Module 10 negotiation


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Module 10 negotiation

  1. 1.
  2. 2. Module 10: Negotiation<br />Module 10 Negotiation 10.1….....................................Negotiating Tactics <br /> 10.2………………...……............Settlement Range<br /> 10.3…………….…………Strategies for Leverage<br /> 10.4……………………………….…Closing Tactics<br />
  3. 3. 10.1<br />Negotiating Tactics<br />Big Pot / Overload<br />The Bogey<br />The Bone<br />Car Salesman<br />Cherry Picking<br />11th Hour Squeeze<br />Emotion<br />Ice Pick<br />The Nibbler<br />The Note Taker<br />
  4. 4. 10.1<br />Tactic (Big Pot / Overload)<br />Big Pot / Overload<br />Asking For More Than Expecting To Receive<br />Neutralizer<br />Establishing Most Specific Need (What Do They Really Want?)<br />
  5. 5. 10.1<br />Tactic (The Bogey)<br />The Bogey<br />Trading Emotions For Economics “I love you, but..”<br />Neutralizer<br />The Mirror, “I love you too, but..”<br />
  6. 6. 10.1<br />Tactic (The Bone)<br />The Bone<br />Giving Concessions Now.. <br />“We have more business down the road.”<br />Neutralizer<br />Contracting for the Future Business, or Giving Credit. <br />
  7. 7. 10.1<br />Tactic (Car Salesman)<br />Car Salesman / Plateau Negotiating<br />Creating the Perception that your Receiving a Great Deal! <br />Neutralizer<br />See the “Wizard” for yourself. <br />
  8. 8. 10.1<br />Tactic (Cherry–Picking)<br />Cherry-Picking<br />Obtaining Bids from Several Area Competitors – Pick Best of all to Make you Compete Against Them.<br />Neutralizer<br />Ask for Specifics and / or Present Your Features and Benefits<br />
  9. 9. 10.1<br />Tactic (11th Hour Squeeze)<br />The Crunch or 11th Hour Squeeze<br />Delaying Completion of Contractual Finalization<br />“They don’t sign the lease, they wait for you to give up more.”<br />Neutralizer<br />Empty Cupboard (There isn’t anything left)<br />Moral Appeal (Prepare in advance for this)<br />Reversal (What do we get in return – High Risk)<br />
  10. 10. 10.1<br />Tactic (Emotion)<br />Emotion<br />The Angry Parent<br />Neutralizer<br />Humor (High Risk)<br />Enter Your Angry Parent (High Risk)<br />Don’t Get Hooked (Staying in your Adult State)<br />
  11. 11. 10.1<br />Tactic (Ice Pick)<br />Ice Pick<br />Leading you to believe that you are very close to the deal (Hidden Agenda & The Good Cheerleader) <br />Neutralizer<br />Don’t get sucked in early (get notes prior to meeting) or “The Salami” (What else is on their mind before you commit)<br />
  12. 12. 10.1<br />Tactic (The Nibbler)<br />The Nibbler<br /> The Negotiation is Almost Done and they ask for one concession at a time over a period<br />Neutralizer<br />Moral Appeal<br />Give and Take <br />
  13. 13. 10.1<br />Tactic (The Note Taker)<br />The Note Taker<br /> Intimidate by taking notes, takes your words out of context, selective listener<br />Neutralizer<br />Putting Your Points in Context<br />
  14. 14. 10.2<br />Settlement Range<br />Opening Offer<br />Goal<br />50 Yard Line<br />Warning Area<br />Bottom Line<br />
