Gain the Edge! Negotiating to Get What You Want

385 Pages·2004·26 MB·English

by  Martin Latz

"The best book I've ever read on negotiation strategy ••• Latz gives you the tools
and tactics to succeed •••• Whether it's negotiating Ra~dy Johnson's contract or the
purchase of your n_~xt car, Gain the Edge! is clear, concise, and unfailingly useful."
-JERRY COLANGELO, chairman and CEO of the Arizona Diamondbacks and the Phoenix Suns
NEGOTIATING
TO GET
WHAT
YOU WANT
Advance Praise for Gain the Edge!
"Few seize the brass ring in business or in life without top-notch
negotiation skills. Martin Latz's Gain the Edge! will empower you to
achieve that kind of success. Read it. Make it your own. You'll close more
deals and get n1ore favorable tenns in all your negotiations."
-HARVEY MACKAY, author of the #I New York Times
bestseller Swim with the Sharks Without Being Eaten Alive
''.Anyone who's tried to push a bill through Congress
knows the in1portance of negotiation. In Gain the Edge! Martin Latz has
condensed his enormous font of negotiating wisdom into a book that's accessible,
readable, and eminently usable in politics, business, and everyday life."
-U.S. SENATOR RUSS FEINGOLD
"Martin Latz knows how to negotiate, and in Gain the Edge! we're fortunate
enough to share in his strategies, tips, and tricks of the trade. T his book will help
readers gain the edge in their business and personal negotiations."
-JOHN PODESTA, former White House chief of staff
"Gain the Edge! is a winning book, providing practical and straightforward negotiating
advice and tips in a very nice, easy-to-read style. Everyone in business will immediately benefit
from reading this book. It's so good, I'm buying copies for my entire management team."
-RICHARD L. BOALS, president and CEO of Blue Cross/Blue Shield of Arizona
"Resolving differences effectively- whether in business, government, school, or at
home- requires negotiating skills that Martin Latz understands well, teaches skillfully,
and brings to life in Gain the Edge! Here is a book of practical use and fascinating
insight for everyone. After all, we are never far away from our next negotiation."
-HOWARD PASTER, former chairman and CEO of Hill & Knowlton, Inc.
"Whether you are a confident negotiator or one who is apprehensive of the process,
you will learn 1nuch from this book. Its lucid explanations, coupled with a host of practical
exan1ples, will help you to achieve better results when you next negotiate."
-FRANK SANDER, Bussey Professor of Law at Harvard Law School
ISBN 0-312-32281-X
52595>
ISBN 0-312-32281-X $25.95 / $38.95 CAN.
There's always more to learn about negotiation.
That one new strategy or tactic you gain from this
book may make the difference between your
walking away a winner and leaving empty-handed.
The margin of difference can be infinitesimal,
yet the ramifications are often huge.
N
EGOTIATING A NEW SALARY? BUYING A CAR
or a house? Closing a deal with a big client?
Discussing where to vacation with your
spouse? We negotiate every day. Yet most of us nego-
tiate instinctively and don't give the process the
strategic attention it deserves. We suffer as a result.
Now negotiation expert Martin E. Latz-in the
most practical negotiation book ever published
reveals an easy-to-use strategic template you can apply
to every negotiation. This is not ivory-tower advice, or
advice just based on instincts and experience: The
tactics and techniques here come from the most
up-to-date research and the knowledge Latz has
developed in negotiating on the White House Advance
Teams, from consulting with top executives at Fortune
500 companies and law firms nationwide, and from
teaching thousands of business professionals and
lawyers how to negotiate more effectively.
The result is a comprehensive guide that takes
you all the way from general strategies and princi
ples-Latz's Five Golden Rules of Negotiation-to
specific tips, techniques, and even phrases you can use
at the table.
GAIN THE EDGE! WILL ARM YOU WITH:
• Practical strategies to get the information
you need before you sit down at the table
• Tactics to maximize your leverage when
seemingly powerless
• Secrets to success in emotionally charged
negotiations
• A step-by-step system to design the most
effective offe r-concession strategy
• Ways to deal with different personality types,
ethics, and negotiation "games"
• Specific advice on how to negotiate for your
next salary, car, or house
• Negotiating tips for other business and
personal matters
(con Ii nu rd on back (I a p)
(continued from front flap)
Leave behind instinctive negotiating and its inherent
uncertainties. Learn to negotiate strategically.
Easy to understand and instantly applicable
