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Sales Negotiation

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Title: Sales Negotiation


1
Sales Negotiation
  • Stessy FABER

2
Who am I ?
  • Stessy FABER
  • World Trade Center Atlanta
  • World Trade Center Nice Sophia Antipolis
  • Development Institute Paris
  • Bouygues Telecom Entreprises
  • Covidien France ( since 2005 ),
  • ? Account Manager and sales coach

3
Contents
  • I/ What does negotiate mean ?
  • II/ The different types of negotiation
  • Distributive
  • Integrative
  • Multiple Parties
  • III/ The Swot Analysis
  • IV/ How to negotiate
  • Four key Concepts
  • The preparation
  • Tactics regarding Price/ Process/ People
  • Barriers to Agreement
  • V/ What makes an effective Negotiator ?

4
  • VI / Professional Selling Skills
  • a/ Need Satisfaction Selling Process
  • b/ Why and How to open an interview
  • c/ Why and How to probe
  • d/ Why and How to support
  • e/ Why and How to close
  • f/ Resolving scepticism
  • g/ Resolving a misunderstanding
  • h/ Resolving a Drawback
  • I/ Overcoming Customer Indifference

5
I/ what does negotiation mean ?
  • Negotiation is the mean by which people deal with
    their differences. To negotiate is to seek mutual
    agreements through dialogue.
  • Negotiation is an ever present feature of our
    lives both at home and at work. For ex when two
    spouses agree on who will wash the dishes and who
    will take care of the garden.
  • The latin root of the word (negotiatus) means  
    to carry on business .
  • In modern spanish, negocios means  business .

6
  • Negotiation is an opportunity to demonstrate
    your commitment ( and your companys ) to long
    term relationship to maximize value for both
    parties.
  • Negotiation in sales can be a formal event, at a
    specific time on a specific date, or it can be an
    ongoing theme at different points of the sales
    process.
  • Negotiation is beyond price..it includes the
    entire value proposition. As a sales professional
    you are seeking mutually beneficial relationship
    with prospects and customers which means you are
    going to seek a true win/win solution.
  • Practiced and applied, negotiation skills can
    increase the level of trust and credibility you
    have with your prospects and customers

7
  • TEST 1
  • Read the following sentence and quickly decide
    whether you believe it is true or false
  •   Faced with a difficult opponent, it is better
    to concede something of little value in order to
    create goodwill .
  • TRUE or FALSE ?

8
  •  Faced with a difficult opponent 
  • We prefer to think of those with whom we
    negotiate as potential partners. We are looking
    for a cooperation, even if they could be behaving
    in a difficult manner ( aggressive, abusive,
    irritating, shouting, swearing)
  •  it is better 
  • Better than what ? We do not know the alternative
    solution, so we can not say it is better
  •  to concede 
  • Never concede anything without getting something
    in return. Never give an inch trade it !

9
  •  something of little value 
  • What is of little value for you, might be
    something of good value another person. It is
    more important to consider how valuable it is for
    the other person. This is what negotiation is
    about.
  •  In order to create goodwill 
  • Admirable intention but it does not work like
    this with everybody, for ex , with difficult
    people.

10
II/ The Different types of negotiation
  • There are two primary kind of negotiation
  • Distributive A negotiation in which the parties
    compete over the distribution of a fixed sum of
    value. The key question in a distributed
    negotiation is   Whom will claim the most value
    ?  In distributive negotiations, a gain by one
    side is made at the expense of the other.

11
  • Integrative A negotiation in which the parties
    cooperate to achieve maximum benefits by
    integrating their interests into an agreement.
    These deals are about creating value and claiming
    it.
  • Few of your negotiations will be purely
    distributive or integrative.

12
a/ Distributive Negotiation
  • Who will claim the most value. The term win-lose
    negotiation is probably more appropriate.
  • A few examples
  • The sale of carpet, where the buyer and the
    seller do not know one another. There is no
    relationship, all that matters is the price.
    Every gain by one party represents a loss to the
    other.

