| The Vise is a very effective negotiating | | | | mailed it back to them. Their |
| Gambit and what it will do for you will amaze | | | | counter-proposal came back $14,000 less than |
| you. The Vise Gambit is the simple little | | | | the proposal that I was prepared to |
| expression: "You'll have to do better than | | | | accept."You may be thinking, "Roger, you |
| that." Here's how Power Negotiators use it: | | | | didn't tell me whether that was a $50,000 |
| Let's say that you own a small steel company | | | | proposal, in which case it would have been a |
| that sells steel products in bulk. You are | | | | huge concession, or a multi-million dollar |
| calling on a fabricating plant where the | | | | proposal, in which case it wouldn't have been |
| buyer has listened to your proposal and your | | | | that big a deal." Don't fall into the trap of |
| pricing structure. You ignored his insistence | | | | negotiating percentages when you should be |
| that he's happy with his present supplier and | | | | negotiating dollars. The point was that he |
| did a good job of building desire for your | | | | made $14,000 in the two minutes that it took |
| product. Finally, the other person says to | | | | him to scrawl that counter-proposal across |
| you, "I'm really happy with our present | | | | the bid. This meant that while he was doing |
| vendor, but I guess it wouldn't do any harm | | | | it, he was generating $420,000 per hour of |
| to have a backup supplier to keep them on | | | | bottom line profits. That's pretty good |
| their toes. I'll take one carload if you can | | | | money, isn't it?This is another trap into |
| get the price down to $1.22 per pound."You | | | | which attorneys fall. When I work with |
| respond with the Vise Gambit by calmly | | | | attorneys, it's clear that if they're |
| saying, "I'm sorry you'll have to do better | | | | negotiating a $50,000 lawsuit, they might |
| than that."An experienced negotiator will | | | | send a letter back and forth over $5,000. If |
| automatically respond with the Counter | | | | it's a million-dollar lawsuit, they'll kick |
| Gambit, which is, "Exactly how much better | | | | $50,000 around as though it doesn't mean a |
| than that do I have to do?" trying to pin you | | | | thing, because they're mentally negotiating |
| down to a specific. However, it will amaze | | | | percentages, not dollars.If you make a $2,000 |
| you how often inexperienced negotiators will | | | | concession to a buyer, it doesn't matter if |
| concede a big chunk of their negotiating | | | | it got you a $10,000 sale or a million-dollar |
| range simply because you did that.What's the | | | | sale. It's still $2,000 that you gave away. |
| next thing that you should do, once you've | | | | So it doesn't make any sense for you to come |
| said, "You'll have to do better than | | | | back to your sales manager and say, "I had to |
| that"?You guessed it. Shut Up! Don't say | | | | make a $2,000 concession, but it's a $100,000 |
| another word. The other side may just make a | | | | sale." What you should have been thinking |
| concession to you. Salespeople call this the | | | | was, "$2,000 is sitting in the middle of the |
| silent close, and they all learn it during | | | | negotiating table. How long should I be |
| the first week that they are in the business. | | | | willing to spend negotiating further to see |
| You make your proposal and then shut up. The | | | | how much of it I could get?"Have a feel for |
| other person may just say Yes, so it's | | | | what your time's worth. Don't spend half an |
| foolish to say a word until you find out if | | | | hour negotiating a $10 item (unless you're |
| he or she will or won't. | | | | doing it just for the practice). Even if you |
| | | | got the other side to concede all of the $10, |
| I once watched two salespeople do the silent | | | | you'd be making money only at the rate of $20 |
| close on each other. There were three of us | | | | an hour for the half-hour you invested in the |
| sitting at a circular conference table. The | | | | negotiation. To put this in perspective for |
| salesperson on my right wanted to buy a piece | | | | you, if you make $100,000 a year, you're |
| of real estate from the salesperson on my | | | | making about $50 an hour. So, you should be |
| left. He made his proposal and then shut up, | | | | thinking to yourself, "Is what I'm doing |
| just as they taught him in sales training | | | | right now, generating more than $50 per |
| school. The more experienced salesperson on | | | | hour?" If so, it's part of the solution. If |
| my left must have thought, "Son of a gun. I | | | | you're aimlessly chatting with someone at the |
| can't believe this. He's going to try the | | | | water cooler, or talking about last night's |
| silent close on moi? I'll teach him a thing | | | | television movie, or anything else that is |
| or two. I won't talk either." | | | | not generating $50 an hour, it's part of the |
| | | | problem. |
| So then, I was sitting between two strong | | | | |
| willed people who were both silently daring | | | | Here's the point. When you're negotiating |
| the other to be the next one to talk. I | | | | with someone-when you have a deal in front of |
| didn't know how this was ever going to get | | | | you that you could live with-but you're |
| resolved. There was dead silence in the room, | | | | wondering if you could hang in a little bit |
| except for the grandfather clock ticking away | | | | longer and do a little bit better, you're not |
| in the background. I looked at each of them | | | | making $50 an hour. No, sir. No, ma'am. |
| and obviously, they both knew what was going | | | | You're making $50 a minute and probably $50 a |
| on. Neither one was willing to give in to the | | | | second.And if that's not enough, remember |
| other. I didn't know how this was ever going | | | | that a negotiated dollar is a bottom line |
| to get resolved. It seemed as though half an | | | | dollar. It's not a gross-income dollar. So, |
| hour went by, although it was probably more | | | | the $2,000 that you may have conceded in |
| like five minutes, because silence seems like | | | | seconds because you thought it was the only |
| such a long time.Finally, the more | | | | way you could have made the sale, is worth |
