Feb 28, 2018
Chris Voss is the CEO of the Black Swan Group and author of the national best seller, ‘Never Split The Difference: Negotiating As If Your Life Depended On It’; named one of the 7 best books on negotiation. He is a 24 year veteran of the FBI, and retired as a lead international kidnapping negotiator. Chris' company specializes in solving business communication problems, using hostage negotiations solutions. Listen how you can practice effective negotiation in your pawnbroker business.
[01:57] What have we learned and what’s your method of negotiation? “Vast majority of it is intellectually sound, and the problem is human beings are not intellectually sound”
[02:53] Hostage negotiation is intense human behavior, but not as intense as day to day interactions
[03:31] Chris had to do additional duty while being an FBI agent. He was an FBI investigator and worked in terrorism.
[04:16] He was initially rejected when he applied to be a negotiator, because he was unqualified. Utilizing the Suicide Hotline was great practice in getting him to negotiating.
[04:39] “When I first got there they said ‘Look, if you take more than 20 minutes to get to the bottom of this and get this resolved, you’re doing it wrong’”
[05:09] “A tactical application of empathy will cut any work from 20-80% of unnecessary communication”
[05:25] Knowing how the brain works gives you an idea of what you are looking for in advance
[08:17] What could a pawnbroker say in turn so that they connect emotionally with a client? “Say you’re sorry first and then let out the cost”
[08:21] Apologizing first prepares the customer for what is about to happen next; which they genuinely appreciate
[09:35] The tone of your voice triggers emotional reactions in the person that hears it, and also in yourself
[11:14] “The late night FM Dj voice is miraculous in what it can accomplish for both sides”
[12:13] The assertive voice triggers a chemical change in your brain which causes you to get angry
[14:19] Prospect Theory implies that we value a loss twice as much as we value a gain
[16:39] Finding ranges when selling an item is powerful, as customers compare the lower figure to the higher figure and are attracted by the figure at the end of the range
[17:24] Customers walk out your store feeling happy about getting a bargain and shares the deal with their friends. This word of mouth increases your customer base and profits
[19:18] Compromising leaves people unhappy
[21:45] There are many negotiators that will not go easy on you until you drop your prices significantly
[22:16] “We found consistently that there’s usually 3 rounds of cuts in nearly every negotiation. People walk into a deal expecting to drop their price and we find that if we do it in an emotionally intelligent way, we can probably get them to knock their price down at least twice before we sell”
[22:46] The anchor is a very common move by negotiators. It is an extreme offer (high price or low price)
[23:33] None of the A+ players want to make an offer first
[28:06] “The more empathic I am the more assertive I am”
[28:11] In the first chapter of the book ‘Beyond Winning: Negotiating to Create Value in Deals and Disputes’ Robert Mnookin, speaks on The Tension between Empathy and Assertiveness.
[29:38] “All you got to do is change your questions and you’d be astonished at how far you can get by changing and making ‘No’ work for you”
[35:49] There are sacred values that criminals have in their minds that influence their behavior
[36:51] What’s your stress level when called to do a negotiation? “You don’t rise to the occasion, you fall to your level of preparation”
[38:10] Preparation may come through experience, so you know what to do the next time something similar happens
[39:15] Three mistakes “great negotiators” make:
[40:57] What is the one thing to put into practice as pawnbrokers? Practice the mirroring technique.
[41:45] Buy the book ‘Never Split The Difference: Negotiating As If Your Life Depended On It’ on Amazon.com and subscribe to the weekly newsletter by sending a text to FBI empathy to ‘22828’. There should be no space between the words FBI and empathy.