13
  • Wage negotiations between business owners and
    their union employees. The owners know that any
    amount conceded to the union will come out of
    their own pockets and vice versa
  • - In a purely distributive negotiation, the price
    is fixed, each parties try to get as much as
    possible. For ex Two people negotiating over
    shares of a freshly baked apple pie. The aim is
    to get / to negotiate for a large portion of the
    apple pie, knowing that any concession made to
    the other party will reduce his or her share by
    an equal amount.

14
  • The seller goal in a distributive deal is to
    negotiate as high a price as possible the
    buyers goal is to negotiate as low a price as
    possible. A dollar more to one side is a dollar
    less to the other.
  • The objective for both of them is to get, the
    more value as possible. Relationship, reputation
    take little part in this kind of negotiation.
  • To achieve success in a distributive negotiation
  • 1/ Start at the right price. Studies show that
    negotiation outcomes often correlate with the
    first offer. Indeed, the first offer can become a
    strong psychological anchor point.
  • .

15
  • 2/ Do not talk too much. Do not disclose any
    significant information about your circumstances
    ( why you want to make a deal, your options, your
    preferences )
  • 3/ Information about the other side can help you.
    Learn as much as possible about them. And exploit
    what you learn in setting your first offer.
  • 4/ Do not be aggressive, the other side may walk
    away

16
b/ Integrative Negotiation
  • In a integrative negotiation, the parties
    cooperate to achieve maximum benefits by
    integrative their interests into an agreement
    while also competing to divide the value
  • In integrative negotiations you have to be good
    at both creating value and claiming it.
  • For example

17
  • Gomez Electronics and one of its primary
    suppliers, Kraft Components Company, are
    negotiating an agreement under which Kraft will
    build and deliver 10 000 switches over 6 months.
    Gomez is interested in getting the lowest price,
    but also, in maintaining a long term relationship
    with Kraft. Krafts sale manager would like to
    maximize the price his company receives, but he
    would like to keep this long term customer.

18
  • Together the two negotiators settle on an
    agreement that gives Kraft what it wants 2 per
    switch. In return Kraft agrees to give Gomez
    Electronics sixty days to pay instead of the
    usual thirty day arrangement. Further, the two
    firms agree to collaborate in designing a new set
    of switches.

19
  • In an integrative negotiation, your task is
  • 1/ To create as much value as possible for you
    and for the other side
  • 2/ Ta claim value for yourself
  • Your goal is to help the person you are
    negotiating with at little cost to yourself, and,
    have him help you at little cost to him.
  • Finding opportunities for mutual benefit
    naturally requires information sharing. Unlike
    the distributive situation in which you
    deliberately play your cards close to the vest,
    an integrative negotiation encourages negotiators
    to do the following

20
  • - Provide significant information about their
    circumstances
  • - Explain why they want to make a deal
  • - Talk about their real interests or business
    constraints
  • - Reveal and explain in general terms their
    preferences among issues or options.
  • - Use what they learn to find creative options
    that will meet the interests of both parties to
    the greatest extent possible.

21
C/ Multiple Phases and Multiple Parties
  • When negotiation involve more than 2 parties or
    when negotiation takes place in phases, each
    devoted to one of several important issues.
  • A/ Multiphase Negotiations
  • Multiphase transactions and the prospect of
    future dealings offer important advantages for
    parties who are trustworthy and who would like to
    foster cooperative behaviour.

22
  • In these situations, early phases allow the
    parties to build trust by performing their
    agreements as promised.
  • Early phases also allow the parties to become
    familiar with each others communication and
    negotiation styles.

23
  • b/ Multiparty Negotiations
  • Multiparty negotiations can differ significantly
    from two party negotiations i none important
    respect coalitions can form among the parties.
    Coalitions make it possible for weaker parties to
    gather the stranght to push through their
    preferred proposals, or, at least to block those
    they find unacceptable.

