What are the 5 P'S of completing a

SUCESSFUL NEGOTIATION

1. PROPER
   
   
2. PREPERATION
   
   
3. PREVENTS
   
   
4. POOR 
   
   
5. PERFORMANCE 

The Nature of Negotiation 

What are the 2 TYPES OF NEGOTIATION?

1. Win-lose negotiating 
   
   
2. Win-Win Negotiating  

The Nature of Negotiation

WIN-LOSE NEGOTIATING 

NEGOTIATOR ATTEMPTS to WIN all important CONCESSIONS 


- and thus TRIUMPH OVER OPPONENT  

The Nature of Negotiation

WIN-WIN NEGOTIATING 

NEGOTIATOR ATTEMPTS to SECURE an AGREEMENT

that SATISFIES BOTH PARTIES

IMAGE OF:

"ITEMS THAT ARE OFTEN NEGOTIATED

BETWEEN BUYERS AND SELLERS " 

Planning for the Negotiation Setting 

4 LOCATIONS for NEGOTIATING 

TIME ALLOTTED DEPENDS ON?

1. NEUTRAL SITE
   
   
2. MIDDLE OF WORK WEEK
   
   
3. MORNINGS
   
   
4. ONLINE

Depends on:

1) Negotiation Objectives 
2) Desire for a WIN-WIN SESSION from both parties 

what are the 10 NEGOTIATION OBJECTIVES?

1. POWER
   
   
2. CONCESSIONS
   
   
3. TARGET POSITION
   
   - what COMPANY hopes to ACHIEVE at SESSION
   
   
4. MINIMUM POSITION
   
   - what COMPANY establishes as absolute MINIMUM LEVEL you will ACCEPT 
   
   
5. OPENING POSITION
   
       - IN INITIAL PROPOSAL
   - reflect HIGHER EXPECTATIONS than TARGET POSITION
   
   
6. IDENTIFY/PRIORITIZE POTENTIAL FUTURE ISSUES
   
   
7.  ANTICIPATE & EVALUATE POSITIONS!!
   
   
8.  create PLAN to ACHIEVE OBJECTIVES
                 -develop ALTERNATE PATHS
   
   
9. BRAINSTORMING sessions
   
   
10. consider CULTURAL DIFFERENCES  

what are the PRO'S and CON'S of 

TEAM SELECTION & MANAGEMENT 

PRO'S

• More CREATIVE than individual
   
• HELP one another REDUCE chances of making MISTAKES

CON'S

• MORE PARTICIPANTS = MORE TIME
   
• DIFFERENT OPINIONS  

GRAPHIC OF:

"PEOPLE WHO MAY SERVE ON

THE SELLING NEGOTIATION TEAM"

What are the
 

5 CONFLICT-HANDLING BEHAVIOR MODES?

1. COMPETING - assertive & uncooperative
   
   - tend to PURSUE OWN GOALS at EXPENSE of other PARTY 
   
   - POWER ORIENTED - has followers
   
   
2. COLLABORATING - assertive & cooperative
   
   - MAXIMIZE SATISFACTION of BOTH PARTIES and reach a
   - TRUE WIN-WIN SITUATION
   - have MOTIVATION, SKILL, ETC.  
    
3. COMPROMISING - balance between (un)assertive and (un)cooperative 
   
   - applies to "PEOPLE IN THE MIDDLE" 
   - finds a QUICK ACCEPTABLE SOLUTION that SATISFIES BOTH PARTIES
   
   
4. ACCOMIDATING - cooperative & unassertive 
   
   - opposite of competing
   - focus on NEEDS and DESIRES of OTHER PARTY 
   - excessive GENEROSITY/OBEDIENCE 
   
   
5. AVOIDING  - uncooperative & unassertive 
   
   - DON'T ATTEMPT to FILL OWN NEEDS as well as OTHERS 

The Negotiation Meeting

What are the 4 PRELIMINARiES of a

negotiation meeting? 

1. BREAK the ICE 
   
   
2. ensure COMFORTABLE ENVIRONMENT
   
   
3. establish a WIN-WIN ENVIRONMENT
   
   
4. PREPARE AGENDA  

The Negotiation Meeting 

what are the 4 GENERAL GUIDELINES for the

negotiation meeting?

