2. Negotiating Strategies

3. You often get not what you deserve, but what you negotiate.

4. We Are All Negotiators!

5. Winners and Losers WIN/lose lose/lose WIN/WIN Distributive bargaining
Integrative bargaining
Can you make the pie bigger?

6. Negotiation Steps
Planning
Setting the Stage
Tactics
Follow Through

7. Planning – Your Position
What is your GOAL?
What are your ALTERNATIVES
What is your BATNA?
What is your WALK AWAY POINT/ PRICE?

8. Planning Walk Away Point BATNA Goal
This area is between your goal (the top parameter) and your walk away point. You would be willing to do ANY deal that falls in this area.
Walk Away Point
This area is between your walk away point and your BATNA. If the final negotiations end in this area, you will fall back to your BATNA and walk away.
BATNA

9. Planning – Their Position
What is their GOAL?
What are their ALTERNATIVES
What is their BATNA?
What is their WALK AWAY POINT/ PRICE?

10. Planning – Their Negotiators
Who are they?
What is their background?
What has been their past negotiating strategy?
What is their authority?

11. Setting the Stage
What is the best environment to ensure a favorable outcome?
Comfort
Venue
In Person?
Seating Options

12. Negotiating Tactics Who Goes First?
Substantial psychological research suggests that, more often than not, negotiators who make first offers come out ahead… By making the first offer, you will anchor the negotiation in your favor.

13. Negotiating Tactics The Early Anchors
Zone of Possible Agreement (ZOPA)

14. Prospect Theory Unbundle Bundle Gains Concessions Good news Losses
Costs
Burdens

15. You Can’t Always Compromise

16. Concessions Give and take No major early concessions
Not all concessions are created equal

17. Concessions Concessions might not mean same thing to both parties
Concessions tentative until agreement signed
Think before accepting

18. Games People Play Stonewalling Overcoming Stonewalling Company policy
Take it or leave it
Overcoming Stonewalling
Real or a ploy?
Ask for a manager
Gentle pushing

19. Games People Play Artificial Deadlines Overcoming Artificial Deadlines
We must have your decision today…
If you order in the next 5 minutes…
Overcoming Artificial Deadlines
Real or a ploy? Ask why
Did you do your homework?

20. Games People Play Contingent Friendship
Just between you and me…
Look, I want to help you…
Overcoming Contingent Friendship
He’s not your friend
Focus on your
Goal
Walk away point
BATNA

21. Games People Play The Screamer Overcoming The Screamer Do not escalate
Maintain composure
Walk away
Ask for a manager

22. Games People Play Nibbling Overcoming Nibbling Just one more thing…
It’s not really much…
Overcoming Nibbling
Keep score
Small concessions can become large ones

23. Games People Play Good Cop/Bad Cop Overcoming Good Cop/Bad Cop
Identify it’s happening
Focus on your
Goals
Walk away point
BATNA

24. What Works? Why? What if? Swapping Write it down as you go
Quid pro quo
Write it down as you go
Especially for complicated deals

25. Follow Through Is it WIN/WIN? Give something extra
Will you do business again?
How do you feel?
How do they feel?
Give something extra
More likely to do business again
More likely to offer referral

26. It’s Time for the Negotiation Case Study