24
  • 2 types of coalitions
  • - natural coalition ( allies share common
    interests )
  • - single issue coalition ( parties have different
    issues, but are unite to support or to block for
    different reasons )
  • Difficult because you must understand the goals,
    interests and relationships of many parties, and
    work from there.
  • A natural coalition o f allies is hard to break,
    it is easier to deal with a single issue
    coalition.

25
III/ The SWOT Analysis
  • The swot analysis is an extremely useful tool for
    understanding and decision making for all sorts
    of situations in business and organizations.
  • Swot is an acronym for Strengths, Weaknesses,
    Opportunities, Threats.

26
  • For Business and planning, competitor evaluation,
    marketing, business and product development and
    research reports.
  • Another which complete the SWOT analysis PEST
    ANALYSIS, which measures a businesss market and
    potential according to external factors (
    Political, Economic, Social and Technological ).
  • It is often helpful to complete a PEST analysis
    prior to a SWOT analysis

27
  • A SWOT analysis measures a business unit, a
    proposition or idea
  • A PEST analysis measures a market.
  • SWOT analysis can be used for all sorts of
    decision-making, and the SWOT template enables
    proactive thinking, rather than relying on
    habitual or instinctive reactions.

28
  • Here are some examples of what a SWOT analysis
    can be used to assess
  • - a company ( its position in the market,
    commercial viability )
  • - a method of sales distribution
  • - a product or brand
  • - a business idea
  • - a strategic option such as entering a new
    market or launching a product
  • - a potential partnership
  • - changing a supplier
  • - an investment opportunity

29
  • Strengths
  • Advantages of proposition ?
  • Competitive advantages
  • Resources, Assets, People ?
  • Innovative aspects ?
  • Price, value, quality ?
  • Cultural
  • Weaknesses
  • Financials ?
  • Disadvantages of proposition ?
  • Lack of competitive strength ?
  • Deadlines ?
  • Cash flow ?
  • Reliability of data, plan predictability
  • Opportunities
  • Market developments ?
  • Competitors vulnerabilities ?
  • Technology development and innovation ?
  • Global influences
  • Information and research
  • Threats
  • Political / Legislative effects
  • Environmental effects
  • Competitor intentions
  • Vital contracts and partners
  • Loss of key staff
  • Sustainable financial backing

30
Subject of SWOT analysis example
  • Scenario a business to business manufacturing
    company, who so far rely on distributors to take
    their products to the end user market.
  • The opportunity is for the manufacturer to create
    a new company of its own to distribute its
    products direct.

31
Strengths
  • - End user sales control and direction
  • - Right products, quality and reliability
  • - Better Product life and durability
  • - Superior Product performance vs competitors
  • - Have customer lists
  • - Management is committed and confident
  • - Direct delivery capability
  • - Some staff have experience of end-user sector
  • - Products have required accreditations

32
Weaknesses
  • Some gaps in range for certain
  • We would be a small player
  • No direct marketing experience
  • We cannot supply end users abroad
  • Need more sales people
  • Limited Budget
  • Dont have a detailed plan yet
  • Delivery staff need training
  • Customer service staff need training
  • Processes and systems
  • Management Cover insufficient

33
Opportunities
  • Could develop new products
  • Local competitors have poor products
  • Profit margin will be good
  • End users respond to new ideas
  • Could extend to overseas
  • Can surprise competitors
  • Could seek better supplier deals

34
Threats
  • Legislation could impact
  • Environmental effects would favor larger
    competitors
  • Distribution risk
  • Market demand very seasonal
  • Could distract from core business
  • Possible negative publicity
  • Vulnerable to reactive attack by major competitors

35
IV/ How to negotiate
  • Know your BATNA ( Best Alternative To a
    Negotiated Agreement )
  • Knowing your BATNA means knowing what you will do
    or what will happen if you fail to reach
    agreement in the negotiation.

