Negotiate Price Quotes

Convincing all nations in the civilized world to agree that any investments into these corporations should be tax-free was not an easy task. Tea with the Queen didn’t quite cut it. Saki with the Japanese Prime Minister was pleasant, but not quite enough. We had to offer major trade concessions to our partner nations to bring them to the negotiating table. In retrospect, it was a small price to pay. The talks earned me the title of “The Great Negotiator.” I didn't mind.

Do not compromise on the quality and your customers will not negotiate on the price.

Like Jordan Baker, people with self-respect have the courage of their mistakes. They know the price of things. If they choose to commit adultery, they do not then go running, in an access of bad conscience, to receive absolution from the wronged parties; nor do they complain unduly of the unfairness, the undeserved embarrassment, of being named co-respondent. In brief, people with self-respect exhibit a certain toughness, a kind of moral nerve; they display what was once called character, a quality which, although approved in the abstract, sometimes loses ground to other, more instantly negotiable virtues.

He found himself one night in a bar standing beside a gorgeous woman. “Would you be willing to sleep with me for $1 million?” he asked her. She looked him over. There wasn’t much to see—but still, $1 million! She agreed to go back to his room. “All right then, “ he said. “Would you be willing to sleep with me for $100?” “A hundred dollars!” she shot back. “What do you think I am, a prostitute?” “We’ve already established that. Now we’re just negotiating the price.

But only when it was too late did they realize the price they must pay for escaping their destiny. Every Happy Ever After was tainted. Fate, at first so amenable, so reasonable, so open to negotiation, ends up by exacting a cruel revenge for happiness.

No, the majority of people just survive, they think their things have a value but nothing does. Things only have a price, based on expectation, and I do business with that. The only thing of value on Earth is time. One second will always be a second, there’s no negotiating with that.

In negotiating a purchase price, he who cares the least, wins.

Salespeople who think that it’s all about price aren’t required: If it can be sold on the internet at the lowest price, you can take the huge cost of a sales team out of the equation.

The gifts of fate come with a price. For those who have been favored by life’s indulgence, rigorous respect in matters of beauty is a non-negotiable requirement. Language is a bountiful gift and its usage, an elaboration of community and society, is a sacred work. Language and usage evolve over time: elements change, are forgotten or reborn, and while there are instances where transgression can become the source of an even greater wealth, this does not alter the fact that to be entitled to the liberties of playfulness or enlightened misusage when using language, one must first and foremost have sworn one’s total allegiance. Society’s elect, those whom fate has spared from the servitude that is the lot of the poor, must, consequently, shoulder the double burden of worshipping and respecting the splendors of language.

As in many other games, moving first is an advantage in single-issue negotiations—for example, when price is the only issue to be settled between a buyer and a seller. As you may have experienced when negotiating for the first time in a bazaar, the initial anchor has a powerful effect. My

In the most successful exits, the company should be delivering its peak performance for the months leading up to the final price negotiations and closing.

I’ll refer my clones to businesses and negotiate a better price for myself. And for myselves.

With no small amount of trepidation, we walked alone past a colony of black-faced monkeys we’d been told were extremely dangerous. We avoided eye contact and certainly didn’t take pictures. And dearly wished our old Sherpa bag-carrying matey was nearby. We visited Gandhi’s tomb. We saw saris being printed and hand-knotted carpets being fabricated and negotiated a decent price for a small hand-crafted rug of Mughal design that, as long as we keep the certificate of authenticity safe, should appreciated in value. We witnessed poverty beyond poverty, with ‘untouchables’ so poor that they are actually outside the caste system, and who can’t even afford to live in the unsanitary slums described as 'unfit for human habitation.

Remember this study when you are in a negotiation—make your initial request far too high. You have to start somewhere, and your initial decision or calculation greatly influences all the choices that follow, cascading out, each tethered to the anchors set before. Many of the choices you make every day are reruns of past decisions; as if traveling channels dug into a dirt road by a wagon train of selections, you follow the path created by your former self. External anchors, like prices before a sale or ridiculous requests, are obvious and can be avoided. Internal, self-generated anchors, are not so easy to bypass. You visit the same circuit of Web sites every day, eat basically the same few breakfasts. When it comes time to buy new cat food or take your car in for repairs, you have old favorites. Come election time, you pretty much already know who will and will not get your vote. These choices, so predictable—ask yourself what drives them. Are old anchors controlling your current decisions?

And then there’s the tale of an economist on holiday in Las Vegas. He found himself one night in a bar standing beside a gorgeous woman. “Would you be willing to sleep with me for $1 million?” he asked her. She looked him over. There wasn’t much to see—but still, $1 million! She agreed to go back to his room. “All right then, ” he said. “Would you be willing to sleep with me for $100?” “A hundred dollars!” she shot back. “What do you think I am, a prostitute?” “We’ve already established that. Now we’re just negotiating the price.

Set your target price (your goal). 2.​Set your first offer at 65 percent of your target price. 3.​Calculate three raises of decreasing increments (to 85, 95, and 100 percent). 4.​Use lots of empathy and different ways of saying “No” to get the other side to counter before you increase your offer. 5.​When calculating the final amount, use precise, nonround numbers like, say, $37,893 rather than $38,000. It gives the number credibility and weight. 6.​On your final number, throw in a nonmonetary item (that they probably don’t want) to show you’re at your limit.

Racath’s eyebrows drew together. “Terms?” “Yes, terms,” Briz’nar replied, a forked tongue dancing behind its sharkish teeth. “Conditions for the riots to cease. The rabble must have some sort of price if they are sending one of your kind to do the bargaining. What is it, then? Coin? Food? Perhaps a much needed bath?” Some of the Arkûl chuckled. Racath rolled his eyes. “I’m not here to negotiate with anyone!” he answered incredulously. “The only terms I have are that you die, this Bridge is destroyed, and the Dominion never even thinks about looking at the Burrows ever again.

Underlying all this activity—in the customhouses, on the wharves, in every place of business—were numbers. Merchants measured out their wares and negotiated prices; customs officers calculated taxes to be levied on imports; scribes and stewards prepared ships’ manifests, recording the values in long columns using Roman numerals. They would have put their writing implements to one side and used either their fingers or a physical abacus to perform the additions, then picked up pen and parchment once again to enter the subtotals from each page on a final page at the end. With no record of the computation itself, if anyone questioned the answer, the entire process would have to be repeated.

A Narrow Value Range. The myth of a narrow value range is a subtle one. It is important to understand that the range of value can be quite wide. A seller may receive offers of $3 million, $6 million, or $11 million for the same company. The variations in price reflect the fact that different buyers will find different levels of strategic value. Revenue

For NED and American neocons, Yanukovych’s electoral legitimacy lasted only as long as he accepted European demands for new ‘trade agreements’ and stern economic ‘reforms’ required by the International Monetary Fund. When Yanukovych was negotiating those pacts, he won praise, but when he judged the price too high for Ukraine and opted for a more generous deal from Russia, he immediately became a target for ‘regime change.’ Thus, we have to ask, as Mr Putin asked - ‘Why?’ Why was NED funding sixty-five projects in one foreign country? Why were Washington officials grooming a replacement for President Yanukovych, legally and democratically elected in 2010, who, in the face of protests, moved elections up so he could have been voted out of office - not thrown out by a mob?

For instance, in a popularized 2010 study, researchers from Harvard, Yale, and MIT had eighty-six volunteer subjects participate in a mock financial negotiation: bargaining down the price of a car with the sticker price of $16,500. One by one, each subject would sit in a chair facing an experimenter who was playing the part of the car salesman. But there was a catch: half the participants were seated in hard, wooden chairs, and the other half were treated to plush, cushioned ones. The result? Those given the hard chairs were the harder bargainers. They were more forceful in their negotiations and bargained the salesman down to a price that was on average $347 lower than that of the comfy chair group. Apparently, the added comfort of the cushioned chairs led the other group to agree to a higher price.

And yet that performance has a method. Trump's artlessness, like Mark Antony's, is only apparent. Listen, for example, as he performs one of his favorite riffs. He begins by saying something critical of Mexicans and Chinese. Then he turns around and says, 'I love the Mexican and Chinese people, especially the rich ones who buy my apartments or stay at my hotels or play on my golf courses.' It's their leaders I criticize, he explains, but then in a millisecond he pulls the sting from the criticism: 'they are smarter and stronger than our leaders; they're beating us.' And then the payoff all this has been leading up to, the making explicit of what has been implied all along. 'If I can sell them condominiums, rent space to them in my building at my price, and outfox them in deals, I could certainly outmaneuver them when it came to trade negotiations and immigration.' (And besides, they love me.) Here is the real message, the message that makes sense of the disparate pieces of what looks like mere disjointed fumbling: I am Donald Trump; nobody owns me. I don't pander to you. I don't pretend to be nice and polite; I am rich and that's what you would like to be; I'm a winner; I beat people at their own game, and if you vote for me I will beat our adversaries; if you want wonky policy details, go with those losers who offer you ten-point plans; if you want to feel good about yourselves and your country, stick with me. So despite the lack of a formal center or an orderly presentation, Trump was always on point because the point was always the same. He couldn't get off message because the one message was all he had.

offering. I’m sorry, this is really embarrassing. I just can’t do that price.” He stared at me in silence, a little befuddled now. Then he stood and went into the back for what seemed like an eternity. He was gone so long that I remember saying to myself, “Damn! I should have come in lower! They’re going to come all the way down.” Any response that’s not an outright rejection of your offer means you have the edge.

