2) Understanding the concept of successful
3) Preparing for negotiations.
4) Negotiating techniques.
5) Recognizing needs of opposer.
6) Use of questions
7) Salary negotiations
8) Typical tricks
“You get what you negotiate and
not necessarily what you deserve.”
Factors which lead to successful negotiations
1) Knowledge of human nature.
2) Preparation for negotiations including
understanding of needs.
3) Effective conduct.
How Nations Negotiate- Fred Ikle
“ According to 17th
century manuals on
diplomacy, an ideal negotiator should have a
quick mind but unlimited patience, be clever
without being a liar, inspire trust without
trusting the other party, be modest but assertive,
charm others without succumbing to their
charm, possess plenty of money and a beautiful
wife, while remaining indifferent to all
temptations of riches and women.”
Individual And Team
Advantages of Team negotiations
More brains better than one, hence pool of
opinion and judgment available.
1) Presents other side with larger opposition.
2) Different member backgrounds can guard
against misstatements of facts.
Advantages of Individual negotiations
• Prevents opposer from creating disagreements
among the members.
• Places complete responsibility on one
• On the spot gain/concession decision can be
(Own office / Opposer’s office)
Advantages of own office are as under
• Psychological advantage of opposer coming to
• Saves travelling time, energy and money.
• Easy to get boss’s approval on unforeseen
• During breaks you can attend to routine matters
Advantages of Opposer’s office are as under
• Uninterrupted devotion to negotiations.
• Information can be withheld saying it is not
• Opposer’s seniors can be approached over
• Responsibility of arrangements passed on to
Opposer’s Negotiating History
• Their previous business and other deals
• Their unsuccessful deals and reasons for
• Proposals/counter proposals made, how
rigid/flexible were the opposer’s.
• Their method of operating.
Negotiating TechniquesNegotiating Techniques
Instead of answering a question immediately,
you hold off, take time to think, you are using
technique of “Forbearance”.
It helps to avoid direct conflict, allows both
sides to think and helps in cooling off which
Knowing when to stop is another form of
Sudden shift in method, argument or approach.
The change may be drastic or dramatic.
At times even altering the tone of voice makes
(now it is upto you).
This is a risky strategy. One party takes one
sided decision and declares it.
( who me?)
Taking law in your own hand for your benefit
and faking innocence when checked and
promising to be law abiding in the future.
Some deception is involved here.
The aim is to convince your opposer that
you have withdrawn from proceedings, but
in reality you are watching discretely, ready
to make the move when required.
In this technique, you need to act in a
direction opposite to popular expectations.
This is another type of reversal, little more
complicated by arrogance of one of the
Both sides can propose limits of various
types. Time limit,communication limits- who
will talk to whom etc. Opposers limit may be
followed if advantageous to you.
To put time pressure, some bosses hold
negotiations just one or two days before
(look right, go left)
It is a deceptive activity, to test the opposers
reaction, say, “from a reliable source.”
Changing involvements, thereby shifting
(We are friends)
In case of a merger or acquisition coming up,
let the people know that the work would be as
usual and no one would loose their jobs.
Give examples of celebrity organization/person
practicing say foregoing a holiday for a
(who is your friend?)
Reverse of association. Try to maintain a
independent company, we have right to make our
Putting up counter demands to the opposer.
If the worker union is asking for shorter
work week and counter them with reduction
in paid holiday.
At a negotiation between management and
union, management needs that a union has a
number of demands so that they can come to the
conference hall and cover the whole board with
Picking up a sample convenient to us and
then generalizing it.
E.g. political parties show survey report to
indicate that their candidate would win.
Actually it is a cleverly taken sample.
USE OF AGENTS
Agents can be used to represent at negotiations.
When agents put up a demand, on 50% of the
ocassions he would get it. However, when the
opposer puts up a demand saying, “sorry I have
limited authority”, thus getting a number of
concessions from the opposer, without giving
BE A GOOD LISTENER-VERBAL
1) Opposers words, phrases, choice of expression, tone
2) “By the way….” Pretending, but has the actual
matter in mind.
3) “ To be honest/honestly speaking….” the speaker is
not honest at all.
4) “Frankly speaking…” the speaker is not being
5) “Before I forget…”
BE A GOOD LISTENER-NON VERBAL
• Observe gestures - body language of opposer, their
psychological overtones and undertones.
• Tensions can be shown by contraction of facial
muscles, clenching of fists etc.
• Unusual blinking indicates anger, excitement or guilt.
USE OF QUESTIONS
1) Be like a detective. Questions are windows to the
2) Decide :
a) What questions.
b) Phrasing of questions.
c) Timing of questions.
Church member to father, “ father may I smoke while
Another member, “father may I pray while
TYPICAL TRICKSTYPICAL TRICKS
Sales person: so with all these factors,this
would cost you Rs.25,000/-
Customer: fine I will take it.
Sales person : and of course Rs.100/- for
the delivery and Rs.250/- as installation
Sales person: So with all these factors this would cost
Customer: I doubt whether it is worth that much,
unless you are offering some concessions.
Sales person: Normally Rs.100/- for delivery and
Rs.250/- for installation is charged extra, but for you
we will try to reduce the cost price of Rs.25,000/-.
Don’t you think that is fine.?
Customer: Well, Ok.
THE BOTTOM LINE
Sales person: We have gone over all features of this
computer at length. It will cost you Rs.30,000/-.
Customer: Actually, I was looking for something
smaller ad more moderate in everyway (gets up and
prepares to leave).
But to be fair to you, what is the lowest price acceptable
Sales person: Please wait a minute (pretends to
calculate). Sir,Rs.28,500/- will be the lowest.
Customer: I will take it.
At a car show room
Sales person: You have selected an excellent car
model. It is economical in fuel consumption and has
good features and costing you just Rs.5,50,000/-.
Actually sir, come to think of it, for your position, you
should be completely relaxed while traveling. This
luxury model would cost you just Rs.50/- per day
extra. Sir, don’t you think your comfort level is worth
Rs.50/- per day?
GOOD GUY/BAD GUY
REAL ESTATE NEGOTIATIONS
Owner: I don’t think our customer is really interested in
buying the property. I should be going for another
Leaves the room.
Sales person: At times our owner gets worked up.but
nothing to worry about. I will try to get through him in
the next couple of days. How far do you think you can
go in buying this?
Customer: You think you can get him to sell for
Sales person: Sir, for you i will do everything i can. If he
stopped 10% away,would you be interested?
Customer: I am not happy with this repair bill of
I don’t think it is fair, you should be more reasonable.
Customer care: Sir, I only work here. I don’t have the
authority to change the bill. And sir, as per the rules if
you don’t pay the full amount, you cant take the
Customer: Who has the authority to change the bill?
Purchase manager: You should know that we don’t
deal with vendors who cannot give us 60 days credit.
Sales person: Sir, I appreciate and respect your policy,
however, may I request you to set that point aside for a
while and talk as to how we can benefit your
It is a type of trick which people use to get you
attached to a product being sold.