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Rex Classes
Power of Negotiation Skill
Rex Classes
Today’sTopic
1. Why negotiation is important ?
2. Different negotiation behavior.
3. Phases of Negotiation
4. Activities
5. StepsTo powerful Negotiation.
6. Role Play.
7. Tricky response.
8. How to deal with difficult negotiators?
9. Effective Body Language in Negotiation
10. Group Quiz.
Rex Classes
VS
Why negotiation is important ?
Rex Classes
7
Rex Classes
 Win win approach
 Cooperation
 Trusting
 Pacifying
 Relational
 Giving
For better result merge blue and red behaviour into purple.
9
Rex Classes
RED Behaviour
• Manipulation
• Aggressive
• Intimidation
• Exploitation
• Always seeking the best from you
• No concern for person you are negotiating with
• Taking
People behave in this manner when they fear exploitation by the other
party, but by behaving this way to protect themselves, they provoke the
behaviour they are trying to avoid.
8
Rex Classes
 Give me some of what I want (red)
 I’ll give you some of what you want (blue)
 Deal with people as they are not how you think they are
 Good intentions
 Two way exchange
 Tit for tat strategies
 Open
 People know where they stand
To the red behaviourist the message is loud and clear, ‘You will get nothing
from me unless and until I get something from you’.
10
Rex Classes
5.Closing
4.Bargain
3.Propose
2.Probing
1.Plan
5 phases of negotiation
Rex Classes
 Why are you negotiating?What do you expect to gain and why is it
important to you?What do you think you will have to offer to achieve
this?
 Decide on your starting position and your "bottom line," or lowest
point you will accept in the deal.
 Consider the objectives and emotional motivation of the other party.
 Be prepared with information, facts, comparable prices or costs, etc.
 Tailor your response
 Practice at every opportunity.
14
1. Plan
Rex Classes
• Positive Powerful opening – confident body language, tone and words
• Cover: Why we are here, what we are going to do, how long it will take
• Listen to what the other party say and how they say it
• Observe non-verbal signals
• Sit where you can see everyone
19
2. Probing
Rex Classes
PROPOSE
• Decide whether you will speak your proposal first or respond to the
proposal from the other party.
• Start by discussing a mutually agreed upon point of the negotiation —
something both parties will readily say yes to.
•Make your arguments and proposals incrementally and strategically.
Avoid going immediately to your lowest point of acceptance, or bottom-
line.
•Think win-win Negotiation
•Be assertive remember PURPLE. (Not RED or BLUE) Use ‘If
you…Then I’ not ‘If we… will you’ this avoids a question proposal.
24
3. Propose
Rex Classes
Submissive Assertive
1. How about you give us 10% discount ? If you make it a 10% discount, then we will
order in lots of 100,000.
2. Ok I will gift you a cycle this year. If you score 85% in 10th board then I will gift
you a cycle.
3. I hope you can save 10000 Rs. this month. If you save 10000 Rs. then I will buy you a
designer saree.
4. It’ll be tough to meet that deadline but ok
we’ll give it a go
If you pay us 50% advance in first week then
we’ll go for that deadline.
26
3. Propose
Rex Classes
 Avoid – ‘wish’, ‘hope’, ‘would like’ – this is not assertive
 Proposals consist of 2 elements: the condition plus the
offer and can be best presented with the ‘If ….Then’
technique.
 Both the condition and the offer can be couched vaguely.
But it is better to state your condition first.
27
Rex Classes
Example 1: ‘If you change your terms of business, then I
could consider some amendments to our payment
schedule.’
Is example 1.
A.Vague-vague (vague in condition and offer)
B. Specific-vague (specific in condition and vague in offer)
Answer: Vague-Vague.
27
Rex Classes
Example 2: ‘If you amended the penalty period from 14 to 7
days then I could consider some amendments to our payment
schedule’
Is example 2:
A. Vague-vague (vague in condition and offer)
B. Specific-vague (specific in condition and vague in offer)
Answer: Specific-Vague.
28
Rex Classes
 Be prepared to make concessions, offer the smallest concessions first
– you may not need to go any further.