[Elisabeth Woodville] doesn't take up arms to get her own way. But she is just as resolute as either Joan [of Arc] or Magaret [D'Anjou] about getting what she wants. What does she use instead? She uses sexuality. You may ask, what is wrong with that? Women have been using their sexuality to get what they want from time immemorial (...). And if there is no other way to exert power, then to use your will to procure your will is probably a good idea. However, if what you are implicitly promising (...) is not actually what you want to do, and in order to deliver you must separate yourself from yourself, then it does have its shortcomings as a negotiating tool. You pay a price; you separate yourself from your body. I say this from a woman's point of view. (...) And, as some of my young feminist friends have pointed out, you cannot change a corrupt system by using its own tools

Sometimes management thinks it must determine a minimum acceptable price upfront. This is not possible when selling an intangible company. The price, the real price, is determined by the market and not by any other means. I suggest to sellers that they not worry so much about the valuation right now but rather that we go out to the market, contact all the good buyers, get offers, and negotiate the best price that we can and then accept the highest offer. People

I found myself navigating exaggerated compliments, half-meant invitations, and gargantuan hospitality. One particular exchange that the priest had with a flower merchant summed it up for me. After a lengthy negotiation over price, the flower seller declared: “Of course, I would like you to have them for free.” Nimbler at this than I would ever have been, the priest had an equally insincere compliment ready in reply: “You know, I only came here for the pleasure of seeing you.

When he spoke again, the kidnapper seemed shell-shocked. But he went on. His next offer was lower, $10,000. Then we had the nephew answer with a strange number that seemed to come from deep calculation of what his aunt’s life was worth: $4,751. His new price? $7,500. In response, we had the cousin “spontaneously” say he’d throw in a new portable CD stereo and repeated the $4,751. The kidnappers, who didn’t really want the CD stereo felt there was no more money to be had, said yes.

1.​Set your target price (your goal). 2.​Set your first offer at 65 percent of your target price. 3.​Calculate three raises of decreasing increments (to 85, 95, and 100 percent). 4.​Use lots of empathy and different ways of saying “No” to get the other side to counter before you increase your offer. 5.​When calculating the final amount, use precise, nonround numbers like, say, $37,893 rather than $38,000. It gives the number credibility and weight. 6.​On your final number, throw in a nonmonetary item (that they probably don’t want) to show you’re at your limit.

Who will braid my hair when I’m at college?” I muse. “I will,” Peter says, all confidence. “You don’t know how,” I scoff. “The kid will teach me. Won’t you, kid?” “For a price,” Kitty says. They negotiate back and forth before finally settling on Peter taking Kitty and her friends to the movies one Saturday afternoon. Which is how I come to be sitting cross-legged on the floor while Peter and Kitty sit on the couch above me, Kitty demonstrating a French braid and Peter recording it on his phone. “Now you try it,” she says. He keeps losing a piece and getting frustrated. “You have a lot of hair, Lara Jean.” “If you can’t get the French, I’ll teach you something more basic,” Kitty says, and there is no mistaking the contempt in her voice. Peter hears it too. “No, I’m gonna get it. Just give me a second. I’m gonna master it just like I mastered the other kind of French.” He winks at me. Kitty and I both scream at him for that. “Don’t talk like that in front of my sister!” I yell, shoving him in the chest. “I was kidding!” “Also, you’re not that good at French kissing.” Even though, yeah, he is. Peter gives me a Who are you kidding? look, and I shrug, because who am I kidding?

The citizens of the City of Rome, therefore, could not believe it when toward the end of the first decade of the fifth century, they woke to find Alaric, king of the Visigoths, and all his forces parked at their gates. He might as well have been the king of the Fuzzy-Wuzzies, or any other of the inconsequential outlanders that civilized people have looked down their noses at throughout history. It was preposterous. They dispatched a pair of envoys to conduct the tiresome negotiation and send him away. The envoys began with empty threats: any attack on Rome was doomed, for it would be met by invincible strength and innumerable ranks of warriors. Alaric was a sharp man, and in his rough fashion a just one. He also had a sense of humor. “The thicker the grass, the more easily scythed,” he replied evenly. The envoys quickly recognized that their man was no fool. All right, then, what was the price of his departure? Alaric told them: his men would sweep through the city, taking all gold, all silver, and everything of value that could be moved. They would also round up and cart off every barbarian slave. But, protested the hysterical envoys, what will that leave us? Alaric paused. “Your lives.” In that pause, Roman security died and a new world was conceived.

A stranger came out to White Acre one day to sell Henry a pony, for Alma to learn to ride. The pony's name was Soames, and he was the color of sugar icing, and Alma loved him immediately. A price was negotiated. The two men settled on three dollars. Alma, who was only six years old, asked, "Excuse me, sir, but does that price also include the bridle and saddle which the pony is currently wearing?" The stranger balked at the question, but Henry roared with laughter. "She's got you there, man!" he bellowed, and for the rest of that day, he ruffled Alma's hair whenever she came nearer, saying, "What a good little auctioneer I've got as a daughter!

What is the most beautiful place you’ve ever seen?” Dragging his gaze from the beauty of the gardens, Ian looked down at the beauty beside him. “Any place,” he said huskily, “were you are.” He saw the becoming flush of embarrassed pleasure that pinkened her cheeks, but when she spoke her voice was rueful. “You don’t have to say such things to me, you know-I’ll keep our bargain.” “I know you will,” he said, trying not to overwhelm her with avowals of love she wouldn’t yet believe. With a grin he added, “Besides, as it turned out after our bargaining session, I’m the one who’s governed by all the conditions, not you.” Her sideways glance was filled with laughter. “You were much too lenient at times, you know. Toward the end I was asking for concessions just to see how far you’d go.” Ian, who had been multiplying his fortune for the last four years by buying shipping and import-export companies, as well as sundry others, was regarded as an extremely tough negotiator. He heard her announcement with a smile of genuine surprise. “You gave me the impression that every single concession was of paramount importance to you, and that if I didn’t agree, you might call the whole thing off.” She nodded with satisfaction. “I rather thought that was how I ought to do it. Why are you laughing?” “Because,” he admitted, chuckling, “obviously I was not in my best form yesterday. In addition to completely misreading your feelings, I managed to buy a house on Promenade Street for which I will undoubtedly pay five times its worth.” “Oh, I don’t think so,” she said, and, as if she was embarrassed and needed a way to avoid meeting his gaze, she reached up and pulled a leaf off an overhanging branch. In a voice of careful nonchalance, she explained, “In matters of bargaining, I believe in being reasonable, but my uncle would assuredly have tried to cheat you. He’s perfectly dreadful about money.” Ian nodded, remembering the fortune Julius Cameron had gouged out of him in order to sign the betrothal agreement. “And so,” she admitted, uneasily studying the azure-blue sky with feigned absorption, “I sent him a note after you left itemizing all the repairs that were needed at the house. I told him it was in poor condition and absolutely in need of complete redecoration.” “And?” “And I told him you would consider paying a fair price for the house, but not one shilling more, because it needed all that.” “And?” Ian prodded. “He has agreed to sell it for that figure.” Ian’s mirth exploded in shouts of laughter. Snatching her into his arms, he waited until he could finally catch his breath, then he tipped her face up to his. “Elizabeth,” he said tenderly, “if you change your mind about marrying me, promise me you’ll never represent the opposition at the bargaining table. I swear to God, I’d be lost.” The temptation to kiss her was almost overwhelming, but the Townsende coach with its ducal crest was in the drive, and he had no idea where their chaperones might be. Elizabeth noticed the coach, too, and started toward the house. "About the gowns," she said, stopping suddenly and looking up at him with an intensely earnest expression on her beautiful face. "I meant to thank you for your generosity as soon as you arrived, but I was so happy to-that is-" She realized she'd been about to blurt out that she was happy to see him, and she was so flustered by having admitted aloud what she hadn't admitted to herself that she completely lost her thought. "Go on," Ian invited in a husky voice. "You were so happy to see me that you-" "I forgot," she admitted lamely.