to real-life situations, Gain the Edge! is the ultimate
how-to guide for anyone looking to master this
critical subject.
z
0
_J
_J
::,
a:
w
>
z
<(
0
M A RT I N E . L AT Z
is the founder
of the Latz Negotiation Institute and a former nego
tiator on the White House Advance Teams. An adjunct
professor of negotiation at Arizona State University
College of Law and a Harvard Law School honors
graduate, he has presented seminars to thousands in
over forty states, including many Fortune 500 com
panies and the nation's largest law firms. He and his
wife live in Phoenix, Arizona.
To learn more about the Latz Negotiation
Institute. to receive Latz·s free monthly nego
tiation column, or to view his public seminar
schedule. visit www.GaintheEdge.com.
JACKET DESIGN BY SHEA M. KORNBLUM
www.stmartins.com
ST. MARTIN'S PRESS
175 FIFTH AVENUE , NEW YORK , N.Y. 10010
DISTRIBUTED IN CANADA BY H.B. FENN AND COMPANY, LTD.
PRINTED IN THE UNITED STATES OF AMERICA
GAIN THE
NEGOTIATING TO
GET WHAT YOU WANT
MARTIN E. LATZ
ST. MARTIN'S PRESS -- NEW YORK
GAIN THE EDGE[ Copyright© 2004 by Martin E. Latz. All rights
reserved. Printed in the United States of America. No part
of this book may be used or reproduced in any manner whatsoever
without written permission except in the case of brief quotations
embodied in critical articles or reviews. For information, address
St. Martin's Press, 175 Fifth Avenue, New York, N.Y. 10010.
www.stmartins.com
Library of Congress Cataloging-in-Publication Data
Latz, Martin E.
Gain the edgel : negotiating to get what you want/ Martin E. Latz.
p. cm.
Includes bibliographical references (page 355).
Includes index (page 365).
ISBN 0-312-32281-X
EAN 978-0312-32281-6
1. Negotiation in business. 2. Negotiation. I. Title.
HD58.6.L38 2004
302.3-dc22 2003070106
First Edition: May 2004
10 9 8 7 6 5 4 3 2 I
To my vvife, Linda, whose love motivates and sustains me
as I strive to achieve the right balance in life.
To my parents, Bob and Carolyn Latz, who have always
provided me with more than enough support, advice,
encouragement, and love. They have been incredible
role models in my personal and professional life.
And to my sister, Shari, and her husband, Mike Rothman,
who have been my informal editors ever since I
started writing a column and who have spent countless
hours and late nights editing and helping me translate my
thoughts into words.
CONTENTS
Introduction 1
Part One: The Strategic Template: Latz's Five Golden Rules 1 1
1. Golden Rule One: Information Is Power-So Get It 17
2. Golden Rule Two: Maximize Your Leverage 68
3. Golden Rule Three: Employ "Fair'' Objective Criteria 102
4. Golden Rule Four: Design an Offer-Concession Strategy 145
5. Golden Rule Five: Control the Agenda 214
Part Two: Making the Golden Rules Work for You 235
6. Personality Tendencies-Style Issues 239
7. Ethics Make a Bottom-Line Difference 246
8. Use a Situation-Specific Strategy 255
9. Common Negoti.ation Problems and Their Solutions 285
viii I Contents
Part Three: Applying These Strategies to Real-Life Situations 301
10. Garden-Variety Business Negotiations 305
11. Salary Negotiations 317
12. Family Negotiations 322
13. Car Negotiations 326
14. House Negotiations 331
Conclusion 345
Gain the Edge! Strategic Guide to Effective Negotiations 347
Acknowledgments 351
Notes 355
Index 365
INTRODUCTION
dam was nervous as he walked into the managing partner's of
fice. He had lost his job at another architectural firm less than two weeks
before. It had been a shock. He had worked hard and performed his job
well but still ended up on the street. The weak economy, they said, did
him in. So now he was back out there looking for work along with a
bunch of other junior architects in San Francisco.
After the usual pleasantries the managing partner asked him what
salary he expected. Adam thought this was a good sign. Why would they
care if they weren't going to offer him the job?
But now he faced a dilemma: How should he respond?
How would you respond?
Would you tell the managing partner what you truly expect? Or would
you lowball it, given that you don't have a good alternative? If you lowball
it you might leave money on the table.
Of course, you could puff up your initial salary expectations so you
have room to concede later. But if you do this and it appears too high they
may not offer you the job. That would be disastrous.
Perhaps you could just avoid answering the question; appear noncom
mittal and change the subject. But that's risky, too. The managing partner
may falsely sense you're not really interested, or that you're not a straight
shooter.
You could always turn around and ask what the firm is looking to pay.
Get your counterpart to throw out the first number.