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Donald's trump card

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Bhupesh Bhandari New Delhi
Last Updated : Jun 14 2013 | 5:32 PM IST
When Mark Burnett approached Donald Trump to star in the reality show, "The Apprentice", the real estate billionaire knew where the television producer was coming from. It was a bold idea but Burnett needed somebody like Trump to sell his show. NBC, which had let Burnett's earlier show, "Survivor", go to CBS was desperate to lay its hand on "The Apprentice".
 
Trump held all the aces. What is more, Trump knew it. And he used this knowledge to good effect. Trump became an equal partner with Burnett and gave NBC only the rights for the US""the duo kept the rights for all overseas shows as well as all merchandise (including "You're Fired" hats). As the popularity of the show picked up all over the globe, there was growing recognition that Trump was the toughest and most imaginative negotiator in business.
 
In the last 30 years or so, Trump has been able to swing some amazing deals, mostly in the real estate business. George H Ross, who has worked for Trump since 1974 and appears with him in "The Apprentice", now tells us the inside story of how Trump negotiated many of these deals. In doing so, he has written a fine book on the basic building blocks for successful negotiation.
 
Though he comes across as a tough-talking, no-nonsense businessman in his show, Ross says Trump connects well with people and is quick to establish a rapport with key people involved in any negotiation. And, of course, Trump always remembers to throw in a dash of salesmanship to clinch the deal.
 
Trump's first acquisition, the Commodore Hotel in New York, was a negotiator's nightmare with dozens sitting across the table. But Trump, who was just 27 at that time, was able to convince them that the acquisition would be good for the city, which was reeling under a slowdown at that time. He knew that his lack of any track record was working against him. So he would take a well-respected figure in the New York real estate market along for meetings. He also hired a top architect to do the drawings of the new look he wanted to give the hotel. All this worked in his favour and he was able to seal what at one time looked like an impossible deal.
 
Before going into a negotiation, it always helps to know what the other party wants. This is where Trump scores over others, though he restricts himself to the big picture, leaving the minutae for trusted attorneys like Ross. When the Mar-a-Lago mansion (118 rooms, 67 bathrooms) and estate was put on the block in the 1970s, Trump knew the trustees wanted it to be retained as a museum. In fact, the mansion had been sold to Florida. However, since it didn't get a steady tourist traffic, the state sold it back.
 
Trump knew there were other bidders also in the race who had in all probability quoted a higher price than him. So he met the trustees and promised to retain the museum character of the mansion and the estate. And Mar-a-Lago was his! Of course, he later converted it into an executive country club and sold off the antique furniture, replacing it with exact replicas. When the local authorities objected to his idea, he threatened to build houses in the estate. His detractors piped down and Trump was able to go ahead with his plans.
 
Like all good negotiators, Trump knows when to back off. Too much ego or the desire to extract better terms can, at times, sour the deal. When he was negotiating with Macy's for the "Donald J Trump Signature Collection" of men's clothing, he wanted a say in placement of the line in stores, advertising budget, etc. Once the retailer objected, he was quick to realise that the job was best left to Macy's.
 
The tools culled out by Ross from Trump's deals are of immense use. After all, we are in constant negotiations at all times, whether at home or at work. The vital question is, is it okay to lie and cheat while negotiating? Ross says, anything goes. In other words, the end justifies the means. Ross himself admits to adopting intimidating postures to browbeat his opponents at the negotiating table. You may contest all of it, but you will find Ross' book difficult to put down.
 
Trump Style Negotiation
Powerful Strategies and Tactics for Mastering Every Deal
 
George H Ross
John Wiley & Sons
Price: $24.95; Pages: 268

 
 

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First Published: Dec 01 2006 | 12:00 AM IST

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