1.​Set your target price (your goal). 2.​Set your first offer at 65 percent of your target price. 3.​Calculate three raises of decreasing increments (to 85, 95, and 100 percent). 4.​Use lots of empathy and different ways of saying “No” to get the other side to counter before you increase your offer. 5.​When calculating the final amount, use precise, nonround numbers like, say, $37,893 rather than $38,000. It gives the number credibility and weight. 6.​On your final number, throw in a nonmonetary item (that they probably don’t want) to show you’re at your limit. The genius of this system is that it incorporates the psychological tactics we’ve discussed—reciprocity, extreme anchors, loss aversion, and so on—without you needing to think about them.

We warily sipped ‘fresh’ buffalo milk in a Krishna temple. We travelled into the Himalayas until, at a height of two kilometres above sea level where we found ourselves surrounded by men as hard and tough as the mountains that bred them. We negotiated a price of 100 rupees for one of these men to carry our two heaviest bags the 15-minute walk to the hotel with nothing more than rope and a forehead strap. I paid him 300 rupees and his face lit up! We watched the morning mist clear to reveal views of the green Doon Valley and the distant white-capped Himalayan peaks. We rode an elephant up to the Amber Fort of Jaipur, and the next day we painted, washed and fed unpeeled bananas to another elephant, marvelling at her gentle nature as we placed the bananas on her huge bubble-gum coloured tongue.

Revenue Multiples. In the section on myths we also discussed the problems associated with revenue multiples and why they are poor indicators of value. Multiples of revenues are bogus for four reasons. First, because the range of multiples is too wide to be useful. Second, because comparisons using the multiple are simply not valid. Just because one company sold for a certain multiple of revenue does not mean that another company will sell for that same multiple, even if the companies are similar. Third, revenue multiples do not consider cost structures, management talent, pricing, profitability, or growth. And fourth is the problem of narrow markets; there are only a limited number of strategic buyers who can benefit from the seller’s key assets. These buyers care only about the strategic fit with their company, not some revenue multiple. WHAT

One can hardly fault China for seizing on a great bargain, but for Zambia, the auctioning off of its most lucrative economic resources at fire-sale prices constituted another big stroke of bad national luck. Copper prices were still depressed and the government’s state of near bankruptcy at the time meant that Zambia had little negotiating power. Edith Nawakwi, who was the Zambian finance minister at the time of the sale, said that the country was pressured by its more traditional partners to accept this pittance. “We were told by advisers, who included the International Monetary Fund and the World Bank, that … for the next twenty years, Zambian copper would not make a profit. [Conversely, if we privatized] we would be able to access debt relief, and this was a huge carrot in front of us—like waving medicine in front of a dying woman. We had no option [but to go ahead].” The

Buffett was asked why he hadn't bought more Costco shares, considering that Munger owns shares and is on the board of directors. "Yeah, you hit on a good one here," Buffett replied. "We should've owned more Costco, and probably if Charlie had been sitting in Omaha, we would've owned more Costco. Charlie was constantly telling me about this terrific method of distribution, and after 10 years or so I started catching on to what he was saying, and we bought a little of Costco at Berkshire. "We actually negotiated to buy more. I made the most common mistake that I make . . . We started buying it, and the price went up, and instead of following it up and continuing to buy more. . . . If Costco had stayed at $15 a share or so, where we were buying it, we would've bought a lot more. But instead it went to 15⅛ and who could pay 15⅛ when they'd been paying $15—it wasn't quite that bad. But I have made that mistake a lot of times, and it's very irritating."23

When we subtract two numbers, say, 9 − 6, the time that we take is directly proportional to the size of the subtracted number34—so it takes longer to perform 9 − 6 than, say, 9 − 4 or 9 − 2. Everything happens as if we have to mentally move along the number line, starting from the first number and taking as many steps as the second number: the further we have to go, the longer we take. We do not crunch symbols like a digital computer; instead, we use a slow and serial spatial metaphor, motion along the number line. Likewise, when we think of a price, we cannot help but attribute to it a fuzzier value when the number gets larger—a remnant of our primate-based number sense, whose precision decreases with number size.35 This is why, against all rationality, when we negotiate, we are ready to give up a few thousand dollars on the price of an apartment and, the same day, bargain a few quarters on the price of bread: the level of imprecision that we tolerate is proportional to a number’s value, for us just as for macaques.

You often find this difference between different types of investors. Some will tell you that all the value is in driving down the price you pay as low as possible. These investors revel in the transaction itself, in playing with the deal terms, in beating up their opponent at the negotiating table. That has always seemed short term to me. What that thinking ignores is all the value you can realize once you own an asset: the improvements you can make, the refinancing you can do to improve your returns, the timing of your sale to make the most of a rising market. If you waste all your energy and goodwill in pursuit of the lowest possible purchase price and end up losing the asset to a higher bidder, all that future value goes away. Sometimes it’s best to pay what you have to pay and focus on what you can then do as an owner. The returns to successful ownership will often be much higher than the returns on winning a one-off battle over price. At the price I suggested, I calculated that we would lock in a 16 percent annual yield.

QUESTIONS TO IDENTIFY AND DIFFUSE DEAL-KILLING ISSUES Internal negotiating influence often sits with the people who are most comfortable with things as they are. Change may make them look as if they haven’t been doing their job. Your dilemma in such a negotiation is how to make them look good in the face of that change. You’ll be tempted to concentrate on money, but put that aside for now. A surprisingly high percentage of negotiations hinge on something outside dollars and cents. Often they have more to do with self-esteem, status, autonomy, and other nonfinancial needs. Think about their perceived losses. Never forget that a loss stings at least twice as much as an equivalent gain. For example, the guy across the table may be hesitating to install the new accounting system he needs (and you are selling) because he doesn’t want to screw anything up before his annual review in four months’ time. Instead of lowering your price, you can offer to help impress his boss, and do it safely, by promising to finish the installation in ninety days, guaranteed.

Look around you, piglet. What do you see? Same thing you see in the mirror—fat, weak, lazy slugs. The gene pool so diluted that you can barely recognize these pale blobs as human, all their juice watered down. We did this to ourselves, piglet. Back before you and me were born, all the politicians got scared about all the crime, and all the wars, so they pumped everybody full of antidepressants and soy and estrogen, trying to dull that fire, that natural fire that’s supposed to burn inside all of us. They gave all the men porn and video games, to soak up their conqueror instincts. Worked like a charm—crime went way down, rape went way down, pregnancy went way down. And the only price was they turned all the men into fat little toothless blobs and the girls into arrogant, squealing little piglets, like you. Puttin’ that fire out forever, that natural fire that comes from the balls. The fire that built this world. Well, I’m here to tell you, there are still some men left. So no, there’s not gonna be no negotiation. The lion don’t negotiate with the gazelle.” He

Believe me," Dr. Tamalet summed up, "if you wanted that operation in France, you could get it" Which is, of course, the boon and the bane of France's health care system. It offers a maximum of free choice among skillful doctors and well-equipped hospitals, with little or not waiting, at bargain-basement prices [in out-of-pocket terms to the consumer]. It's a system that enables the French to live longer and healthier lives, with zero risk of financial loss due to illness. But somebody has to pay for all that high-quality, ready-when-you-need-it care--and the patients, so far, have not been willing to do so. As a result, the major health insurance funds are all operating at a deficit, and the costs of the health care system are increasing significantly faster than the economy as a whole. That's why the doctors keep striking and the sickness funds keep negotiating and the government keeps going back to the drawing board, with a new 'major health care reform' every few years. So far, the saving grace for France's system has been the high level of efficiency, as exemplified by the 'carte vitale,' that keeps administrative costs low--much lower than in the United States.

When Joe and I went to meet Goldman’s real estate team, though, we found they had a different view of the risks of this deal. Goldman wanted to bid as low as possible to avoid overpaying. For me, the biggest risk was not offering enough and missing out on a tremendous opportunity. I wanted to make sure we beat Bankers Trust’s expected bid. You often find this difference between different types of investors. Some will tell you that all the value is in driving down the price you pay as low as possible. These investors revel in the transaction itself, in playing with the deal terms, in beating up their opponent at the negotiating table. That has always seemed short term to me. What that thinking ignores is all the value you can realize once you own an asset: the improvements you can make, the refinancing you can do to improve your returns, the timing of your sale to make the most of a rising market. If you waste all your energy and goodwill in pursuit of the lowest possible purchase price and end up losing the asset to a higher bidder, all that future value goes away. Sometimes it’s best to pay what you have to pay and focus on what you can then do as an owner. The returns to successful ownership will often be much higher than the returns on winning a one-off battle over price.

