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