(by Brian Tracy)
Well, being a good marketer means being an even better negotiator. Good negotiation skills is not a must have for sales personnel, this is a must have for marketers as well. In 10 years I took part in over 100 big negotiations, very emotional and not, prepared and not, and I must say, that if this is something new for you, there is no better theory than book by Brian Tracy. His “Negotiation” is a must read for everyone in marketing and sales. If you’re planning on some business meeting very soon, you need to read it asap. This is a classic book in negotiations. And as usual I’ve prepared a short book review for you to to have a brief idea of it.
This book is all about the art of negotiating. Many people are afraid of negotiations, because they do not want to be rejected. The author suggests not take it personally. The partner says “no” not to you personally, but to the conditions offered by you. Brian Tracy gives many good advices and describes lot of cases he had during his practice.
In the beginning of the book Brian describes his classification of negotiations splitting them in two:
- One-time – this type means that you want to have only one deal with the most favorable conditions and price, right here and right now.
- Chinese agreement – this kind means that you want long-term relations, you sign the contract with business partners, but the conditions may vary depending on environment.
The author also describes 6 negotiation models:
- “Win-Lose” model – A gets what he or she wants. B does not.
- “Lose-Win” model – B gets what he or she wants. A does not.
- “Lose-Lose” model – Neither party gets anything he or she wants from the negotiation.
- “Compromise” model – Some wants of each party are fulfilled. Others are not.
- “No Deal” model – Both parties agree to disagree.
- “Win-Win” model – The parties work together to discover a third alternative that satisfies the needs of both.
Then Brian describes several methods to support your position in negotiations. This is preliminary work, authority, knowledge of the opponent, empathy, remuneration/punishment and investments. The author also investigates the effect of influence and perception during the negotiations. Here are some of the effects:
- Deficiency effect – it is necessary to create the feeling that you possess a very rare product, which other customers want to urgently buy.
- The effect of indifference – you need to create the feeling that you do not care about buying/selling goods.
- Confidence effect – you need to create the feeling that you are absolutely sure of what you are doing, in this case, partners often provide you with more favorable conditions or price.
One of the major things influencing the negotiations are emotions. The less you are emotional during the meeting, the better conditions you can get.
Brian Tracy lists some of the mandatory conditions for effective negotiations like timing (take a time-out, experienced negotiators often postpone decision-making), preparation for negotiations (it is necessary to learn as much as possible about business partners, the state of the market, etc., about all those factors that may affect the conclusion of a successful deal) etc.
The author tells about the “law of four”. He is sure that there will always be a primary question and three less important ones, which are also significant, but not so much. If in the process of negotiations, the partners have different primary questions, it will be much easier for them to agree.
The book considers the power of persuasion as another factor that influences the negotiation process, and gives several variants of persuasion methods:
- “Persuasion of reciprocity” implies that if you have done something for a person, then he subconsciously feels obligated to reciprocate you and, in turn, do something for you.
- Deviation by the method of “social proof” implies that a person always pays attention to how other people acted in the same situation.
Brian Tracy also talks about strategies for negotiating prices:
- Disappointment (whatever price a partner calls you, you must always take it as something unpleasant for you)
- Question (when the partner announces the price, it is necessary to ask the counter question: “Is this the best you can offer?” )
- Simple approval (in this case it is necessary to say that you can find cheaper)
- Reduction of the price (always necessary to reduce the price and offer something in return)
- “Bite a little bit” (you can agree on all the main points of the contract, and then add additional conditions)
In conclusion, the author advises not to go to negotiations, if you are not ready to abandon this deal, and considers the negotiation process as uninterrupted. If circumstances arise that change your situation, then you must ask for a review of the terms of the contract, but, nevertheless, be prepared to offer something in return. He calls the “four whales”, on which the success of the negotiations stands.
- Collect information and prepare in advance.
- Ask for what you want to receive.
- Look for mutually beneficial solutions.
- Practice, practice and practice again.
People participate in negotiations constantly, this applies to both everyday life and business. The information and advice given by the author in this book are applicable in practice in any field of activity. The structure of the book is clear and logical. The author starts with the classification and models of deals and ends with methods and strategies for conducting successful negotiations. The book, in general, leaves positive impressions.