Decouplers often trip up on this step in two ways. First, they are overly generic in articulating the CVC. When mapping the process of buying a car, auto executives tend to describe it as: feel the need to buy car > become aware of a car brand > develop an interest in the brand > visit the dealer > purchase the car. This is a start, but it is not specific enough. Decouplers must ask: When do people actually need a new car? How exactly do people become aware of car brands? How do people become interested in a make or model? And so on. The generic process of awareness, interest, desire, and purchase isn’t specific enough to help. Decouplers also flounder by failing to identify all the relevant stages in the value chain. For the car-buying process, a better description of the CVC might be: become aware that your car lease will expire in one month > feel the need to purchase a new car > develop a heightened interest in car ads > visit car manufacturers’ websites > create a set of two or three brands of interest > visit third-party auto websites > compare options of cars in the same category > choose a model > shop online for the best price > visit the nearest dealer to see if they have the model in stock > see if they can beat the best online price > test-drive the cars > decide about financing, warranty, and other add-ons > negotiate a final price > sign the contract > pick up the car > use it > wait for the lease to expire again. With this far more detailed CVC, we can fully appreciate the complexity of the car-buying

It was in her abode, in the janitorial quarters assigned her on the ground floor rear, that seemingly inoffensive Mrs. Shapiro set up a clandestine alcohol dispensary—not a speakeasy, but a bootleg joint, where the Irish and other shikkers of the vicinity could come and have their pint bottles filled up, at a price. And several times on weekends, when Ira was there, for he got along best with Jake, felt closest to him, because Jake was artistic, some beefy Irishman would come in, hand over his empty pint bottle for refilling, and after greenbacks were passed, and the transaction completed, receive as a goodwill offering a pony of spirits on the house. And once again those wry (rye? Out vile pun!), wry memories of lost opportunities: Jake’s drab kitchen where the two sat talking about art, about Jake’s favorite painters, interrupted by a knock on the door, opened by Mr. Shapiro, and the customer entered. With the fewest possible words, perhaps no more than salutations, purpose understood, negotiations carried out like a mime show, or a ballet: ecstatic pas de deux with Mr. McNally and Mr. Shapiro—until suspended by Mr. Shapiro’s disappearance with an empty bottle, leaving Mr. McNally to solo in anticipation of a “Druidy drunk,” terminated by Mr. Shapiro’s reappearance with a full pint of booze. Another pas de deux of payment? Got it whole hog—Mr. Shapiro was arrested for bootlegging several times, paid several fines, but somehow, by bribery and cunning, managed to survive in the enterprise, until he had amassed enough wealth to buy a fine place in Bensonhurst by the time “Prohibition” was repealed. A Yiddisher kupf, no doubt.

Regret can improve decisions. To begin understanding regret’s ameliorative properties, imagine the following scenario. During the pandemic of 2020–21, you hastily purchased a guitar, but you never got around to playing it. Now it’s taking up space in your apartment—and you could use a little cash. So, you decide to sell it. As luck would have it, your neighbor Maria is in the market for a used guitar. She asks how much you want for your instrument. Suppose you bought the guitar for $500. (It’s acoustic.) No way you can charge Maria that much for a used item. It would be great to get $300, but that seems steep. So, you suggest $225 with the plan to settle for $200. When Maria hears your $225 price, she accepts instantly, then hands you your money. Are you feeling regret? Probably. Many people do, even more so in situations with stakes greater than the sale of a used guitar. When others accept our first offer without hesitation or pushback, we often kick ourselves for not asking for more.[2] However, acknowledging one’s regrets in such situations—inviting, rather than repelling, this aversive emotion—can improve our decisions in the future. For example, in 2002, Adam Galinsky, now at Columbia University, and three other social psychologists studied negotiators who’d had their first offer accepted. They asked these negotiators to rate how much better they could have done if only they’d made a higher offer. The more they regretted their decision, the more time they spent preparing for a subsequent negotiation.[3] A related study by Galinsky, University of California, Berkeley’s, Laura Kray, and Ohio University’s Keith Markman found that when people look back at previous negotiations and think about what they regretted not doing—for example, not extending a strong first offer—they made better decisions in later negotiations. What’s more, these regret-enhanced decisions spread the benefits widely. During their subsequent encounters, regretful negotiators expanded the size of the pie and secured themselves a larger slice. The very act of contemplating what they hadn’t done previously widened the possibilities of what they could do next and provided a script for future interactions.[4]

Think about it,” Obama said to us on the flight over. “The Republican Party is the only major party in the world that doesn’t even acknowledge that climate change is happening.” He was leaning over the seats where Susan and I sat. We chuckled. “Even the National Front believes in climate change,” I said, referring to the far-right party in France. “No, think about it,” he said. “That’s where it all began. Once you convince yourself that something like that isn’t true, then…” His voice trailed off, and he walked out of the room. For six years, Obama had been working to build what would become the Paris agreement, piece by piece. Because Congress wouldn’t act, he had to promote clean energy, and regulate fuel efficiency and emissions through executive action. With dozens of other nations, he made climate change an issue in our bilateral relationship, helping design their commitments. At international conferences, U.S. diplomats filled in the details of a framework. Since the breakthrough with China, and throughout 2015, things had been falling into place. When we got to Paris, the main holdout was India. We were scheduled to meet with India’s prime minister, Narendra Modi. Obama and a group of us waited outside the meeting room, when the Indian delegation showed up in advance of Modi. By all accounts, the Indian negotiators had been the most difficult. Obama asked to talk to them, and for the next twenty minutes, he stood in a hallway having an animated argument with two Indian men. I stood off to the side, glancing at my BlackBerry, while he went on about solar power. One guy from our climate team came over to me. “I can’t believe he’s doing this,” he whispered. “These guys are impossible.” “Are you kidding?” I said. “It’s an argument about science. He loves this.” Modi came around the corner with a look of concern on his face, wondering what his negotiators were arguing with Obama about. We moved into the meeting room, and a dynamic became clear. Modi’s team, which represented the institutional perspective of the Indian government, did not want to do what is necessary to reach an agreement. Modi, who had ambitions to be a transformative leader of India, and a person of global stature, was torn. This is one reason why we had done the deal with China; if India was alone, it was going to be hard for Modi to stay out. For nearly an hour, Modi kept underscoring the fact that he had three hundred million people with no electricity, and coal was the cheapest way to grow the Indian economy; he cared about the environment, but he had to worry about a lot of people mired in poverty. Obama went through arguments about a solar initiative we were building, the market shifts that would lower the price of clean energy. But he still hadn’t addressed a lingering sense of unfairness, the fact that nations like the United States had developed with coal, and were now demanding that India avoid doing the same thing. “Look,” Obama finally said, “I get that it’s unfair. I’m African American.” Modi smiled knowingly and looked down at his hands. He looked genuinely pained. “I know what it’s like to be in a system that’s unfair,” he went on. “I know what it’s like to start behind and to be asked to do more, to act like the injustice didn’t happen. But I can’t let that shape my choices, and neither should you.” I’d never heard him talk to another leader in quite that way. Modi seemed to appreciate it. He looked up and nodded.

The Antigua cruise port of Saint. Johns almost guarantees that site visitors will find a lot of beaches pertaining to swimming as well as sunbathing. It isn't really an official promise. It's just that the island features 365 beaches or one for every day's the year. Vacation cruise visitors will see that the cruise amsterdam shorelines are not correct by the docks as they might find within other locations such as Philipsburg, St. Maarten. Getting to the higher beaches will need transportation by means of pre-arranged excursion shuttle, taxi as well as car rental. However, they will likely find that shorelines are peaceful, peaceful and uncrowded because there are a lot of them. 3 beaches in close proximity to St. Johns are Runaway These types of, Dickinson Beach and Miller's Beach (also called Fort These types of Beach). Saint. Johns Antigua Visit It is possible to look, dine as well as spend time at the actual beach after a cruise pay a visit to. Anyone who doesn't have interest in a seaside will find plenty of shopping right by the Barbados cruise fatal. Heritage Quay is the main searching area. It's got many stalls filled with colorful things to acquire, some community and some not really. Negotiating over price is widespread and recognized. Redcliffe Quay is close to Heritage and provides many further shopping and also dining chances. Walk somewhat farther and you'll find yourself upon well-maintained streets with more traditional searching. U.Ersus. currency and a lot major charge cards are accepted everywhere. Tipping is common which has a recommended range of 10 to 15 per cent. English will be the official words. Attractions Similar to most Caribbean islands, Antigua provides strong beginnings in Yesteryear history. Your island's main traditional district and something of its most favored attractions can be English Harbor. Antigua's historic section was created as a bottom for the United kingdom navy in the 1700s right up until its closure in 1889. It is now part of the 15 square mls of Nelson's Dockyard Countrywide Park.

Rocco watched Strike limp into the human slipstream of Eighth Avenue, watched him negotiate his way through lowlifes and taxpayers until he disappeared inside the terminal doors without a backward glance.

