The document discusses negotiation strategies and skills, including defining negotiation, outlining the negotiation process, describing different negotiation styles, and providing tips for negotiating effectively such as maintaining walk away power, practicing negotiation, and recognizing that initial offers often leave room for concessions. It also includes an exercise where groups role-play a negotiation scenario between two companies.

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What is Negotiation?
Negotiation Process
Exercise: Across the table Negotiations
Negotiation Styles
Negotiating Effectively
Qualities of a good Negotiator
Assertive Behaviour

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“Negotiating is the art of reaching an agreement by resolving
differences through creativity”

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 Divide yourselves in 2 groups:
 ACME corp. and EMCA conveyors Ltd.
 Background: ACME Corp needs a flexible conveyor
system and has released a tender for the same. They
have received 15 responses, out of which, they have
qualified 3 of them on the basis of Cost, Quality,
Delivery and Credibility.
 “Teleka” is a well known German co. – a “Brand”.
 The other one is an “unknown” local supplier who
has a small workshop – can reduce the price to any
extent.
 EMCA conveyors is also a local brand, but a larger
company.
 Task: EMCA needs to negotiate a good price and
clinch the deal.
 Purchase Manager from ACME has invited the Sales
Manager from EMCA for negotiations – A 15 min long
meeting.

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 Style: Quick, Compromise, Deliberation
 Quick:
Negotiate in a Hurry
Get the best deal without regard to the other side’s win
Use this when you won’t negotiate with these people again
Deliberate:
Use when long term relationship is likely
Involves cooperation to reach agreement
Needs much preparation and hard work
May move in Fits and Starts
Compromise:
This is a Middle Path
Both sides may agree to disagree and move on

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1) Learn to flinch.
 The flinch is one of the oldest negotiation tactics but one of the
least used. A flinch is a visible reaction to an offer or price.
 The objective of this negotiation tactic is to make the other
people feel uncomfortable about the offer they presented.
 Here is an example of how it works.
 A supplier quotes a price for a specific service. Flinching means you
respond by exclaiming, "You want how much?!?!" You must appear
shocked and surprised that they could be bold enough to request
that figure.
 Unless the other person is a well seasoned negotiator, they will
respond in one of two ways;
 They will become very uncomfortable and begin to try to rationalize
their price,
 They will offer an immediate concession.

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2) Recognize that people often ask for more than they expect to get.
 This means you need to resist the temptation to automatically reduce your price or offer a
discount. I once asked for a hefty discount on a pair of shoes hoping to get half of what I asked
for. I was pleasantly surprised when the shop owner agreed to my request.
3) The person with the most information usually does better.
 You need to learn as much about the other person's situation. This is a particularly important
negotiation tactic for sales people. Ask your prospect more questions about their purchase.
Learn what is important to them as well as their needs and wants. Develop the habit of asking
questions such as;
 "What prompted you to consider a purchase of this nature?"
 "Who else have you been speaking to?"
 "What was your experience with…?"
 "What time frames are you working with?"
 "What is most important to you about this?"
 It is also important to learn as much about your competitors as possible. This will help you
defeat possible price objections and prevent someone from using your competitor as leverage.

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4) Practice at every opportunity.
 Most people hesitate to negotiate because they lack the confidence.
 Develop confidence by negotiating more frequently.
 Ask for discounts from your suppliers.
 As a consumer, develop the habit of asking for a price break when you
buy from a retail store.
 Here are a few questions or statements you can use to practice your
negotiation skills:
 "You'll have to do better than that."
 "What kind of discount are you offering today?"
 "That's too expensive." Wait for their response afterwards.
 Learn to flinch.
 Be pleasant and persistent but not demanding.
 Condition yourself to negotiate at every opportunity will help you
become more comfortable, confident and successful.

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5) Maintain your walk away power
– The power to say “NO”
 It is better to walk away from a sale rather than make too
large a concession or give a deep discount your product or
service.
 However, it is particularly challenging to do when you are in
the midst of a sales slump or slow sales period. But, remember
that there will always be someone to sell to.
A Good Negotiator is …

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Develop Goals before beginning a negotiation
Have a concrete strategy to allow you to negotiate objectively
Willingness to compromise will facilitate the negotiation
Begin with a positive overture to develop rapport and establish
mutual interests
The initial offer is merely a point of departure
Focus more on ‘Value’ than ‘Price’
Address problems not personalities
Maintain a rational objective frame of mind
Concessions tend to be reciprocated and lead to agreements
Be patient: Many deals are made only at the last minute

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Negotiating is a way of life in some cultures. And mostNegotiating is a way of life in some cultures. And most
people negotiate in some way almost every day.people negotiate in some way almost every day.
Win-Win is recommended where possibleWin-Win is recommended where possible
Win-Lose is a common approachWin-Lose is a common approach
Lose-Lose is always possible, but best avoidedLose-Lose is always possible, but best avoided
Apply these negotiation strategies and you will notice aApply these negotiation strategies and you will notice a
difference in your negotiation skills almost immediately.difference in your negotiation skills almost immediately.

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Books:
“Human Resources Skills for the Project Manager” Vijay Varma
“Principles of Project Management” John R Adams
“The Power of Nice” Ronald Shapiro
“Swim with the Sharks Without Being Eaten Alive” Harvey Mackay
“Getting Ready to Negotiate: The Getting to Yes Workbook” Roger
Fisher and Danny Ertel
“Negotiating Skills for Dummies” Michael and Mimi Donaldson.