Negotiating tips – NRF march 2013

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Negotiating tips – NRF march 2013 – presented by Peter Cosgrove

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Negotiating tips – NRF march 2013

  1. 1. Negotiation Training By Peter Cosgrove March 2013
  2. 2. Objectives Introduction Selling Negotiating
  3. 3. Anchoring How many islands a the in Indonesia?
  4. 4. The anchoring effectPlease can you write down how many separate islandsthere are in Indonesia, but please do not give me a roundnumber, so for instance I would prefer rather than 140, yousaid 131 or 143.Please can you write down how many separate islandsthere are in Indonesia, but please do not give me a roundnumber, so for instance I would prefer rather than 28,800,you said 27,192 or 28,182. Does your answer change if you are given an “anchor” – think of that when you are giving a price
  5. 5. Recruitment is a people business• Here is €20 you can keep it under one condition, you have to share some of it with a friend, it is up to you how much, your friend has no say. If your friend rejects your offer you both get nothing, if he accepts you both keep your share.• How much will you offer your friend
  6. 6. Selling Before we can negotiate we need to understand a little about selling and what the other person is doing
  7. 7. Many people don’t like the word selling If do not believe in what you are selling – you will never be able to negotiate well
  8. 8. Selling Recruitment ConsultancyA good recruiter can give:AdviceKnowledgePerspective
  9. 9. Selling Now sell me your company and why a corporate who would want you to recruit for them
  10. 10. Recruitment “features”Specialist We have highly skilled We are experts in recruiters LinkedinInnovative We deliver We are professional,We run events end to end recruiters We won an NRF agency We have great clientsThe biggest in the world award We have an outsourcingThe best recruitment businessbrand We have 80% repeat business We work across allWe have a great disciplinesdatabase We are niche SO WHAT !!!
  11. 11. Buying a phone Imagine they sold the features of the company when you wanted a phone– you would walk out – sell the benefits
  12. 12. Selling Recruiter benefits• We can find out the best candidates, those hard to find candidates, those passive candidates etc• Speed: We find the candidates quicker than any other source• We are great value for money• We save you time and money• We are good/ professional to deal with
  13. 13. Role play - open job• You work for ABC Recruitment. I am a client and have called in regarding a role that I currently have on, the role is a sales manager, I am open to giving you as much info you need, can you ask me the questions that you want to ask. You have just picked up the phone “In or out” You don’t have a strategy if you cannot say no to a client
  14. 14. Sales is emotive...The indifference of their current supplier.
  15. 15. Think about what you can negotiate on – its not allWhat to negotiate on? about priceWrite down 5 reasons that you would reduce your rates?Reduced rate Increased RateExclusivity •Job already openMultiple roles •Advertised directly or alreadyWorking with other parts of your using other agenciesbusiness •Rebate period wantedAgreed timeframes and •Invoicing terms wantedinterview slots •Scarcity of the skill-setPart payment upfront •No client visitClient visit •No Job specNo rebate •No answers to questions on jobCharity client spec
  16. 16. Your first reaction to a statement should be toClient says ask more questions – not react to the statement• Everyone else is at 10% why are you not• Market rate for this role is… Do you know how difficult this skill-set is• We have no money, can you just send us 1/2 cvs for a flat fee• Let me explain what we have to do for any role we fill• We have never paid more than 12%• You pay nothing until you hire, if our candidates are twice as good you wont mind paying 50% more• Its either 10% or we cannot do business with you• No problem come back to me when you need cvs, I can give you the name of a recruiter who will do it at 1%• All you do is send me a cv, you must be joking if you think that is worth 10,000• If the person we send you makes you 1 million in sales over 5 years is 10,000 still high?Can you answer these questions?
  17. 17. Using Data• I have 5 clients all paying 20% fees and I still cannot find the cvs that they want, why would I go lower for you• There is only about 20 people in the marketplace fot the skills you want – what is attractive about your company• You can get a recruitment service for 650 euro (1%) if it is the cheapest price that you are looking for• MESSAGE: its not what the client wants to pay it is what the market rate is
  18. 18. NegotiationExercise – University BooksCourtesy of Robert McKernan
  19. 19. Negotiation Tips 1 No round numbers 2 Negotiate in Small steps 3 Stretch your targets 4 Don’t split the difference 5 The other side has to move 6 Insult if insulted 7 Summarize the deal at the end 8 Before surrendering look at the difference 9 Don’t go first 10 Don’t Show triumph 11 Show enthusiasm 12 Write things down 13 Have excuses ready 14 Don’t lie 15 Assess the relationship level
  20. 20. Persistence  Most people don’t like negotiation  Most people like to get things done  Be more persistent than the other personDon’t feel like you have tofinish the negotiation quickly –draw it out as it can work toyour advantage
  21. 21. PersistenceMost people don’t like negotiationMost people like to get things doneBe more persistent than the other person
  22. 22. The Negotiator Many times you may not be speaking to the best person Don’t presume the person you are talking to is the right person
  23. 23. Language and Silence and Walk away“We can’t” is not the same as “we won’t”Leave silence – sales people don’t like long pauses – get comfortablewith themIf you don’t get what you want – feel free to walk away
  24. 24. Write it down Don’t agree everything and then forget to document it Don’t assume what was agreed before Its not a fee until its collected – so understand the payment process
  25. 25. The nibbleWhen the deal is done you ask for more
  26. 26. Actions• Understand the selling process• Remember the other person – what do they want to achieve• Know the market rate for everything• Ask lots of open question – research will improve decisions• The more time you take the better your price• Be respectful and professional – no one deal will make the difference your reputation will
  27. 27. Questions & Thank You president@nrf.ie @petercosgrove

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