The way Brad’s business works,” she said, “is that companies who are looking to expand send his agency locations where they want to go, and I don’t mean towns or regions. I mean coordinates. Latitude and longitude. Often they’ve already identified the site themselves.” “Why don’t they just buy the property themselves?” I asked. “Something about retailers not wanting to also be in real estate,” she said with a shrug. “It never made much sense to me either, but apparently it’s about showing their investors that they are staying within a particular area of business expertise and subcontracting for related services. Anyway. So a company like yours—Great Deal, right?” “Right.” “Great Deal says they want three stores in metro Atlanta in these locations and they’ll pay between one and three million per lot. Brad goes in, negotiates the deal with the property owner through a broker, ensures the land is suitable, then purchases it for Great Deal. But say he finds out that the seller will part with the land for only a few hundred thousand? He knows Great Deal will pay way more than that so . . .” “He convinces the seller to ask for a higher price and gets a cut of the extra?” I suggest. “Worse,” she said, and now her previous despondency settled back into her body so that she sagged and, for a second, squeezed her eyes shut. “He buys the land himself. Sets up a shell company under someone else’s name, then tries to sell it on to Great Deal at the markup he knows they’ll pay. A million plus profit per site.

Respond to a punch by pivoting terms, like switching to non-monetary issues when bargaining over price.   Say something like "What else can you offer to make this a good deal for me?" If your counterpart tries to force you to go first, wiggle your way out of it by alluding to a high figure someone else would charge.  Getting the other guy to go first gives you valuable information about him.  You can do it, as long as you know how to handle the first punch.

There’s Tom,” Becky says. He’s been tromping around the city half the day, but I don’t see a speck of mud on him. Though he dresses plain, it always seems he rolls out of bed in the morning with his hair and clothes as neat and ordered as his arguments. We walk over to join him, and he acknowledges us with a slight, perfectly controlled nod. He’s one of the college men, three confirmed bachelors who left Illinois College to join our wagon train west. Compared to the other two, Tom Bigler is a bit of a closed book—one of those big books with tiny print you use as a doorstop or for smashing bugs. And he’s been closing up tighter and tighter since we blew up Uncle Hiram’s gold mine, when Tom negotiated with James Henry Hardwick to get us out of that mess. “How goes the hunt for an office?” I ask. “Not good,” Tom says. “I found one place—only one place—and it’s a cellar halfway up the side of one those mountains.” Being from Illinois, which I gather is flat as a griddle, Tom still thinks anything taller than a tree is a mountain. “Maybe eight foot square, no windows and a dirt floor, and they want a thousand dollars a month for it.” “Is it the cost or the lack of windows that bothers you?” He pauses. Sighs. “Believe it or not, that’s a reasonable price. Everything else I’ve found is worse—five thousand a month for the basement of the Ward Hotel, ten thousand a month for a whole house. The land here is more valuable than anything on it, even gold. I’ve never seen so many people trying to cram themselves into such a small area.” “So it’s the lack of windows.” He gives me a side-eyed glance. “I came to California to make a fortune, but it appears a fortune is required just to get started. I may have to take up employment with an existing firm, like this one.” Peering at us more closely, he says, “I thought you were going to acquire the Joyner house? I mean, I’m glad to see you, but it seems things have gone poorly?” “They’ve gone terribly,” Becky says. “They haven’t gone at all,” I add. “They’ll only release it to Mr. Joyner,” Becky says. Tom’s eyebrows rise slightly. “I did mention that this could be a problem, remember?” “Only a slight one,” I say with more hope than conviction. “Without Mr. Joyner’s signature,” Becky explains, “they’ll sell my wedding cottage at auction. Our options are to buy back what’s ours, which I don’t want to do, or sue to recover it, which is why I’ve come to find you.” If I didn’t know Tom so well, I might miss the slight frown turning his lips. He says, “There’s no legal standing to sue. Andrew Junior is of insufficient age, and both his and Mr. Joyner’s closest male relative would be the family patriarch back in Tennessee. You see, it’s a matter of cov—” “Coverture!” says Becky fiercely. “I know. So what can I do?” “There’s always robbery.” I’m glad I’m not drinking anything, because I’m pretty sure I’d spit it over everyone in range. “Tom!” Becky says. “Are you seriously suggesting—?” “I’m merely outlining your full range of options. You don’t want to buy it back. You have no legal standing to sue for it. That leaves stealing it or letting it go.” This is the Tom we’ve started to see recently. A little angry, maybe a little dangerous. I haven’t made up my mind if I like the change or not. “I’m not letting it go,” Becky says. “Just because a bunch of men pass laws so other men who look just like them can legally steal? Doesn’t mean they should get away with it.” We’ve been noticed; some of the men in the office are eyeing us curiously. “How would you go about stealing it back, Tom?” I ask in a low voice, partly to needle him and partly to find out what he really thinks. He glances around, brows knitting. “I suppose I would get a bunch of men who look like me to pass some laws in my favor and then take it back through legal means.” I laugh in spite of myself. “You’re no help at all,” Becky says.

price is only one part of any deal. It is equally important to build a personal relationship as part of the negotiation process because you need the other side’s help

Although all the major industrial countries and a multitude of business units participate in the world trade in chemicals, the forces of free competition do not rule the world markets. The techniques of business diplomacy frequently supplement and in some instances have supplanted independent decision making by separate producers in response to free market forces. The geographic and industrial areas within which particular companies will operate, the scale of their output, the prices of their products, the use or nonuse of their technology, have increasingly become objects of negotiation, subjects of national and international agreement. More and more the conference table has been taking the place of the market as a regulator if the chemical industries.

not be deceived by revenue multiples; for most purposes they are irrelevant. Revenue multiples are rarely comparable from one transaction to another and they ignore some key business concepts—profits, pricing, expenses, and growth. The

Selling-oriented retailers can be tough to deal with because they are determined to secure better terms than their quasi-identical competitors. Their biggest fear during negotiations is that they did not squeeze manufacturers hard enough and left some margin on the table that may be given up to a more determined competitor, who will use it to undercut them on price.

retailers can sometimes focus on their competition so much that they are often less astute when buying (i.e. their competitive effort is directed horizontally rather than vertically). In these circumstances it is not unusual for a manufacturer to find that it is possible to raise the list price offered to all retailers without being criticised. The retailers are focusing on the discount from the given list price, as the list price is known to be common to all retailers. Thus, the objective for retailers in the negotiations is to win greater discounts, bonuses, promotions support, delays of payment and so on than other retailers, but not primarily to compete for profit with the manufacturer.

Retailers thus embarked on a discounter strategy by developing large sites and maximising efficiency, building high volume with low prices and then negotiating appropriate discounts from manufacturers, investing in technology and reducing logistics costs. This

This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technologically sophisticated, like detergents and coffee, there are few top-quality suppliers willing to entertain private label, hence manufacturer brands are in the driver’s seat. For example, Procter & Gamble, Unilever, Henkel and Colgate hold all but the cheapest segment of the washing-powder market, and Nestlé, Kraft and Unilever hold onto the instant-coffee market. Their technological leads, backed by communication focused on the functional and taste superiority, has kept private label share below average in most countries. It is tempting for manufacturers to believe that advertising will protect their brands, but if retailers can match a brand on product quality there is usually no stopping them. This is because a well-tended retail master brand provides a sufficient level of trust for the consumer to at least try the product if prominently presented and well priced in-store.

Broken Antler Gallery for three seasons, and I knew buyers sometimes disparaged a work as a ploy to negotiate a lower price. “I like it,” said her husband. I felt a rush of fondness for him but kept my expression reserved. Had he come in alone, he would have bought the first painting he saw and tomorrow morning I’d be crating it up for shipment to their home in Hoboken, New Jersey. Instead,

Discounters’ profits came and still come from buying competitively while handling financial operations, logistics and property business more astutely than other retailers can. The high-volume, low-operating-cost model allowed them to offer lower prices and more choice, while maintaining acceptable service levels; their goal was to move a lot of product and make small percentage profits on high volumes, which improves efficiency and gives them the power to negotiate with manufacturers.

Seeking a compelling example of the company’s poor purchasing habits, Stegner assigned a summer student intern to investigate a single item—work gloves, which workers in most of the company’s factories wore. The student embarked on a mission to identify all the types of gloves used in all the company’s factories and then trace back what the company was paying for them. The intrepid intern soon reported that the factories were purchasing 424 different kinds of gloves! Furthermore, they were using different glove suppliers, and they were all negotiating their own prices. The same pair of gloves that cost $5 at one factory might cost $17 at another. At Stegner’s request, the student collected a specimen of every one of the 424 different types of gloves and tagged each with the price paid. Then all the gloves were gathered up, brought to the boardroom, and piled up on the conference table. Stegner invited all the division presidents to come visit the Glove Shrine. He recalled the scene: What they saw was a large expensive table, normally clean or with a few papers, now stacked high with gloves. Each of our executives stared at this display for a minute. Then each said something like, “We really buy all these different kinds of gloves?” Well, as a matter of fact, yes we do. “Really?” Yes, really. Then they walked around the table…. They could see the prices. They looked at two gloves that seemed exactly alike, yet one was marked $3.22 and the other $10.55. It’s a rare event when these people don’t have anything to say. But that day, they just stood with their mouths gaping. The gloves exhibit soon became a traveling road show, visiting dozens of plants. The reaction was visceral: This is crazy. We’re crazy. And we’ve got to make sure this stops happening.