36
  • If you do not know your BATNA before entering
    into any negotiation, you wont know whether a
    deal makes sense or when to walk away. The risk
    is to reject a good offer or to accept a weak
    offer
  • Strong / Weak BATNA ( strong BATNA easier to
    negotiate / Weak BATNA puts you in a weak
    bargaining position.

37
Improve your Position
  • 1/ Improve your BATNA
  • 2/ Identify the other sides BATNA
  • 3/ Weaken the other partys BATNA
  • 1/ Improve your BATNA seems a given.
  • Our consultant has 15 000 of other work she can
    turn to if negotiations with the new client fail.
    But she might be able to expand that other work,
    thereby improving her BATNA and giving her a
    strong hand in negotiations.

38
  • For instance, she might call her current client
    and say   you know those marketing studies you
    asked me to develop. For a slightly higher fee,
    say, 5000 more, I could expand the scope of
    those studies to include sales estimates of your
    two leading competitors products. Would you like
    me to do that ? 
  • If she got the go ahead to expand the project,
    her new BATNA would be higher 20 000 .

39
  • Anything that can be done to improve your BATNA
    will strengthen your negotiating position. Take a
    minute to think of ways you could do that, given
    current circumstances.
  • If you have a strong BATNA and if you are certain
    that its much stronger than anything the other
    side can muster, dont be shy about it.
    Discreetly let the other side know that youre
    negotiating from a strong position.

40
  • 2/ identify the other sides BATNA
  • Knowledge of the other sides BATNA is another
    source of negotiation strength.
  • For instance, in the example given earlier, our
    consultant would have a stronger bargaining hand
    if she knew that her potential client would have
    to pay 25 000 to another firm for the same
    work.
  • Thus, knowledge of the other sides BATNA is
    extremely helpful when you can obtain it. But how
    can you obtain that knowledge ?

41
  • The potential partner wont tell you unless his
    BATNA is very strong. HE may even bluff about it.
    Sometimes, however, the other partys
    circumstances can be discovered. Asking questions
    during the negotiation can help you learn about
    the other sides BATNA, but you can also learn in
    advance by doing the following

42
  • Contacting sources within the industry
  • Checking potentially relevant business
    publications
  • Reviewing annual reports
  • Asking questions informally of the negotiator or
    others within the company.
  • Imagining what your interests, preferences, and
    needs would be if you were in their position.

43
  • Knowing the other sides BATNA lets you know how
    far you can go. But other knowledge is equally
    important. For instance, the more you know about
    the other sides concerns, industry, corporate
    structure, and other deals and goals, the better
    able you will be to find creative ways of meeting
    their interests ( preferably at low cost for you
    )

44
  • A caution on BATNA Values
  • Although it is absolutely essential that you know
    your own BATNA and try to estimate that of the
    other side, be aware that most people dont do a
    good job of estimating BATNA values. For example,
    Lax and Matthew describe an experiment involving
    the value of a company up for sale.   Even given
    identical business information, balance sheets,
    income statements, and the like , they write,  
    those assigned the company rate its true value as
    low, while, those assigned to sell it give much
    higher best estimates. Neutral observers tend to
    rank the potential someplace in between 

45
  • The lesson here is that BATNA values can be
    influenced by your personal perspective. So be as
    objective as possible. Check your thinking with a
    neutral third party.
  • 3/ Weaken the other partys BATNA
  • Anything that weakens the other sides
    alternative to a deal will improve your relative
    position.
  • In some cases, weakening the other sides BATNA
    may be done directly.

46
  • No negotiator is in a weaker position than one
    with no alternative to a deal. In this case, the
    other side can dictate the terms. The BATNAless
    party is a deal taker, not a deal maker. If you
    find yourself in this dangerous situation, you
    must create an alternative.
  • BATNA is a straightforward concepts. But applying
    it is no as simple as we have made it appear.