 If you have had to backtrack on a point you had as your final position
you could say ‘Since you have changed your position on… I may be
able to change mine on…’
 Make eye contact to emphasise that each concession is a serious loss
for you
 competitors should be scheduled in back-to-back appointments .
 Record fully all agreements finalised at the negotiations close.
34
4. Bargain
Rex Classes
 Summary Close
 Adjournment Close
 Final Final offer close
35
5. Closing
Rex Classes
Activities
Match Making
Rex Classes
= 5 marks
= 10 marks
= 20 marks
Rex Classes
Dealing withTricky negotiators
•Exaggerated Bluff “You can’t be serious!!!”
•The Invisible Competition “Your competitor quoted
lower.”
•No-way “It’s against our agency policy.”
•Blowing Hot and Cold (Initial enthusiasm, sudden
cooling off)
•Family Discounts “Look how much I’ve done for you?”
(presenting concessions as a personal favor)
Rex Classes
Dealing withTricky negotiators
•It’s none of my business but…” (complaints about
your agency’s service or attitude)
•I don’t have the authority.” (need to refer to the
decision maker)
•My Way or the Highway “And that’s my final offer!”
•Over My Dead Body -refusal/preconditions
Rex Classes
Negotiation
Role Play
Rex Classes
Topics
 Family Negotiation
 Marriage Negotiation
 Girl Friend – Boy Friend Negotiation
 Employee – owners Negotiation
Rex Classes
How to deal with difficult negotiator?
1. Ignore negative tactics:
2. Take a moment:
3. Ask questions:
4. Be creative:
5. Walk away:
Rex Classes
Finding Interest
Find out whether a person is taking
interest in you or not.
Rex Classes
1. Maintain 60% eye contact.
2. More wide –opened eyes = more interested the person.
3. Their heads are inclined forward.
4. Nodding head
5. feet are pointing towards you
6. They smile frequently.
Rex Classes
Indications - Open to Agree
Rex Classes
1. hands are flat on the table.
2. palms are open.
3. stroking chin
4. heads are inclined forward.
5. Nodding head
6. legs are spaced out from each other.
7. smile frequently.
8. Unbutton jackets
9. Place their hands in their chest
10. hands are open
Rex Classes
Useful tips in body language during Negotiation
 Step to the left of a rectangular desk
 Use person’s name twice in first 15
seconds
 Never talk more than 30 seconds at a
time
 lean forward a little in case person’s
ask something
 You can tilt your head a little
Rex Classes
Negotiation
Rex Classes
1.When you have no time to prepare for a negotiation,
do you:
a. Rely on your experience of similar situations?
b. React to what the other person has said?
c. Listen to them and adjourn at the first opportunity?
Ans = C
Rex Classes
18
2. The other negotiator makes a statement with which
you profoundly disagree. Do you:
Ans = b
a. Tell him that he is mistaken and explain why?
b. Ask him why he believes that his statement is true?
Rex Classes
3. If you ready to meet target of 2 lacs Rs per
month then company will get agree to fix your
salary to 30000 Rs.
23
a. Vague - Vague
b. Specific-Specific
c. Specific – Vague
d. Vague - Specific
Ans = b
Rex Classes
4. You want to sell your car and you know that you
would be very fortunate to get as much as 225 000 Rs
for it. While you are considering placing the
advertisement, a keen customer approaches you and
offers 250 000 Rs in cash immediately for your Car.
Do you:
A. Accept his offer without further discussion?
B. Tell him to wait until the car is advertised?
C. Probing about the offer?
Ans = C
Rex Classes
5. A young talented actor wants to get into the ‘big time’ and she
meets a television producer who is desirous of securing her
services for an important part in a detective film. He tells her
that she cannot get top rates until she is ‘known’ but if she does
this one ‘cheap’ and gets famous, she will see ‘train loads of
money’ coming her way for her future work. Should she..
A. Leave the opportunity?
B. Agree, as she has to start somewhere?
C. Demand top rates if she is to do a top job?
Ans = C
Rex Classes
6. You are looking for the place on rent because you want
to start your business. You see a board written with
To Let and also mentioned the rent 10000 Rs per
month but you can afford only 8000 Rs per month.
