3Basic Common Sense Rules Be True to Your WordDon’t Take Anything PersonallyDon’t Make AssumptionsRepack Your BagsAlways Do Your Best
4Setting The Stage for Achieving Results Negotiation StrategySetting The Stage for Achieving Results
5Where to Start Having a negotiating plan is critical to success. Communication with your team PRIOR to negotiating is essential.Education & research = results.
6Establishing Your Plan Separate people from the issues & goals.Focus on interests, not positions.Invent options for mutual gains.Insist on using objective criteria.
7Best alternative to a negotiated plan. Develop your BATNABest alternative to a negotiated plan.
8Education & ResearchAn uneducated consumer is the vendors dream, the less you know the more likely you will fail and the vendor will profit.
9Pre-planning and Communication Meet with your negotiation team prior to your negotiations.
10Who is your negotiation team? End UsersShare HoldersSubject ExpertsGroup spokesperson.
11What does the team do? Define Goals Develop Objective Criteria Iron out differences before negotiationsDefine needs versus wantsDiscuss tacticsDevelop QuestionsAgree on who does what researchPrepare for the group dynamicsSelect a group spokesperson
12When should the team meet? Planning MeetingFollow up on ResearchRight before Negotiations
13Tactical Aspects of Negotiations What to do when the day arrives.
20Ask Penetrating Questions Have you list of questions readyPresent your researchCompare the hospital mission statement to the companies mission statementCompare hospital profits to corporate profitsCompare hospital industry standards to corporate standards.
21What is OK to ask I don’t know or understand I need help I’m sorry I need more time
22How to Put Your Foot In Your Mouth Don’t blurt anything out, carefully consider your commentsDo not give the impression no other company or product will workRelationships are more important than value of the dealDon’t split the teamI just have to have this one
23Psychology & Human Nature BIG FACTORS IN NEGOTIATIONS!!!
24Psychology Appearance of Ignorance Lack of Confidence Willingness to cooperate rather than be assertivePerceptionLocation
25Human Nature Avoid Conflict Want to be liked Want to be valued Will buy more than actual needsWant to helpTrust
29Vendors are taught to control the timing of the sale. Timing of the DealVendors are taught to control the timing of the sale.
30Timing of the DealIt is far more likely to fail with a rushed decision than a well thought out one.
31Vendor Control of Time Line Company sales goalsPressures from managementCommissionSales IncentivesCompany overstock or close outs.
32How to set your time line Needs of the organizationMoney available & cash flowTime to plan & researchFit into your personal work loadBe very honest and direct with the vendorWe all have changing priorities, it is OK to change timing
33Time Line CycleBoth parties need time for approval for structure of the agreementInformation SharingAdditional ResearchLegal review
34Time Line PsychologyThe more time it takes to close the deal, the more concessions you will get.
36Tricks & Threats Increase prices Loss of Service No longer supported Expensive Buy OutsLast Chance for this dealBuy now or your delivery be delayed for months
37What are your costs ? Purchase price Service or support fees Cost of educationCost of domino effectSupply cost changes or increase supply utilizationReimbursement changes
38Terms & ConditionsThe critical rules on doing business which are a legal obligationWritten to favor vendorAre always part of the saleVendors are not trained to understand themIn court, the spoken word in worthlessImpossible To Read
40Service Agreements Highly profitable for the vendor Costly for the hospitalConsider getting additional warranty as part of the agreementTime & materials may be less expensiveBEWARE OF THE FEAR FACTOR
41Critical Concepts Educate yourself Utilize subject experts Have a plan on strategy and tacticsCommunicateYou’re the customer, control the process.Quick deals cost money
42The ultimate goal is getting to yes! Make both parties winThe ultimate goal is getting to yes!