NEGOTIATION SKILLS FOR USE ON THE TELEPHONE aka DIALING FOR DOLLARS

Author/Lecturer DAVID L. OSBURN David L. Osburn, MBA is the founder and managing member of David L. Osburn & Associates, LLC that specializes in providing seminars on topics such as finance, accounting, economics, marketing, banking, business law, and management. Osburn also functions as the CFO of a multi-state construction company and is an adjunct faculty member of both an accredited MBA program and the accounting department of a community college with over 24 years of teaching experience. Additionally, he administers the American Institute of Banking (AIB) program in the Las Vegas area in conjunction with the University of Nevada Las Vegas (UNLV). Osburn’s extensive professional background includes 16 years in banking (commercial lending) including the position of Vice President & Senior Banking Officer and an additional 9 years in related fields. Osburn has an MBA in Finance/Marketing from Utah State University and a BS degree in Finance from Brigham Young University. He is also a graduate of the National Commercial Lending School at the University of Oklahoma. David L. Osburn & Associates, LLC A Business Training & Contract CFO Firm David L. Osburn, MBA Managing Member 7521 Enchanted Hills Ct. Las Vegas, Nevada 89129 Direct: (702) 655-1187 Fax: (702) 382-2298 E-Mail: [email_address] Web: dlosburn.com

DAVID L. OSBURN

David L. Osburn, MBA is the founder and managing member of David L. Osburn & Associates, LLC that specializes in providing seminars on topics such as finance, accounting, economics, marketing, banking, business law, and management.

Osburn also functions as the CFO of a multi-state construction company and is an adjunct faculty member of both an accredited MBA program and the accounting department of a community college with over 24 years of teaching experience. Additionally, he administers the American Institute of Banking (AIB) program in the Las Vegas area in conjunction with the University of Nevada Las Vegas (UNLV).

Osburn’s extensive professional background includes 16 years in banking (commercial lending) including the position of Vice President & Senior Banking Officer and an additional 9 years in related fields. Osburn has an MBA in Finance/Marketing from Utah State University and a BS degree in Finance from Brigham Young University. He is also a graduate of the National Commercial Lending School at the University of Oklahoma.

David L. Osburn & Associates, LLC

A Business Training & Contract CFO Firm

David L. Osburn, MBA

Managing Member

7521 Enchanted Hills Ct.

Las Vegas, Nevada 89129

Direct: (702) 655-1187

Fax: (702) 382-2298

E-Mail: [email_address]

Web: dlosburn.com

NEGOTIATION SKILLS FOR USE ON THE TELEPHONE aka DIALING FOR DOLLARS I. WHAT IS NEGOTIATION? II. HOW WOULD YOU DEFINE NEGOTIATION? III. NEGOTIATION IS A COMMUNICATIVE INTERACTION BETWEEN TWO HUMANS. SENDER---- COMMUNICATION CHANNEL---- RECEIVER (ENCODES) (DECODES)

NEGOTIATION SKILLS FOR USE ON THE TELEPHONE aka

DIALING FOR DOLLARS

I. WHAT IS NEGOTIATION?

II. HOW WOULD YOU DEFINE NEGOTIATION?

III. NEGOTIATION IS A COMMUNICATIVE INTERACTION

BETWEEN TWO HUMANS.

SENDER---- COMMUNICATION CHANNEL---- RECEIVER

(ENCODES) (DECODES)

IV. NEGOTIATION INCLUDES VERBAL AND NON- VERBAL COMMUNICATIONS A.ORAL B.WRITTEN C.NON-VERBAL (USE OF BODY LANGUAGE) D.ELECTRONIC THE USE OF NEGOTIATIONS IN EVERYDAY LIFE- NON- BUSINESS AND BUSINESS

A.ORAL

B.WRITTEN

C.NON-VERBAL (USE OF BODY LANGUAGE)

D.ELECTRONIC

THE USE OF NEGOTIATIONS IN EVERYDAY LIFE-

NON- BUSINESS AND BUSINESS

V. NEGOTIATION SCENARIOS NON-BUSINESS LIFE EX. TODDLER EX. TEENAGER EX. OLDER ADULT YOU ARE AT TARGET AND YOUR THREE YEAR OLD SEES A DOLL AND WANTS IT NOW! (SHE HAS ALREADY STARTED TO SCREAM) WHAT DO YOU DO? YOUR TEENAGE DAUGHTER WANTS TO GO OUT WITH HER FRIENDS AND ATTEND A FUNCTION THAT WILL LAST UNTIL 1AM? (SHE IS 14 YEARS OLD). WHAT DO YOU DO? YOUR GREAT-UNCLE NEEDS TO RELOCATE TO AN ASSISTED LIVING SITUATION BUT REFUSES? WHAT DO YOU DO?