You mention that you could only give 8000 Rs. He
agrees to give you that place for that sum. Is this:
A. An offer you cannot refuse?
B. A lousy situation?
C. An occasion to celebrate your bargain?
Ans = B
Rex Classes

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Corporate Training - Negotiation skills

  • 1. Rex Classes Power of Negotiation Skill
  • 2. Rex Classes Today’sTopic 1. Why negotiation is important ? 2. Different negotiation behavior. 3. Phases of Negotiation 4. Activities 5. StepsTo powerful Negotiation. 6. Role Play. 7. Tricky response. 8. How to deal with difficult negotiators? 9. Effective Body Language in Negotiation 10. Group Quiz.
  • 5. Rex Classes  Win win approach  Cooperation  Trusting  Pacifying  Relational  Giving For better result merge blue and red behaviour into purple. 9
  • 6. Rex Classes RED Behaviour • Manipulation • Aggressive • Intimidation • Exploitation • Always seeking the best from you • No concern for person you are negotiating with • Taking People behave in this manner when they fear exploitation by the other party, but by behaving this way to protect themselves, they provoke the behaviour they are trying to avoid. 8
  • 7. Rex Classes  Give me some of what I want (red)  I’ll give you some of what you want (blue)  Deal with people as they are not how you think they are  Good intentions  Two way exchange  Tit for tat strategies  Open  People know where they stand To the red behaviourist the message is loud and clear, ‘You will get nothing from me unless and until I get something from you’. 10
  • 9. Rex Classes  Why are you negotiating?What do you expect to gain and why is it important to you?What do you think you will have to offer to achieve this?  Decide on your starting position and your "bottom line," or lowest point you will accept in the deal.  Consider the objectives and emotional motivation of the other party.  Be prepared with information, facts, comparable prices or costs, etc.  Tailor your response  Practice at every opportunity. 14 1. Plan
  • 10. Rex Classes • Positive Powerful opening – confident body language, tone and words • Cover: Why we are here, what we are going to do, how long it will take • Listen to what the other party say and how they say it • Observe non-verbal signals • Sit where you can see everyone 19 2. Probing
  • 11. Rex Classes PROPOSE • Decide whether you will speak your proposal first or respond to the proposal from the other party. • Start by discussing a mutually agreed upon point of the negotiation — something both parties will readily say yes to. •Make your arguments and proposals incrementally and strategically. Avoid going immediately to your lowest point of acceptance, or bottom- line. •Think win-win Negotiation •Be assertive remember PURPLE. (Not RED or BLUE) Use ‘If you…Then I’ not ‘If we… will you’ this avoids a question proposal. 24 3. Propose
  • 12. Rex Classes Submissive Assertive 1. How about you give us 10% discount ? If you make it a 10% discount, then we will order in lots of 100,000. 2. Ok I will gift you a cycle this year. If you score 85% in 10th board then I will gift you a cycle. 3. I hope you can save 10000 Rs. this month. If you save 10000 Rs. then I will buy you a designer saree. 4. It’ll be tough to meet that deadline but ok we’ll give it a go If you pay us 50% advance in first week then we’ll go for that deadline. 26 3. Propose
  • 13. Rex Classes  Avoid – ‘wish’, ‘hope’, ‘would like’ – this is not assertive  Proposals consist of 2 elements: the condition plus the offer and can be best presented with the ‘If ….Then’ technique.  Both the condition and the offer can be couched vaguely. But it is better to state your condition first. 27
  • 14. Rex Classes Example 1: ‘If you change your terms of business, then I could consider some amendments to our payment schedule.’ Is example 1. A.Vague-vague (vague in condition and offer) B. Specific-vague (specific in condition and vague in offer) Answer: Vague-Vague. 27
  • 15. Rex Classes Example 2: ‘If you amended the penalty period from 14 to 7 days then I could consider some amendments to our payment schedule’ Is example 2: A. Vague-vague (vague in condition and offer) B. Specific-vague (specific in condition and vague in offer) Answer: Specific-Vague. 28
