If you want to be a great negotiator, forget about Win-Win. You must go farther and deeper looking for payoffs that will meet more than the obvious demands of negotiation. Get the deal. Get the job. Achieve the agreement. Settle the dispute. Avert the disaster. You can do these things if you learn to maximize payoffs.

1. Win-Win
Is Not Good
Enough
You Need to Know Why

2. Win-Win Is
Not Good
Enough
The idea of seeking a win-win solution was a great idea
when it first became popular.
We were reminded to look out for the other person’s
interests as well as our own. Do this and we both win.

3. The Reality
In reality, the customer isn’t interested in your side.
That’s not a bad thing. It’s the reality.

4. Think
About It
When you are working on a deal for your company, do
your first thoughts go to, “is the other party getting
enough?”
Probably not.

5. Think
About It
When you are making a major purchase, do you
struggle with, “I hope the salesman is making enough.
Maybe I should pay a little more.”
Probably not.

6. “Win” Is
the Wrong
Word
“Win” is the wrong word. If someone wins, someone
else loses. Sure, we can spin the meaning to imply that
we both win. You know better. Someone always comes
out ahead.

7. Win-Win
Is
Knot
Win-Win is really a tie.
Do we want to negotiate to a draw? Well, sort of.
Nobody wants to “lose”.

8. Fear of
Losing
Your Counterpart in Negotiation Fears:
• Making a bad deal (Paying too much)
• Entering into a bad arrangement (Stuck long term)
• Buying something that doesn’t solve a problem

9. There Is a
Better Way
Game Theory offers us a better way.
Let me introduce a term: Payoff

10. Payoffs
A payoff is what the parties to a transaction get. In a
simple sale, the seller gets money; the buyer gets a
product.
Both parties receive payoffs.

11. Wait!
There’s
More To
Payoffs
The concept of payoff is a lot deeper than:
Seller gets money. Buyer gets product.
This is where we need to do more thinking as
negotiators.

12. Beyond the
Obvious
Payoffs extend far deeper than the superficial
exchange.
The seller may need cash now to meet an obligation.

13. Beyond the
Obvious
The buyer may need to negotiate a great discount to
save his job.
The seller may need to liquidate old inventory.
The buyer may need the item immediately.

14. Not Just
Sales
We need to think about all the possible payoffs for the
other party as we negotiate.
Note: This applies in all negotiations, not just sales.

15. Their Payoff
Hold on. I said that we need to consider all the possible
payoffs to the other party, right?
What about your payoffs? Hang on.

16. YES!
Put Their
Payoffs First
Before entering the negotiation, consider what the
payoffs to the other party might be.
I say “might be” because you will never have complete
information.

17. Incomplete
Information
We might think “they really need this deal” when they
closed a huge deal yesterday. Be careful. Think deeply.
Never forget that your information is incomplete.

18. Make a List
List the payoffs you know about. Then list payoffs that
might be possible.
Like this…

19. Payoffs
They want this deal
It’s a large deal for them (could strain cash flow?) so…
A deposit with the contract would help them and could
be used to reduce our price

20. Subtle
Payoffs
Bob has a huge ego. Let him win a concession. What
can we let them ‘take’? (Satisfying Bob’s ego is giving a
payoff)

21. More
Payoffs
Because they are a small company, filling a large order
may be difficult. Let’s let them ship to us in “lots” so
they can free up space. We still need the goods in 60
days, but we could let them ship (and invoice) every 2
weeks. Payoff? Space and cash flow for them.

22. There Are
Many
Payoffs
In every transaction, there are many, many overlooked
payoffs.
Here’s another example.

23. Salary
Negotiation
You are deadlocked in a salary negotiation. You want
$200k and a company car. The company cannot offer
you more than $175k and a car.
Win-Win says we split the difference. No!

24. Lose-Lose
That’s not a win. You get less than you want and the
company pays more than it wants to.
How about you accept $87k for 6 months. If you achieve
that big goal, you are raised to $205k. (Annually)

25. Their
Payoff?
They get you at the price they set. You get more than
you originally required. (Get it in writing)
That’s the way a bonus system works but note that I’m
negotiating a permanent salary increase.

26. Stress the
Payoff
You must, in that situation, remember to stress the payoff!
They get you at their price. They realize the benefit of the
goal you deliver. And, you take the pressure off the person
who wants to hire you. (At least 3 payoffs)

27. Add More
Payoff
If you believe you can deliver, add a provision that says
they can terminate you within 90 if they do no see
progress toward that goal you’ve set. (Reducing their
risk of making the wrong choice is another payoff!)

28. Get It?
Can you see how important payoffs are?
List as many as you can think of and be ready to add
them to the list of real benefits ‘they’ have in working
with you.

29. Maximize
Their Payoff
Consider the examples. From offering a deposit to
reaching a goal before taking a raise, all have value that
you can use to support your offer. (Payoffs)
Fast payment, for example, is always worth a discount.

30. Stop
Worrying
About
Yourself
Don’t worry about your payoffs. You will not “give away
the farm”.
Payoffs like this are smart and cost very little. AND…

31. Take the
Focus Off
Price!
Too often, negotiation becomes a wrestling match
around one point: usually price.
Or, it can be some other sticking point.

32. Get Off the
Dime!
Arriving prepared to maximize the other party’s payoff
gives you a huge advantage and reduces the tendency
to fall into a showdown over a single point.
Many agreements fail over one point.

33. Summary
Forget about Win-Win. You’re not going to battle. It’s
not a game.
Get what you want by maximizing payoff for the other
party. They won’t expect it.

34. Practice
and
Training
You can do a lot with this information. I guarantee you
will be a better negotiator if you use this technique.
It’s only the beginning. There’s much more to learn and
it takes practice. (We can help)

35. Contact Me
A short seminar for your team will increase the payoffs
to your company. Education pays forever.
Call or email to discuss how you can benefit:
(530) 467-5690 Or Chris@TeachU.com

36. TeachU
3Es
Chris Reich of TeachU™ is the creator of the 3Es™ System of
business improvement. We help companies improve profitability
through cost-effective training and education programs.
We believe that Education, Ethics and Excellence are the keys to
long term, sustainable success.
(530) 467-5690

37. Win-Win
Is Not Good
Enough
You Need to Know Why