Key Negotiation Skills. Negotiating for Business Success with Win-Win Negotiation Tactics – Part 14

October 14, 2009 by kutenk · Leave a Comment
Filed under: Negotiation 

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Negotiating, Negotiation, Negotiation Skills, Negotiation tactics, Principled Negotiations, Win-win Negotiation, Win-Win Negotiation Tactics.
Key Negotiation Skills. Negotiating for Business Success with Win-Win Negotiation Tactics.

Each of the following Negotiation tactics will allow you to build a win-win outcome.

31) Warn—Don’t Threaten
?    Description: Clearly stating the downside of the other side’s position or behavior.
?    Sounds like: “If you keep interrupting, we’re never going to get through this.” “Here is what we’ll have to do if you do
?    X.” “I feel I should tell you that if you continue to [behave outrageously, take such a firm position], we’ll have to reconsider doing business with you.”
?    Advantages: Alternative to an outright threat. Acknowledges that they are damaging the relationship or impeding the process.
?    Disadvantages: Can be perceived as a threat.
?    Tips: Similar to the Walk-Away, you have to determine how far they can push you in their position or behavior. Develop an acceptable BATNA so you can disengage if necessary. There is a subtle distinction between making an outright threat, and telling the other side “what might happen if . . .”




32) What If? and Would You Consider?
?    Description: Posing alternatives and options.
?    Sounds like: “What if we could give you _______________? Would that help you with _______________?” “Would you consider alternative financing?”
?    Advantages: Expands options. Supports brainstorming.
?    Disadvantages: Takes time. Have to be fast on your feet (or a thorough planner) to come up with alternatives on the spot.
?    Tips: Serves as a good way to get the other side to reveal more about their limits. “What if we extended the warranty? Would you consider paying the freight yourself?” These are effective ways to expand options. Must be twoway; get the other side to participate.
Zeroing In
?    Description: Determining what the seller will accept or what the buyer is willing pay. Often involves getting the other party to display their entire rate card and then working toward the lower price.
?    Sounds like: “You’re asking $1.15 per pound for 10,000 pounds, and $1.10 for an order over 20,000 pounds. How about $1.10 for 10,000 pounds?” “Would you consider renting the apartment furnished at that rate?” “I like the terms for the five-year lease, how about if we do that for three years.” “Would you give me the 100 GB hard drive for the price of the 75 GB unit?”
?    Advantages: Allows you to discover more about the other parties pricing, and their settlement range.
?    Disadvantages: May risk a Walk-Away or a no by the other party. Could be perceived as “dickering” or Nibbling (an adversarial tactic).
?    Tips: Be sure to compare their offer with your settlement range. Be prepared to make a minor concession on a less important item.

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Key Negotiation Skills. Negotiating for Business Success with Win-Win Negotiation Tactics – Part 13

October 13, 2009 by kutenk · Leave a Comment
Filed under: Negotiation 

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Negotiating, Negotiation, Negotiation Skills, Negotiation tactics, Principled Negotiations, Win-win Negotiation, Win-Win Negotiation Tactics.
Key Negotiation Skills. Negotiating for Business Success with Win-Win Negotiation Tactics.

Each of the following Negotiation tactics will allow you to build a win-win outcome.

29) Testing Questions
?    Description: Asking a focused question to test the other’s position. Also referred to as arbitrary mirroring—reflecting back what you have heard in a way that tests the tenacity of the other’s position.
?    Sounds like: “Are you saying there are no other alternatives?” “Do you mean that the entire deal is contingent on this point?” “Is there any information at all that would change your mind?”
?    Advantages: Checks tenacity without confronting. Buys you time.
?    Disadvantages: Can backfire if the answer is not what you want. Could sound like a “take-it-or-leave-it” statement.
?    Tips: Because testing questions encourage the other party to restate their position, they can backfire if the response to your question is no. However, at least you have tested the firmness of the position. Watch the phrasing of your questions.




30) Walk-Away
?    Description: Signaling that no further negotiation is possible unless an immediate concession is made.
?    Sounds like: “I see that there’s no point in continuing.” “We’re just too far apart at this point. Call me if anything changes.”
?    Advantages: Sends strong signal that deadlock is possible. It is an action step versus doing nothing.
?    Disadvantages: Could terminate the negotiation. Threatens the relationship.
?    Tips: Can be used literally or figuratively. You must be prepared to take some action, such as leaving the room or threatening to deadlock, if the other side’s offer is worse than your predetermined walk-away point (see Settlement Range in Chapter 3). At least, consider calling a caucus. No action on your part signals to the other side that their position is in the acceptable range. Can also be used when the other side engages in personal attacks or emotional outbursts.

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