Negotiation is a skill that can be taught. The two stages of negotiation are preparation and bargaining.

1. Negotiation in B2B
Relationships
Workshop

2. Agenda
• Negotiation ‘What It’s Not’.
• Negotiation ‘What It Is’.
• Phase One – Preparation
• Phase Two – Bargaining

3. Negotiation – What It’s Not
• Negotiation is one of the more abused
words in the English language.
• Some believe negotiation is a code for:
– Manipulation
– Lying

4. What people say about Negotiation
• ‘The old idea of a good bargain was a
transaction in which one man got the better
of another. The new idea of a good contract
is a transaction which is good for both
parties to it’
Judge Louis D. Brandeis

5. What people say about Negotiation
• ‘I’ll make him an offer he can’t refuse.’
Mario Puzo (Don Corleone, The Godfather)
• ‘Diplomacy is the art of letting someone else
have your way’.
Daniel Vare (Italian Diplomat)

6. Negotiation – A Definition
Negotiation is – ‘conference and
bargaining for mutual agreement’.

7. For Negotiation to take place
1. Both Parties must have some level
of commitment to do a Deal.

8. For Negotiation to take place
2. Both Parties must have the
authority and the will to vary the
terms of the agreement.

9. Negotiation
• Phase One - Preparation
• Phase Two - Bargaining

10. Preparation
Step 1 – Set Objectives
Win - Win
‘Their Shoes’

11. Objective
Us Them
• To secure major retail • To find a supplier who can
account representing $5 supply product to meet our
million in new business immediate price objectives
p.a. and customer requirements.

12. Preparation
Step 2 – Decide our Fallback
Position
Imagine Total Failure
Decide Best Alternative

13. Fallback
Us Them
• To secure $1 million of • To find another supplier.
business for high margin
niche products only.

14. Preparation
Step 3 – Prioritise your
Tradeables
What are the Tradeables?
What are the Priorities?

15. Prioritise Tradeables
Us Them?
Product High Low?
Range
Rebates Low High?
Catalogue Low High?
funding
Product High Low?
training

16. Preparation
Step 4 – Set Best and Worst
Trading Limits.
Best = Best allowing Win – Win
Worst = Walkaway to Review

17. Best and Worst Limits
Us Them
B W B W
Product Range 10 Range only 3 ? ?
range product lines product lines
Rebates 1.0% to sales 2.5% to ? ?
sales
Catalogue $60,000 p.a $150,000 p.a ? ?
funding
Product 15 Training 5 training ? ?
Training workshops workshops

18. Preparation
Step 5 – Plan ‘What If…’ Strategies and
Supporting Arguments.
Plan Options around Tradeables
Plan Creative Solutions

19. Bargaining
Step 1 – Get the Issues on the Table.
Start the Process
Don’t Show your priorities.

20. Bargaining
Step 2 – Ask Questions
For Information and Motives
To create movement

21. Bargaining
Step 3 – Clarify
Paraphrasing
Summarising

22. Bargaining
Step 4 – Trade Concessions
If … then …

23. Bargaining
Step 5 – Conclude
Summarise
Write it Down

24. Negotiation Mistakes
1. Neglecting the other sides problem
2. Letting price bulldoze other interests
3. Letting positions drive out interests
4. Searching to hard for common ground
5. Neglecting BATNAs (“best alternative to a negotiated
agreement”)
6. Failing to correct a skewed vision
Source: HBR Six Habits of Merely Effective Negotiators by James K. Sebenius April 2001

25. Bibliography
1. Do We Have a Deal? Gavin Kennedy, Gower 1991
2. Negotiation Skills, Baden Eunson, John Wiley & Sons
1994
3. Getting to Yes, Roger Fisher and William Ury, Penguin
1981.
4. Account Strategies for Major Sales, N. Rockham, Gower
1988.
5. It’s a Deal – A Practical Negotiation Handbook, P. Steele,
J. Murphy, R Russil, McGraw Hill 1989.
6. Negotiating: Everybody Wins, V. Helps, BBC Books 1992.
7. Planning for Behaviours for Win – Win Negotiations,
Research papers available from Huthwaite Research
Group Ltd

26. You are welcome to contact Nigel Bairstow at B2B
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