ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES The Economics & Art of Negotiation…What It’s All About. Presented By: Jerry Zaslow Chairman, ATD American Co. ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Definition Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution.

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES The Beginning Negotiation…Part of our Daily Life Working in my Dad’s store Discussions with my Father Working both sides The vendor The customer

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Founded in 1931 by Irving Zaslow as Jaffe’s Art Linens Family-owned and operated for over 75 years International manufacturer and distributor of thousands of items Furniture Safety and security products Linens and clothing Headquartered in Wyncote, PA Company History

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES 5 Negotiating Styles Accommodating Individuals who enjoy solving the other party’s problems and preserving personal relationships Avoiding Individuals who do not like to negotiate and don’t do it unless warranted Collaborating Individuals who enjoy negotiations that involve solving tough problems in creative ways

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES 5 Negotiating Styles II Competing Individuals who enjoy negotiations because they present an opportunity to win something Compromising Individuals who are eager to close the deal by doing what is fair and equal for all parties involved in the negotiation

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Talent vs. education Subjective Experience There’s a ying for every yang Every negotioation is different No special do’s and don’t’s Judgment & common sense Hearsay The Art & The Science

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Psychology Profile your opponent Be agile Get opponent off guard Intuition/gut reaction Killer’s instinct Win-win The Art & The Science II

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES The Basics The mark of a successful negotiation is a contract, written or verbal, that signifies that a mutually agreeable solution to conflict has been reached Good negotiators understand the implications of each item on the table, the consequences associated with various concessions, and where the absolute bottom line of the negotiation lies

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES No two negotiations are exactly alike Treat each negotiation differently Renegotiation is an option which should be explored if favorable terms are not met Always assess current market conditions and vendor’s psyche The Basics II

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Do your homework The facts The strengths The weaknesses Sell to the end user; not necessarily the buyer Don’t sell a Rolls Royce when a Ford will do Psychologically analyze your opponent Capitalize on the weakness Axioms

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Be daring – nothing ventured; nothing gained The Antrim Hardware story The Pillowtex griege goods deal The $600,000 invoice The Adirondack story Pressure Know when to talk & when not to There are times to talk…other times to say nothing Axioms II

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Negotiate from strength Not from weakness We’ll do better Never show any evidence of desperation, except Case in point – Don’t be greedy Stretch the rubber band, but don’t break it Know when to give in and when to pull the trigger Axioms III

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Give a little…gain a lot When the deal is done Run away as fast as you can! Dealing with friends and family…third parties That’s a different story Axioms IV

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Rush act…don’t be too hasty The budget is limited Reverse psychology When appropriate, be an actor Go for the Academy Award Compromise Strategies

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Honey on the Sword/throw out the carrot Chore Boy, Reckitt & Coleman Vendor raised our cost because he found out our selling price Think of the reaction you want first before responding Cat & mouse…the killer’s instinct The finale… A story about Cone Mills Strategies II

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES The Art of War By Sun Tzu The Art of Negotiation Gerard I. Nirenberg You Don’t Get What You Deserve, You Get What You Negotiate Chester L. Karrass Recommended Reading

ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES Any Questions? Jerry Zaslow Chairman, ATD American Co. THE END