Secrets of Power Negotiating by Roger Dawson (2001) – Summary

Introduction

“Secrets of Power Negotiating” by Roger Dawson is a must-read for anyone looking to enhance their negotiating skills. Dawson’s book is packed with practical tactics and strategies designed for competitive settings. By breaking down negotiations into actionable insights, he empowers readers to negotiate successfully in both personal and professional contexts.

1. Attitudes and Approaches

Summary:
Dawson begins by emphasizing the significance of having the right attitude and approach towards negotiations. He argues that negotiations are invariably about making trade-offs, and one should always aim for a win-win outcome.

Actionable Advice:
– Example: Before entering a negotiation, one should mentally prepare to view the process as a collaboration rather than a conflict.
– Action: Embark on each negotiation with a positive mindset. Remind yourself that both parties can achieve satisfactory outcomes. This reduces anxiety and heightens your problem-solving capacity.

2. The Flinch

Summary:
One of the oldest yet most effective negotiating tactics is “the flinch.” A visible, audible, or emotional reaction to an initial offer can cause the other party to reconsider their position.

Actionable Advice:
– Example: When a car dealer presents you with a price, flinch by reacting visibly shocked or disappointed.
– Action: Always react to the first offer visibly, even if you expected it. This can make the other party question the fairness of their offer, often leading to better terms.

3. Asking for More Than You Expect to Get

Summary:
Dawson advises negotiators to ask for more than what they realistically expect. This “highball” or “lowball” tactic establishes a psychological advantage and leaves room for concessions.

Actionable Advice:
– Example: If you’re selling a house you would accept $300,000 for, start by listing it at $325,000.
– Action: Develop a higher or lower initial offer. This tactic provides a cushion to make concessions, which can help both sides feel they’ve compromised fairly.

4. Avoiding Concessions

Summary:
The author stresses the importance of avoiding unnecessary early concessions. Once you show a propensity to concede, the other party will expect more.

Actionable Advice:
– Example: During a salary negotiation, if your potential employer offers less than your asking rate, resist the urge to immediately lower your demand.
– Action: Stick to your initial position as much as possible. Only make concessions after negotiating other terms that are equally or more beneficial to you.

5. Playing the Reluctant Buyer/Seller

Summary:
Dawson suggests portraying reluctance when negotiating. Appearing hesitant can make the other side eager to close the deal, often on terms more favorable to you.

Actionable Advice:
– Example: When buying a car, show indecision and mention you are considering other options.
– Action: Exhibit hesitation, showing that you are not anxious to complete the deal. This can push the other party to offer better terms to entice you.

6. The Vise Technique

Summary:
The “Vise” technique is a method by which you respond to any proposal with, “You’ll have to do better than that.” This simple statement puts the onus back on the other party to improve their offer.

Actionable Advice:
– Example: When negotiating a contract, respond to the initial offer with, “You’ll need to do better than that.”
– Action: Practice saying, “You’ll have to do better than that.” Formulate your responses in a way that invites the other party to improve their proposal without committing you to a counter-offer immediately.

7. Good Guy/Bad Guy Routine

Summary:
Drawing from police interrogation tactics, this method involves two negotiators: one who is tough and another who appears more agreeable. The latter gains favor and trust, often securing better terms.

Actionable Advice:
– Example: In a business negotiation, you could have your partner take a hardline stance, then come in as the more reasonable negotiator to gain concessions.
– Action: Use a partner in negotiations to play contrasting roles, manipulating the perception of your stance to gain advantage.

8. The Power of Patience

Summary:
Dawson underlines patience as a powerful asset in negotiating. Often, parties eager to close the deal first end up with the shorter end of the stick.

Actionable Advice:
– Example: When negotiating a long-term contract, take your time to review all offers thoroughly without showing urgency.
– Action: Be willing to wait. If you sense eagerness from the other side, use that to your benefit by slowly dragging the negotiation, letting them come to you with better terms.

9. The Nibble

Summary:
This tactic involves asking for small, additional concessions right before closing the deal. These minor adjustments are often agreed upon to finalize the deal swiftly.

Actionable Advice:
– Example: After agreeing on the price of a car, ask if they can include free oil changes for a year.
– Action: When the deal is nearly closed, request another small perk or discount. These “nibbles” can add significant value to your side without compromising the deal.

10. The Art of Silence

Summary:
Dawson firmly believes that silence can be a powerful tool. After making an offer, remaining silent can make the other party uncomfortable, and they might fill the gap by improving their proposal.

Actionable Advice:
– Example: During salary negotiations, after presenting your desired salary, stay silent and let the employer respond.
– Action: Practice the power of silence. Make your offer and resist the urge to fill the uncomfortable silence, compelling the other party to speak.

11. Handling Objections

Summary:
Anticipate objections and prepare counter-arguments. Addressing objections confidently can turn a potential deal-breaker into a step toward agreement.

Actionable Advice:
– Example: If a client objects to your pricing, have data ready to show the value and ROI they can expect.
– Action: Identify potential objections in advance and formulate strong, evidence-backed responses. This preparation can transform concerns into commitments.

12. Knowing When to Walk Away

Summary:
One of the most critical aspects of negotiating is understanding when to walk away. Dawson teaches that every negotiator must know their bottom line and be prepared to walk if it’s not met.

Actionable Advice:
– Example: If in a real estate deal, the selling price does not align with your valuation, be prepared to abandon the negotiation.
– Action: Set your limits and adhere to them. Knowing your walk-away point can give you leverage and prevent poor agreements born out of desperation.

13. The Role of Information

Summary:
Gathering and using information effectively can significantly tip the scales in your favor. Dawson emphasizes the importance of being well-informed about the subject and the other party.

Actionable Advice:
– Example: Research a company’s financial status before entering into merger talks.
– Action: Do comprehensive research and gather relevant information before entering negotiations. Use this information strategically to influence the outcome in your favor.

Conclusion

“Secrets of Power Negotiating” by Roger Dawson is a treasure trove of time-tested strategies. Each chapter unveils a tactic that, if applied correctly, can drastically improve one’s ability to negotiate effectively. By combining psychological insights with practical actions, Dawson has compiled a resource that remains invaluable for novices and seasoned negotiators alike.

To distill the extensive advice provided by Dawson into practical steps: prepare thoroughly, stay patient, adopt the right attitude, and be willing to walk away. Practice these strategies consistently, and they become second nature, significantly improving your negotiation outcomes.