g Things Yoo Shoold Never Suy While Negotiuting

I you're new Lo negoLIuLIng or IInd IL dIIIIcuIL, Iere ure some mIssLeps Lo uvoId.
By Mike Hofman | @mikehofman | Jan 31, 2011

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Speak SoftIy: Whenever you negotiate, remember that it pays to stay calm.
O Adam Galinsky
O Roderick Swaab
eIated TooIs
O Syllabus for NUvention at Northwestern University
O Syllabus for Foundations of Management and Entrepreneurship at Babson College
O Syllabus for the Launch Pad at the University of Miami

very entrepreneor spends some LIme IuggIIng, wIeLIer IL Is wILI cusLomers, suppIIers, InvesLors, or wouId-be empIoyees. MosL
busIness owners ure sLreeL smurL, und seem Lo nuLuruIIy perIorm weII In negoLIuLIons. You probubIy Iuve u LrIck or Lwo-some mugIc
pIruses Lo suy, perIups-LIuL cun IeIp you guIn LIe upperIund. BuL, oILen, LIe momenL you geL InLo LroubIe In u negoLIuLIon Is wIen
someLIIng cureIess jusL sIIps ouL. I you ure new Lo negoLIuLIon, or IeeI IL Is un ureu wIere you cun Improve, cIeck ouL LIese LIps on
precIseIy wIuLnot Lo suy.
The word "between" L oILen IeeIs reusonubIe-und LIereIore IIke progress-Lo LIrow ouL u runge. WILI u cusLomer, LIuL muy
meun suyIng " cun do LIIs Ior beLween $1o,ooo und $1,ooo." WILI u poLenLIuI IIre, you couId be LempLed Lo suy, "You cun sLurL
beLween AprII 1 und AprII 1." BuL LIuL word -0tu00n Lends Lo be LunLumounL Lo u concessIon, und uny sIrewd negoLIuLor wILI wIom
you deuI wIII swIILIy zero-In on LIe cIeuper prIce or LIe IuLer deudIIne. n oLIer words, you wIII IInd LIuL by suyIng LIe
word -0tu00n you wIII uuLomuLIcuIIy Iuve conceded ground wILIouL exLrucLIng unyLIIng In reLurn.
ig eeper: The Art oI IIective Negotiution
"I think we're close" We've uII experIenced deuI IuLIgue: TIe momenL wIen you wunL so budIy Lo compIeLe u deuI LIuL you
sIgnuI Lo LIe oLIer sIde LIuL you ure reudy Lo seLLIe on LIe deLuIIs und move Iorwurd. TIe probIem wILI urrIvIng uL LIIs crossrouds,
und unnouncIng you're LIere, Is LIuL you Iuve jusL IndIcuLed LIuL you vuIue sImpIy reucIIng un ugreemenL over geLLIng wIuL you
ucLuuIIy wunL. And u skIIIed negoLIuLor on LIe oLIer sIde muy weII use LIIs momenL us un opporLunILy Lo sLuII, und LIus Lo negoLIuLe
IurLIer concessIons. UnIess you ucLuuIIy Iuce exLreme LIme pressure, you sIouIdn'L be LIe purLy Lo poInL ouL LIuL LIe cIock Is IoudIy
LIckIng In LIe buckground. CreuLe u sILuuLIon In wIIcI your counLerpurL Is us euger Lo IInuIIze LIe negoLIuLIon (or, beLLer yeL: more
euger!) LIun you ure.
ig eeper: Creuting Win[Win Negotiutions
"Why don't yoo throw oot u nomber?" TIere ure dIIIerIng scIooIs oI LIougIL on LIIs, und muny peopIe beIIeve you sIouId
never be LIe IIrsL person In u negoLIuLIon Lo quoLe u prIce. eL LIe oLIer sIde sLurL LIe bIddIng, LIe LIInkIng goes, und LIey wIII be
Iorced Lo sIow LIeIr Iunds, wIIcI wIII provIde you wILI un udvunLuge. BuL some reseurcI Ius IndIcuLed LIuL LIe resuIL oI u
