Latest / Real Donald Trump Wisdom / The Art of the Deal - Chapter 2: Trump Cards - Elements of the Deal - Use Your Leverage (1987)

Transcript

The Art of the Deal - Chapter 2: Trump Cards - Elements of the Deal - Use Your Leverage (1987) · Real Donald Trump Wisdom

• 0:00
  All right, guys, back for another episode. Trump,
• 0:04
  the art of the deal. Trump cards, the elements
• 0:07
  of the deal. Use your leverage, Trump says. The
• 0:11
  worst thing you can possibly do in a deal is
• 0:14
  seem desperate to make it. That makes the other
• 0:17
  guy smell blood and then you're dead. The best
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  thing you can do is deal from strength and leverage
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  is the biggest strength you can have. leverage
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  is having something the other guy wants or better
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  yet needs or best of all simply can't do without.
• 0:34
  Unfortunately that isn't always the case which
• 0:37
  is why leverage often requires imagination and
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  salesmanship. In other words you have to convince
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  the other guy it's in his interest to make the
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  deal. Trevor's going to then list three examples
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  of how he used leverage to get his way in deals.
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  The first one is with the Commodore Hotel on
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  East 42nd Street. He was trying to get city approval.
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  And in order to get it, what he did is he convinced
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  the owners of the hotel to go public with the
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  fact that they were planning to close down the
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  hotel. Once they went public with that information,
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  Trump made sure to tell everyone in the city
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  what a disaster it would be to have a boarded
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  up hotel in the Grand Central area. So that pressured
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  eventually the city officials to realize it wouldn't
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  look good for the city to have a closed hotel
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  in that area. And that helped him eventually
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  get the approvals to take over that project.
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  Same thing in Atlantic City for the holidays
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  in. They wanted to basically to be established
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  in the gaming industry. And they were attracted
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  to Trump's site because they believed his construction
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  was farther along than that of any other potential
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  partner. Trump says. In reality, I wasn't that
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  far along, but I did everything I could short
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  of going to work at the site myself to assure
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  them that my casino was practically finished.
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  My leverage came from confirming an impression
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  they were already predisposed to believe. So
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  Trump made sure that in the headlines, in the
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  looks of it, and he did everything he could to
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  confirm. And to further the impression and eventually
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  the reality that his site was the most ready
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  site for a partnership. And that's how Holiday
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  Inn chose to go on a partnership with him there.
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  Finally, the third example is on the west side
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  of rail yards. So at the time of this book publication,
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  NBC, the TV network in the U .S. There were talks
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  that they were going to leave the city of New
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  York to go to New Jersey. Yeah, they were going
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  to change their headquarters. And Trump had bought
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  land near the Hudson Yards in the west side of
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  Manhattan. He named the project Television City.
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  And the reason he named it Television City was
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  kind of to force the impression that this is
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  where NBC should go to. So basically, he designed
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  the optics of all these three deals for the Commodore
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  Hotel or with the holidays and with NBC to be
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  the likely. winner of the bid, right? So in all
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  these cases, Trump used leverage. And it's worth
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  repeating his definition of leverage here. Leverage
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  is having something the other guy wants or better
• 4:16
  yet needs or best of all, simply can't do without.
• 4:20
  Unfortunately, this isn't always the case, which
• 4:22
  is why leverage often requires imagination and
• 4:25
  salesmanship. In other words, you have to convince
• 4:28
  the other guy it's in his interest to make the
• 4:30
  deal. So this is something Trump used throughout
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  his career. And this is something that we can
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  walk away with. Leverage. Don't make deals without
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  it. And we can either find the obvious point
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  of leverage or use imagination and salesmanship.
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  Of course, knowing we always want. to work for
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  win -win outcomes. This is what Trump used to
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  stand out in these three different deals that
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  helped his career take off. Hope you enjoyed
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  this one and see you for the next one. Thank
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  you.