THE ART OF NEGOTIATON

Negotiating happens on every level of business. You could be setting territories for a new conglomerate or looking to get the best price on a new Toyota. It doesn’t matter. The same principles stay true in the boardroom, the showroom or in the backroom of the Social Club. Negotiating is an art. I’ve seen some moguls enter a negotiation with a loose approach, thinking they’ll 'tidy it up as soon as a book snaps shut'  once the game begins but these dudes spend the next half hour grabbing their ankles and walking out paying double or getting half their stake. You need to respect the art form that it is, and anticipate everything that gets thrown at you. So, next time you’re playing hardball with the broker, are looking to up the salary or are simply wanting them to throw in the extra piece of meat for free, follow these steps for a successful negotiation.

Structure your argument

Like a lawyer structuring his defense, you need to frame your argument before any negotiation. You are not expected to sit down in your study and draw it out on the blackboard, but you should know what strengths you bring to the table. I’m not asking the broker on the other end to meet my demands because I expect a favor. My friend, you won’t cut a worthy deal with that rationale. You need to frame it in the appropriate manner. You want the landlord to lower the rent? Stress the fact that you’ll be paying on time every month, and a stress-free tenant is worth the discount. And if you can’t find the right angle to take, cut a deal quickly or don’t sit down at all.
                    

                                                      

Set your boundaries

Whenever I walk into a negotiation, the song playing in my head is Ludacris' 'How Low can you go'. .The easiest way to find a sour deal is by sitting down for a discussion without knowing your boundaries. Setting your mark before you enter the room is absolutely essential. It gives you a sense of perspective when things get heated. Every wise guy knows exactly how low, how high, how much, or how little he’s willing to budge. If he doesn’t, the exhaustion of the discussion will get the best of him. I’ve seen negotiators on the verge of passing out from the intensity of a sit down. When it comes to that, they crave a deal so badly they’re willing to throw their family in at no extra charge. If you keep your mark in mind, and you stick to it, you’ll never get too lost.

Start high or stay firm

There are two schools of thought when it comes to negotiating, but they both come from the same principal. You want your adversaries to think they’ve come a long way, that they’ve made progress in their favor. If, for example, you’re asking a rivaling capo for a piece of territory, you start with a big chunk. You might only expect him to give up a couple of neighborhoods, but you ask for 10. When he gets you down to three, he feels he’s done a good job. The other method is staying firm. Ask for four neighborhoods, and show you’re tough to budge. If he can push you an inch, he’ll consider it a victory. But if you’re moving in on my territory, don’t expect much more than a club to the head.

Never show your satisfaction

Though I’m not sure he ever ran a real family, Henry Clay, the great compromiser, said: “A good compromise is when both parties are dissatisfied.” I don’t know about old Hank, but I’m rarely dissatisfied with my results -- I only act like I am.  The second you show satisfaction in your end of the deal is the second that greedy cafone will renege on his offer.  No one likes to think they came out on the bottom end of the deal. So when you get everything you hoped for, and then some, act like you still had to give up a little something. I know guys who deserve an Oscar for the performance they give at the end of a sit down. You don’t need to do all that -- just make sure you don’t gloat

the art of negotiation

Much of the art of negotiating is innate. You’re either born with it or you ain’t. I’ve seen guys born with such a gift that they could negotiate even with the Devil on a bad day. But in the end, there are certain techniques that the pros and the amateurs all must follow. Map out your plan, set your price, budge how you must, and never crack a smile. And at the end of the day, you still need to be willing to walk away. You don’t need to strike a deal on the first sit down, and you might not strike it on the third. Be patient, be smart and if you need an extra hand, I could probably dust off the gloves for another go at the round table. Remember this old saying... 'with proper arrangement... Devil can see God'.