47
  • Most business negotiations involve many
    variables, some of which cannot be quantified or
    compared.
  • Not all situations are amenable to price
    adjustments, for the simple reason that price is
    not always the fulcrum of negotiated deals.
    Qualitative issues also matter. For example, a
    person who is negotiating the purchase of a small
    business may be concerned with when the
    transaction will take place and with the level of
    the current owners involvement as a consultant.
    In these cases, the negotiator must be able to
    make trade offs in both sizing up the deal and
    developing his or her BATNA.

48
  • RESERVATION PRICE
  • The reservation price ( also referred to as the
    walk away) is the least favourable point at which
    one will accept a deal. Your reservation price
    should be derived from your BATNA, but it is not
    usually the same thing.
  • Consider the following example

49
  • You are currently paying 20 per square foot for
    suburban office spare. The location is
    satisfactory and you believe the price is fair,
    but you wouldnt mind paying more to be closer to
    your downtown customers. While preparing to
    negotiate with a commercial landlord for an
    office lease, you decided that you would not pay
    more that 30 per square foot. Thats your
    reservation price. If the landlord insists on
    more, you can walk away and stay where you are (
    20 ) ( Your BATNA ).
  • At the end of a lengthy negotiation, the landlord
    declares that he will not accept less than 35
    per square foot. You terminate the negotiation
    and walk away from the deal.

50
ZOPA
  • The Zopa, or zone of possible agreement, is a
    third key concept to remember. ZOPA is the area
    or range in which a deal that satisfies both
    parties can take place.
  • Put in another way, it is the set of agreements
    that potentially satisfy both parties.

51
  • Each partys reservation price determines one end
    of the ZOPA
  • Figure
  • 250 k---------------ZOPA---------------275 k

52
Value Creation through trades
  • Another fundamental concept is value creation
    through trades. This concept tells us that
    negotiating parties can improve their position by
    trading the values at their disposal. Value
    creation through trades occurs in the context of
    integrated negotiations. It usually takes the
    form of each party getting something it wants in
    return for something it values much less.

53
  • Think a moment about your own negotiations with
    customers, suppliers, employees. Think of ways
    that you might be able to satisfy the other side
    with something that would cost you very little.
  • For a supplier, that greater value might take the
    form of an extended delivery period. For the
    customer, having deliveries spread out during the
    month might be of no great consequence, but for a
    supplier with strained production facilities it
    may be very important

54
  • For a customer, greater value at low cost might
    take the form of three months of free repair
    services if needed. For a vendor who has great
    confidence that its products will need no repairs
    during that period, free service is nothing of
    consequence. In providing it to the customer the
    vendor occurs little cost, even if the customer
    values the repair service highly.

55
  • For another department in your company, greater
    value might be found in your offer of two
    high-powered workstations that your people rarely
    if ever use. That department may be able to offer
    something in exchange that you value more than it
    does

56
  • For an employee, the opportunity to work from a
    home office two days each week may produce great
    satisfaction while costing the employee nothing
  • Few of the things that others value highly will
    have little value to you and vice versa. But they
    are sometimes there, and a little thinking and
    probing can indentify them. Thats value
    creation.

57
To sum up
  • We have explained the fundamental concepts used
    by skilled negotiators
  • BATNA is the best alternative to a negotiated
    agreement. It is ones preferred course of action
    in the absence of a deal. Knowing your BATNA
    means knowing what you will do or what will
    happen if you fail to reach an agreement. Do not
    enter a negotiation without knowing you BATNA

58
  • If your BATNA is weak, try to improve it.
    Anything that strengthens your BATNA improves
    your negotiating position.
  • Indentify the other sides BATNA ( weaken it )
  • Reservation price is the price at which the
    rational negotiator will walk away. Do not enter
    a negotiation without a clear reservation price

