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4 things to prepare
before negotiation	




                       Shoe-g Ueyama
                                 2012
                          Photos from photopin.com
4 things to prepare before negotiation	


       1. Define your point.


       2. Create a reservation point.

       3. Develop your BATNA.

       4. Prepare your logic to support your point.



                                     ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
1
1. Define your point.	




                         ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
2
Case study. 1	


        Mike’s point is to buy a used text at $50.




      Premise
      • Mike is a first-year undergraduate.
      • He wants to buy a second hand text book.
      • New text book costs $100.   ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
3
Case study. 1	

      Jenifer’s point is to sell her used text at $90.




      Premise
      • Jenifer is a sophomore, and just finished
       the class mike’s going to take.
      • She put a sign on a board that her text is for
       sale at $90.
                                     ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
4
2. Create a
      reservation point.




                      the quantitative
                       trigger point where
                       you will take your
5	
                       next best alternative.
                                            	
                            ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
Case study. 2	


           Mike can pay up to $80 for the text.




      • Mike is a first-year undergraduate.
      • He wants to buy a second hand text book.
      • New text book costs $100.
                                    ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
6
Case study. 2	

          Jenifer won’t sell her text under $60.




      • Jenifer knows the text book is sold at a
       second hand book store at $60.
                                     ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
7
3. Develop your BATNA.




      BATNA stands for
      Best Alternative To Negotiated Agreement	
                                  ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
8
Case study. 3	




      Mike’s BATNA is
        1. If I can’t buy from Jenifer I will find another
        person to buy.
        2. If I can’t but the text I will ask my friend to
        XEROX it.
                                          ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
9
Case study. 3	




       Jenifer’s BATNA is
         1.  Sell my text to another person.
         2.  Sell my text to a second hand book store.
                                      ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
10
BATNA gives you
       1.Space in your mind.	
       2. Power to negotiation.
       3. You won’t end up having a bad result.	




                                      ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
11
4. Prepare your logic to
         support your point.




                           ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
12
Case study. 4	




       Mike’s Logic
         1. Jenifer’s text bad condition might be a key to
         lower the price.	
         2. The present text will change next year. So
         Jenifer has to sell this year.	
         3. The number of students are less than 10. So
13	
         there are not many students who needs to buy.	
                                        ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
Case study. 4	




       Jenifer’s Logic
       1. The condition of the text is very good to sell
       around $90.	
       2. I marked all the points which appears in the
       exam.	
       3. I’m likely to have more people to buy my
14	
   text.                          ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
4 things to prepare before negotiation	


        1. Define your point.


        2. Create a reservation point.

        3. Develop your BATNA.

        4. Prepare your logic to support your point.



                                      ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
15

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4 things to prepare before negotiation

  • 1. 4 things to prepare before negotiation Shoe-g Ueyama 2012 Photos from photopin.com
  • 2. 4 things to prepare before negotiation 1. Define your point. 2. Create a reservation point. 3. Develop your BATNA. 4. Prepare your logic to support your point. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 1
  • 3. 1. Define your point. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 2
  • 4. Case study. 1 Mike’s point is to buy a used text at $50. Premise • Mike is a first-year undergraduate. • He wants to buy a second hand text book. • New text book costs $100. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 3
  • 5. Case study. 1 Jenifer’s point is to sell her used text at $90. Premise • Jenifer is a sophomore, and just finished the class mike’s going to take. • She put a sign on a board that her text is for sale at $90. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 4
  • 6. 2. Create a reservation point. the quantitative trigger point where you will take your 5 next best alternative. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
  • 7. Case study. 2 Mike can pay up to $80 for the text. • Mike is a first-year undergraduate. • He wants to buy a second hand text book. • New text book costs $100. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 6
  • 8. Case study. 2 Jenifer won’t sell her text under $60. • Jenifer knows the text book is sold at a second hand book store at $60. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 7
  • 9. 3. Develop your BATNA. BATNA stands for Best Alternative To Negotiated Agreement ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 8
  • 10. Case study. 3 Mike’s BATNA is 1. If I can’t buy from Jenifer I will find another person to buy. 2. If I can’t but the text I will ask my friend to XEROX it. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 9
  • 11. Case study. 3 Jenifer’s BATNA is 1.  Sell my text to another person. 2.  Sell my text to a second hand book store. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 10
  • 12. BATNA gives you 1.Space in your mind. 2. Power to negotiation. 3. You won’t end up having a bad result. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 11
  • 13. 4. Prepare your logic to support your point. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 12
  • 14. Case study. 4 Mike’s Logic 1. Jenifer’s text bad condition might be a key to lower the price. 2. The present text will change next year. So Jenifer has to sell this year. 3. The number of students are less than 10. So 13 there are not many students who needs to buy. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
  • 15. Case study. 4 Jenifer’s Logic 1. The condition of the text is very good to sell around $90. 2. I marked all the points which appears in the exam. 3. I’m likely to have more people to buy my 14 text. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential
  • 16. 4 things to prepare before negotiation 1. Define your point. 2. Create a reservation point. 3. Develop your BATNA. 4. Prepare your logic to support your point. ©2012 Shoe-g Ueyama All Rights Reserved. | Proprietary and Confidential 15