Negotiation - Buyer Vs: Seller The Power Series Business Breakfast August 2015
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High Value Negotiation The Buyer Vs: The Seller
description
A look at Negotiation for Sales People and Buyers from both sides of the table
Transcript of Negotiation - Buyer Vs: Seller The Power Series Business Breakfast August 2015
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
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