With a few exceptions – like gravity, and death– everything is negotiable, even taxes. First, you need to believe it. Second you need to practice it.   

VALUE AND PRICING 

Is there such a thing as a “fixed price”?  Probably not.  According to economic theory the law of “supply and demand” governs pricing. And while this may be basically true, there are many other factors which enter into the equation. Furthermore, many of these factors are subjective. This means that there is room for negotiation.   

The “fair market value” concept comes into play as well. Pricing is supposed to be the result of what a willing buyer will pay to a willing seller. In other words, subjective, emotional and psychological considerations may be in operation. Perhaps the best examples of the application of this principle are in real estate transactions. What you may be willing to pay for a house may be significantly discrepant from what I may be willing to sell it for, or vice versa. The same concept holds true for property appraisers. These experts determine a value based comparable properties, features of the property, and their experience and education. However, their value may be influenced by an “offer” price and perhaps even lender guidelines, neighborhood trends, etc.   

Think about the last time you purchased a used vehicle, or a new automobile, for that matter. A friend of mine was a top salesman. He always said he liked to sell used cars because nobody knew the “true” value. Frequently the emotional component (i.e., “I love the car” or it “suits my image”), or the terms of the sale, override good judgment.   This discussion demonstrates that value and pricing, like beauty, are in the eyes of the beholder. And, the beholder will certainly be influenced by his position (buyer or seller), and by psychological factors.  

NEGOTIATION 

Negotiation is the process of bargaining.  Donald Trump fancies himself as an extraordinary negotiator, and wrote a best-selling book on the topic “The Art of the Deal.”  However, it was his attorney and corporate V.P., George Ross (of “Apprentice” fame) who made the techniques more concrete. In Trump Style Negotiation ( Wiley & Sons, 2006) he offers “Winning Negotiation Strategies from Donald Trump’s Right-Hand Man.”  Techniques such as “building trust, friendship, and satisfaction with the other side.” are discussed. Determining “what the other side wants,” then ascertaining their weaknesses are also covered.  Weaknesses can be such things as pride, lack of cash, need, etc. Offering solutions to your “adversary’s” problems is important, and so is convincing people that they got “more than they ever expected.” Such mundane, but important issues such as controlling the place and pace of negotiations can also be used to one’s advantage.  

IT’S A MINDSET

In the beginning of this article I say just about everything is negotiable, and that you need to believe it and practice it!  Many people are afraid to negotiate or inept at the process.  Just ask. You may find that the other party is willing to deal.   

Next time you visit your supplier, mechanic, roofer, tailor, department store, barber, dentist, restaurant, etc., ask if they can cut their price, or make you a deal.  Do they offer discounts?   Do they offer low cost financing?   Do they offer better terms?  Do they stand behind their product?  Will they offer extended service or replacement provisions?  Just ask.  Indicate that you are a serious and savvy buyer, cognizant of value, and that you are looking to build a “relationship” with them. You may be surprised at how often you will gain concessions.  Remember, almost everything is negotiable.

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In the Health Care Summit negotiations that recently concluded in the U.S., the winner was… nobody, or was it? In a negotiation, positioning plays a key role in the manner by which negotiators negotiate. Positioning partly entails establishing the image, style of negotiations, and attitudes you’ll display and project throughout the negotiations.

In observing some of the negotiations that occurred at the Health Care Summit, it appeared that the whole event was a melodrama, cloaked as a staged optical illusion, disguised as ‘getting something done’ for the American people.

This article highlights negotiation strategies that you can employ, based on the manner in which the participants engaged one another at the Summit.

Seating:

· The Democrats and Republicans could have arranged the seating so that its members were interspersed with one another. Had they done so, both parties would have agreed to the arrangement before hand, and the stage would have been set for less hostility. Subliminally, it could have promoted more camaraderie.

When you negotiate, consider the seating arrangement. Adjust it to suit your purpose for the negotiation.

Talking Points:

· Neither party strayed far from their talking points. The Democrats said things like, “the bill had a lot of agreements that the Republicans put forth, we’re not that far apart, we’re close, the bill is not that radical, let’s find common ground”. The Republicans said things like, “start over, start with a clean sheet of paper, scrap this bill, go step by step, the bill was ‘painted’ as having been created in the back room without the Republicans participation”.

When you infuse a negotiation with such rhetoric, you preset mindsets not to seek common ground. In addition, such resounding rhetoric creates a hypnotic mental state for one to maintain his perspective, making him less open to alternatives.

Optics:

· Politicians have to be very mindful of the image they project. The cliché, ‘a picture is worth a thousand words’ is probably truer in politics than any other profession. That being the case, the politicians in attendance at the Summit were very concerned with their ‘appearance’ and how it would ‘play’ back home.

During a negotiation, consider how you might be advantaged or disadvantaged from ‘the way things look’. In some situations, you may acquire value, or be devalued, based on who’s in attendance. Case in point from a political perspective, one of the attendees from the Republican Party is facing a tough primary fight in his home state. If he was in a picture with the president, appearing to be very ‘chummy’, an opponent could use the picture against that politician. His opponent could use the picuture to depict ‘how close’ the politician’s views are to the president. Mind you, his views could be the opposite of the president, but the picture could ‘pose’, or create, a different perception.

Body Language:

· From a body language standpoint, depending upon which party was speaking, the participants from the other party conveyed signs of stiffness, constant evaluation, skepticism, and total disagreement in some cases.

If you maintain a rigid body position, your mental state of mind will convey your thoughts. You’ll also be less likely to possess an open mind, when it comes to the possibility of alternate solutions. If you want to maintain a free lane for alternate thoughts to flow in your negotiations, loosen up.

Name Calling:

· At the Summit, the president referred to most attendees by their first name. In so doing, psychologically he marginalized them. In return, they had to call him Mr. President, out of respect for the office he holds.

As you negotiate, observe situations in which you can enhance your esteem. By doing so, you’ll increase your persona and have more sway over the other negotiator. You’ll also reduce the possible insolence he might display.

Use these strategies in your next negotiation. In so doing, you’ll be rewarded by achieving more of what you seek from a negotiation… and everything will be right with the world.

The Negotiation Tips Are…

· Consider the ‘optics’ of how your offer and your point of view will be perceived.

· In the positioning planning process, consider how you might ‘reframe’ (present differently) your position, to make it more appealing.

· Before negotiating, consider incentives you might use to entice the other negotiator to move in a specific direction.

For additional insight, click on the link below and watch my comments on the Neil Cavuto show.