Negotiations “The perfect negotiation” -Gavin Kennedy The Four Phases Preparation Discovery Proposals Bargaining Phase 1-Preparation What do you want? Phase 1-Preparation Decide what you want and prioritize your wants -High importance: those you must get if you are to agree at all. -Medium: those that you would prefer to attain, but are not critical -Low: those that you would like to attain, but would not let them jeopardize the deal Assign ranges of possible values to each want : 100-150 euros or “will deliver by Friday” Phase 1- Preparation Issues Problems Wants your ideal Importance high, med, low Entry should be reasonable Exit walk away CHECKLIST FOR PREPARATION What are the negotiable issues? What do you want for each? Rank each by its importance to you High - absolutely critical – certain or no deal Medium – important but not critical Low – desireable but would not sacrifice the deal if not obtained What are your entry and exit limits? Entry terms should be reasonable Exit terms are your “walking away” positions Phase 2-Discovery What do they want? Phase 2-Discovery Listen actively Ask open ended questions Seek and give information Summarize neutrally and briefly Keep doors open, never say “No” but ask a question Phase 2- Discovery Language: use open questions to seek information: Could you tell me more about…? What exactly do you mean by…? Have you considered…? How long/much/large/important….? Phase 2- Discovery Language: use closed questions to check understanding: Do you need the solution rapidly? Did you find…? Is quality an important point for you? Phase 3- Proposals What could you trade? Phase 3- Proposals Making proposals If the issues and wants have been discovered, you are ready to make proposals Make proposals conditional - the condition first and then the offer STATE YOUR PROPOSAL AND WAIT FOR A REACTION OR COUNTER-PROPOSAL. Phase 3- Proposals Language: use conditionals type 2: Proposal -If you agreed to a price of 20€ per unit, then I would sign today. Counter-proposal –I could agree to that on condition that you ordered 500 units. Phase 4 -Bargaining What will you trade? Phase 4 -Bargaining This involves giving something up in return for something you want Your offer must be specific and conditional Actively seek agreement on your issues NEVER give something up without getting something in return Phase 4 -Bargaining Counter bargain- “If you agree to 10 days, we have a deal” Don’t argue - Propose alternatives If you accept an offer you simply say “Agreed” Nothing is ever agreed until everything is agreed Phase 4 -Bargaining Language: use Conditionals type 1: If you agree to a price of 20€ per unit, then I will sign today. CLOSING A NEGOTIATION Go over the concessions that you have both made and highlight the benefits of the proposed agreement SUMMARIZE to make sure both parties are clear on the terms Decide who will draw up the contract It’s a deal !! The Four Phases Discovery What do they want? Preparation What do I want? Bargaining What will I trade? Proposals What could I trade?