negoLIuLIon Is oILen cIoser Lo wIuL LIe IIrsL mover proposed LIun Lo LIe number LIe oLIer purLy Iud In mInd; LIe IIrsL number uLLered
In u negoLIuLIon (so Iong us IL Is noL rIdIcuIous) Ius LIe eIIecL oI "uncIorIng LIe conversuLIon." And one's roIe In LIe negoLIuLIon cun
muLLer, Loo. n LIe book0otiction, Adum D. GuIInsky oI NorLIwesLern's KeIIogg ScIooI oI MunugemenL undRoderIck .
Swuub oI NSEAD In runce wrILe: "n our sLudIes, we Iound LIuL LIe IInuI ouLcome oI u negoLIuLIon Is uIIecLed by wIeLIer LIe buyer
or LIe seIIer mukes LIe IIrsL oIIer. SpecIIIcuIIy, wIen u seIIer mukes LIe IIrsL oIIer, LIe IInuI seLLIemenL prIce Lends Lo be IIgIer LIun
wIen LIe buyer mukes LIe IIrsL oIIer."
ig eeper: Burguining Ior Advuntuge
"2 the Iinul decision muker" AL LIe begInnIng oI muny negoLIuLIons, someone wIII LypIcuIIy usk, "WIo ure LIe key
sLukeIoIders on your sIde, und Is everyone needed Lo muke LIe decIsIon In LIe room?" or mosL enLrepreneurs, LIe unswer, oI course,
Is yes. WIo besIdes you Is 0;07 needed Lo muke u decIsIon? sn'L one oI LIe joys oI beIng un enLrepreneur LIuL you geL Lo cuII LIe
sIoLs? YeL In negoLIuLIons, purLIcuIurIy wILI Iurger orgunIzuLIons, LIIs cun be u Lrup. You uImosL uIwuys wunL Lo esLubIIsI uL LIe
begInnIng oI u negoLIuLIon LIuL LIere Is some IIgIer uuLIorILy wILI wIom you musL speuk prIor Lo suyIng yes. n u busIness owner's
cuse, LIuL mysLerIous overIord couId be u key InvesLor, u purLner, or LIe members oI your udvIsory bourd. TIe poInL Is, wIIIe you wIII
uImosL cerLuInIy be mukIng LIe decIsIon yourseII, you do noL wunL LIe opposIng negoLIuLors Lo know LIuL you ure LIe IInuI decIsIon
muker, jusL In cuse you geL cornered us LIe conversuLIon deveIops. PurLIcuIurIy In u IIgI-sLukes deuI, you wIII uImosL cerLuInIy beneIIL
Irom LukIng un exLru zq Iours Lo LIInk LIrougI LIe Lerms. or once, be (IuIseIy) IumbIe: preLend IIke you uren'L LIe person wIo
mukes uII oI LIe decIsIons.
ig eeper: , Tips Ior MusterIol Negotiuting
g "Iock yoo" TIe suvvIesL negoLIuLors Luke noLIIng personuIIy; LIey ure ImpervIous Lo crILIcIsm und ImpossIbIe Lo IIusLer. And
becuuse LIey seem unmoved by LIe wIoIe sILuuLIon und unImpressed wILI LIe sLukes InvoIved, LIey Iuve u wuy oI unnervIng Iess-
experIenced counLerpurLs. TIIs cun be un eIIecLIve weupon wIen used uguInsL enLrepreneurs, becuuse enLrepreneurs Lend Lo Luke
every uspecL oI LIeIr busInesses very personuIIy. EnLrepreneurs oILen sLyIe LIemseIves us Irunk, no-nonsense IndIvIduuIs, und LIey
cun uL LImes Iuve LIIn skIn. BuL wIenever you negoLIuLe, remember LIuL IL puys Lo sLuy cuIm, Lo never sIow LIuL un ubsurdIy Iow
counLer-oIIer or un unnoyIng sLuIIIng LucLIc Ius upseL you. Use your equunImILy Lo unnerve LIe person wIo Is negoLIuLIng wILI you.
And II Ie or sIe becomes ungry or peeved, don'L Luke LIe buIL Lo sLrIke buck. JusL Luke IeurL: You've grubbed LIe emoLIonuI udvunLuge
In LIe sILuuLIon. Now go cIose LIuL deuI.
ig eeper: The Lltimute Goide to Negotiuting
id u0 miss c 70ct n0otictin tip? Ij so, l0t us lnou, post ou7 j00d-ccl in th0 comm0nts s0ction -0lou.