  15. 15. 10.3<br />Strategies for Leverage (Hurricane)<br />HARM<br /><ul><li> The side that can cause greater damage</li></ul>UNDERSTANDING <br /><ul><li> The side that understands deal points</li></ul>RESOURCES <br /><ul><li> The party with more time and money</li></li></ul><li>10.3<br />Strategies for Leverage (Hurricane)<br />REWARD <br /><ul><li>The side with more to offer</li></ul>INVESTMENT<br /><ul><li> The side that has invested more </li></ul>CREATIVITY <br /><ul><li> The side that can create more options</li></li></ul><li>10.3<br />Strategies for Leverage (Hurricane)<br />ABILITY <br /><ul><li> The side with more knowledge</li></ul>INFLUENCE <br /><ul><li> The side with more external forces</li></ul>NEED <br /><ul><li> The side that can lease afford an impasse</li></ul>EMPHASIS <br /><ul><li> The side who has assigned a higher internal priority</li></li></ul><li>10.4<br />Closing Techniques<br />Trial<br /><ul><li> Evaluate Prospects Standing
  16. 16. Asking Opinions that Give Insight</li></ul>Alternative<br /><ul><li> Offering Two or More Alternatives
  17. 17. Offering a Choice Between Something and Something instead of Something and Nothing. (March 1st or April 1st)</li></ul>Assumptive/Next Step<br /><ul><li> Assumption Prospect Will Perform
  18. 18. “Next Step?” 1st of March, If Not then When?</li></li></ul><li>10.4<br />Closing Techniques<br />Erroneous Conclusion<br /><ul><li> Intentional Erroneous Statement
  19. 19. Prospect Correction, Walk Right into Sale (12% VS 14% IRR)</li></ul>Hard to Get It/Prestige Close<br /><ul><li> “Landlord is Extremely Selective.”
  20. 20. “Will You Qualify?”</li></ul>Reduction of the Ridiculous<br /><ul><li> Bridges a gap between willingness to pay and ability to pay</li></li></ul><li>10.4<br />Closing Techniques<br />Lost Sale/Door Hanger<br /><ul><li> Pretending Presentation is Over
  21. 21. While Prospect is Processing, Asking for Suggestions to Improve Your Presentation
  22. 22. Once Identified, Reexamine Hot Buttons</li></ul>Order Form<br /><ul><li> Fill Out Contract
  23. 23. Indirectly Closing Prospect</li></ul>Mirage (Fantasy Picture)<br /><ul><li> Building a Picture of What Could Be..
  24. 24. This is Where You’ll Put the Kitchen.”
  25. 25. Similar to Assumptive Close</li></li></ul><li>10.4<br />Closing Techniques<br /> Puppy Dog<br /><ul><li> Invitational Close
  26. 26. Prospect Experiments with a Product, Returns if Unsatisfied</li></ul>Sharp Angle<br /><ul><li> “If it wasn’t for (x) Would You Move Forward?”
  27. 27. Handle’s Smoke Screen Objections</li></ul>Close with Emotion<br /><ul><li> Identify the emotional aspect of the sale
  28. 28. Make a strong emotional appeal with that information.</li></li></ul><li>10.4<br />Closing Techniques<br />Summary<br /><ul><li> Summarizing Benefits that Meet Client’s Needs</li></ul>Ultimatum<br /><ul><li> Issue your final proposal.
  29. 29. Deliver with confidence and strength
  30. 30. This sale will not make or break your career.</li></ul>“Yes” Momentum<br /><ul><li> Ask questions that require the prospect to answer “yes.”
  31. 31. Use this momentum to conclude your sale</li></li></ul><li>Closing Techniques<br />10.4<br />Hot Button<br /><ul><li> 80/20 Rule (80% of Buying Decision Based On 20% of Product’s Features)
  32. 32. Establish Hot Button, Push Hot Button</li></ul>Ben Franklin/Balance Sheet<br /><ul><li> List of Pros and Cons
  33. 33. Many Reasons Why, Few Reasons Why Not</li></ul>Similar Situation Similar<br /><ul><li> Former Client With Similar Objection
  34. 34. Sharing How you Resolved Conflict</li></ul>Denominator Close <br /><ul><li> Breaking Financial Terms into Components
  35. 35. Total investment, Monthly investment, or Initial Investment</li>