April 30, 2014
Negotiation
Brian Tracy
©2013 by Brian Tracy
Adapted by permission of AMACOM, a division of American
Management Association
ISBN: 978-0-8144-3188-8
Key Concepts
Getting more of what a person wants in life is direct-
ly related to negotiating skills. The principles behind
good negotiating are:
• Everything is negotiable. Almost every interaction,
whether business or personal, is subject to negotia-
tion. Realizing this opens the door to getting better
results in every situation.
• There two types of negotiations—and it is important not
to confuse one with the other. Short term or “one-off”
negotiations have few to no rules. There is no re-
lationship to nurture, so the goal is to get the best
deal at any cost. Long-term negotiations, those in
which there is an ongoing relationship, should be
handled with integrity and from a win-win per-
spective where the goal is a good outcome for all.
• Good negotiation is based on good advanced prepara-
tion. The more knowledgeable and mentally pre-
pared a person is, the better the potential outcome
of the negotiation. Lack of preparation can lead to
emotionality and drives poor decision making. The
Business Book Summaries® April 30, 2014 • Copyright © 2014 EBSCO Publishing Inc. • www.ebscohost.com • All Rights Reserved
more informed a person can be, the more factors
available to use as points of leverage.
• The best negotiations are win-win negotiations. Aside
from one-off situations, a person should always
strive for win-win outcomes in which each party is
equally satisfied.
• Always be prepared to walk away. Before entering any
negotiation, a person must be prepared to walk
away if the terms are not met. Otherwise it can be
easy to give way to emotions and fall prey to ma-
nipulative tactics.
• Good negotiating is a learned competency. Individu-
als can improve their negotiating abilities by un-
derstanding the basic fundamentals, avoiding the
pitfalls, and practicing often. The more these are
practiced, the better they will get.
Introduction
Negotiating is a part of everyday life and impacts
both business and personal interactions. Being a good
Negotiation Brian Tracy

negotiator can be a key determinant of a person’s
overall success in life. The good news is that anyone
can learn the basics of good negotiating and then
apply those learnings to strengthening their negotiat-
ing skills. In Negotiation, author Brian Tracy shares
practical strategies and methods for honing overall
negotiating skills to not only improve business per-
formance but to achieve greater satisfaction in every
aspect of life.
Everything is Negotiable
The first step in becoming a better negotiator is to
realize everything is negotiable—regardless of what
is “written down.” Whether it be price or contract
terms, good negotiators take the approach that any
situation or circumstance can always be changed to
their advantage. Negotiating is the means to achieving
that change. Prices should be considered as arbitrary
and contracts as merely a starting place.
Overcome Your Fears
Many people simply accept what is presented to them
because they are afraid to ask for something different
out of fear of rejection. Overcoming that fear comes
through not taking “no” personally and continually
asking for what is wanted. Eventually the answer will
be “yes.” By viewing negotiation as a game rather
than a personal risk, negotiating becomes an enjoy-
able challenge that can reap many rewards.
Success in these negotiations is dependent on:
• A mutual desire to achieve a satisfactory agree-
ment for all.
• Focusing on ways to meet the needs of the other
party.
• Viewing the relationship as a partnership.
The Six Styles of Negotiating
There are six negotiating styles:
1. Win-Lose Negotiating. The goal is to win at all costs.
2. Lose-Win Negotiating. The opponent’s goal is to win
at all costs.
3. Lose-Lose Negotiating. No one actually gets what
they want, but the two parties end up with some-
thing out of the negotiation.
4. Compromise Negotiating. Each party gets some of
what they want, but neither gets enough of what
they want.
5. No-Deal Negotiating. No agreement can be reached.
6. Win-Win Negotiating. Both parties create a solu-
tion together that is better than what either of them
originally wanted.
Win-win negotiating is the goal in any long-term situ-

The Types of Negotiating

Negotiations are either “one-off”, where the relation-
Further Information
ship will not continue (such as a one-time purchase), Information about the author and subject:
or long-term, where the negotiating parties have an www.briantracy.com
ongoing relationship. One-off negotiation is often Information about this book and other business titles:
adversarial with few rules, whereas long-term nego- www.amacombooks.org
tiation involves building rewarding relationships and
requires considerable finesse. Western-style long- Click Here to Purchase the Book
term negotiations are often complete once a contract
has been agreed upon. However, a better result often Related summaries in the BBS Library:
comes through using the “Chinese contract” method,
The Art of Negotiation
where certain fundamentals are agreed to but there
How to Improvise Agreement in a Chaotic World
is ongoing opportunity to modify the contract as cir-
By Michael Wheeler
cumstances change.
The One Minute Negotiator
Lifetime Business Relationships Simple Steps to Reach Better Agreements
The ultimate goal in long-term negotiations is to By Don Hutson and George Lucas
create a win-win situation, where all parties are get-
ting the majority of their most important needs met.
Business Book Summaries® April 30, 2014 • Copyright © 2014 EBSCO Publishing Inc. • www.ebscohost.com • All Rights Reserved
Negotiation Brian Tracy

ations. unemotional.

