Negotiation is about getting an agreement that satisfies both parties by making concessions. Preparation is key - identifying important issues, wants, and limits for each side. The negotiation process involves understanding the other party's perspective through discussion, proposing trade-offs, and bargaining until a final agreement is reached. Flexibility, listening, and focusing on interests rather than positions can help reach a mutually agreeable deal.

1. Negotiation Strategy

2. Summary
 Negotiation is getting what we want from people who
want something from us
 Preparation on all the issues is everything
 All negotiations should revolve around the word 'IF'
 It's about movement from both sides to a common
acceptable agreement
 Be firm but flexible; polite and clear; cool and rational
 Nothing is agreed till everything is agreed
 Avoid changing the price. Change the
proposal/package

3. Negotiation Tips
 Spot tactics as tactics: don't react emotionally
 Final often does not mean it. Finalish : Forever-for-
now
 AII negotiations can be renegotiated
 Price is one aspect: there are other satisfiers
 It’s not how much you concede but how you concede
 Leave the other person thinking they got a bargain
 Beware "funny money" (odd promises/offers)
 Remember long term relationships
 Watch out for last minute problems
 Get written contracts

4. Phase 1: Preparation - What Do We
Want?
 Decide which crucial issues need addressing
 Define your wants for each issue
 Rate how important each want is
 Assign ranges of possible values to each issue/want
(entry and exit position). Know your BATNAs
 Record preparation details
 Start thinking about the other party's wants and
priorities
 Try the same strategy for their wants

5. Phase 2: Debate - What do they want?
 Use debate/discussion to gauge the other party's
views/wants
 Use open questions, clarification, active listening to
discover their 'entry' position and all subsequent
positions. Be curious, listen carefully
 Avoid saying no. Ask a question rather
 Regularly summarize what you here the other party
proposes before responding. Precis your understanding
of their position
 Avoid discussions around beliefs, values, principles,
opinions communicate your wants and find out their
wants. Concrete not abstract
 Look for signals of 'movement'-qualifications attached to
a statement-get the other party to expand on their
tentative hints

6. 4 Key Questions in Every Conversation
 What are they asking for?
 Goal
 What do they want?
 Need
 What will they accept?
 Resistance Point
 At what point will they walk away?
 BATNA

7. Phase 3: Propose - What Wants Could We
Trade?
 Analyse your competing wants
 Make your proposal conditional - the condition and
the offer
 Be flexible-but always conditionally
 State your proposal-then shut up! Listen
 If responding to a proposal - summarize, clarify, ask
open questions-don't instantly reject
 Offer a considered, alternative, perhaps
compromise, proposal
 Between two converging considered proposals is a
potential settlement and agreement

8. Phase 4: Bargaining
 The precise terms on which both parties would settle
 All bargains should be expressed as a condition and
an offer. If you ... then we ....
 Different from 'Proposal' as it is precise and you are
seeking a 'yes'
 If offer rejected, require other party to propose
reasonable alternatives
 If responding, make a conditional counter-offer
bargain (you may return to debate phase)
 Keep whole deal together-all issues linked in the one
package
 Remember nothing is agreed till everything is agreed

9. Agreement
 Closing techniques
 When: Greedy is worse than needy-have you got
what you want?
 How:
 Conditional traded movement close to clinch
 Summary close
 Adjournment close
 Either/or-useful if within budget constraints
 Agree what you have agreed:
 Each issue which has been subject to negotiation should
be summarized and the summary agreed between the
two parties, Follow up in writing. Check sensitive
phraseology at this point

10. Pricing Issues
 Never change the price - change what is offered
 Identify all the negotiable tradeables in your
business
 Money always involves numerous issues and
emotions
 Stress the value of ownership versus the cost of
purchasing
 Stress the value of the service versus the cost of the
service
 Stress the value of long-term benefits versus the
upfront costs
 Stress benefits rather than features
 Listen to how they talk and think about money

11. False Assumptions
 The buyer is usually all powerful
 The buyer knows what he/she wants
 The price is always the central issue
 Competitors dictate your limits
 More authority is better in sales
 Price cutting is the most powerful weapon

12. The Real-World Law of Time Pressure
 90% of all concession making is done in the last
10% of time spent negotiating
 Furthermore, one of the two parties is ALWAYS
under greater time pressure ...