There are many small charges that are tacked on to your monthly bill statements, such as credit cards, cable, Internet, utilities, and ATM fees. All of them seem like a small amount, but when you add them up, the total amount wasted each month can be startling. They are the proverbial death of a thousand cuts. By creating a monthly habit to review these bills, you can identify opportunities to reduce or eliminate your recurring expenditures. Description: Once a month, go through each statement and highlight any questionable item. Also, if you feel that you’re spending too much money in a specific category, then earmark that expenditure. You’ll call this company and negotiate a lower price, which we’ll talk about next.

At the 2002 International AIDS Conference in Barcelona, Bill had a conversation with Nelson Mandela about the urgent need to lower the price of HIV/AIDS drugs in Africa and across the world. Bill figured he was well positioned to help, so he began negotiating agreements with drugmakers and governments to lower medicine prices dramatically and to raise the money to pay for it. It worked. More than 11.5 million people in more than seventy countries now have access to cheaper HIV/AIDS treatment. Right now, out of everyone being kept alive by these drugs in developing countries around the world, more than half the adults and 75 percent of the children are benefiting from the Clinton Foundation’s work.

Salespeople who sell on price alone often negotiate win-lose agreements: these are wins for the customer but losses for the salesperson, who earns just a tiny bit of money for himself and his company.

map out all the activities in that group’s typical customer value chain. Decouplers often trip up on this step in two ways. First, they are overly generic in articulating the CVC. When mapping the process of buying a car, auto executives tend to describe it as: feel the need to buy car > become aware of a car brand > develop an interest in the brand > visit the dealer > purchase the car. This is a start, but it is not specific enough. Decouplers must ask: When do people actually need a new car? How exactly do people become aware of car brands? How do people become interested in a make or model? And so on. The generic process of awareness, interest, desire, and purchase isn’t specific enough to help. Decouplers also flounder by failing to identify all the relevant stages in the value chain. For the car-buying process, a better description of the CVC might be: become aware that your car lease will expire in one month > feel the need to purchase a new car > develop a heightened interest in car ads > visit car manufacturers’ websites > create a set of two or three brands of interest > visit third-party auto websites > compare options of cars in the same category > choose a model > shop online for the best price > visit the nearest dealer to see if they have the model in stock > see if they can beat the best online price > test-drive the cars > decide about financing, warranty, and other add-ons > negotiate a final price > sign the contract > pick up the car > use it > wait for the lease to expire again. With this far more detailed CVC, we can fully appreciate the complexity of the car-buying

Mrs. Lowry’s golden rule of negotiation is to never reveal your price tag until you convince the other party he cannot live without your product.

If a guy is going to dominate you, let him dominate you on the price of something like a hand drawing in this case, something that doesn’t matter. If you find yourself in a similar situation (the day will come when this happens to you, too), then pick something abstract and start an intense price negotiation over it—and it doesn’t matter if you win or lose. The power of the person’s frame is rendered trivial, and the focus is back to you and what you want to do with the meeting.

Even if you show the full value, some customers will never pay. When I first started selling Connex for QuickBooks, one of my first trial users was a small startup that barely made $2,000 per month. He hammered me for support through multiple phone calls. He was trying to negotiate me down from $20 per month to an even lower price. I told him to hit the road. I learned a couple of lessons: Avoid getting too invested in trial users. Unless you have qualified a prospect, do not spend too much time with her. A common negotiating tactic is to make you invest a lot of time before trying to talk you down. Prospects figure you will not give up because you have invested so much. Avoid pricing yourself out of business. If you price your product low, people fail to see the value. They think there are hidden fees. As I raised prices, we attracted higher-value clients that were less troublesome. Avoid features. The small business and I discussed a QuickBooks sync, instead of the money we saved on data-entry. I could have asked how many hours he spent hand entering sales or how much he paid someone else for data entry.

Similar to the rebates we discussed earlier, pre-payment creates a strong barrier dissuading a customer from switching to a competitor. I do not think that you will get prepayment 100% of the time, but I think you can successfully obtain this 25–35% of the time if you ask for it all of the time. When you ask, I would encourage you to make it a first concession issue rather than a first offer issue. I will offer a price that I know the other side will react to by saying it is “too high.” In response, I concede to lower my price if they pay me in advance.

If all you do is to reduce price, then all you do is not get paid a lot of money. As you think about expanding footprint in a customer's account, you want to consider how you can create barriers to switching from your company to someone else's (pre-payment, rebates, exclusivity, and embeddedness), how you can know more about the customer's business than others (embeddedness and exclusivity), and how you can incent the customer to give you more work (volume incentives in the form of volume discounts and rebates).

In very short order, we were able to persuade Blackstone to raise its bid to $48.50 a share for a total of $20 billion, plus $16 billion in debt, or $36 billion total. I insisted that our agreement include an unusually small breakup fee so other potential bidders wouldn’t be discouraged. The typical breakup fee is up to 3 percent of the selling price, but I set ours at $200 million—around 1 percent of the offer’s equity value. Obviously, this didn’t sit well with Blackstone, but it was not negotiable.

As an aside, the deal’s terms also included a provision that precluded Blackstone from sharing any information about our transaction. As a result, they could not prearrange sales of any of the buildings to help offset the risk of their bet. This would turn out to be a critical negotiating point to secure the highest price possible for Equity Office later on.

After contracting Lyme disease and operating at ~10% capacity for 9 months in 2014, I made health #1. Prior to Lyme, I’d worked out and eaten well, but when push came to shove, “health #1” was negotiable. Now, it’s literally #1. What does this mean? If I sleep poorly and have an early morning meeting, I’ll cancel the meeting last-minute if needed and catch up on sleep. If I’ve missed a workout and have a conference call coming up in 30 minutes? Same. Late-night birthday party with a close friend? Not unless I can sleep in the next morning. In practice, strictly making health #1 has real social and business ramifications. That’s a price I’ve realized I MUST be fine with paying, or I will lose weeks or months to sickness and fatigue. Making health #1 50% of the time doesn’t work. It’s absolutely all-or-nothing. If it’s #1 50% of the time, you’ll compromise precisely when it’s most important not to. The artificial urgency common to startups makes mental and physical health a rarity. I’m tired of unwarranted last-minute “hurry up and sign” emergencies and related fire drills. It’s a culture of cortisol.

kidnappers are just businessmen trying to get the best price.

the only way a deal was going to take place was if he was willing to take price off the table as a bargaining point. That was an indirect way of warning Fuld that he didn’t have much negotiating power—or time.

Don’t back yourself into a corner and start negotiating against yourself at the start, like “It’s ten thousand dollars per seat, but don’t worry, I can get you a deal.” Just state the pricing and the rationale that backs it, shut the hell up, and see what the reaction is.

While great negotiators can sometimes turn situations where there is a gap between buyer and seller MAOs, in many cases, the price gap is impossible to overcome and the likelihood of a deal is small. For that reason, we typically like to take one of two approaches to these types of negotiations: Go in with a very low offer (typically at or below your target price) in hopes of shocking the seller into realizing that his property is worth much less than he had thought. If he doesn’t walk away and is still willing to negotiate, there is a chance that he is more highly motivated than you had anticipated, and he may reduce his MAO. If we wanted to go this route for the example above, we’d likely pick an opening price bid somewhere in the $140,000 to $150,000 range. Communicate to the seller that you don’t want to insult him with a low price and that you don’t plan to make an offer. The seller will either thank you for your honesty (in which case there was no deal to be made), or the seller will ask you what your price would have been. If the seller is interested in what you would have offered, that’s an indication that he may be more motivated than we suspected, and again, may be willing to move off his MAO. If the seller asks you what your offer would have been, we typically will present the offer exactly as we did in the first example above, but indicate that we might have a bit of flexibility in that price.

By focusing on the agreeable issues, the other party will get the sense that progress is being made—that an agreement is on the horizon—and they will be more inclined to continue moving forward with the discussions. For example, you might write down a counteroffer and say to a seller: Investor: “Okay, it sounds like we both agree on the major points— we’re going to pay for the property in cash, we’ll close on your preferred date of February 16, and my partner will need to see the property and sign off on the deal. Now, all we need to do is come together on price. I know you said that you couldn’t do $87,500—what if I can increase my offer to $90,000, and we include a five-day inspection period for me to bring in my contractors to take a look at the property? Will that work for you?” In this case, even if the parties were far apart in price, we’re sending the message to the seller that we’re actually pretty close to a deal. In fact, I like to reiterate all the things we agree upon every time I make a counteroffer.

This is also a great tactic if negotiations ever stall—revisit the things both parties agree upon and remind the seller of more of those things that may not have been discussed for a while. For example, if things have come to a standstill in the negotiation, you might say: Investor: “I know we haven’t yet agreed on price, but I think we’re pretty close here. Remember, we’re happy to take the house as-is— you don’t have to clean out the basement or the garage. And our title company is happy to come here to your house to sign all the paperwork, just to make everything more convenient. My offer of $90,000 really is my top number, but I want you to be confident you are getting a great deal, so I’ll give up some of my profit and go to $91,500. Can we close on that?