1. LISTEN CAREFULLY
   
   
2. KEEP TRACK of ISSUES DISCUSSED/RESOLVED
   
   
3. CONSIDER cultural DIFFERENCES  
   
   
4. REMEMBER: PEOPLE NEED TO SAVE FACE!  

To 'save face:' - DESIRE for a POSITIVE IDENTITY/SELF-CONCEPT - when negotiating 

5 TECHNIQUES BUYER'S USE when attempting a

WIN-LOSE NEGOTIATION

1. GOOD GUY/BAD GUY ROUTINE 
   
   - ONE makes LAVISH DEMANDS and then OTHER interrupts with BETTER SOLUTION
   
   
2. LOWBALLING
   
   - one party INTENTIONALLY UNDERESTIMATES/UNDERSTATES COST
   
   - NIBBLING: Small EXTRA/add-on the BUYER REQUESTS to AFTER deal CLOSES
   
   
3. EMOTIONAL OUTBURSTS
   
   - EMOTIONAL OUTBURST TACTIC: BUYER TEAMS will try to APPEAL to your HUMAN NATURE
   - ex: shaking head slowly, etc...
   
   
4. BUDGET LIMITATION TACTIC
   - BUDGET BOGEY 
   
   
5. BROWBEATING  
   
   - BUYER ATTEMPTS to ALTER the SELLING teams ENTHUSIASM & SELF-RESPECT
   
   - Salesperson's can respond using:
          NEGOTIATION JUJITSU:  salesperson STEPS AWAY from opponents ATTACK RATHER than DEFENDING POSITION and DIRECTS CONVO back to TOPIC

What are 4 THINGS TO DO when

BUYER TURNS to WIN-LOSE STRATEGIES

1. DETACH YOURSELF 
   
   - dont respond right away
   
   
2. ACKNOWLEDGE POSITION & then RESPOND -
   
   create favorable evnironment 
   
   
3. BUILD them a BRIDGE
   
   - other solution
   
   
4. WARN but DONT THREATEN
   
    - have buyer understand consequences 

4 LESS COMMON WIN-LOSE TACTICS 

1. LIMITED AUTHORITY 
   
   
2. RED HERRING
   
   - bringing minor point first to distract other side from considering man issue
   
   
3. TRIAL BALLOONS
   
   - FLOATING an IDEA WITHOUT offering as a CONCESSION/AGREEMENT
   
   
4. TOTAL SILENCE by buyer  

15 RULES on 

MAKING CONCESSIONS 

when negotiating 

1. NEVER make concessions UNTIL you KNOW all of buyers DEMANDS and OPENING POSITION
   
   
2. NEVER make concession UNLESS you get ONE IN RETURN
   
   
3. concessions should GRADUALLY DECREASE IN SIZE
   
   
4. DON'T be AFRAID to SAY NO
   
   
5. all CONCESSIONS are TENTATIVE until the FINAL AGREEMENT is REACHED & SIGNED  
   
   
6. be CONFIDENT & SECURE in my position and DONT GIVE concessions carelessly
   
   
7. DONT ACCEPT buyer's FIRST ATTEMPT  at concenssion
   
   
8. HELP buyer SEE the VALUE of ANY concessions I AGREE TOO.  
   
   
9. START NEGOTIATION WITHOUT PRECONCIEVED NOTIONS
   
   
10. if you MAKE MISTAKE, TELL BUYER & BEGIN negotiating that issue AGAIN
    
    
11.  DONT AUTOMATICALLY AGREE to a "Let's just SPLIT THE DIFFERENCE" OFFER
    
    
12. REMAIN NONCOMMITTAL when customer ASKS for a BOTTOM LINE PRICE
    
    
13. KNOW WHEN to STOP
    
    
14. USE SILENCE effectively
    
    
15. PLAN session WELL 

4 TIPS FOR WHEN PERFORMING

"RECAP of a successful NEGOTIATION MEETING" 

1. GET negotiated agreement IN WRITING
   
   
2. Do POST-NEGOTIATION EVALUATION and learn from mistakes  
   
   
3. your GOAL is to DEVELOP a LT PARTNERSHIP with buyer
   
   
4. DONT be GREEDY/PUSHY 

CHARACTERISTICS OF A POOR NEGOTIATOR 

• FEAR CONFLICT 
  
  
• strong NEED to BE LIKED by EVERYONE
  
  
• CLOSE-MINDED
  
  
• UNORGANIZED, DISHONEST, BELLIGERENT  

The Negotiation Meeting

define:

AMBUSH NEGOTIATING

aka

SNEAK ATTACK  

A WIN-LOSE TACTIC that occurs at BEGINNING of

NEGOTIATION when OTHER PARTY does NOT EXPECT

it