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To Get a Better Deal, Learn How to Use the Vise Gambit

The Vise is a very effective negotiatingmailed it back to them. Their
Gambit and what it will do for you will amazecounter-proposal came back $14,000 less than
you. The Vise Gambit is the simple littlethe proposal that I was prepared to
expression: "You'll have to do better thanaccept."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 companyproposal, in which case it would have been a
that sells steel products in bulk. You arehuge concession, or a multi-million dollar
calling on a fabricating plant where theproposal, in which case it wouldn't have been
buyer has listened to your proposal and yourthat big a deal." Don't fall into the trap of
pricing structure. You ignored his insistencenegotiating percentages when you should be
that he's happy with his present supplier andnegotiating dollars. The point was that he
did a good job of building desire for yourmade $14,000 in the two minutes that it took
product. Finally, the other person says tohim to scrawl that counter-proposal across
you, "I'm really happy with our presentthe bid. This meant that while he was doing
vendor, but I guess it wouldn't do any harmit, he was generating $420,000 per hour of
to have a backup supplier to keep them onbottom line profits. That's pretty good
their toes. I'll take one carload if you canmoney, isn't it?This is another trap into
get the price down to $1.22 per pound."Youwhich attorneys fall. When I work with
respond with the Vise Gambit by calmlyattorneys, it's clear that if they're
saying, "I'm sorry you'll have to do betternegotiating a $50,000 lawsuit, they might
than that."An experienced negotiator willsend a letter back and forth over $5,000. If
automatically respond with the Counterit'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 youthing, because they're mentally negotiating
down to a specific. However, it will amazepercentages, not dollars.If you make a $2,000
you how often inexperienced negotiators willconcession to a buyer, it doesn't matter if
concede a big chunk of their negotiatingit got you a $10,000 sale or a million-dollar
range simply because you did that.What's thesale. It's still $2,000 that you gave away.
next thing that you should do, once you'veSo it doesn't make any sense for you to come
said, "You'll have to do better thanback to your sales manager and say, "I had to
that"?You guessed it. Shut Up! Don't saymake a $2,000 concession, but it's a $100,000
another word. The other side may just make asale." What you should have been thinking
concession to you. Salespeople call this thewas, "$2,000 is sitting in the middle of the
silent close, and they all learn it duringnegotiating 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. Thehow much of it I could get?"Have a feel for
other person may just say Yes, so it'swhat your time's worth. Don't spend half an
foolish to say a word until you find out ifhour 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 silentyou'd be making money only at the rate of $20
close on each other. There were three of usan hour for the half-hour you invested in the
sitting at a circular conference table. Thenegotiation. To put this in perspective for
salesperson on my right wanted to buy a pieceyou, if you make $100,000 a year, you're
of real estate from the salesperson on mymaking 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 trainingright now, generating more than $50 per
school. The more experienced salesperson onhour?" If so, it's part of the solution. If
my left must have thought, "Son of a gun. Iyou're aimlessly chatting with someone at the
can't believe this. He's going to try thewater cooler, or talking about last night's
silent close on moi? I'll teach him a thingtelevision 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 daringHere's the point. When you're negotiating
the other to be the next one to talk. Iwith someone-when you have a deal in front of
didn't know how this was ever going to getyou 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 awaylonger and do a little bit better, you're not
in the background. I looked at each of themmaking $50 an hour. No, sir. No, ma'am.
and obviously, they both knew what was goingYou're making $50 a minute and probably $50 a
on. Neither one was willing to give in to thesecond.And if that's not enough, remember
other. I didn't know how this was ever goingthat a negotiated dollar is a bottom line
to get resolved. It seemed as though half andollar. It's not a gross-income dollar. So,
hour went by, although it was probably morethe $2,000 that you may have conceded in
like five minutes, because silence seems likeseconds because you thought it was the only
such a long time.Finally, the moreway you could have made the sale, is worth
experienced salesperson broke the impasse bymany times that in gross sales dollars. I've
scrawling the word "DECIZION?" on a pad oftrained executives at discount retailers and
paper and sliding it across to the other. Hehealth maintenance organizations (HMOs) where
had deliberately misspelling the wordthe profit margin is only 2 percent. They do
decision. The younger salesperson looked ata billion dollars worth of business a year,
it and without thinking said, "You misspelledbut they bring in only 2 percent in bottom
decision." And once he started talking, heline profits. So at their company, a $2,000
couldn't stop. (Do you know a salespersonconcession at the negotiating table has the
like that? Once they start talking, theysame 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, Ithat 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 hisline is an incredible 25 percent of the gross
own proposal before he found out if the othersales; 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 otherof 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 thanwork to get a $40,000 sale? An hour? Two
that." And then shut up.During the Vietnamhours? All day? I've had many sales managers
War, Secretary of State Henry Kissinger askedtell me, "For a $40,000 sale, I expect my
an undersecretary of state to prepare asales people to work as long as it takes."
report on the political situation in SouthHowever fast-paced your business, you're
East Asia. The undersecretary worked hard onprobably 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 inwilling 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 thethe bottom line as a $40,000 sale if you're
notation, "You'll have to do better thanin a business that generates the typical 5
this. H.K." The undersecretary went to workpercent bottom line profit.A negotiated
and dug out more information, added moredollar is a bottom line dollar. You'll never
charts, and sent it back to Kissinger. Thismake money faster than you will when you're
time he knew that he'd given birth to a truenegotiating!So Power Negotiators always
work of bureaucratic art. Again it came backrespond to a proposal with, "You'll have to
with the notation, "You'll have to do betterdo better than that." And when the other
than this. H.K." Now it became a majorperson uses it on them, they automatically
challenge for him. He put his staff to workrespond with the Counter Gambit, "Exactly how
on the report around the clock, determinedmuch better than that do I have to do?"Key
that it would be the best position paper thatpoints to remember:o Respond to a proposal or
Kissinger had ever seen. When finally he hadcounter-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, soit's used on you, respond with the Counter
he made an appointment and took it inGambit, "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 twodollar amount that's being negotiated. Don't
weeks to this report. Please don't send itbe distracted by the gross amount of the sale
back again. It's not going to get any betterand 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 andwhat your time is worth on an hourly basis.o
said, "In that case I will read it."A clientYou'll never make money faster than you will
called me up after a Secrets of Powerwhen  you're  Power  Negotiating.Roger Dawson
Negotiating seminar that I had conducted for
their managers and told me, "Roger, I thoughtFounder  of  the Power Negotiating Institute
you might like to know that we just made
$14,000 using one of the Gambits that you800-932-9766
taught us. We are having new equipment put
into our Miami office. Our standard procedureDawson is the author of two of
has been to get bids from three qualifiedNightingale-Conant's best selling
vendors and then take the lowest bid. So Iaudiocassette programs, Secrets of Power
was sitting here going over the bids and wasNegotiating and Secrets of Power Negotiating
just about to okay the one I'd decided tofor Salespeople. This article is excerpted in
accept. Then I remembered what you taught mepart from Roger Dawson's new book - "Secrets
about the Vise technique. So I thought, 'Whatof 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,' andfor $24.99.



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