Negotiation
So who is Mark Harrison? <ul><li>37 years old </li></ul><ul><li>Studied Maths / Computing at Oxford, formed my first compa...
We're all at it <ul><li>  vs.    vs.  </li></ul><ul><li>Tim is (even now) WAY better at tennis than me </li></ul>
Three Components <ul><li>Principles  what </li></ul><ul><li>Psychology why </li></ul><ul><li>Ploys how </li></ul>
Principles
Principles <ul><li>You spend all this time worrying about what your customers want BUT… What the hell is it you want? </li...
<ul><li>The longer time they invest in negotiating, the more motivated they are to agree a deal </li></ul><ul><li>BATNA (B...
<ul><li>IT’S NOT </li></ul><ul><li>ABOUT PRICE </li></ul><ul><li>People buy from people / brands </li></ul><ul><li>Buyers ...
Before you go into the negotiation <ul><li>What's the MOST you can pay </li></ul><ul><ul><li>Or least you can settle for, ...
<ul><li>Close the  (conceptual)  sale before you start talking about price </li></ul><ul><li>Sell what customers want, eh?...
Psychology
Beliefs <ul><li>Empowering </li></ul><ul><li>Disempowering It’s a law? </li></ul><ul><li>They need you? </li></ul>
Never say yes (or offer the asking price first) <ul><li>What happens if you do? </li></ul><ul><li>Is the seller </li></ul>...
Ploys
Ploys = Strategy + Tactics <ul><li>The strategy </li></ul><ul><ul><li>Frame the negotiation </li></ul></ul><ul><ul><li>Get...
Opening Tactics <ul><li>Frame the negotiation </li></ul><ul><li>Offer low / Ask high </li></ul><ul><li>(Kingfisher compens...
Tactic  The Opening Response <ul><li>Flinch </li></ul><ul><li>For phone, gasp </li></ul><ul><li>Just a bit of fun, or is i...
Time Tactic Ask the wife <ul><li>For those without a wife... </li></ul><ul><ul><li>Husband </li></ul></ul><ul><ul><li>Boyf...
Women buyers <ul><li>Women buy… (US figures) </li></ul><ul><ul><li>94% of home furnishing </li></ul></ul><ul><ul><li>92% o...
Go away… then, when you come back... <ul><li>Only come up by a small amount </li></ul><ul><ul><li>I was selling… </li></ul...
Splitting the Difference <ul><li>Whoever offers to, loses </li></ul><ul><li>Encourage the vendor to make the offer THEN We...
Good cop, bad cop <ul><li>The vendor is bad cop </li></ul><ul><li>The estate agent is good cop </li></ul><ul><li>There is ...
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Negotiation for Small Businesses

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Presentation about "Negotiation for Small Businesses" originally written for the Surrey Business Club, November 2007.

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  • A concise approach to negotiation
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  • It was the business that failed, BTW, I still got my degree (and then my Masters).<br /><br/>
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  • These slides were originally written for the Surrey Business Club, in November 2007.

    They were written as a memory jogger for ME, and NOT actually projected at the meeting... so apologies for the formatting. However, so many people asked for copies of 'your notes', I thought I'd upload them.

    Regards,

    Mark<br /><br/>
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Negotiation for Small Businesses

