The Power of Negotiation

The Power of Negotiation

In the entertainment business, no deal progresses without negotiation.  I’ve recently had the opportunity to interview, Freddie Baez out of Chicago, IL about his experience with negotiating deals. 

Freddie Baez is currently the National Director of Events at GTM, Inc.—a marketing and media agency.  His primary focus is live brand activation and branded content for television. Freddie has been the Event Producer for Master of the Mix Seasons 1 & 2 (a reality show seeking America’s best DJ—providing branded content for Smirnoff).  His most recent client is Diageo.  Freddie believes in “the moments, curating cultural lifestyle integration, and providing the bridge for brands.”

There are a couple of topics that were covered in the interview—The Separation of People and The Problem, Positional Bargaining Tactics, Mutual Gain and The Best Alternative to a Negotiated Deal. These topics were derived from the book Getting to Yes by Roger Fisher and William Ury.

When asked about separating people from the problem, Freddie removes himself from the position of power and presents himself as the “gatekeeper”. Stating that he uses “the client as a tool, so that (he) can be a mediator.” He states, “ I can hear the request, but realistically I’m powerless to change their (the client) position.” Furthermore, by using his experience and reputation as leverage, Freddie ensures the venue that he has their best interest at heart.

Not only does this allow him to a gain the best-negotiated deal, it creates a relationship between he and the venue. Whenever there is a need to bargain by way of position, he immediately reminds the venue that he favors the accounts needs.  When mentioning he accounts needs, he reminds the venue that he is the arbitrator, knows their position and wants to ensure there is mutual gain for both parties. By doing this, he has identified the shared and opposing interests in advance, assuring an easy decision making process.

When asked how he arrived at the best alternative to a negotiated deal, Freddie mentioned that he knows in advance the what his bottom line is—how much he can alter his budget. At this time, when the negotiation is becoming a bit difficult, he uses his “dirty trick”—simply stating “We have to pick a place, you’re our/my first choice, we cant afford to loose time… If I go back to the account/brand I will have to go the your competition. Your competition will gain if we can’t settle.”  If the venue continues to persist, it is common that they heard the deal as a professional courtesy—knowing they did not want the deal.

This interview is very insightful to how negotiations take place in the world of entertainment and venue bookings.

For further insight on negotiations see--
  http://www.inc.com/magazine/20101101/how-to-negotiate-effectively.html

on booking events--
  http://www.pmpmeeting.com/articles/howtobookentertainment.htm

for the book Getting to Yes--
http://www.amazon.com/Getting-Yes-Negotiating-Agreement-Without/dp/0143118757