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Each of the negotiation strategies has a place. You have to understand the situation. You
have to match the strategy to the situation, and then you have to have the skills to effectively
deploy that strategy. So weíll take a look at that. Weíll also take a look at a negotiation
tactic thatís frequently confused with a strategy. Then we will take a look at and
consider the issue of negotiation chips as well as how to use effective concession making,
understanding those chips to reach an agreement.
Then finally, as we go toward conclusion we will take a look at that win/lose competitive
negotiation strategy and some of the tactics that are very frequently used or can be used
by you or other people out there in that process. Weíll take a look at both offensive tactics,
things that you will do proactively, as well as defensive tactics. What do you do when
somebody else tries that on you? So we have a lot of good skills to share with you, and
the great thing is youíre going to start seeing the impactÖ.
There is a huge difference between the strategy of accommodating with someone and the tactics
of effectively making concessions to reach a favorable agreement. You see the difference
up here. With accommodation one side gives. With accommodation itís one issueócut your
price 10%, you can keep the businessóand youíve got to give it up.
Accommodations are reactive. They ask, and we agree. Thatís what theyíre looking for.
Itís from weaker power, and as well as itís a unilateral give. One side gets better. The
other side gets worse. Weíre more involved in an accommodation approach, and we talked
about there are instances where we have to do it.
Concessions are very, very different, very, very different. Here both sides give something,
and both sides get something in return. The great thing is if youíre a really good concession
maker, you give up stuff that doesnít matter that much to you and the other side really
likes, and they give up stuff that doesnít matter to them and that you really like. Thatís
effective concession making taking place.
Multiple issues involved. By the way, when they come back and say, I think weíve got
it all nailed down on everything except price, what do you have to say immediately? Just
to be clear, until everything is decided, nothing is decided. Because if theyíre trying
to say the only thing left on the table is price, what are they trying to get you to
do? Accommodate, drop your price to get the deal. So nothing is decided until everything
is decided. Concessions are done proactively as you put
them on the table. Letís get creative here. What if we do this; can you do this to bridge
the gap? Theyíre done from strength and their bilateral ìchipî are issue maneuvers, and
weíre going to talk a good bit about chips over the next few minutes. Chips are issues
in a negotiation processÖ.
Investment in time is an easy one. If I can catch them looking at their watch, what do
I know? Theyíre running out of patience here, and I love somebody on the other side of the
table thatís running out of patience, and hereís the play. I donít know if you noticed
this or not, but when youíre out to dinner, maybe itís a business dinner, after the time
the first person looks, and you canít look at your watch without the other people noticing;
you look at your watch, and in a matter of five minutes the billís going to be paid
and everybodyís going to be gone.
Itís the same thing in negotiation. If I catch you taking a glanceóoh, Iím married;
I didnít know that, oh wow. If I catch you taking that glance at your watch, hereís
what Iím going to say. You know, itís been a tough process. This is a very complex deal.
Itís not an easy negotiation, but itís been a good faith negotiation, and I appreciate
the way weíve worked together here. Weíve got a very fair proposal on the table. You
know you need to get this implemented. Letís wrap this thing up and get started because
weíre in the point of diminishing marginal returns. More time on this negotiation really
isnít going to be doing anybody any good.