59
  • ZOPA is the zone of possible agreement. It is the
    area in which a deal will satisfy all parties.
    This area exists when the parties have different
    reservation prices.
  • Value creation through trades is possible when a
    party has something he or she values less than
    does the other party and vice versa. By trading
    these values, the parties lose little but gain
    greatly

60
Nine steps to a deal
  • For the negotiator, preparation means
    understanding ones own position and interests,
    the position and interests of the other party or
    parties, the issues at stake, and alternative
    solutions. It means learning as much as possible
    about your BATNA and reservation price and those
    of the other parties, the zone within which an
    agreement can be struck, and opportunity to
    create more value. It also means understanding
    the people with whom you will be dealing.

61
Step 1 consider what a good outcome would be
  • Never enter into a negotiation without first
    asking yourself,   What would be a good outcome
    for me ? What are my needs, and how do I
    prioritize them ?  Then ask the same questions
    from the perspective of the other side

62
Step 2 Identify Potential Value Creation
Opportunities
  • After step 1, identify areas of common ground,
    compromise and opportunities for favourable
    trades.
  • Any time value is created, you need to answer the
    question of who will claim that value. One party
    could claim 100 percent of it, or it could be
    shared in some way. Naturally, if you help create
    value through negotiation, youll want to claim a
    share. This is what sellers do in a negotiated
    business acquisitions.

63
  • Example
  • Wholesome Products is being purchased by
    Conglomerated Foods in a friendly takeover.
    Although Wholesomes shares trade for 50 per
    share on the stock exchange, Conglomorated is
    willing to pay 65 per share. Why ? Among the
    reasons, the acquirer sees valuable synergies in
    putting the two companies together. That extra
    did not exist in wholesome as a stand alone
    company and it might not exist if some other
    company were making the acquisition. But as
    Conglomerated sees it, adding Wholesome to its
    portfolio is equivalent to making two plus two
    equal five

64
Step 3 Indentify the BATNA, Reservation prices
  • We mention these concepts again here because they
    are such important elements of preparation.

65
Step 4 Improve your BATNA
  • Avoid to appear   Needy , equivalent of having
    a weak BATNA.
  • You can avoid appearing needy by building a
    strong BATNA and letting the other side know that
    you are prepared to walk away if it demands too
    many concessions.
  • Good negotiators work to improve their BATNA
    before and during deliberations with the other
    side

66
Step 5 Anticipate the Authority Issue
  • The negotiator on the other side of the table
    must have full authority. Otherwise you risk
    falling victim to the old  car dealer  trick,
    where just as you are about to reach agreement
    with the salesman he says  I will have to clear
    this with my manager .

67
  • In other words, the negotiation with the salesman
    is used to bring you to your bottom line, the
    second negotiation, with the manager, aims to
    push you beyond it.
  • There are real advantages to negotiating with the
    person who has the power to sign
  • - All of your reasoning is heard directly by the
    decision maker.

68
  • - The benefits of the good relationship built at
    the bargaining table are likely to be reflected
    in the deal and its implementation
  • - There are fewer chances of disputes or
    misunderstandings
  • - You avoid the  car dealer trick  described
    previously.

69
  • So do whatever you can indentify the real
    decision maker. Do not be afraid to ask,  Who
    will make the decision ? 
  • If that person is not on the negotiating team,
    suggest that he or she be included
  •  If Mr Jones will be making the decision,
    wouldnt be best if he participate with us ? That
    can avoid misunderstandings and save time 

70
  • Also try to find out how the other side will make
    its decision. Is it up to one individual, a team,
    or a committee.   What decision making process
    do you use for an issue like this one ? 
  • Dealing with negotiators who lack full authority,
    however may have advantages. These individuals
    may be freer to discuss their company interests
    and to explore creative options.

