Trump Negotiation Tactics

www.WhatILearnFromReading.com
Trump-Style Negotiation:
Powerful Strategies and
Tactics for Mastering Every
Deal
by
George H. Ross (Author)
Teerawat Issariyakul
Thursday, June 13, 2013

Outline
Introduction
Begin with Yourself
The Other Side
Strategies, Tools, and Tactics
Wrap-up
“Skilled negotiators are
easy to deal with, but
they get what they want.”
2

Donald Trump
A successful businessman
Real estate business (e.g., 58-storey Trump Tower, NYC)
The Apprentice: “ You’re ﬁred!”
3

George H. Ross
A real estate lawyer
Trump’s advisor since 1970s
One of Trump's two advisors on The Apprentice
A lecturer at NYU: Real estate and negotiation
The author of the book!
4

Why: Resource scarcity or Conﬂict of Interest
What is Negotiation?
“Negotiation is a process in which people learn to
accept an available compromise as a satisfactory
substitute for that they thought they really wanted.”
5

It’s not all about money. It can also be ego, prestige,
recognition, and, most of all, satisfaction
Mindset
Negotiation is not science: You can’t quantify satisfaction
Winning is not everything
Continuity is important
What is Negotiation?
6

Your Weapons Are
Words
Concessions
Actions: e.g.,
Being late for a meeting
Not returning a phone call
Cutting a meeting short
Scheduling conﬂicting schedule
7

The Best Negotiator
is
…
Your Kid!
8

Negotiation Strategies
I win
You lose
I win
You win
I lose,
You lose
I lose
You win
9

Trump-Style Negotiation
Focus on “Win-Win”
Long-term beneﬁts
It’s not ALL about money
Protect your reputation
Be TOUGH but FAIR
“He [Ross]'s tough, ﬁrm
but fair, a very brilliant
lawyer, and I trust his
judgment.”--Donald
trump
10

Rule#1: There is no rule in negotiation
Rule#2: Lying and cheating is OK!
Rules of Negotiation
That’s doesn’t mean that you have to lie and cheat
You just have to be aware of them
11

Begin With Yourself
12

Begin With Yourself
Mindset
Hone Your Skill
13

Why Do We Negotiate?
Money (Prime) and other
beneﬁts
Learn something new and gain
experience
Build up reputation
14

What Do You Want?
Focus on build trust and rapport
Find out:
Satisfaction: What both sides
can live with
Constraints: e.g., time,
authority, regulation
Information: Personality,
education, knowledge,
morality, style, etc.
“If you listen well, and are
open-minded in your
discussion with the person on
the other side, you will
broaden your knowledge.
Everyone can learn something
from everyone else. And, you
will deﬁnitely be smarter going
into your next negotiation, and
those that follows.”
15

Prepare Yourself
Rapport means ‘relation marked by harmony,
conformity, accord, or afﬁnity.’
Mindset Skill Set
• Be nice
• Build trust and rapport
• Be skeptic
• Make (not break) deals
• Gather information
• Communications (Listen)
• Creativity and Flexibility
16

Begin With Yourself
Mindset
Hone Your Skill
17

Gathering Information
Information is power!
Hard and laborious, but worth doing
Information about
Both sides and the deal
E.g., Constraint, motivation, weakness (e.g., details, time)
“God is in the details”
Ludwig Mies van der Rohe
18

Gathering Information
Yourself
Weakness: Admit it and ﬁnd
strategies to address it
Strength: Exploit it
People
Remember names and roles (e.g.,
Key man v.s. Messenger)
Ask politely when seeing a new face
Power limit (e.g., authority)
19

Knowledge
Actual Knowledge Apparent Knowledge
Nature
Beneﬁt
Accomplished
by
General Knowledge Appear to be ...
Support your
position
Create credibility
Experience, Reliable
source, Accuracy
Aura of legitimacy
20

Aura of Legitimacy
People tend to believe in
What you show them, e.g., printed
document, Signs like “Clearance
sale”
Powerful/Knowledgable people, e.g.,
the president of the U.S., professors,
buzz words
Principle of least effort
Use it and don’t be fooled by it
“People are inclined to
give you the beneﬁt of the
doubt until they have
compelling proof to
contradict that belief.”
21

Communication
“Seek ﬁrst to understand,
Then to be understood”
Steven R. Covey
Listen
Invite other to listen to you
Raise your voice to take control
Lower your voice forcing the other side
to listen to you more carefully.
Learn to read body language: Voice,
gesture, look at friends for approval
“Just hear me now. I think you are
going to like my idea.”
22

Flexibility and Creativity
Know where your line and the others’
line are.
Set out with multiple objectives ➠ More
ﬂexibility
Make wise concession:
Cash is only a part of it
Others are marketing budget,
payment term, quality of project,
delivery date, etc.
“You always have
negotiation power, if you
can force yourself to walk
away from a deal, either
temporarily or
permanently.”
23

Be a Good Salesperson
Rapport : Relationship ﬁrst
Enthusiasm: Fire up the other side
Showmanship: Dress well, Proof of
Concept
Preparation:
Least Effort:
People don’t like

spending too much

effort
Tenacity:

100 “no” before

a “yes”
“People want to believe. They want
to believe in you. They want to
believe in your company. And, your
job is simply to give them the
opportunity to believe.”
Bill Murphy Jr.
24

The Other Side
25

Human Nature
Envy
Ego
Fear
Nobility
Greed
26

Greed
Invested time (and
money) principle
Pride
Tendency not to change
Friends or foes forever
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Fear
Superiority
Be dumb and make friends
Complexity
Nobility
Mutual exchange
Forgiveness
Greed
Invested time (and
money) principle
Pride
Envy
have items.
ones.
Fear
Superiority
Complexity
Nobility
Mutual exchange
Forgiveness
Human Nature
27

Greed
Invested time (and
money) principle
Pride
Envy
have items.
ones.
Fear
Superiority
Complexity
Nobility
Mutual exchange
Forgiveness
Greed
Invested time (and
money) principle
Pride
Envy
have items.
ones.
Fear
Superiority
Complexity
Nobility
Mutual exchange
Forgiveness
Human Nature
“I know I made a
mistake. But if you
don’t help me out, it
will cost my job.”
27

Pride
Fear
Superiority
Complexity
Nobility
Mutual exchange
Forgiveness
Greed
Invested time (and
money) principle
Envy
have items.
ones.
Pride
Fear
Superiority
Complexity
Nobility
Mutual exchange
Forgiveness
Greed
Invested time (and
money) principle
Envy
have items.
ones.
Human Nature
27

Nobility
Mutual exchange
Forgiveness
Fear
Superiority
Complexity
Envy
have items.
ones.
Pride
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Fear
Superiority
Complexity
Envy
have items.
ones.
Pride
Greed
Invested time (and
money) principle
Human Nature
27

Nobility
Mutual exchange
Forgiveness
Envy
have items.
ones.
Greed
Invested time (and
money) principle
Fear
Superiority
Complexity
Pride
Nobility
Mutual exchange
Forgiveness
Envy
have items.
ones.
Greed
Invested time (and
money) principle
Fear
Superiority
Complexity
Pride
Human Nature
27

Envy
have items.
ones.
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Pride
Fear
Superiority
Complexity
Envy
have items.
ones.
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Pride
Fear
Superiority
Complexity
Human Nature
27

Envy
have items.
ones.
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Pride
Fear
Superiority
Complexity
Envy
have items.
ones.
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Pride
Fear
Superiority
Complexity
Human Nature
SIMPLE SOLUTIONS:
1. Split the difference
A buyer asks for $100
A seller wants $150
Difference = $50
Let’s settle at $125
2. Maybe later: Leave when the conversation get so
heated
3. Third party: Let another person decide
4. Be creative and think outside the box
27

Exploiting Human Nature
Be skeptical
Fundamental Rule: Do not accept
anything for the face value.
When someone say “trust me”, be
careful!
Stay away from dirty negotiation
“Don’t believe
everything someone
write or say. Listed
price is usually made
to test the market. It is
much higher than
actual price.”
28

Difﬁcult People: #1 Intimidator
Traits: Big, loud, higher status
Tactics: Scare the other side
Advice:
Play defend and stand your
ground. If you succeed, this
person will be nice to you
Establish rapport (perhaps
after the meeting)
Let him think he’s winning
Use details
Be good with his
subordinates
29

Difﬁcult People: #2 Know-It-All
Traits: Know a lot, Arrogant,
Listen to no one
Problem: No communication
Advice:
Be humble
Do not confront him head-
to-head
Get people on his side to
help you
Do not give him new info. or
tell him what to do because
he won’t believe you
anyway.
If you’d like to give info., just
give what he’s already
know. 30

Difficult People: #3 Waffling
Traits: Undecisive
Problem: Never move forward
Advice:
Be slow and patient
Building up his confidence
(e.g., compliment him)
Be stingy in concession
Don’t give too many
choices
31

Strategies, Tools, and
Tactics
32

Strategies, Tools, and
Tactics
Strategies
Documentation
Tactics
33

POST
Know All
What to do to
achieve
objectives
Resource
allocation
Person
TacticsObjective
Strategy
Know all people and
objectives,
what to do to achieve
objective
Tactics = resource
allocation
34

Example Strategies
Enthusiasm
Good Cob, Bad Cob
Silent Notetakers
35

About the Meeting: Before
Gather information
Prepare agenda
Expect the other sides’ reaction, and plan strategies
Ask yourself these questions:
What are you going to say?
How are you going to react to
what the other side says?
What will you say if the talk
come to a stand still?
What concession are you able/
willing to make?
What do you expect from the
other side?
Who will you be negotiating
with and what motivate them?
36

During the meeting
Create positive negotiation atmosphere; Let them know why your proposed
solution is best for them.
Aim high and hold back your concession
After the meeting, IMMEDIATELY sit down with your team and
Prepare documentation (e.g., minutes)
Review the negotiation:
About the Meeting
New info. about people or the deal
Revised assumptions
Did you get what you want? Why? and
Why not?
Is there any strategy to get what you
want?
37