The Uses of Power in Negotiating • Demonstrating courage and confidence.

Power is a factor in negotiations, and negotiators • Conveying total commitment to achieving agree-
should always seek to increase their power. Increased ment, no matter what the cost.
power comes through: • Having more knowledge and expertise than the
• Good preparation prior to the negotiation. opposing party.

• The authority to make deci-

sions.
Your success in business and in life will be determined by your
ability to negotiate in your best interests in every situation.
• Knowledge about the other
party. Negotiation is a key skill that affects everything you do or say,
• Empathy for or identification and almost all of your interactions, both personal and in busi-
with the other party so as to ness.
create a friendly environment.
• The ability to bestow or withdraw rewards.
• Investing time and effort in the process.
Power and Perception
It is more important for people to think they have
power than it is to actually have power. The percep-
tion of power can be increased in the following ways:
• Creating the allusion of scarcity of the desired
product or service.
• Projecting an attitude of indifference by remaining
About the Author
Brian Tracy is a professional speaker, trainer,
seminar leader, and consultant, and chairman
of Brian Tracy International, a training and
consulting company based in Solana Beach,
California.
Brian bootstrapped his way to success. In 1981,
in talks and seminars around the U.S., he began
teaching the principles he forged in sales and
business. Today, his books and audio and video
programs—more than 500 of them—are avail-
able in 38 languages and are used in 55 countries.
He is the bestselling author of more than 50
books, including Full Engagement and Reinven-
tion.
The Impact of Emotions on Negotiation
Good negotiating is based on clear thinking. Think-
ing becomes distorted when emotions are involved.
Desire and greed can drive desperate decision-mak-
ing. Emotions like fear and anger can also tip the
hand of the other party, giving them a manipulative
advantage. The goal should always be to stay calm
and detached.
The Element of Time in Decisions
Often negotiations can be timed to one’s advantage—
such as making car purchases at the end of the month
when the dealer is likely to offer lower prices. A sense
of urgency reduces bargaining power, and when used
by the other party this can skew negotiations in their
favor. Decisions should not be rushed or based on
others’ deadlines.
Know What You Want
Before entering a negotiation, it is important to be very
clear on the desired outcome and prepare in advance.
Ways to gain clarity and prepare in advance include:
• Talking the situation over with someone else.
• Determining best, medium, and worst outcomes—
including the “ultimate fallback position.”
• Establishing the starting position for the negotia-
tion, which should be slightly above the best case
goal.
The Harvard Negotiation Project
Harvard has established four principles for successful
negotiating:

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Negotiation Brian Tracy

• Keep the issues separate from the personalities in-
volved.
• Identify interests and needs of both parties at the
beginning of the process.
• In areas of disagreement, brainstorm all possible
options.
• Set the criteria for what will define a satisfactory
agreement.
Sticking to these principles results in the objectivity
required for a win-win negotiation.
Preparation Is the Key
Thorough advance preparation accounts for the bulk
of the success of any negotiation. Clearly defining
goals, objectives, and issues leads to a faster and more
successful negotiation process. Steps to take in pre-
paring ahead of time include:
• Unearthing a variety of options, which broadens
overall choices when creating an agreement.
• Doing the research—including the competitive
landscape and the background of the opposing
party.
• Questioning any assumptions so as to diffuse mis-
understandings and misperceptions.
• Identifying the main issues, including any conflicts
between the two parties.
If you cannot negotiate well on your best behalf, then you auto- receiving—is considered to be one
matically become the victim of people who are better negotiators of the most powerful influences
than you. You will always achieve a better income, or get a bet- negotiators in swaying others.
ter deal, if you are good at negotiating.
Clarify Your Positions—and Theirs The more a person does for others, the more others
To successfully negotiate, one must know both one’s want to respond in kind.
own and the other party’s positions in terms of best
and worst outcomes. This includes any concessions
either side is willing to make. A good question to ask
the other party is, “If this discussion was completely
successful, what would be the perfect outcome for
you?” By sharing ideal outcomes, it is easier to work
backwards and agree on small issues, saving the larg-
est amount of time and effort for the most important
issues.
The Law of Four
Most negotiations are typically centered on no more
than four key issues. Usually there is one primary
issue, such as the make and model of car, and then a
few minor issues following, like price, financing, and
delivery. When both parties share the same primary
issue, negotiations can come to a standoff. However,
when the issues are different and identified up front,
the negotiation can usually be resolved as a win-win
by dealing with the primary issue and then quickly
resolving the lesser issues.
The Power of Suggestion in Negotiating
There are a number of factors that can influence a
negotiation that have nothing to do with the issues at
hand. Location, personalities, body language, physi-
cal comfort level, and attitude all make a difference.
Steps for ensuring a more successful negotiation
include:
• Conducting the negotiation at a neutral location.
• Behaving in a friendly and pleasant manner, and
demonstrating “open” body language.
• Attending to participants’ physical comfort (food,
water, breaks).
• Having a positive attitude.
Persuasion by Reciprocation
Reciprocity—the act of giving and
over people and is a key tool for
Reciprocity is based on the innate
sense of fairness most people have.
In negotiation, reciprocity comes into play by:
• First addressing areas that are easily agreed upon
by both parties, building a feeling of positivity.
• Making any concessions slowly, which creates a
sense of reciprocity in the other party.
• Leveraging the word “fair” frequently.
• Asking for in-kind concessions from the other par-
ty.

