The Economics & Art of Negotiation…What It’s All About.

1. The Economics & Art ofNegotiation…What It’s All About. Presented By:Jerry ZaslowChairman, ATD American Co. ENTREPRENEURIAL TOOLBOX LUNCH & LEARN SERIES

2. 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.

3. 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

4. Company History • 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

5. 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

6. 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

7. The Art & The Science • 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

8. The Art & The Science II • Psychology • Profile your opponent • Be agile • Get opponent off guard • Intuition/gut reaction • Killer’s instinct • Win-win

9. 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

10. The Basics II • 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

11. Axioms • 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

12. Axioms II • 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

13. Axioms III • 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

14. Axioms IV • 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

15. Strategies • Rush act…don’t be too hasty • The budget is limited • Reverse psychology • When appropriate, be an actor • Go for the Academy Award • Compromise

16. Strategies II • 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

17. Recommended Reading • 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

18. THE END Any Questions? Jerry Zaslow Chairman, ATD American Co.