A
friend of mine just sold his company to Donald Trump. The story he told me about
the negotiation with Trump not only provides some insight in Trump's negotiating
skills, but also illustrates an important point about "selling high." Even if
your prospect is an uber-bigwig, you must
treat the prospect as an equal. Otherwise, you run the risk of being
fleeced. Here's how the situation played itself out for my friend...
About a year ago, my friend was contacted by Trump's organization with a bid to
acquire his company, a medium-sized startup in the health and beauty field.
After a period of due diligence and preliminary negotiation, my friend was
invited to meet with Trump in order to iron out the final terms.
The meeting was held famous Trump Towers in New York City. My friend, though
savvy at business, found it impossible not to be awed by the fact that he was
riding the elevator featured in television show
The Apprentice.
Rather than meeting immediately with Trump (the original plan), my friend was
taken to a conference room to discuss the final terms with some staffers.
A message was then brought to the meeting that Trump would be arriving at the
meeting in a few minutes. A staffer took my friend aside and said: "You need to
understand that Mr. Trump never shakes hands with anybody. So don't be offended
if he doesn't offer his hand, and don't offer your hand when he comes in the
room."
While my friend digested this tidbit, the staffer continued. "Mr. Trump is a
very busy man and prefers to make decision quickly. So if the meeting lasts less
than five minutes, please don't take it amiss, because that's normal for him."
Finally, Trump makes his appearance. He walks right over to my friend and warmly
shakes his hand. Then Trump proceeds to spend 40 minutes with my friend,
discussing the business and then, at last, ironing out the final terms.
And those terms were, as you probably guessed, less advantageous than my friend
might have hoped.
Now, when my friend told me this story, he kept talking about how impressed he'd
been by the Trump Towers and how gracious Trump had been. "He even shook my
hand!" he said, taking that as a sign of special privilege.
My friend had absolutely no idea that he had been totally mind-gamed.
Now, I'm not sure that I would have done any better than my
friend. It's easier to be a negotiation strategist when you're sitting in your
home office than when you're inside a famous television location, meeting one of
the most famous businessmen in the world.
Even so, I suspect my friend would have gotten a better deal if he'd kept his
cool and realized that he was being gamed. But instead he let himself get caught
up in all the folderol of power.
Here are the lessons to be learned from this:
When you're selling to CEOs, don't get caught up in their exalted self-image.
CEOs, even Trump, are just plain folk. If you're selling to them, you're their
equal by definition. YOU have something the CEO needs; the CEO has something you
want. So the two of you are equally important.
Also, you MUST continually be aware, when you're negotiating at the highest
levels, that there's a good chance that there will be mind games. Anything out
of the ordinary or that "feels weird" should raise red flags.
One technique that works for me, when dealing with "celebrity" CEOs (and I've
interviewed plenty) is to make a realistic assessment of who they
really are behind the facade.
Take Trump, for instance. He's so insecure about his looks that he keeps wearing
that awful comb-over, and he keeps marrying not-very-bright eye-candy.
This isn't to say that you can't learn something about business from Trump. But,
when it comes down to it, he's just a dude, and if he's playing games with your
mind, your mind doesn't have to join in.