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Negotiation Brian Tracy
Persuasion by Social Proof
People are very influenced by what others who are
similar to themselves think and do. Negotiators can
take advantage of this tendency by comparing the
behaviors of other similar people with the party
they are negotiating with—whether they are friends,
neighbors, people in the same profession, or people
with the same demographic characteristics. This is
called “social proof.” Sharing testimonials can be an
especially effective way of leveraging social proof.
Price Negotiating Tactics
Using price negotiation tactics to get the best price can
be effective in both short- and long-term negotiating
situations. Among these tactics are:
• The flinch. The body language of flinching when
hearing an unacceptable price often causes an op-
ponent to immediately adjust the offer.
• Asking if the offer is the best offer possible and similar
questions. Often this will prompt a price change.
The more the price is questioned, the more likely
it will be changed.
• Assertion. Stating the item can be purchased else-
where often inspires a price drop.
• Lowball. By making a ridiculously low offer the two
parties can often come up to a price that is accept-
able to both parties. Offering cash can sweeten the
deal.
• The nibble. Using “the nibble” involves accepting
the stated price but adding other benefits onto it,
such as free delivery or additional options.
The Walk-Away Method
No one should enter a negotiation without being pre-
pared to walk away if the terms are not acceptable.
Walking away is an extremely powerful tool and will
often incite a favorable, albeit delayed, response from
an opponent. It is important to remember that walk-
ing away does not necessarily mean the negotiation
is over, but it will appear that way to an opponent.
After walking away, a person can always return to the
negotiation at a later time.
Negotiations Are Never Final
Negotiating is a process as much as it is a one-time
event. Even after an agreement is signed, there is
Business Book Summaries® April 30, 2014 • Copyright © 2014 EBSCO Publishing Inc. • www.ebscohost.com • All Rights Reserved
always the opportunity to revisit the terms. While a
person might encounter resistance when seeking to
renegotiate, offering a benefit to the other party can
often open the door. It is best to prepare for a renego-
tiation as well upfront.
The Successful Negotiator
Good negotiators have the following characteristics in
common:
• They understand that everything in life is a nego-
tiation, subject to compromise and adjustments.
• They keep an open mind and adapt well to change.
• They are flexible and have a keen eye for recogniz-
ing mutual goals.
• They view negotiations as a cooperative rather
than a combative effort.
• They always look for a solution that benefits ev-
eryone.
• They bargain with integrity, not through manipu-
lation.
In one-off negotiations, good negotiators always look
for the best deal. In long-term negotiations, good
negotiators seek to achieve the best solution for both
parties.
Lastly, good negotiators remember the four essentials
for successful negotiating:
1. “Get the facts and prepare in advance.”
2. “Ask for what you want.”
3. “Seek win-win solutions.”
4. “Practice, practice, practice.”
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Features of the Book
Estimated Reading Time: 2 hours, 97 pages
Negotiation is one in a series of books by author
Brian Tracy, all of which provide practical advice for
business executives. This particular book is geared
toward anyone who wishes to develop their negotiat-
ing skills in order to be more effective and successful
in all aspects of life. This easy-to-read book contains
practical advice and specific techniques for becoming
Negotiation Brian Tracy

a better negotiator, many drawn from the author’s Inc. For more information about BBS, to subscribe to BBS, or
real life experiences. to provide us feedback, visit our Web site.
www.ebscohost.com
Contents EBSCO Publishing Inc.
Introduction 10 Estes Street
Ipswich, MA 01938 USA
1. Everything is Negotiable
2. Overcome Your Negotiation Fears
3. The Types of Negotiation
4. Lifetime Business Relationships
5. The Six Styles of Negotiating
6. The Uses of Power in Negotiating
7. Power and Perception
8. The Impact of Emotions on Negotiation
9. The Element of Time in Decisions
10. Know What You Want
11. The Harvard Negotiation Project
12. Preparation Is the Key
13. Clarify Your Positions—and Theirs
14. The Law of Four
15. The Power of Suggestion in Negotiating
16. Persuasion by Reciprocation
17. Persuasion by Social Proof
18. Price Negotiating Tactics
19. The Walk-Away Method
20. Negotiations Are Never Final
21. The Successful Negotiator
Index
About the Author

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