  1. 1. Negotiation
  2. 2. So who is Mark Harrison? <ul><li>37 years old </li></ul><ul><li>Studied Maths / Computing at Oxford, formed my first company in my finals year. [It failed, BTW] </li></ul><ul><li>Joined the workforce in 1992, discovering IT paid better Climbed the greasy pole for a few years, retired in 2003 (because I’d bought a bunch of investment properties) </li></ul><ul><li>Got bored…. Now do three things (sometimes at the same time) </li></ul><ul><ul><li>Interim Director </li></ul></ul><ul><ul><li>Run a training / mentoring business </li></ul></ul><ul><ul><li>Non-exec Director </li></ul></ul>
  3. 3. We're all at it <ul><li> vs. vs. </li></ul><ul><li>Tim is (even now) WAY better at tennis than me </li></ul>
  4. 4. Three Components <ul><li>Principles what </li></ul><ul><li>Psychology why </li></ul><ul><li>Ploys how </li></ul>
  5. 5. Principles
  6. 6. Principles <ul><li>You spend all this time worrying about what your customers want BUT… What the hell is it you want? </li></ul><ul><ul><li>Please DON’T tell me it’s a sale </li></ul></ul><ul><ul><li>Cashflow? </li></ul></ul><ul><ul><li>Growth (because you want to be bought) </li></ul></ul><ul><ul><li>A one-off purchase vs. a long-term relationship </li></ul></ul><ul><ul><ul><li>Think carefully, your customer might want something different </li></ul></ul></ul>
  7. 7. <ul><li>The longer time they invest in negotiating, the more motivated they are to agree a deal </li></ul><ul><li>BATNA (Best Alternative To Negotiated Agreement) </li></ul><ul><li>Work out who the “economic buyer” is </li></ul><ul><ul><li>If there are several, find them ALL </li></ul></ul><ul><ul><li>If your business is B2C, see later about WOMEN </li></ul></ul>
  8. 8. <ul><li>IT’S NOT </li></ul><ul><li>ABOUT PRICE </li></ul><ul><li>People buy from people / brands </li></ul><ul><li>Buyers value other things </li></ul><ul><li>- (Speed / Security / Service) </li></ul><ul><li>- eg FSC Certification </li></ul>
  9. 9. Before you go into the negotiation <ul><li>What's the MOST you can pay </li></ul><ul><ul><li>Or least you can settle for, if you're selling </li></ul></ul><ul><ul><li>Auctions vs. leveraging Proprioception </li></ul></ul>
  10. 10. <ul><li>Close the (conceptual) sale before you start talking about price </li></ul><ul><li>Sell what customers want, eh? </li></ul>
  11. 11. Psychology
  12. 12. Beliefs <ul><li>Empowering </li></ul><ul><li>Disempowering It’s a law? </li></ul><ul><li>They need you? </li></ul>
  13. 13. Never say yes (or offer the asking price first) <ul><li>What happens if you do? </li></ul><ul><li>Is the seller </li></ul><ul><ul><li>Happy </li></ul></ul><ul><ul><li>Unhappy </li></ul></ul>
  14. 14. Ploys
  15. 15. Ploys = Strategy + Tactics <ul><li>The strategy </li></ul><ul><ul><li>Frame the negotiation </li></ul></ul><ul><ul><li>Get the seller to invest time </li></ul></ul><ul><ul><li>Never give away too much in one go </li></ul></ul><ul><ul><li>How much authority? </li></ul></ul>
  16. 16. Opening Tactics <ul><li>Frame the negotiation </li></ul><ul><li>Offer low / Ask high </li></ul><ul><li>(Kingfisher compensation) </li></ul>
  17. 17. Tactic The Opening Response <ul><li>Flinch </li></ul><ul><li>For phone, gasp </li></ul><ul><li>Just a bit of fun, or is it? </li></ul>
  18. 18. Time Tactic Ask the wife <ul><li>For those without a wife... </li></ul><ul><ul><li>Husband </li></ul></ul><ul><ul><li>Boyfriend </li></ul></ul><ul><ul><li>Girlfriend </li></ul></ul><ul><ul><li>Partner </li></ul></ul><ul><li>Take your time </li></ul>
  19. 19. Women buyers <ul><li>Women buy… (US figures) </li></ul><ul><ul><li>94% of home furnishing </li></ul></ul><ul><ul><li>92% of holidays </li></ul></ul><ul><ul><li>91% of new homes </li></ul></ul><ul><ul><li>89% of new bank accounts </li></ul></ul><ul><ul><li>80% of DIY purchases </li></ul></ul><ul><ul><li>60% of cars </li></ul></ul><ul><ul><li>51% of consumer electronics </li></ul></ul><ul><ul><li>[Source: www.tompeters.com] </li></ul></ul><ul><li>Relationship </li></ul><ul><li>Networking </li></ul><ul><ul><li>This is not “wishy washy stuff” </li></ul></ul>
  20. 20. Go away… then, when you come back... <ul><li>Only come up by a small amount </li></ul><ul><ul><li>I was selling… </li></ul></ul><ul><ul><ul><li>My asking price, £179,950 </li></ul></ul></ul><ul><ul><ul><li>They offered £170,000 </li></ul></ul></ul>
  21. 21. Splitting the Difference <ul><li>Whoever offers to, loses </li></ul><ul><li>Encourage the vendor to make the offer THEN We aren't going to drop this over a few thousand / hundred are we? </li></ul>
  22. 22. Good cop, bad cop <ul><li>The vendor is bad cop </li></ul><ul><li>The estate agent is good cop </li></ul><ul><li>There is no good cop OK – it’s a property example, but use what you learn across ALL your businesses </li></ul>
  23. 23. www.yourpropertyexpert.com

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