How to Negotiate in the United States

The following is excerpted with permission from How to Negotiate Anything with Anyone Anywhere Around the World, Third Edition by Frank L. Acuff (AMACOM 2008). Though this isn't specifically about personal finance, it does indirectly impact on many careers, hence I'm running it here. I also found the information interesting to read.

UNITED STATES

Fast Facts

• Monetary Unit: U.S. dollar
• Major Industries: petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics
• Primary Trading Partners: Canada, Mexico, Japan, China, Germany
• Key Exports: capital goods, automobiles, consumer goods, industrial supplies and raw materials
• Key Imports: crude oil and refined petroleum, machinery, automobiles, consumer goods, industrial raw materials
• Major Cities: Washington, D.C. (cap.) (571,000), New York (18.5 mil. metro area), Los Angeles (12.2 mil. metro area), Chicago (8.7 mil. metro area), Houston (2.0 mil.)
• Ethnic Groups: Caucasian (69%), Hispanic (13%) (Hispanics can be of any race), black (12%), Asian (4%), Pacific Islander, American Indian, Alaskan, or claiming more than one race (2%)
• Primary Religions: Protestant (52%), Roman Catholic (24%), Mormon (2%), Jewish (1%), Muslim (1%), other (10%), none (10%)
• Languages: predominantly English; sizable Spanish-speaking minority

Reducing Communication Noise

Greetings

• Shake hands firmly and briefly with both men and women upon meeting and leaving, and smile. American greetings are informal. A peck on the cheek or a hug may be used between women or between men and women who have been acquaintances for a long time.

• First names are used in most business situations. Possible exceptions would be to use Mr., Mrs., or Miss for a very senior person in age and rank, or in formal situations.

• Common greetings are Pleased to meet you and How do you do? More casual greetings include Hello, Howdy (in the West), and Aloha (in Hawaii).

• Business cards are routinely exchanged in a business setting, though not in social settings.

Conversation

• Americans enjoy talking about business, travel, current trends, and world events. Going to the movies and restaurants are popular leisure activities.

• Baseball, football (American), basketball, golf, tennis, and bowling, are popular spectator and participant sports. Hunting and fishing are popular in rural parts of the country. Soccer has become popular in recent years among children but has yet to catch on as a major national public sport.

• Expect for people to ask you in social gatherings, "What do you do?" (i.e., "What kind of work do you do?") and "Where do you work?" ("For what organization do you work?").

• Americans like their physical space, and usually stand about three feet from each other during conversation.

• Good eye contact is usually considered to be direct eye contact for perhaps five to seven seconds with breaks of two or three seconds. This sustained eye contact is perceived as a sign of interest, sincerity, and truthfulness.

Sensitivities

• Americans like discussing politics. Do more listening than talking.

• Don't criticize the United States. Even though Americans may be self-critical about their environment, they are usually patriotic and don't appreciate negative opinions from others.

Key Negotiating Pointers

• Make prior appointments and be punctual. Although Americans are very time-conscious, business meetings sometimes start ten to fifteen minutes after the appointed time.

• Be cordial but get to the point of the discussions after a limited amount of small talk. Americans sometimes suggest that "we dispense with the formalities and get down to business." Expect negotiations to move quickly.

• Be polite, but be direct and candid in your comments. U.S. negotiators will expect you to "tell it like it is," which means to be open in your communication. Indirect answers may be mistaken for lack of confidence, insincerity, or even dishonesty.

• Don't expect large U.S. negotiating teams. Unless the negotiation is very complex, a typical American negotiation team probably consists of one to five persons.

• Make proposals and presentations detailed, factual, and formal. Be sure to have copies for those present.

• Leave yourself some room to negotiate. U.S. negotiators often have very ambitious initial demands.

• A common tactic is for U.S. sellers to tell buyers to "take it or leave it."

• Expect U.S. negotiators to concede grudgingly, saving concessions until the end of the negotiation.

• Use patience to your advantage. U.S. negotiators sometimes make concessions in order to conclude the negotiation and get on to other business.

• Respect deadlines. Americans are extremely time-conscious.

• Expect contracts to be very detailed and lengthy.

Day-to-Day Pointers

Business Entertainment Guidelines

• Business entertaining is usually done in restaurants.

• Dinner is the main meal of the day, but business breakfasts, lunches, and dinners are common. Dinners start about 7:00 to 9:00 p.m. and continue for one-and-a-half to two hours.

• You may discuss business during a meal.

• In restaurants, tips are not usually included in the bill. A 15 to 20 percent tip is typical.

Table Manners and Food

• Napkins are usually placed in the lap. The left hand often rests in the lap during the meal.

• Americans usually eat with the fork in the right hand. The fork is switched to the left hand and the knife is held in the right for cutting.

• It is generally considered poor manners to rest one's elbows on the table, but many Americans are casual about this.

• There is a rich variety of foods, reflecting diverse cultural backgrounds. Beef, pork, and chicken are popular meats, though many Americans are eating a higher portion of vegetables and fruits for health reasons.

• The large number of fast-food restaurants reflects the busy U.S. lifestyle, as well as food preferences.

Gender Issues

• Compared to other countries, U.S. women occupy more key professional and managerial positions.

• Businesspeople can expect to do business with women as well as men in every region of the country, in many different product lines and services. However, an Old Boy Network still remains in some business sectors.

• Women make up about half the workforce.

• Both parents often work outside the home. Only about 6 percent of the U.S. population lives in a "traditional American family": father at work, with mother and children at home.

Also Remember This . . .

• The United States has the world's largest and most diverse economy, though not the highest per capita income. It is the financial capital of the world.

• American society is prosperous as a whole, though there is a widening gap between income levels.

• The United States is an extremely diverse country, with a wide variety of ethnic, racial, and other backgrounds in the workplace.

Comments

[Becky@FamilyandFinances]

This is fascinating! Now I want to read about other countries to see how they are different. I'd say they have Americans down pretty well :)

[plonkee]

Well, I can tell you that in Britain, the use of humour is all pervasive. It's partly to avoid social embarrassment.