Using Information to Leverage Negotiations

Sometimes negotiation seems like a big hole that you have to fill, but you don't know with what. But a little bit of research, or even something you already know, can give you the edge you need. Here's a recent example I had. Although most of my work is in non-fiction, I write plays and had submitted a short one to a publisher that I knew was looking for material to go into a new anthology for actors. Six months ago I sent in some work, as it literally wasn't going to hurt anything I was doing, and might be an opportunity.

The other day I received an email from the editor of the book, saying that she wanted to include my play. Payment would be either $30 or five copies of the book. It sounds like an iffy deal, but I did some research, calling a playwright I know and asking if he knew the publisher and what he thought of the rates. He's put together at least one anthology in conjunction with the Kennedy Center in D.C. and said that they paid about the same, noted that the publisher was reputable, and echoed my own thought: it can't hurt, and it might help. He also suggested taking the money, because it could offer proof to the IRS that I actually am doing work in the dramatic field. A very smart suggestion.

But I still wanted copies of the book. I checked at Amazon.com and found that these books pretty much sell for list price wherever you find them. The publisher obviously was valuing the five copies as the equivalent of $30. However, I've done research into book publishing in the past and know that the actual unit cost of the book is probably going to be in the $1 to $1.50 range. So I made a counter offer: $25 and two copies of the book, indicating that I knew the marginal cost. Their answer? Sounds good. So I get a couple of copies and I also get the $25 to help establish a track record as a paid dramatist.

Had I not done the research into the offer, I would probably have agree anyway and picked either the money or the books. But I knew that the worst that could happen was the editor said, "Sorry, it's one or the other." But with the facts backing me, I also knew that they were still saving money over the straight cash payment. Although this is a small example, it shows the important principle that the more you know going into a negotiation, the smarter you can negotiate.