Negotiation Is Persuasion, Not Power
Book: How to Get Rich
Author: Donald J. Trump (with Meredith McIver)
ISBN: 1-58836-410-0
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The chapter title quotes Patton. Trump uses it as a header, then argues deals are about persuasion, not raw power. The 40 Wall Street story proves it.
Persuasion, not power
Power is convincing people to accept your ideas. Being rich does not mean you always get your way. Trump still has to coax and make his case.
People listen more when you have money. They also reduce you to one dimension. Real power is knowing what you are doing.
Study persuasion. Use metaphors people grasp. Humor breaks ice. Confidence matters. Bulldozing empties the room.
You want acceptance, not resignation. Let people feel the decision is theirs.
The golden rule of negotiating
He who has the gold makes the rules.
If you know nothing about the other party, let them talk. Watch tone and body language. Figure out if they want a deal or just want to look smart.
Most talks stay calm. Sometimes screams help. Good negotiators are chameleons.
If someone wants what you own, let them convince you that you do not need it. That shows how badly they want it.
Money is not the only currency. Learn to say no. Research who you are dealing with before you sit down.
Consider what the other side wants: 40 Wall Street
Trump’s favorite deal. Tallest building in lower Manhattan. 1.3 million square feet. He bought it for one million dollars.
Marcos bought it in the 1980s. It declined. The Resnicks tried and failed with Citibank. Trump wanted in during the early 1990s but his finances were rough.
Kinson, a Hong Kong apparel group, bought it next. They wanted a downtown Trump Tower with a public atrium. They never thought about the steel columns holding up seventy-two stories.
They poured tens of millions in and got nowhere. By 1995 they wanted out fast and quiet.
Trump offered one million plus assuming liens, subject to a new ground lease with the German land owners, the Hinnebergs. They accepted without pushing back. They needed out. He knew it.
Prior leaseholders dealt only with the family’s agent, who kept raising rent. Trump flew to Germany to meet the owner directly. What the owner wanted was peace of mind, not more money. Trump promised a first-class building if rent paused during renovation and the lease allowed quality tenants and bank financing. The owner agreed.
Markets improved. Downtown revived. 40 Wall Street became beautiful and lucrative because Trump watched for decades and understood what each side needed.
Be reasonable and flexible
After buying, the building was empty. Trump offered the existing broker exclusive agency after renovation. The broker demanded sixty thousand a month guaranteed, deducting future commissions.
Trump refused. Vacant building, existing losses, pay without producing tenants. The broker would not budge.
Trump hired another broker on normal terms: no lease, no commission. That broker made millions in two years. The first broker’s inflexibility cost him a fortune.
My take
The Patton quote is provocation. The advice is more nuanced. Research the other side. Let them talk when you are blind. Know when they need speed more than price. One million for a Manhattan landmark sounds insane until you hear the seller’s desperation.