Negotiating Strategies

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

We Are All Negotiators!

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

Negotiation Steps Planning Setting the Stage Tactics Follow Through

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

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

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

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

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

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.

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

Prospect Theory Unbundle Bundle Gains Concessions Good news Losses Costs Burdens

You Can’t Always Compromise

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

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

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

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?

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

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

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

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

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

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

It’s Time for the Negotiation Case Study