Documentation
It’s boring. It’s hard. It’s IMPORTANT!
Reminder and Evidence
Control the document! ➠ Aura of Legitimacy
What documents?
Contract and Minutes
MoU and LoI
Deal books
38

Contracts and Minutes
Put what you want
Leave out what you don’t like
The other side may not even
read it.
It’s ok if they want revision
Send the minute to the other
side for conﬁrmation (by email or
in the next meeting)
‘I’m so glad we’ve
agreed on these items:
.....
If you disagree with this,
please let me know
immediately.”
39

MoU and LoI
Not a contract (i.e., non-binding)
Reminder of what’s been agreed
People tend to stick to MoU/LoI. Why?
Nobility
Invested time principle
Concise (2-3 pages)
Real decision maker signs the document
A template for drafting subsequent legal document
40

Deal Books
Very powerful tools
1. General deal books:
• Record everything
• Eg., What, Who, When, Where, How (commun. means)
• Use it as a reference
2. Deal-speciﬁc deal books:
• One book for one deal
• Plan, Agenda, Strategies
• Issues classiﬁed by type (opened, agreed, pending, strategy to resolve)
41

Deal Books
3.We-They List:
• The difference of both sides (e.g., constraint, authority, time)
• Show a part of it to the other side
4.Wish List:
• What we want and what they want
• What we can give
• Prioritized list
42

Example Tactics
Tactics Countermeasure
#1: “You’ve gotta do better than that”
(Until you hear “this is my absolute best deal.”)
“I offer you a very good price. Why do I
have to do better than that?”
#2“That’s all I can do”
(Do it like an apology)
Verify the line
#3: Nibbling
(Do for concession as if it is a general practice)
- Put the price on every item
- Give discount instead of free
#4: A Change of Pace
(Work at your own pace)
Stay focused
#5: “Take it or Leave it”
Change parameters and look for
alternatives.
#6: Force Revision
(Revise the contract after it is signed)
Nothing you can do
43

Control the Pace
Slow:
You need time to gather information
Do not accept anything right away
Be dubious and indecisive
Fast:
You don’t want the other side to do research
Stay focus; Verify everything the other side ask for
44

Delay
Esp. when there are several people (e.g., large organization)
Invested time principle ➠ Drag the negotiation
Example usage
Pressure the other side (e.g., I’ll give you two days to ﬁnish or I’ll go
somewhere else)
Verify (e.g., why two days? I allocate all the time for you. Isn’t that
enough?)
Use delay as a concession (e.g., I can do it faster, but I need to put
more people into work. Can you help me out with the extra expense?)
45

Deadline
Not all deadline are equally
important
Test all the deadline
Missing deadline v.s. Worse Deal
➠ Most deals are closed near the
deadline
The worst deadline = imposed by
your side
You also need to be
aware that when a
negotiation fails, it is
usually caused by people
on your side, not the
other side.
46

Deadlock
Both sides put their feet down
Initiating deadlock
To show your conﬁdence and to test the conﬁdence of the other side
To gain concession
To show people on your side that you are really on the same side
To change the pace of negotiation
Smile and be friendly when doing so
Always leave a way to come back
“Think it over. And, if you
change your mind, call
me.”
47

Deadlock
Big organization fears deadlock because every decision
involves many departments.
Resolving deadlock
Move to other issues and come back later.
Offer small concession and ask the other side to do the same.
Go off the record and ask other people (who are not in the
meeting) for help
48

Get Tough Strategy
Put you foot down. Don’t make compromise.
Set the tone. Let the other side know that you can be tough too!
Don’t back down. You cannot afford weakness when using GTS.
Manage concession properly; Be reasonable
Don’t burn the bridge
Aim high
Don’t succumb to simple solution
Use deadline
Patience and Stingy
49

Telephone
Bad for negotiation. If you want a ‘no’, use telephone.
Interruption is deadly, caz you are not ready.
Guidelines:
People do not talk long on
telephone
People believe most calls are
important. They drop
everything when they’re on the
phone
No body language
Cannot show the document
Who’s on the other sides?
50

Telephone
Be the caller.
Prepare a written agenda before you call
Prioritize them. Go through them one by one.
If someone calls you,
Ask to call back later
Otherwise, try one way communication. Do not make any deal.
Listen and make note. Only ask for clariﬁcation
Write a follow-up letter to conﬁrm the info. in the conversation
51

eMail
eMail leaves paper trails.
Make impression ➠ Spell check!!
Always provide sufﬁcient information
52

Wrap-up
53

Dos and Don’ts
Dos Don’ts
Trust your instinct Talk about your weaknesses
Adapt your negotiation style Believe in bogus theory
Tell your team to say as little
as possible
Use all the power you have
Aim high but be realistic
Waste your time for
worthless things
54

TAKEAWAYS
1.Rapport and people, not
beneﬁts and the deal
2.Documentation
3.Use time and company
policy as your weapons
4.Take calculated risk
5.Commit to gain
concession
55

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