Presentation on theme: "Basic Negotiating Skills Tips to Successful & Productive Negotiations."— Presentation transcript:
Basic Negotiating Skills Tips to Successful & Productive Negotiations
Basic Common Sense Rules Strategy Tactics
Basic Common Sense Rules Be True to Your Word Dont Take Anything Personally Dont Make Assumptions Repack Your Bags Always Do Your Best
Negotiation Strategy Setting The Stage for Achieving Results
Where to Start Having a negotiating plan is critical to success. Communication with your team PRIOR to negotiating is essential. Education & research = results.
Establishing Your Plan Separate people from the issues & goals. Focus on interests, not positions. Invent options for mutual gains. Insist on using objective criteria.
Develop your BATNA Best alternative to a negotiated plan.
Education & Research An uneducated consumer is the vendors dream, the less you know the more likely you will fail and the vendor will profit.
Pre-planning and Communication Meet with your negotiation team prior to your negotiations.
Who is your negotiation team? End Users Share Holders Subject Experts Group spokesperson.
What does the team do? Define Goals Develop Objective Criteria Iron out differences before negotiations Define needs versus wants Discuss tactics Develop Questions Agree on who does what research Prepare for the group dynamics Select a group spokesperson
When should the team meet? Planning Meeting Follow up on Research Right before Negotiations
Tactical Aspects of Negotiations What to do when the day arrives.
Set the stage for the meeting, location counts!! Introductions Break the ice. Establish level of authority. Explain the role of the players.
Focus on Interests, Not Positions Positional negotiations RARELY work effectively
Clearly define what you can bring to the table Increased business Increased market share Influence of additional opportunities Value of business partnership Length of commitment Great references
Clearly define your expectations Objective criteria Hospital Strategic Plan Departmental Strategic Plan Any issues or concerns Key factors in the decision process
Ask Penetrating Questions Have you list of questions ready Present your research Compare the hospital mission statement to the companies mission statement Compare hospital profits to corporate profits Compare hospital industry standards to corporate standards.
What is OK to ask I dont know or understand I need help Im sorry I need more time
How to Put Your Foot In Your Mouth Dont blurt anything out, carefully consider your comments Do not give the impression no other company or product will work Relationships are more important than value of the deal Dont split the team I just have to have this one
Psychology & Human Nature BIG FACTORS IN NEGOTIATIONS!!!
Psychology Appearance of Ignorance Lack of Confidence Willingness to cooperate rather than be assertive Perception Location
Human Nature Avoid Conflict Want to be liked Want to be valued Will buy more than actual needs Want to help Trust
Trust Them, but, Keep Your Eyes Open
Education Educate the vendor to your world
IM THE CUSTOMER Youre the vendor
Timing of the Deal Vendors are taught to control the timing of the sale.
Timing of the Deal It is far more likely to fail with a rushed decision than a well thought out one.
Vendor Control of Time Line Company sales goals Pressures from management Commission Sales Incentives Company overstock or close outs.
How to set your time line Needs of the organization Money available & cash flow Time to plan & research Fit into your personal work load Be very honest and direct with the vendor We all have changing priorities, it is OK to change timing
Time Line Cycle Both parties need time for approval for structure of the agreement Information Sharing Additional Research Legal review
Time Line Psychology The more time it takes to close the deal, the more concessions you will get.
The Close Buyer Beware
Tricks & Threats Increase prices Loss of Service No longer supported Expensive Buy Outs Last Chance for this deal Buy now or your delivery be delayed for months
What are your costs ? Purchase price Service or support fees Cost of education Cost of domino effect Supply cost changes or increase supply utilization Reimbursement changes
Terms & Conditions The critical rules on doing business which are a legal obligation Written to favor vendor Are always part of the sale Vendors are not trained to understand them In court, the spoken word in worthless
Actual T&C in contract
Service Agreements Highly profitable for the vendor Costly for the hospital Consider getting additional warranty as part of the agreement Time & materials may be less expensive BEWARE OF THE FEAR FACTOR
Critical Concepts Educate yourself Utilize subject experts Have a plan on strategy and tactics Communicate Youre the customer, control the process. Quick deals cost money
Make both parties win The ultimate goal is getting to yes!