2. What are Negotiations?
• Negotiations aren’t just in business
• Negotiations are a discussion between two
people to make some agreement for the future.
• Negotiations are used for:
– Reach an understanding
– Resolve issues
– Making compromise
– Make goals
– Discuss issues (exploratory meeting)
• Negotiations are used in government, business,
legal issues, marriage, between friends
Conciliatory
meetings
3. What is a basic negotiation
Suggestion
Counter Suggestion
Agreement
Confirmation
5. Negotiation Types
• Win-Win Negotiations
– Making an agreement that both parties like
– The agreements have some compromises at
times
– Tries to gain value for both parties
• Distributive Negotiations (Independent
advantage)
– One party gets more than the other
– All about what position you are
6. Negotiation Types
• Positional Negotiations (Win – Lose)
– One person wins, one person loses
– Universally understood
– Negatively rewards stubbornness and
deception
7. Preparing for negotiations
• Listen…
• What are some items you need?
– Prepare your negotiation position – know your aims
and objectives.
– Identify your minimum requirements.
– Decide what concessions you could make.
– Know your strengths and weaknesses.
– Prepare any figures, any calculations and support
material
– Know your role as a part of the team.
– Prepare your opening statement.
9. CHALLENGE!
Group A
You are sales manager for a large automotive components
manufacturer. You are having a meeting with the leader
of the sales representatives about a new contract. Sales
have not increased in the past year so you don’t want to
increase the rep’s pay or commissions
Group B
You are the leader of the sales reps. Your pay hasn’t
increased for three years. You have a meeting with the
sales manager to renegotiate your contracts.
10. Making a formal opening
• Welcome
• Agenda of the meeting
• Objectives for the meeting
• Expectations from both sides
• Hope to accomplish on their side
– Simple and general ideas
• Thanks for the opportunity
11. Opening Statement
• Listen…
• What are the objectives they make in this
audio?
– These are primary talks
– LP Associates would like to consider joint
product development.
– They would also consider license
agreements.
– They want to consider working on a
consultancy basis.
12. Negotiating
• General items
– Check items that the other wants.
– Don’t guess their opinions or motives.
– Note what the others say. Don’t always
answer immediately
– Don’t get forced into considering only one
option.
– Understand why they are giving you the
options.
13. People in a Negotiation
Main Speaker
• Create the agenda
• Questions needs and
wants
• Don’t talk too much
• Listen
• Make common ground
• Be Clear, Brief, Firm
• Follow the rules
Support Speakers
• Don’t speak until the chair
introduces you
• Be Clear, Brief, Firm
• Follow the rules
• Help the main speaker
– Agree
– Emphasize points
– Add missing points
– Allow Main speaker to
make the decisions
14. Negotiating
• Decisions making
– Accept, Reject or continue to negotiate
– Accept: Next slide
– Reject: end the meeting
– Negotiating:
• Make a new offer
• Seek a new offer from another party
• Change parts of the deal
Always be positive, constructive, cooperative and fair.
16. Summarizing/Closing
• Like at the end of a meeting summarize
what was accomplished:
– Confirming what things you agreed on.
– Determine what things you didn’t agree on
and may need to talk about later.
– When the next meeting will be or when the
contracts will be prepared.
• Close the meeting like all other meetings
