing to your advantage. Buy things at the end of the month when people need to make sales quotas. Never give the other person a sense of your urgency, for buyers or sellers. "Sure, I can pick it up on Monday, but how about we take care of this right now?" If you get phone sales calls, get their number and call them back when YOU are ready. Make timing work for you!

Knowledge is Confidence!

Get the Mindset

2008-10-07T15:48:00.000-07:00

I recently spoke for a Kiwanis club meeting on what we can learn from children on how to negotiate.

Just like all you really needed to know you learned in Kindergarten, as an adult looking back you can see how you really learned a lot about negotiating as a child. You are that same person and can put into action that same negotiating ability in your adult life. The strength to handle a "No", the wisdom to plan your strategy ahead of time, and to use timing and tactics to get what you want. You just need to understand you can do this more often than you think you can. You need to get the correct midset, that which tells you that you can master negotiating.

I tell people I am a motivational negotiation speaker. Not only do I teach people the basics and nuances of negotiating, but for those people that do have good, practiced negotiating skills, I teach them how to practice those skills on a continuing basis. You can't learn how to swim from reading a book or even lounging in the hot tub. Practice makes perfect. And since we might not buy houses and cars every year, I encourage people to use their skills with free desserts, hotel upgrades, computer buying and spouses/families. If they can do it , so can you!

I will be speaking for more clubs in the future and look forward to answering members questions. It is this interaction that makes me enjoy what I do.

Knowledge is Confidence!

Some of the Best Negotiators in the World

2008-09-29T19:45:00.000-07:00

People of all walks of life negotiate. It's part of our inherent nature. It has been succinctly said by professional negotiator and my mentor, Paul Wineman, that negotiation is the ability to reach an agreement in a fashion that satifies both parties. We all do this on a daily basis. You don't have to be a business person to negotiate well. In fact, some of the best negotiators I've ever seen in action are children. The nice thing is, even if you don't have any yourself, you once were one. All you have to do is remember.

Negotiating strategies used by children:

Ignore the word "No" - "Can I have a piece of candy?" "No." "But I cleaned my room." "No." "What if I finish my homework before dinner?" "Well, okay, just one piece." One of the best negotiating strategies around. "No" is not an ending, it's just an opening position.
Persistence - "Can I have a piece of candy?" "Can I have a piece of candy" "Can I have a piece of candy?" ad infinitum. In adulthood it might be called whining or being pushy depending on how you do it, but say it with an honest smile and it's called negotiating.
Use of third parties - "Can I go to see a movie this Friday?" "No"." "But Tony and Mike's moms are letting them go!" What do you think a sales manager does at an auto dealership or a loan manager at a bank? It's always a good idea to keep an unseen party available to lay things on if you need to. "Gosh, I'd love to sell the car at that price because I like you so much, but my sales manager would have my hide." Nice.
Divide and Conquer - "Mom, can I go to the dance this Saturday?" "No, we're leaving on our trip early Sunday morning and we need to pack." Walk to the next room. "Dad, can I go to the dance Saturday night if I make sure I'm all packed up first?" "Sure, honey, that sounds fine." The only trick here is the volatility this could cause if caught.
Offer 1's for 10's - "Can I play with Johnny if I clean my room?" even though they have to clean their room anyway. Throw in meaningless extras (1's) to get back what's important to you (10's). It's done ALL THE TIME in negotiating. Don't just give away the farm up front. Keep some reserves to toss out when the going gets tough, but be conservative in giving them away. Make sure you ALWAYS get a better item (as you see it) in return. Help them help you to help them. (Thanks, Tom Cruise!)
Scheme - Also known as planning, children spend hours thinking of a strategy and plan to get what they want. Then they put you on the spot to think fast on your feet while they already have answers to anything you might ask. Knowledge is Confidence! Plan ahead for negotiating. Which leads into their next tactic...
Timing - Like scheming, children seem to know when to ask, or not ask, for things. When Dad comes home with a frown complaining about all the extra dumb work his boss gave to him today because a co-worker was slacking off, kids catch on real fast that this would be an inappropriate time to ask to borrow the car this weekend. Why not buy a car in bad weather at the end of the month? Sales are slower, salesmen are more desperate. Put timing to your advantage.
Hot buttons - Children know what parents want to hear, what makes them happy and upset. I've received much better service while negotiating the correction to a problematic service item by smiling and insisting I know it is not that particular person's fault we have the situation, but that we have the situation nonetheless and what will they be doing to correct it? People are defensive creatures by nature and showing some sympathy and kindness does help to grease the wheels most of the time.

