- •Content module 1. Theoretical aspects of business protocol theme 1. Preparation and organization of negotiations
- •1. Business letters – the beginning of business relationships
- •2.Cultures in negotiating
- •3.Country specific negotiating styles
- •1. Business letters – the beginning of business relationships
- •2.Cultures in negotiating
- •1. Language
- •2. Expectations
- •3. Preparation
- •4. Attendance
- •5. Punctuality
- •6. Agenda
- •7. Chair
- •8. Participation
- •9. Consensus
- •10. Follow-up
- •3.Country specific negotiating styles
- •Interpersonal Relationships
- •Theme 2. The negotiating worksheets
- •2.Notes during negotiations
- •3.Minutes and reports
- •Points to remember about minutes
- •Key verbs
- •Special reports
- •Technical terms
- •Theme 3. Negotiations – an integral part of successful business
- •Effect on Customers
- •Inter- an-company negotiations
- •2.Types of negotiations and main negotiating process approaches
- •3.The phases of negotiations
- •Features of adversarial bargaining
- •Features of co-operative bargaining
- •4. Planning negotiation
- •Objectives
- •Information
- •Concessions
- •Strategy
- •5. Opening Negotiations
- •Content module 2. Practice of business protocol theme 4. The negotiation process
- •People who are successful negotiators have a well thought out strategy before going
- •Stage 1. Establish the issues
- •Stage 2. Gather information is a vital part of the negotiation
- •Stage 3. Build a solution
- •Interpersonal Power
- •3. Behavioural analysis
- •4. How to deal with behaviour styles Some ideas for dealing with the different types
- •2. Negotiating tactics
- •The monkey on the back
- •The use of higher authority
- •Nibbling
- •The good guy and the bad guy
- •Body language
- •The use of silence
- •The vice
- •The power of legitimacy
- •The low key approach
- •2. The Flinch
- •3. Deferring to higher authority
- •4. Good Guy, Bad guy
- •6. The hot potato
- •7. Splitting the difference
- •8. The trade off
- •9. Funny money
- •10. The walk away
- •11. Delaying & stalling
- •13. Personal attacks
- •14. The withdrawn offer
- •3. Batna - Fall-back situations
- •4. Movement and concessions Making the First Move
- •Further Movement and Concessions
- •Bargaining
- •Theme 6. Closing negotiations
- •Overcoming the price objection
- •2. Reaching agreement
- •3. Conflicts and how to arrange them
- •4. The closing stages
- •5.Concluding a contract
- •Supplement - behaviour in negotiations
- •Literature і. Основна література
- •Іі. Додаткова література
- •Ііі. Нормативні матеріали Міністерства освіти і науки України та Донецького національного університету економіки і торгівлі імені Михайла Туган-Барановського
2. The Flinch
Customer: "What! How much!! Ј 2950! That's a lot of money." Here the customer acts as if he has not heard the price correctly, but a new benchmark is set that will now act as the basis of the bargaining to follow.
A concession typically follows from the sales person.
Sales person: "That naturally includes delivery and installation"
Customer: "It is still a lot of money!"
Sales person: "We could possibly arrange for some software to be included."
Should you not flinch when a low offer is made, the other party will conclude that you are still above your real base. By accepting an offer without flinching you may miss an opportunity to do better. Although the other party may feel they have done well, they will not feel as good as they could possibly feel, as they will have a suspicion that they could have done better.
3. Deferring to higher authority
Customer:" I'm not happy with the repair fee. It is far too high for the amount of work done. I refuse to pay this much.
Engineer:" I just work here. If you don't pay, you cannot have your machine. I have no authority to change the costs."
A neat deferral to higher authority. What can you do?
Customer: "Who can?"
The engineer could counter by responding: " The directors in our Belgian office." The only way to counter this ploy is to ensure that you probe for all decision makers during your information gathering phase.
4. Good Guy, Bad guy
A sales person and the owner of a property are negotiating with a prospective buyer.
Owner: "I am sorry, but I don't want to waste more time on this. I have to go. I just don't think a meaningful offer is at hand. See you."
Sales person: "I must apologise. He is a difficult man. If it were my wish I would like to see you get the house. I'll see what I can do."
Buyer: "Do you think you can convince him to do the deal?"
Difficult and dangerous. The buyer may end up asking the sales person to negotiate on his behalf with the owner. The best way to counter is to simply tell the other party that you know what they are doing. A ploy perceived is not a ploy that works. 5. The set aside
You are in a meeting where the purchasing manager is talking to the representative of a printer.
Manager: "Look, we only do business with companies that give us sixty days terms. If you cannot, why are we wasting our time?"
The sales person is in danger that the negotiation will collapse before it has begun; before a relationship is built; before all the facts are out in the open. An inexperienced negotiator will either now give a concession or allow the negotiation to collapse.
The experienced person will respond by saying: "Let's put that aside for a moment and first see if there are other things important to both of us?" While saying this, it is also helpful to gesture the putting aside of this issue for a time by making as if you put it at the edge of the table or on the floor.
6. The hot potato
How do negotiators pass hot potatoes?
Buyer: "I only have a budget of Ј250 000." Or "But the problem I have …" Ownership of the problem is given to the other party.
A skilled negotiator will respond with: "Good, understand, so if I find a property that meets your needs and is just beyond this amount, must I still show you or offer it to other buyers?" This tests the validity of the buyer's statement. The buyer is forced to own the problem.