NON-BUSINESS LIFE

EX. TODDLER

EX. TEENAGER

EX. OLDER ADULT

YOU ARE AT TARGET AND YOUR THREE YEAR OLD SEES A DOLL AND WANTS IT NOW! (SHE HAS ALREADY STARTED TO SCREAM)

WHAT DO YOU DO?

YOUR TEENAGE DAUGHTER WANTS TO GO OUT WITH HER FRIENDS AND ATTEND A FUNCTION THAT WILL LAST UNTIL 1AM? (SHE IS 14 YEARS OLD).

WHAT DO YOU DO?

YOUR GREAT-UNCLE NEEDS TO RELOCATE TO AN

ASSISTED LIVING SITUATION BUT REFUSES?

WHAT DO YOU DO?

NEGOTIATION SCENARIOS- CONTINUED BUSINESS LIFE EX. SALES EX. RENEWING ESTABLISHED CONTRACT EX. BUDGET NEGOTIATION YOUR LARGEST COMMISSION FOR THE YEAR IS BASED UPON YOUR ABILITY TO CLOSE THE NEXT SALE. (YOUR CLIENT IS KNOWN FOR HIS “UNDERHANDED” NEGOTIATION TACTICS). WHAT DO YOU DO? YOUR MAIN CLIENT IS PROPOSING TO RENEW THE CONTRACT PRICE AT A LEVEL THAT WILL CAUSE YOUR DEPARTMENT TO LOSE MONEY. WHAT DO YOU DO? YOUR DIVISION MANAGER WANTS YOU TO SHAVE 20% OFF YOUR UPCOMING ANNUAL BUDGET. WHAT DO YOU DO?

BUSINESS LIFE

EX. SALES

EX. RENEWING ESTABLISHED CONTRACT

EX. BUDGET NEGOTIATION

YOUR LARGEST COMMISSION FOR THE YEAR IS BASED UPON YOUR ABILITY TO CLOSE THE NEXT SALE. (YOUR CLIENT IS KNOWN FOR HIS “UNDERHANDED” NEGOTIATION TACTICS).

WHAT DO YOU DO?

YOUR MAIN CLIENT IS PROPOSING TO RENEW THE CONTRACT PRICE AT A LEVEL THAT WILL CAUSE YOUR DEPARTMENT TO LOSE MONEY.

WHAT DO YOU DO?

YOUR DIVISION MANAGER WANTS YOU TO SHAVE 20% OFF YOUR UPCOMING ANNUAL BUDGET.

WHAT DO YOU DO?

VI. THE USE OF THE TELEPHONE AS A NEGOTIATION TOOL NON- BUSINESS AND BUSINESS TELEPHONE SCENARIOS NON-BUSINESS: A.YOU ARE ON THE PHONE WITH YOUR TEENAGER AND HE REQUESTS TO STAY FOR ANOTHER HOUR AT THE MALL. WHAT DO YOU DO? B.YOUR BROTHER-IN-LAW IS ON THE PHONE AND IS ASKING TO MOVE IN WITH YOU FOR A COUPLE OF MONTHS UNTIL HE CAN GET ESTABLISHED. WHAT DO YOU DO? BUSINESS LIFE: A.YOUR MAIN CUSTOMER IS ON THE PHONE AND WANTS YOU TO WAIVE $50,000 IN LATE FEES, CHARGES, ETC. WHAT DO YOU DO? B.YOUR WORST CUSTOMER IS ON THE PHONE AND WANTS YOU TO GIVE THEM AN ADDITIONAL 30 DAYS ON A 75 DAY AGED INVOICE. WHAT DO YOU DO?

NON- BUSINESS AND BUSINESS

TELEPHONE SCENARIOS

NON-BUSINESS:

A.YOU ARE ON THE PHONE WITH YOUR TEENAGER AND HE REQUESTS TO STAY FOR ANOTHER HOUR AT THE MALL.

WHAT DO YOU DO?

B.YOUR BROTHER-IN-LAW IS ON THE PHONE AND IS ASKING TO MOVE IN WITH YOU FOR A COUPLE OF MONTHS UNTIL HE CAN GET ESTABLISHED.

WHAT DO YOU DO?

BUSINESS LIFE:

A.YOUR MAIN CUSTOMER IS ON THE PHONE AND WANTS YOU TO WAIVE $50,000 IN LATE FEES, CHARGES, ETC.

WHAT DO YOU DO?

B.YOUR WORST CUSTOMER IS ON THE PHONE AND WANTS YOU TO GIVE THEM AN ADDITIONAL 30 DAYS ON A 75 DAY AGED INVOICE.