Non-Round Numbers Are Better at Anchoring Choosing a round number will send the message—especially to experienced negotiators—that you have no specific rationale for that price. And, if you have no rationale for a price, it’s reasonable to assume that you aren’t committed to that price. For example, if a house is listed at $250,000, and you offer $200,000, a smart seller will realize that it’s unlikely that $200,000 number has any specific meaning to you, and that you’re likely just fishing to see if the seller will budge on their price. On the other hand, if you were to offer, $204,200 on that same house, the seller will assume there was thought put into that offer, and will likely believe that the number has some specific meaning. You could reinforce this belief by communicating additional information to the seller when making the offer. For example, before offering $204,200, you might say to the seller: Investor: “I’m glad I met you today… this is actually perfect timing. I just left a closing this morning where I sold a previous property, and I have some cash available to make another purchase.” You haven’t said that the amount of cash you have available is $204,200, but given that your offer is so specific, the seller will likely assume a connection. The seller is now anchored to your $204,200 number, subconsciously thinking that this number is important to your side of the negotiation, perhaps even a requirement for you. Later in the negotiation, you can reinforce this anchor by saying something to the effect of: Investor: “I only have a specific amount of cash available to invest right now. I may be able to increase my offer a little bit, but not much.” Without saying it, you have reinforced the belief that $204,200 is the specific amount you have available to purchase the property, though you’re willing to reluctantly try to find a few more nickels under the sofa cushion.

While the payoff price of the property shouldn’t necessarily drive your opening offer, you should realize that in most cases, the payoff price of the house will be the seller’s worst-case MAO (this is what they need to get from the sale). In many cases, their MAO will be higher than the payoff (they want to walk away with additional cash from the sale), but rarely will it be lower.

Gay couples are sometimes an exception to this rule. Having lived for so long outside the standard social norms and fought valiantly for sexual self-determination, they are highly aware of the price of sexual confinement and not so eager to shackle themselves. They are more likely to openly negotiate monogamy than tacitly assume it.

Borck recognized that as meatpackers consolidated, they needed bigger feed yards to meet their demand. Smaller operations like Ward Feed Yard were getting left behind, and they were getting paid several cents less for every pound of beef they delivered to the meatpackers. Those economics would eventually drive them all out of business. So Borck pitched an idea to some of his competitors. They could form a partnership and leave the cash market, delivering all their cattle to IBP’s new megaplants4. The feed yards agreed, and they formed a cooperative called the Beef Marketing Group. Together, the cooperative delivered the kind of tremendous volume that IBP, now Tyson, needed to stay profitable. The Beef Marketing Group now includes fourteen feedlots, which operate as one entity in concert with Tyson Foods. The company pays them according to a grid system. Tyson ranks the cattle BMG delivers based on a grid that charts their qualities. A copy of one of Tyson’s grid contracts shows the company pays premiums for cattle that are graded as choice beef and imposes discounts for cattle graded as select beef, for example. The grid also penalizes carcasses that weigh less than 500 pounds and more than 1,000 pounds. The critical part of this grid contract is that it bases its final price on the cash market. If cattle is selling for $1.20 a pound, for example, Tyson will apply all the discounts and premiums of its grid against that price. This means that cattle prices on the shrinking cash market determine the prices for the millions of cattle sold under contract. So people like Ken Winter, who negotiate their cattle, are essentially working to help contract feeders like Lee Borck derive a price for their animals. But as Lee Borck sells more animals through a closed contract system, it takes that much more oxygen out of the cash market and makes it all the harder to negotiate a higher price.

W.A.C. Bennett grew tired of the company’s obstinance. In August 1961, after rumors of a potential takeover had circulated within the province for months, Bennett introduced the Power Development Act into the legislature in order to confiscate BC Electric for C$111.0 million. The bill passed unanimously, allowing the government to seize control of the utility. The move was highly controversial, sparking an uproar within the business press, with some overly dramatic papers even labeling Bennett a dictator. In an unfortunate coincidence, the head of British Columbia Power and BC Electric, A.E. “Dal” Grauer, had passed away a few days earlier, and his funeral transpired on the very same day the government took over the company he had led.184 In addition to taking BC Electric, the bill offered to buy the rest of BC Power for C$68.6 million, with interest accruing on this amount until the offer expired at the end of July 1963. Combined with the C$111.0 million paid for BC Electric, this offer would result in a total payment for all of BC Power’s operations of C$179.6 million—or the equivalent of C$38.00 per share. Bennett justified this price by highlighting that the proposal was a premium to the C$34.75 price the shares sold for the day before the expropriation.185 While the combined price of C$38.00 per share was reasonable, the valuation for the constituent parts was peculiar. The C$111.0 million price for BC Electric matched its paid-in capital but ignored the other C$28.6 million of common book equity. And this amount sidestepped the debate over whether book value was even an appropriate methodology for the utility in the first place. The C$68.6 million price for the rest of BC Power’s assets was even odder since these remnant assets generated no income and were carried on the balance sheet at only C$4.0 million. This was a clear overpayment for the holding company’s assets, proposed to entice it into consenting to the BC Electric takeover.186 Predictably, BC Power did not stand idly by. After preliminary attempts to negotiate a higher price were thwarted, the company took action in the Supreme Court of British Columbia on November 13, 1961. BC Power sought rulings on the validity of the initial Act, the right to additional compensation, and the convertibility feature of debentures issued by BC Electric (more on this last point in the next section).187 While the parties awaited trial, the government took additional steps to further entrench the takeover. At the end of March 1962—nearly eight months after the original seizure—the British Columbia legislature passed two new statutes. The first was the province’s amendment of the Power Development Act, which paid an additional C$60.8 million to BC Power for BC Electric and eliminated the offer for the rest of the parent company’s assets. Table 1 shows that the amendment didn’t significantly alter the total compensation. But the new consideration was a more realistic number for BC Electric and solved for the peculiar offer for the remaining assets, which BC Power would now have to sell themselves.

Despite the brightness of the sun, I shivered in the brisk November air, for I had not taken a cloak with me when I had left my parlor. As if by magic, one fell about my shoulders, and I knew without looking that Narian had joined us. His mere presence bolstered my courage and brought my thoughts into focus. I scanned the throng of eager Hytanicans, some of whom were gathered inside the Central Courtyard with more outside its walls, then raised my hands to quiet them. Taking a deep breath, I began to speak. “Spread the word. Tell your families and friends. Let it be known across the Recorah River Valley that I am proud to be Queen of this Kingdom of Hytanica!” Cheers exploded, rising and falling in waves, and I let myself enjoy the sights and sounds of victory for several minutes. Then I once more raised my hands to quell the crowd. “Be it known that Commander Narian stands with me as a loyal citizen of Hytanica. Without him, I would not have been able to travel to Cokyri and safely return. And without him, I would not have been able to begin negotiations for lasting peace with the High Priestess. I believe a trade treaty that is fair for both of our countries will soon be signed. Regardless, we stand here now and forevermore as a people free of Cokyrian rule.” Jubilant shouts greeted these words, and I took Narian’s hand in mine, raising it high into the air. The people did not know that we were in love. They did not know that we were bound to each other according to Cokyrian custom and would soon be joined in marriage under Hytanican law. But this was a step forward, and that was enough for now. Out of the corner of my eye, I saw my mother appear at Narian’s other side to likewise take his hand and hold it aloft in a show of support. When the rest of my family followed her lead, my father next to my mother, Miranna and Temerson at my side, tears spilled down my cheeks. I met Narian’s mystified blue eyes and smiled, then gazed out at our people, a member of a united royal family, the man I loved among us. When the noise had subsided, I addressed the sorrow that hid beneath the joy, for it was essential to pay tribute to those who had fought bravely and tirelessly, but had not lived to see this day. “We all know the terrible price that was paid for our freedom. Remember those who died in the war. Honor them in your hearts, and join with me in honoring them with a memorial on the palace grounds. Let those who gave their lives for this kingdom never be forgotten.” I paused, permitting a moment of silence for our lost loved ones, then finished, “Embrace your families. Return to your homes. And know that you go in peace.” This received perhaps the greatest response of anything I had said, and to the tumultuous cries of my tired but elated people, Narian and I reentered the palace.

The "aha" factor is when you have always felt something but couldn't articulate it until someone gives you a naming system that allows you to point at all the pieces. While in Gambia a couple of years after college, I was criticized at a market by a female merchant for being too aggressive when I negotiated the price. She said I acted like a man and I should remember that I am just a girl. I felt horrible and wondered if I had been rude when I realized her criticism that "I wasn't acting like a girl" came from her acceptance of gender roles and male privilege. By analyzing the incident this way, I was also creating a mental world where things can be different.

