Negotiation Presentation for the Power Series Business Breakfast July 2014

1. High Value Negotiation
The Buyer Vs: The Seller

2. You have 2$ on the table to share. You
have 5 Minutes to negotiate your share with
your partner. There is a prize for the best
deal.

3. Seller lays cards on the table
Buyer lays cards on the table
Compare notes - Agreement
Seller prices high
Buyer offers low
Battle - Agreement
Competitive NegotiationCompetitive Negotiation
Co-operative NegotiationCo-operative Negotiation

4. Ignores the human need to win.
Can be misunderstood as weakness
Leaves the negotiator open and may
lose the advantage.
Co-operative NegotiationCo-operative Negotiation

5. Will often lead to conflict.
Will occasionally lead to brinkmanship.
Results depend on the strength of the
negotiator, not the merits of the issues.
Not likely to achieve Win-Win.
Will often result in Lose-Lose.
You are never certain if you achieved the
results you could have achieved.
Competitive NegotiationCompetitive Negotiation

6. Abu Dhabi
Zero Sum Game

7. The Camel Story
William Ury
17 Camels
3 Brothers split the Camels
Half to one, One Third to another and
a Ninth to the Third

8. Buyers
Vs:
Sellers
Sellers
Sellers

9. Who wins in a negotiation?
Where does the power come from?
Is there an alternative to Positional
Bargaining?
How do I get the opponent to listen to my
point of view?
How do I make sure we both get more
than we bargained for?
5 Basic Questions5 Basic Questions

10. We learn how to win as children
Winning is not a fact it is a feeling
Win - Win or No Deal
Two wish lists
Understanding Win-WinUnderstanding Win-Win
Who wins in a
negotiation?

11. Information
No Deal Alternative -
NDA
Goals and Targets
Negotiation PowerNegotiation Power
Where does the
Power come from?

12. What are we trying to Achieve / Avoid?
What is complete Victory / Partial Victory?
What are the Short / Long Term
Considerations?
What is Non-Negotiable / Why?
How can we be Creative?
Is this a one-time negotiation or on-going?
Defining SuccessDefining Success

13. Information
No Deal Alternative -
NDA
Goals and Targets
Preparation
Negotiation PowerNegotiation Power

14. Where will the Negotiation be held?
Who will be on your side?
Who will be on theirs?
What will the shape of the table be?
Will there be time restraints?
Who chooses the timing?
PreparationPreparation

15. Often damages relationships
Cuts off option exploration.
Promotes rigid adherence to positions
Obscures a focus on interests
Produces compromise when better
solutions may be available
Positional BargainingPositional Bargaining
Alternative to
Positional Bargaining

16. Speak First - Loudest - Longest
or
Speak Last - Softest - Shortest
How do I get them to Listen toHow do I get them to Listen to
me?me?

17. Prepare
Listen and Prompt
Their point of view
Empathize
Confirm
Assertive ListeningAssertive Listening

18. Separate the people from the
problem.
Focus on interests, not positions.
Generate a variety of possibilities
Alternative to Positional BargainingAlternative to Positional Bargaining

19. Benefits = 4, Price = 4, Value = 1
Benefits = 6, Price = 4, Value = 1.5
Benefits = 8, Price = 5, Value = 1.6
Selling at your Higher priceSelling at your Higher price
ValueValue
BenefitsBenefits
PricePrice
==

20. DeliveryDelivery
PricePrice
QualityQuality
RelationshipRelationship

21. From the BuyersFrom the Buyers
Point of ViewPoint of View
A Good Selling Price
A Large Order
Regular Payments
Referrals
Bulk Deliveries
Testimonial letters
Early Orders

22. To get more out of the negotiation,
bring more to the table
Getting more from the NegotiationGetting more from the Negotiation

23. Your Target Point (TP)
Your Walking Away Point (WAP)
Your opponents TP & WAP
Planned Opening Position
High Value / Low Value Items
Preparing for a NegotiationPreparing for a Negotiation

24. What are you willing to trade?
Information you want / give
Strategy / Agenda
Shared Interests
Preparing for a NegotiationPreparing for a Negotiation

25. Negotiation ChallengesNegotiation Challenges
All buying decisions are made
emotionally
Winning is an Emotion

26. Reactions to Negative ResponsesReactions to Negative Responses
We want to Strike Back
or Give in
or Break off Negotiations

27. Dealing with Negative EmotionsDealing with Negative Emotions
Use their name
Let them vent
Don’t interrupt
The Agreement Frame
See their point of view
Focus on what you agree
Care

28. The buyer says your product is no good.
The buyer says "That's it", or "Take it or
leave it".
The buyer agrees to a price and then
adds on extras.
The buyer uses the "bulk discount" tactic.
The buyer keeps you waiting.
Negotiation TricksNegotiation Tricks

29. Try starting with a ridiculously low (or
high) bid
Never give anything away, always trade
it
What is the most important two letter
word in any negotiation?
What is the best way to upset a good
negotiator?
Other TechniquesOther Techniques

30. High Value Negotiation
The Buyer Vs: The Seller
www.powerseries.co.za