Negotiation is at the heart of human communication. Think about it. Most conversations are a sale in the making. You are either selling to a yes or accepting a no in everything you do. At work this is reflected in what you do, how you do it and what you get paid. All these facets are negotiable. Deepak and Max go far beyond the win/win, win/lose, and lose/win mindsets and show how to create value. The whole point of the book can be summed up in a quote from Emerson: “Man waits; genius creates.”

Why is this important to me?

I start all book summaries with this question because if we can’t answer it, then there’s no point in wasting time watching the video. People do anything to avoid pain and get pleasure. When in the middle they reach their COMFORT ZONE! The comfort zone may be the only place where a good negotiation is not needed. Otherwise, you need to know how to trade – POINT. This book will show you how.

Win/win is considered the ultimate goal of good negotiations. Is it the best result? The negotiation genius will show that it is not always the best result. Amateur negotiators pull on each side of the rubber band in the hope that it won’t snap before they can reach an agreement or compromise. This is claim value in a nutshell. Johnny wants to pay only $50,000 and Jane wants $100,000. They usually fall somewhere in the middle to $75,000. Claiming value is not as powerful as creating value, which we will examine in more depth.

Deepak and Max divide the book into 3 sections. I will cover parts of each section for reasons of time. Claiming value is the first part. Value claim: This is when each party tries to get the most out of the negotiations for itself.

1. BANTA – The best alternative to a negotiated agreement! Identify all of your best options. Do your homework and get ready

2. RV – Reserve Value – This is your starting point. Understanding BANTA allows you to really know what your reserve value is.

3. ZOPA – is the ZONE of Possible Agreement – This is the difference between the reserve value of the sale or the starting point and the reserve value of the buyer.

Common negotiation mistakes are as follows: 1.) You made the first offer when you were not in a strong position. 2) You made a first offer that was not aggressive enough. 3.) Talked but didn’t listen 4.) Tried to influence the other party but didn’t try to learn. 5.) You didn’t question his assumptions about the other party. 6.) He miscalculated the ZOPA and did not reassess it during the negotiation. 7.) Made bigger concessions than the other party.

Contingency Contracts are designed to bring out lies and deceptions as more extreme in any contact. They leave certain elements of the deal unresolved until the uncertainty in the future is resolved.

Silence: Get comfortable with silence. Just remember that if you speak when it’s their turn, you’ll pay per word.

Investigative negotiation is just what it says on the tin. Probe and ask questions to gather information. How can we obtain information to create value, resolve conflicts and reach efficient agreements?

1.) Trust is essential in all relationships. You can have a weak agreement with good people and get a great result. You can also have a rock solid deal with bad people and have a terrible outcome. Trust is the glue that holds a deal together after it’s done. Sharing information can help you collect information.

2.) Negotiate issues simultaneously – When you do this, more information is shared and the dialogue is more open. Once people feel comfortable with you, they will download more information.

3.) Ask good questions and LISTEN – If you don’t take anything else from this video review, then this tip will come in handy. Asking open ended questions in your TERMS such as “Why”, “Tell me more”, “Can you be more specific?” it will allow you to get a full spectrum of what concerns them, what is important to them, and what areas are NOT. important to them.

The power of questions can be amazing. Consider if Microsoft wanted to buy your software company. You value it at three times the revenue, which is $15 million dollars. If you accept this offer knowing all there is to know, then this may be good enough. What if because of their distribution, they will be able to generate $100 million per year in revenue with their software? Don’t you think they would pay you more? They could pay you triple your price. The key here is knowledge. Understand why they want to buy and the consequences if they don’t and this will yield exponential results.

Several principles are fundamental for you to learn. Remember that in any negotiation if you get a No, don’t accept it. Your goal is to understand “Why NOT”. Once it does, you’ll be able to reopen it and get a yes.

I hope you found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes a habit. Habits are formed in as little as 21 days.

One thing you can take away from this book is don’t accept NO. Instead, ask why!