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Basic Negotiating Skills

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Presentation on theme: "Basic Negotiating Skills"— Presentation transcript:

1 Basic Negotiating Skills
Tips to Successful & Productive Negotiations

2 Basic Common Sense Rules
Strategy Tactics

3 Basic Common Sense Rules
Be True to Your Word Don’t Take Anything Personally Don’t Make Assumptions Repack Your Bags Always Do Your Best

4 Setting The Stage for Achieving Results
Negotiation Strategy Setting The Stage for Achieving Results

5 Where to Start Having a negotiating plan is critical to success.
Communication with your team PRIOR to negotiating is essential. Education & research = results.

6 Establishing Your Plan
Separate people from the issues & goals. Focus on interests, not positions. Invent options for mutual gains. Insist on using objective criteria.

7 Best alternative to a negotiated plan.
Develop your BATNA Best alternative to a negotiated plan.

8 Education & Research An uneducated consumer is the vendors dream, the less you know the more likely you will fail and the vendor will profit.

9 Pre-planning and Communication
Meet with your negotiation team prior to your negotiations.

10 Who is your negotiation team?
End Users Share Holders Subject Experts Group spokesperson.

11 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

12 When should the team meet?
Planning Meeting Follow up on Research Right before Negotiations

13 Tactical Aspects of Negotiations
What to do when the day arrives.


15 Set the stage for the meeting, location counts!!
Introductions Break the ice. Establish level of authority. Explain the role of the players.

16 Focus on Interests, Not Positions
Positional negotiations RARELY work effectively

17 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

18 Clearly define your expectations
Objective criteria Hospital Strategic Plan Departmental Strategic Plan Any issues or concerns Key factors in the decision process


20 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.

21 What is OK to ask I don’t know or understand I need help I’m sorry
I need more time

22 How to Put Your Foot In Your Mouth
Don’t 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 Don’t split the team I just have to have this one

23 Psychology & Human Nature

24 Psychology Appearance of Ignorance Lack of Confidence
Willingness to cooperate rather than be assertive Perception Location

25 Human Nature Avoid Conflict Want to be liked Want to be valued
Will buy more than actual needs Want to help Trust

26 Trust Them, but, Keep Your Eyes Open

27 Educate the vendor to your world
Education Educate the vendor to your world

28 I’M THE CUSTOMER You’re the vendor

29 Vendors are taught to control the timing of the sale.
Timing of the Deal Vendors are taught to control the timing of the sale.

30 Timing of the Deal It is far more likely to fail with a rushed decision than a well thought out one.

31 Vendor Control of Time Line
Company sales goals Pressures from management Commission Sales Incentives Company overstock or close outs.

32 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

33 Time Line Cycle Both parties need time for approval for structure of the agreement Information Sharing Additional Research Legal review

34 Time Line Psychology The more time it takes to close the deal, the more concessions you will get.

35 The Close Buyer Beware

36 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

37 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

38 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 Impossible To Read

39 Actual T&C in contract

40 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

41 Critical Concepts Educate yourself Utilize subject experts
Have a plan on strategy and tactics Communicate You’re the customer, control the process. Quick deals cost money

42 The ultimate goal is getting to yes!
Make both parties win The ultimate goal is getting to yes!

43 The Beginning

44 Questions?

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