When it comes to financial incentives, size matters. There are things that people will do for a lot of money that they’d never do for just a few dollars. The most devoted carnivore in the world might well go vegan if the tofu lobby offered him a $10 million stipend. And then there’s the tale of an economist on holiday in Las Vegas. He found himself one night in a bar standing beside a gorgeous woman. “Would you be willing to sleep with me for $1 million?” he asked her. She looked him over. There wasn’t much to see—but still, $1 million! She agreed to go back to his room. “All right then, ” he said. “Would you be willing to sleep with me for $100?” “A hundred dollars!” she shot back. “What do you think I am, a prostitute?” “We’ve already established that. Now we’re just negotiating the price.

Supplier Consolidation Once the purchasing process has been streamlined, as was described in the preceding sections, the next step is to pursue cost reduction activities. A significant cost reduction technique is to reduce the number of suppliers with which a company does business. By concentrating its orders with a smaller number of suppliers, it can use higher purchasing volume to negotiate price reductions, rebates, and discounts. This concept is addressed in more detail in Chapters 8 and 9. The following subtopics address various supplier consolidation issues at a general level. Bottom 10 Percent Besides concentrating order volume, another reason to consolidate suppliers is to eliminate the worst-performing ones. These are the suppliers that deliver the wrong items late and with low quality. Even if these suppliers offer what appear to be rock-bottom prices, the total cost of doing business with them is much higher, because the company is endlessly dealing with receiving inspections, product returns, and the processing of credits. Consequently, having a separate program to identify and eliminate a company’s lowest-rated suppliers can also reduce costs.

Almost everything in China was subject to a negotiation because the Chinese believe all situations are contextual. The price depended on who you were. There was the Chinese friend price (deep guanxi), the Chinese friend-of-friend price (shallow guanxi), the Chinese stranger price (no guanxi), the smart laowai price (he knew what the Chinese price was), and the sucker laowai price (usually 100 to 200 percent higher than the smart laowai price). Taking their cues from the government, which had instituted different prices for Chinese and foreigners at tourist attractions, hotels, and friendship stores, the local merchants felt no unease in gouging a laowai

Sell First, Negotiate Second I want to make one final comment before wrapping up this chapter. You’ll notice that I have resisted using the words negotiation or negotiating. I’m a firm believer that we need to sell first and negotiate second. Too many salespeople give up a tremendous amount of profit by being willing to negotiate with customers far too early in the sales process. No negotiations should take place with a customer until the customer has rejected your offer on two separate occasions. My reasoning is simple: You cannot negotiate anything successfully unless you know what it is you are negotiating. Any salesperson who attempts to negotiate too early is doomed to lose. Waiting until the offer has been rejected twice gives you the opportunity to learn what the customer’s key needs, desired benefits, and risks are. It allows you to understand how the customer communicates and what the customer’s timeline is for making a decision. There are a host of other things you can and will learn if you take the time to sell. If you truly listen to the customer, you will be able to close the sale without having to negotiate anything. When you close the sale without negotiating, you then have the best opportunity to sell at the highest profit possible.

I decided, long ago, back-room negotiations with a nine iron and a pen, witness tampering, and suppression of evidence weren’t for me. That’s what was expected of an independent lawyer hired by Louis Fernoza. I wanted the corner office overlooking a cityscape, the fine car and house, and the ability to sleep at night with a clear conscience. I’d say I achieved it all but not without a price.

A savvy negotiator will tell you that if they let you set the price and you let them set the terms, conditions, and deliverables, they will beat you every time.

The problems facing America have become much more complex over time, and the political class lacks the capacity to deal with them. The problems are global, interconnected across many areas of politics and policy, and often highly technical. The climate change challenge, for example, involves agriculture (both as a source of greenhouse gas emissions and as a highly vulnerable sector), electricity generation and distribution, federal and private land use, transportation, urban design, nuclear power, disaster risk management, climate modeling, international financing, public health, and global negotiations. Could one imagine a problem less easily handled by a layman Congress operating on a two-year election cycle? The

Set your target price (your goal).         2.      Set your first offer at 65 percent of your target price.         3.      Calculate three raises of decreasing increments (to 85, 95, and 100 percent).         4.      Use lots of empathy and different ways of saying “No” to get the other side to counter before you increase your offer.         5.      When calculating the final amount, use precise, nonround numbers like, say, $37,893 rather than $38,000. It gives the number credibility and weight.         6.      On your final number, throw in a nonmonetary item (that they probably don’t want) to show you’re at your limit. The

Hell, you knew she had baggage. Layers. You told me you wanted to find out everything about her. Find out why she doesn’t have a family. Find out why she’s all alone in New York. Find out why she’s living in Pete’s spare room until tomorrow.” I spin to face him. “She’s living with Pete and Reagan?” I didn’t know about that. “Why?” He shrugs. “She had to move out of the dorm after graduation. They had an empty room. But Reagan’s parents are coming to stay for two weeks, so she’s going somewhere else.” “Where?” I ask quickly. He shrugs. “Does it matter?” But he’s grinning. Fuck yeah, it matters. “Is she going to stay with one of the douchebags?” “What douchebags?” Matt scratches his head. “Never mind,” I say. Hope swells within me. I shouldn’t let it, but it does. I get out a piece of paper and write on it in magic marker: ROOM FOR RENT PRICE NEGOTIABLE ONLY BEAUTIFUL LITTLE BOMBSHELLS NEED APPLY PREFERABLY ONES NAMED FRIDAY I walk out of the back room and go to the bulletin board. I stick a thumbtack in the “advertisement” and walk away. I hear a snicker from behind me and turn to grin at Logan. You’re a d-o-o-f-u-s, he signs, fingerspelling the last word because there’s no sign for something so stupid. I know, I sign back. He looks a little worried for me, but I don’t care. I can’t get where I want to go if I don’t take a first step. Regardless of whether or not she’s pregnant, she needs a place to stay and I have two empty rooms. And she’s family, for Christ’s sake. I’ve never wanted to eat out a member of my family, though. I scratch my head. I should probably stop thinking like that. I whistle to myself as I walk to my office. I have some paperwork to do before my first appointment arrives. And I need to give Friday time to find my ad.

Success always has a price, but the reality is that the price is negotiable. If you pick the right system, the price will be a lot nearer what you’re willing to pay. I

As the celebrated investor Warren Buffett once said, "Price is what you pay. Value is what you get." We would add one more line: "If you do your homework." In business deals, most buyers and sellers have a singular focus on price — and price is hard to avoid. Negotiations ideally produce numbers that both sides can be happy with. But getting to the right price in any deal involves understanding what business assets are truly worth and then structuring a deal around financing and tax realities, which can be quite surprising to those who fail to plan.

Anytime you have multiple offers and you have cash in the mix, the conventionally financed borrower is going to try as hard as they can to look like a cash buyer, even though they’re still being financed,” said Eric Hagstette, owner and principal broker at Inhabit Portland, a real estate company. When sellers have a choice, they prefer the sure thing. Unlike cash, financing can fall through, especially in a market with tighter credit. Buyers who turn up with a check rather than a pre-approved loan are more likely to complete the transaction –and sellers know it. To compete, some buyers are simply borrowing cash from friends and family and financing their houses after closing — bout 14 percent of cash buyers in the greater Portland area between 2011 and the end of 2014, in fact, according to RealtyTrac. Others are overbidding to ram deals through quickly, then waiving the right to negotiate price if an appraiser doesn’t agree. The practice comes with significant risks. It also allows the next guy to price his house just as high, while one sale becomes a benchmark for the starting price of the next, Hagstette said.

In April, 1926, France and the United States finally negotiated a war debt settlement at forty cents on the dollar. The [French] budget was at last fully balanced. Still the franc kept falling. By May, the exchange rate stood at over thirty to the dollar. With a currency in free-fall, prices now rising at 2% a month - over 25% a year - and the Government apparently impotent, everyone made the obvious comparison with the situation in Germany four years earlier. In fact, there was no real parallel. Germany in 1922 had lost all control of its budget deficit and in that single year expanded the money supply ten fold. By contrast, the French had largely solved their fiscal problems and its money supply was under control. The main trouble was the fear that the deep divisions between the right and left had made France ungovernable. The specter of chronic political chaos associated with revolving door governments and finance ministers was exacerbated by the uncertainty over the governments ability to fund itself given the overhang of more than $10 billion in short term debt. It was this psychology of fear, a generalized loss of nerve, that seemed to have gripped French investors and was driving the downward spiral of the franc. The risk was that international speculators, those traditional bugaboos of the Left, would create a self-fulfilling meltdown as they shorted the currency in the hope of repurchasing it later at a lower price thereby compounding the very downward trend that they were trying to exploit. It was the obverse of a bubble where excessive optimism translates into rising prices which then induces even more buying. Now excessive pessimism was translating into falling prices which were inducing even more selling. In the face of this all embracing miasma of gloom neither the politicians nor the financial establishment seemed to have any clue what to do.