WHAT DO YOU DO?

VII.THE TELEPHONE AS A MEANS OF COLLECTING DOLLARS A. FAIR DEBT COLLECTION PRACTICES ACT (HOW HARD CAN YOU PUSH?) B. THE USE OF SILENCE & OTHER TELEPHONE TECHNIQUES INCLUDING “STANDING UP” C. MEETING YOUR CLIENT HALF-WAY, PART OF THE WAY, ALL THE WAY? D. MAKE THE END RESULT A “WIN-WIN” SITUATION: THE COVEY CONCEPT

A. FAIR DEBT COLLECTION PRACTICES ACT (HOW HARD CAN

YOU PUSH?)

B. THE USE OF SILENCE & OTHER TELEPHONE TECHNIQUES

INCLUDING “STANDING UP”

C. MEETING YOUR CLIENT HALF-WAY, PART OF THE

WAY, ALL THE WAY?

D. MAKE THE END RESULT A “WIN-WIN” SITUATION:

THE COVEY CONCEPT

VIII. THE NEGOTIATION PROCESS THE AIDAS MODEL A. AWARENESS- CREATE A STARTING OR FOCAL POINT. B. INTEREST- CREATE A DESIRE FOR YOUR POSITION. C. DESIRE- CREATE A NEED FOR YOUR POSITION (BASIC MARKETING- FIND A COMMON NEED AND THEN FULFILL IT!) D. ACTION- CREATE A RESPONSE E. SATISFACTION- CREATE A POSITIVE OUTCOME EMPATHY WHAT IS EMPATHY? (WALKING IN SOMEONE ELSE’S MOCCASINS) HOW DO YOU USE EMPATHY IN THE NEGOTIATION PROCESS? DON’T MAKE THE OPPOSING SIDE FEEL SORRY FOR YOU, BUT ALLOW THEM TO SEE (FEEL) YOUR POSITION!

THE AIDAS MODEL

A. AWARENESS- CREATE A STARTING OR FOCAL POINT.

B. INTEREST- CREATE A DESIRE FOR YOUR POSITION.

C. DESIRE- CREATE A NEED FOR YOUR POSITION (BASIC

MARKETING- FIND A COMMON NEED AND THEN

FULFILL IT!)

D. ACTION- CREATE A RESPONSE

E. SATISFACTION- CREATE A POSITIVE OUTCOME

EMPATHY

WHAT IS EMPATHY? (WALKING IN SOMEONE ELSE’S MOCCASINS)

HOW DO YOU USE EMPATHY IN THE NEGOTIATION PROCESS?

DON’T MAKE THE OPPOSING SIDE FEEL SORRY FOR YOU, BUT ALLOW THEM TO SEE (FEEL) YOUR POSITION!

IX. EGO A. WHAT IS EGO? B. HOW DO YOU USE EGO IN THE NEGOTIATION PROCESS? C. CAN YOU OVERUSE EGO IN THE NEGOTIATION PROCESS? D. REMEMBER MASLOW’S HIERARCHY OF NEEDS

A. WHAT IS EGO?

B. HOW DO YOU USE EGO IN THE NEGOTIATION PROCESS?

C. CAN YOU OVERUSE EGO IN THE NEGOTIATION PROCESS?

D. REMEMBER MASLOW’S HIERARCHY OF NEEDS

X. MEDIATION AS PART OF THE NEGOTIATION PROCESS A. WHAT IS MEDIATION? B. THE EVOLUTION OF CONFLICT RESOLUTION: LAWSUIT--- ARBITRATION--- MEDIATION

A. WHAT IS MEDIATION?

B. THE EVOLUTION OF CONFLICT RESOLUTION: LAWSUIT---

ARBITRATION--- MEDIATION

XI. NEGOTIATION SKILLS- SOME FINAL THOUGHTS A. LACK OF NEGOTIATION SKILLS AS TAUGHT IN BUSINESS SCHOOL (INCLUDING PRACTICAL TELEPHONE NEGOTIATION SKILL TRAINING). B. WE HAVE THE POWER TO NEGOTIATE AND MAKE “CORRECT” DECISIONS (EVEN WHEN WE ARE ON THE PHONE)!

A. LACK OF NEGOTIATION SKILLS AS TAUGHT IN BUSINESS

SCHOOL (INCLUDING PRACTICAL TELEPHONE NEGOTIATION

SKILL TRAINING).

B. WE HAVE THE POWER TO NEGOTIATE AND MAKE “CORRECT”

DECISIONS (EVEN WHEN WE ARE ON THE PHONE)!