High Value NegotiationThe Buyer Vs: The Seller

You have 2$ on the table to share. You have 5 Minutes to negotiate your share with your

partner. There is a prize for the best deal.

Seller lays cards on the tableBuyer lays cards on the table

Compare notes - Agreement

Seller prices highBuyer offers low

Battle - Agreement

Competitive Negotiation

Co-operative Negotiation

Ignores the human need to win.

Can be misunderstood as weakness

Leaves the negotiator open and may lose the advantage.

Co-operative Negotiation

Will often lead to conflict.

Will occasionally lead to brinkmanship.

Results depend on the strength of the negotiator, not the merits of the issues.

Not likely to achieve Win-Win.

Will often result in Lose-Lose.

You are never certain if you achieved the results you could have achieved.

Competitive Negotiation

Abu Dhabi

Zero Sum Game

The Camel StoryWilliam Ury

17 Camels3 Brothers split the CamelsHalf to one, One Third to another and a Ninth to the Third

BuyersVs:

Sellers

Who wins in a negotiation?

Where does the power come from?

Is there an alternative to Positional Bargaining?

How do I get the opponent to listen to my point of view?

How do I make sure we both get more than we bargained for?

5 Basic Questions

We learn how to win as children Winning is not a fact it is a feeling Win - Win or No Deal Two wish lists

Understanding Win-Win

Who wins in a negotiation?

InformationNo Deal Alternative - NDAGoals and Targets

Negotiation Power

Where does the Power come from?

What are we trying to Achieve / Avoid? What is complete Victory / Partial Victory? What are the Short / Long Term Considerations? What is Non-Negotiable / Why? How can we be Creative? Is this a one-time negotiation or on-going?

Defining Success

InformationNo Deal Alternative - NDAGoals and TargetsPreparation

Negotiation Power

Where will the Negotiation be held? Who will be on your side?

Who will be on theirs? What will the shape of the table be?

Will there be time restraints? Who chooses the timing?

Preparation

Often damages relationships Cuts off option exploration.

Promotes rigid adherence to positions Obscures a focus on interests

Produces compromise when better solutions may be available

Positional Bargaining

Alternative to Positional Bargaining

Speak First - Loudest - Longestor

Speak Last - Softest - Shortest

How do I get them to Listen to me?

Prepare Listen and Prompt Their point of view Empathize Confirm

Assertive Listening

Separate the people from the problem.

Focus on interests, not positions. Generate a variety of possibilities

Alternative to Positional Bargaining

Benefits = 4, Price = 4, Value = 1Benefits = 6, Price = 4, Value = 1.5Benefits = 8, Price = 5, Value = 1.6

Selling at your Higher price

ValueBenefitsPrice

=

Delivery

Price

Quality

Relationship

Price

Quality

Relationship

Delivery

Price

Quality

Relationship

Delivery

Price

Quality

Relationship

Delivery

Delivery

Price

Quality

Relationship

Delivery

Price

Quality

Relationship

From the BuyersPoint of View

A Good Selling PriceA Large OrderRegular PaymentsReferralsBulk DeliveriesTestimonial lettersEarly Orders

To get more out of the negotiation, bring more to the table

Getting more from the Negotiation

Your Target Point (TP) Your Walking Away Point (WAP)

Your opponents TP & WAP Planned Opening Position

High Value / Low Value Items

Preparing for a Negotiation

What are you willing to trade? Information you want / give

Strategy / Agenda Shared Interests

Preparing for a Negotiation

Negotiation Challenges

All buying decisions are made emotionally

Winning is an Emotion

Reactions to Negative Responses

We want to Strike Back or Give in or Break off Negotiations

Dealing with Negative Emotions

Use their name Let them vent Don’t interrupt

The Agreement Frame See their point of view

Focus on what you agree Care

The buyer says your product is no good.

The buyer says "That's it", or "Take it or leave it".

The buyer agrees to a price and then adds on extras.

The buyer uses the "bulk discount" tactic.

The buyer keeps you waiting.

Negotiation Tricks

Try starting with a ridiculously low (or high) bid

Never give anything away, always trade it

What is the most important two letter word in any negotiation?

What is the best way to upset a good negotiator?

Other Techniques

Be flexible

Before the negotiation raise your own aspirations and lower your opponent's

Usually both sides share a mutual interest in reaching an agreement.

Separate the people from the problem

Other Techniques

Never Lie!!!

It helps to have somebody outside of the negotiation to whom you have to refer. "Caucus".

Bluffing. As a rule, avoid it!

Take time to decide.

Other Techniques

You will not win all the issues

For difficult negotiations, try the "Good guy, Bad guy" routine

Be persistent

Never tell them what you wouldn't do

Amateurs talk too much, professionals use silence

Other Techniques

Avoid sitting opposite your opponent at a square table

Once you've got an agreement, LEAVE

When there is a deadlock try changing the people

Sometimes it is useful to get agreement in principle first and then go back to hammer out the details

Other Techniques

Always look for an opportunity to give concessions but….

Don't concede too quickly

Find out who makes the decision and negotiate with him

Always be positive

Other Techniques

High Value NegotiationThe Buyer Vs: The Seller

www.powerseries.co.za