| experienced salesperson broke the impasse by | | | | many times that in gross sales dollars. I've |
| scrawling the word "DECIZION?" on a pad of | | | | trained executives at discount retailers and |
| paper and sliding it across to the other. He | | | | health maintenance organizations (HMOs) where |
| had deliberately misspelling the word | | | | the profit margin is only 2 percent. They do |
| decision. The younger salesperson looked at | | | | a billion dollars worth of business a year, |
| it and without thinking said, "You misspelled | | | | but they bring in only 2 percent in bottom |
| decision." And once he started talking, he | | | | line profits. So at their company, a $2,000 |
| couldn't stop. (Do you know a salesperson | | | | concession at the negotiating table has the |
| like that? Once they start talking, they | | | | same impact on the bottom line as getting a |
| can't stop?) He went on to say, "If you're | | | | $100,000 sale.You're probably in an industry |
| not willing to accept what I offered you, I | | | | that does better than that. I have trained |
| might be willing to come up another $2,000; | | | | people at some companies where the bottom |
| but not a penny more." He re-negotiated his | | | | line is an incredible 25 percent of the gross |
| own proposal before he found out if the other | | | | sales; but that's the exception. In this |
| person would accept it or not. | | | | country, the average profit margin is about 5 |
| | | | percent of gross sales. So probably, that |
| So to use the Vise technique, Power | | | | $2,000 concession you made is the equivalent |
| Negotiators simply response to the other | | | | of making a $40,000 sale. So, let me ask you |
| side's proposal or counter-proposal with, | | | | something. How long would you be willing to |
| "I'm sorry, you'll have to do better than | | | | work to get a $40,000 sale? An hour? Two |
| that." And then shut up.During the Vietnam | | | | hours? All day? I've had many sales managers |
| War, Secretary of State Henry Kissinger asked | | | | tell me, "For a $40,000 sale, I expect my |
| an undersecretary of state to prepare a | | | | sales people to work as long as it takes." |
| report on the political situation in South | | | | However fast-paced your business, you're |
| East Asia. The undersecretary worked hard on | | | | probably willing to spend several hours to |
| the paper and was proud of what he had done. | | | | make a $40,000 sale. So, why are you so |
| It was extremely comprehensive and bound in | | | | willing to make a $2,000 concession at the |
| leather with gold engraving. However, | | | | negotiating table? It has the same impact on |
| Kissinger quickly returned it to him with the | | | | the bottom line as a $40,000 sale if you're |
| notation, "You'll have to do better than | | | | in a business that generates the typical 5 |
| this. H.K." The undersecretary went to work | | | | percent bottom line profit.A negotiated |
| and dug out more information, added more | | | | dollar is a bottom line dollar. You'll never |
| charts, and sent it back to Kissinger. This | | | | make money faster than you will when you're |
| time he knew that he'd given birth to a true | | | | negotiating!So Power Negotiators always |
| work of bureaucratic art. Again it came back | | | | respond to a proposal with, "You'll have to |
| with the notation, "You'll have to do better | | | | do better than that." And when the other |
| than this. H.K." Now it became a major | | | | person uses it on them, they automatically |
| challenge for him. He put his staff to work | | | | respond with the Counter Gambit, "Exactly how |
| on the report around the clock, determined | | | | much better than that do I have to do?"Key |
| that it would be the best position paper that | | | | points to remember:o Respond to a proposal or |
| Kissinger had ever seen. When finally he had | | | | counter-proposal with the Vise technique: |
| put the finishing touches on it, he was | | | | "You'll have to do better than that."o If |
| reluctant merely to send it to Kissinger, so | | | | it's used on you, respond with the Counter |
| he made an appointment and took it in | | | | Gambit, "Exactly how much better than that do |
| himself. As he presented it he said, "Mr. | | | | I have to do?" This will pin the other person |
| Kissinger, you've sent this back to me twice. | | | | down to a specific.o Concentrate on the |
| My entire staff has dedicated the last two | | | | dollar amount that's being negotiated. Don't |
| weeks to this report. Please don't send it | | | | be distracted by the gross amount of the sale |
| back again. It's not going to get any better | | | | and start thinking percentages.o A negotiated |
| than this. This is the best I can do." | | | | dollar is a bottom line dollar. Be aware of |
| Kissinger calmly placed it on his desk and | | | | what your time is worth on an hourly basis.o |
| said, "In that case I will read it."A client | | | | You'll never make money faster than you will |
| called me up after a Secrets of Power | | | | when you're Power Negotiating.Roger Dawson |
| Negotiating seminar that I had conducted for | | | | |
| their managers and told me, "Roger, I thought | | | | Founder of the Power Negotiating Institute |
| you might like to know that we just made | | | | |
| $14,000 using one of the Gambits that you | | | | 800-932-9766 |
| taught us. We are having new equipment put | | | | |
| into our Miami office. Our standard procedure | | | | Dawson is the author of two of |
| has been to get bids from three qualified | | | | Nightingale-Conant's best selling |
| vendors and then take the lowest bid. So I | | | | audiocassette programs, Secrets of Power |
| was sitting here going over the bids and was | | | | Negotiating and Secrets of Power Negotiating |
| just about to okay the one I'd decided to | | | | for Salespeople. This article is excerpted in |
| accept. Then I remembered what you taught me | | | | part from Roger Dawson's new book - "Secrets |
| about the Vise technique. So I thought, 'What | | | | of Power Negotiating", published by Career |
| have I got to lose?' and scrawled across it, | | | | Press and on sale in bookstores everywhere |
| 'You'll have to do better than this,' and | | | | for $24.99. |