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Negotiating tactics

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Negotiating tactics

  1. 1. Negotiating Tactics
  2. 2. Don’t make assumptions <ul><li>Ascertain the facts and do not jump to conclusions or else it could </li></ul><ul><li>Make an ASS out of U and ME </li></ul>
  3. 3. Should you disclose your priorities? <ul><li>Disclosing runs the risk of the other party ignoring your lesser demands while not disclosing runs the risk of priorities being ignored. </li></ul>3 2 1
  4. 4. On losing side of the argument <ul><li>The more you start agreeing with the arguments put forward by the other party , the more you will become uncomfortable and then become vulnerable </li></ul><ul><li>We lack conviction when we find ourselves agreeing with the other party </li></ul>
  5. 5. Dealing with contrary opinions <ul><li>Try presenting facts in support of your opinion </li></ul><ul><li>Have a bet </li></ul><ul><li>Opinions give you an opportunity to create variables in the negotiations </li></ul>
  6. 6. Make specific proposals <ul><li>Vague demands leads to no gains. e.g. </li></ul><ul><ul><ul><ul><li>Want a discount </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Make an offer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Substantial deduction </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Early delivery </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Under certain circumstances </li></ul></ul></ul></ul><ul><ul><ul><ul><li>occasionally </li></ul></ul></ul></ul>
  7. 7. Trial Close <ul><li>In negotiating it is important to understand exactly what the other party ‘s positions is. Trial close technique helps here. </li></ul><ul><li>E.g. Are you implying that if I give those conditions you will be satisfied? </li></ul>
  8. 8. Handling grievances <ul><li>Do not just complain , demand the solution </li></ul><ul><li>E.g.- you are the manger , you tell me </li></ul><ul><li>The room is terrible </li></ul><ul><li>Make sure it does not happen again </li></ul>
  9. 9. Open Door <ul><li>If your are confronted with surprise demand in negotiation , you may run the risk of saying yes to an unconditional demand , or saying no and creating a deadlock. </li></ul><ul><li>A useful technique is to say “ just suppose I agree--- </li></ul><ul><li>This keeps doors open </li></ul>
  10. 10. Time Variable <ul><li>Negotiating requires at least two variables, so that you can concede in an area of lesser importance in order to gain in an area of greater importance. </li></ul><ul><li>When you feel there is only one variable create the second one by asking any of of the “ W” questions- why, what , when, Who </li></ul>
  11. 11. Weak arguments dilute strong ones <ul><li>There usually is a good reason for doing or not doing something. When we start presenting a second , and a third and a fourth reason we weaken the first strong assertion and loose psychological ground </li></ul><ul><li>However use this to your advantage. In the face of a strong reason of the opponent , ask for more reasons, . The other party will not be able to resist giving more , reasons and these will be easier for you to argue against . </li></ul>
  12. 12. Conceding – good will <ul><li>Unconditional concessions do not generate good will but encourage greed , and shows you as weak. </li></ul><ul><li>Concessions in the early stage for nothing will make it difficult for you to say no to later demands. </li></ul><ul><li>Generosity generates greed not gratitude </li></ul><ul><li>People like deals and not goodness </li></ul>
  13. 13. Improve your listening skills <ul><li>Conversations sometimes resemble a busy road you are waiting to cross. You are not looking at the traffic but waiting for a gap to but in . Be a good listener by: </li></ul><ul><li>Summaries </li></ul><ul><li>Pause before you reply </li></ul><ul><li>Act and not react </li></ul><ul><li>Maintain eye contact </li></ul><ul><li>Make notes </li></ul><ul><li>Paraphrase </li></ul>
  14. 14. Multipoint claim <ul><li>Make demands one after another but do state the priority </li></ul><ul><li>Similarly while responding to demands state your priority first </li></ul>
  15. 15. Out of Bounds <ul><li>Saying a categorical no to an issue creates resentment. You can say no to “a” and then simultaneously add along with this that you are willing about “ b” </li></ul><ul><li>This shows you as reasonable and flexible </li></ul>
  16. 16. Unreasonable Demands <ul><li>Put a price to all unreasonable demands </li></ul><ul><li>The greater the unreasonableness the greater the price </li></ul><ul><li>This is blocking the demand and the other party understands this </li></ul><ul><li>You should immediately then give counter proposal that is realistic </li></ul>
  17. 17. Dead Lock <ul><li>Do no be afraid of using deadlocks. </li></ul><ul><li>Use it to put pressure, but know what are the risks involved and how to break out of it </li></ul>
  18. 18. Risks in deadlocks <ul><li>Escalation of conflict </li></ul><ul><li>Unilateral withdrawal of earlier concessions </li></ul><ul><li>Long term damage of relationship </li></ul><ul><li>Change of other party leader for some one worse </li></ul>
  19. 19. Breaking out of a deadlock <ul><li>Take the help of third party and get out of deadlock </li></ul><ul><li>Repackage your demands by taking in their inhibitions </li></ul><ul><li>Introduce a new variable to substitute the dead lock variable </li></ul><ul><li>Change your leader </li></ul><ul><li>Establish informal contact </li></ul><ul><li>Create an informal environment </li></ul><ul><li>Use the time variable to defer , diffuse emotive content </li></ul>
  20. 20. Snapping their hands off <ul><li>Never accept a good proposal straight a way- this way you create doubts in the mind of the other party </li></ul><ul><li>Ask for small concessions and tarry a bit before grabbing the hand of the party </li></ul>
  21. 21. Deal creeps <ul><li>After the deal is over and you return to base you may find a particular clause is ambiguous. You may be tempted to interpret it in your favor </li></ul>
  22. 22. Russian front <ul><li>You give the other party two choices. , one of them is deliberately unattractive to the other party and you force the choice of the option that you favor </li></ul><ul><li>You can similarly use the “ irritant variable “ to get what you want </li></ul>
  23. 23. YUKON LAW <ul><li>Speak softly with positive body language </li></ul><ul><li>Know your USP and be convinced about it </li></ul><ul><li>Be miserly about concessions and only trade </li></ul><ul><li>Do not be afraid of deadlocks </li></ul><ul><li>This is the law of Yukon </li></ul><ul><li>That the strong shall survive </li></ul><ul><li>For surely the weak shall perish </li></ul><ul><li>And only the fit survive </li></ul><ul><li>( North American miners) </li></ul>
  24. 24. Dealing with difficult people <ul><li>Do not match or contrast their behavior </li></ul><ul><li>Be clear about the principle of : </li></ul><ul><li>merits of trading </li></ul><ul><li>merit of the case </li></ul><ul><li>Do not reinforce bad behavior by buckling </li></ul><ul><li>No matter what nothing should affect the outcome you desire </li></ul>
  25. 25. How to get leverage <ul><li>is the essence and understand your power base </li></ul><ul><li>Power is subjective and in the head </li></ul><ul><li>Don’t let the market decide your power –in that case you are buying instead of selling </li></ul><ul><li>Never let the other party feel it is the only one being considered- use uncertainty </li></ul><ul><li>There is no such thing as a fixed price - haggle </li></ul>
  26. 26. Thank you