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Power, Leverage and Timing Can Make the Difference
How would you like an extra $5,000 to $10,000 or more a year? This money can
be earned simply by becoming a better negotiator, yet most people in the
United States rarely take advantage of the power of bargaining, except on
rare occasions when making large purchases like cars and houses. In other
countries, like Asia, people there negotiate everything everyday and save
thousands. Negotiating is like a martial arts contest where power, leverage and timing
can mean the difference between winning and losing. In martial arts the
black belt symbolizes mastery of the craft, and there are seven major belts
that you must master before being awarded the highest honor. White Belt Beginners in martial arts start out as white belts. This symbolizes purity
and lack of knowledge like a seed waiting to germinate. Likewise, in
negotiating there are indicators that you are a novice such as not being
aware that everything is negotiable under the right circumstances. Not only
cars and houses can be subject to haggling in the United States; even such
items as death and taxes can be negotiable as well. For instance, if you can
negotiate better healthcare you are likely to live longer, and if you can
reduce your taxes you instantly increase your standard of living. The author
regularly receives a "good patient" discount from his dentist because he
always pays his bills promptly and, when representing clients before the
IRS, has gotten the agency to forgive tens of thousands of dollars in back
taxes. Yellow Belt The second rank is usually the yellow belt and represents the seed reaching for the sun and getting ready to grow. In martial arts, you prepare for a
contest by spying on your opponent to find any weaknesses. In negotiating,
you do the same thing by doing your homework about the party you are
bargaining with. For example, if you're buying a diamond ring, what are the
attributes that make one more valuable than the other and what's the lowest
price you can find the one you want on the Internet? Green Belt The third belt is green, which symbolizes the seed beginning to sprout. In
martial arts, you learn how to warm up by stretching your muscles so you
don't injure yourself. In negotiating, you warm up by building rapport with
the other party through small talk. Many amateur bargainers miss this step,
which is crucial because people like to do business with people they like. Blue Belt The fourth belt is blue symbolizing the plant reaching for the sky. In
martial arts, you practice your punching and blocking techniques. At this
stage in the bargaining process, you learn to respond to offers in a way that
doesn't give away your intentions. For example, if a seller offers you a
five percent discount you should reply, "You'll have to do better than
that." This implies that their offer isn't good enough with you putting
anything on the table yourself. Brown Belt The fifth belt is usually brown calling to mind the plant becoming firmly
rooted into the earth. In martial arts, this is the stage when you learn to
use time effectively in a tournament. Negotiators at this level know that
it's crucial to set deadlines for the other party; otherwise, there is no
pressure to come to agreement. Savvy bargainers know that if you give people
all day to make up their minds, they will take all day. They are also aware
that the one with the least time pressure usually wins. Red Belt The sixth belt is red symbolizing the setting sun and the fact that the
plant has matured. This is the stage where martial artists learn to always
be on guard, because there can be unfair fighters who will kick you when your
back is turned or even hit you below the belt. Similarly, there are dirty
fighters in negotiating who try to trigger your emotions by insulting you or
those who will try to renegotiate a contract after signing it. Experienced
negotiators do not allow themselves to get emotionally involved and protect
themselves against renegotiations by always saving something for the end for
such events. Black Belt The final belt is black meaning that the highest level of skill has been
achieved. However, just like in martial arts, the learning never stops. In
fact, there are actually ten degrees of black belts — each one harder than the
last. In negotiating, you can never stop learning if you want to be a master.
There are many ways to improve your bargaining skill such as going to garage
sales and flea markets and constantly looking for opportunities to bargain. HBM Michael Soon Lee, MBA, has been a world-class negotiator and martial artist. Over the years he has combined his negotiating and martial arts skills to save million of dollars for himself and his clients. In addition, He is the author of “Black Belt Negotiating” (AMACOM Books, 2007). Michael's web site is: www.SeminarsUnlimited.com and he can be reached by phone at (800) 41-SPEAK (77325).
Previously published in the August 2008 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($15.00 for 1 year, six issues). Visit www.homebusinessmag.com
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