Knowledge is Confidence!

Look Cheap or be Poor?

2008-09-25T14:52:00.000-07:00

One upon a time, you, too, wanted to borrow your parent's car for the first time. I'm sure you thought long and hard about what you were going to say, how you were going to say it, making sure you smiled and told them how much you loved them, and how often you would clean up your room. Anything to get you into that car. Fear was not an option.

What broke down between then and adulthood? One of the main reasons people don't negotiate as much in "real life" is fear of embarassment. "I'll just look cheap if I try to negotiate for a better price on our dinner or a free dessert. I can't do that!"

My question today is, would you rather look cheap or be poor? What's wrong with asking for a discount on a damaged item or to make amends for poor customer service? In today's economic times, is a little, possible embarassment stopping you from saving money?

Hotels, cars, airlines, houses are great to negotiate on, but what about your daily life, your real life? You don't buy a house even every year. But how about asking for a discount, with a big smile, if you were to buy 2 or 3 pairs of jeans even though the sale ended yesterday? Or if your small business could get some free stationary by recommending the shop on your website? What are you willing to do to save some money for a better use?

Don't be embarassed to negotiate. That's the way the world works, and, yes, even in the United States. Just think of getting into your parent's car one more time.

Knowledge is Confidence!

Sail Around the Storm

2008-09-22T16:41:00.000-07:00

I once went with a friend to help her buy a newer year Honda Civic with mid-mileage and in great condition. She was nervous at the thought of dealing with the sales people, and I agreed to help her.

In the course of the negotiation, the sales manager (not the sales person we had been dealing with, mind you - HIGHER POWER, GOOD COP-BAD COP if needed) came back with his, then, second financing offer, quoted as monthly payment. We had already agreed on a price (~$11,200) and I said no to his first offer of $382 (an 18.99% interest rate, as I found out).

"Okay, " he said on the second try, "I really had to work hard to get this for you (PLAYING FOR THE SAME TEAM), considering she is a first time buyer and has little credit history (LOWERING YOUR EXPECTATIONS). The monthly payment is really good at $350.00 a month."

"What!" I replied shocked, thinking that wasn't much of a break from the old price. "How much is the interest rate?"

"Well, she could put more money down on the vehicle."

"Fine, we'll come back in a month when she has more money," I countered. "What's the interest rate?"

"She really doesn't have the credit background to get a better offer."

"Uh-huh. What's the interest rate?"

"Sir, are you going to be buying the car with her?" he questioned, getting exasperated with me.

"No, she's buying it by herself."

"Then legally I can only speak with her about buying the car."

I said, "Oh that's no problem. I completely understand," turning to my friend. "Ask him how much the interest rate is."

Without skipping a beat, she looked right at the sales manager and sweetly asked, "How much is the interest rate?"

Moral of the story: While highly doubtful as to the legitimacy of his claim that he was unable to talk with me legally, sometimes the sales strategy is to put you onto an unsure footing by the use of false claims or exaggerations of which you can't be sure are true. Don't try to confront them head-on. Instead, think of what YOU CAN work with to get the answers you need. As he just essentially stated, she had every right to question him about the deal. As soon as he realized his defeat on this point, I continued doing the negotiation myself.

P.S. She eventually bought the car at his fourth financing offer, a 5.35% interest rate with a ~$236 a month payment and no extra money down, with a 1-year, 12,000 mile bumper-to-bumper warranty thrown in at the end.

Knowledge is Confidence!