71
  • If you are dealing with someone who does not have
    full authority, view this as freedom from the
    need to commit. But observe these cautions
  • - Confirm the ground rule that neither side will
    be committing his or her company in the
    negotiation ( If they are not committing, you
    should not have to either.

72
  • - Suggest using the opportunity to discuss your
    respective interests and to come up with creative
    options and packages.
  • - When negotiating about price, do not leave your
    last price
  • Instead of insisting that the person on the other
    side of the bargaining table has full authority,
    it is more important that you determine the
    authority level of the person with whom you will
    be negotiating, so you can plan accordingly

73
  • Thus , try to ascertain the following
  • - Who will be at the negotiating table
  • - What is that persons title and area of
    responsibility
  • - How long the other sides representative has
    been with the company
  • - How the company is structure ( is it very
    hierarchical, with significant decision making
    powers centred at the top ? )

74
  • Granted, this information may be difficult to
    obtain, but it is worth to try.
  • If you learn that the negotiator for the other
    side has very little formal authority and is not
    respected or listened to by the decision makers,
    you have a problem
  • Working with this person may waste your time.

75
  • So try to get another representative to
    participate in the negotiations. One tactful way
    to do this is to suggest that you will be coming
    with a colleague, and request the other side to
    do the same.
  • As for your side, always know exactly how much
    authority you have in negotiation, for example

76
  • Are you authorised to commit to a deal that meets
    certain financial objectives ?
  • Are you authorised to provide information about
    your companys needs, interests , preferences ?

77
Step 6 Learn all you can about the other sides
people, culture and goal
  • Negotiating is, at bottom, an interpersonal
    activity.
  • Who are those individuals on the other side of
    the table ? Are they experienced ? Is the culture
    of their organisation bureaucratic or
    entrepreneurial ? What are they attempting to
    achieve and how critical is this negotiation to
    their business ?
  • Seeking answers to these questions is part of pre
    negotiation preparation and should continue at
    the table itself

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Step 7 Prepare for flexibility in the Process
  • Her are some things you can do to be more
    flexible in negotiations
  • - Start with the assumption that the process will
    not unfold in a predictable, linear fashion
  • - be prepared for changes on both sides new
    people and unanticipated developments
  • - Treat every change as an opportunity for
    learning

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Step 8 Gather external standards
  • Both sides want to believe that any deal reached
    is fair and reasonable. The parties expect to
    have a continuing relationship, a sense of
    fairness and reasonable matters.
  • Neither party should feel that it has been forced
    to make a bad deal.

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  • External or  objective  criteria can often be
    used to establish what is fair and reasonable
  • For example, you might be able to say something
    like this
  •  I have spent some time researching the
    commission structures used by commercial real
    estate agencies in the area.

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  • As you can see, for properties listed between 1
    million and 3 million, the commission rates range
    between 3 and 5 percent, with an average of 4,4
    percent. Thus, we believe that our offer to pay
    you a 4,5 percent commission is both fair and
    reasonable 

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  • There are often many relevant criteria for
    fairness.
  • If you can convince the other side that a certain
    criterion of formula is fair and reasonable, they
    will find it harder to reject a proposal
    incorporating this standard and they are more
    likely to feel satisfied with the deal

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Step 9 Alter the Process in you favour
  • Have you ever felt that your ideas were ignored
    during meetings or formal negotiations ?
  • The antidote is to work away from the table to
    change the process   Process move . Work behind
    the scenes to educate others on your ideas.

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  • If you have ever followed international conflict
    negotiations on the evening news, you have
    probably noticed that experienced diplomats dont
    jump right into the issues. Instead, they spend
    months trying to agree where the meeting will
    take place, who will participate.
  • There are all process moves. Effective
    preparation includes attention to theses
    away-from-the-table issues.

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How to play the game well
  • Before we get into actual negotiating tactics,
    lets consider some tactics for getting the other
    side to negotiate.
  • A party can be satisfied with the status quo
  • How to make the other party willing to negotiate ?
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