  • 16. Rex Classes  Be prepared to make concessions, offer the smallest concessions first – you may not need to go any further.  If you have had to backtrack on a point you had as your final position you could say ‘Since you have changed your position on… I may be able to change mine on…’  Make eye contact to emphasise that each concession is a serious loss for you  competitors should be scheduled in back-to-back appointments .  Record fully all agreements finalised at the negotiations close. 34 4. Bargain
  • 17. Rex Classes  Summary Close  Adjournment Close  Final Final offer close 35 5. Closing
  • 19. Rex Classes = 5 marks = 10 marks = 20 marks
  • 20. Rex Classes Dealing withTricky negotiators •Exaggerated Bluff “You can’t be serious!!!” •The Invisible Competition “Your competitor quoted lower.” •No-way “It’s against our agency policy.” •Blowing Hot and Cold (Initial enthusiasm, sudden cooling off) •Family Discounts “Look how much I’ve done for you?” (presenting concessions as a personal favor)
  • 21. Rex Classes Dealing withTricky negotiators •It’s none of my business but…” (complaints about your agency’s service or attitude) •I don’t have the authority.” (need to refer to the decision maker) •My Way or the Highway “And that’s my final offer!” •Over My Dead Body -refusal/preconditions
  • 23. Rex Classes Topics  Family Negotiation  Marriage Negotiation  Girl Friend – Boy Friend Negotiation  Employee – owners Negotiation
  • 24. Rex Classes How to deal with difficult negotiator? 1. Ignore negative tactics: 2. Take a moment: 3. Ask questions: 4. Be creative: 5. Walk away:
  • 25. Rex Classes Finding Interest Find out whether a person is taking interest in you or not.
  • 26. Rex Classes 1. Maintain 60% eye contact. 2. More wide –opened eyes = more interested the person. 3. Their heads are inclined forward. 4. Nodding head 5. feet are pointing towards you 6. They smile frequently.
  • 27. Rex Classes Indications - Open to Agree
  • 28. Rex Classes 1. hands are flat on the table. 2. palms are open. 3. stroking chin 4. heads are inclined forward. 5. Nodding head 6. legs are spaced out from each other. 7. smile frequently. 8. Unbutton jackets 9. Place their hands in their chest 10. hands are open
  • 29. Rex Classes Useful tips in body language during Negotiation  Step to the left of a rectangular desk  Use person’s name twice in first 15 seconds  Never talk more than 30 seconds at a time  lean forward a little in case person’s ask something  You can tilt your head a little
  • 31. Rex Classes 1.When you have no time to prepare for a negotiation, do you: a. Rely on your experience of similar situations? b. React to what the other person has said? c. Listen to them and adjourn at the first opportunity? Ans = C
  • 32. Rex Classes 18 2. The other negotiator makes a statement with which you profoundly disagree. Do you: Ans = b a. Tell him that he is mistaken and explain why? b. Ask him why he believes that his statement is true?
  • 33. Rex Classes 3. If you ready to meet target of 2 lacs Rs per month then company will get agree to fix your salary to 30000 Rs. 23 a. Vague - Vague b. Specific-Specific c. Specific – Vague d. Vague - Specific Ans = b
  • 34. Rex Classes 4. You want to sell your car and you know that you would be very fortunate to get as much as 225 000 Rs for it. While you are considering placing the advertisement, a keen customer approaches you and offers 250 000 Rs in cash immediately for your Car. Do you: A. Accept his offer without further discussion? B. Tell him to wait until the car is advertised? C. Probing about the offer? Ans = C
  • 35. Rex Classes 5. A young talented actor wants to get into the ‘big time’ and she meets a television producer who is desirous of securing her services for an important part in a detective film. He tells her that she cannot get top rates until she is ‘known’ but if she does this one ‘cheap’ and gets famous, she will see ‘train loads of money’ coming her way for her future work. Should she.. A. Leave the opportunity? B. Agree, as she has to start somewhere? C. Demand top rates if she is to do a top job? Ans = C
  • 36. Rex Classes 6. You are looking for the place on rent because you want to start your business. You see a board written with To Let and also mentioned the rent 10000 Rs per month but you can afford only 8000 Rs per month. You mention that you could only give 8000 Rs. He agrees to give you that place for that sum. Is this: A. An offer you cannot refuse? B. A lousy situation? C. An occasion to celebrate your bargain? Ans = B