The Art of
Vendor
Negotiations
Bob Fishbein, AVP
Business Operations
Berkeley College
Track: Management
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Agenda
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Negotiating Mindsets (Buy/Sell Sides)
Positions of Power
Negotiation Tactics
Deadlock Strategies
Cultural Differences
Basic Do’s and Don’ts
Useful Websites
Q&A
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
2
Bob Fishbein: Professional Background
• 20+ Years Multi-Unit Business Operations
• Higher Education
– Berkeley College
• AVP of Business & Auxiliary Operations
– Columbia University
• Executive Director of Operations
• Corporate Operations
– BJ’s Wholesale Clubs
• AVP Regional Operations
– CompUSA
• Regional Director of Sales
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Berkeley College
• 7 Campus locations within NY and NJ
• Approximately 8,500 Students
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The School of Professional Studies
The School of Liberal Arts
The Larry L. Luing School of Business
Berkeley College Online
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Negotiating Mindsets (Buy/Sell Sides)
• What are the “pressure points” of the other side?
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Sales Quotas
End of Life Merchandise
Rebate Dollars
Margin Dollars
Deadline Dates
Service Levels
Market Share
Vendor Competition
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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4 Main Pressure Points
• Time (biggest leverage point in negotiations)
• Vendor Options (real or perceived)
• Controlling Emotions (able to walk away)
• Information (ask focused questions)
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
6
Negotiating Mindsets (Buy/Sell Sides)
• Ask focused questions
– Was vendor ‘XXX’ in the news recently?
– When does the proposal price expire?
– Is the expiration date negotiable?
– What is the “cost breakdown” of the service or product?
– Do you work on commission?
– Are you meeting your quota?
– Must Have / Would Like to Have (wants or needs)
– No predetermined assumptions
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Positions of Power
• Power as a mindset (perception is reality)
• Plaintiff (first position)
• Defendant (second position)
• Assumptions create anchors (good and bad)
• Create anchors in the right place (high or low)
• Create “needs” for the other side (the iPad marketing)
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Positions of Power
• Legitimate Power (job description)
• Knowledge Power (subject matter expert)
• Negotiating Skill Power (training and experience)
• Assumed Power (mindset)
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Negotiation Tactics
– Reference Karrass Effective Negotiating
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The Bogey (“I love the proposal but only have $xxx dollars”)
The Crunch (“You’ve got to do better than that!”)
The Nibble (“What tie are you giving me with this suit?”)
Garbage on the Lawn (Listing all the past service issues)
The Flinch (Showing shock on price and waiting for response)
Tying a String (Added concession for agreement)
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
10
Deadlock Strategies
• Change Meeting Location
• Introduce New or Updated Information
• Change Negotiating Team Members
• Change the Shape and/or Time of Money
• Take a Break or Time Out
• Talk off the Record
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
11
Body Language
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Perceived Energy Level
Pause Before Responding
Hand Gestures
Sitting Defensively
Feet Direction
Mirrored Behavior (smile)
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
12
Body Language
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Reference Darcy Brooker Animation Study
Up-Left Remembering
Up-Right Creating
Down-Left Searching
Down-Right Feelings
Quick-Close False
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Cultural Differences
• Richard D. Lewis, Founder of Berlitz School of Language
• “When Cultures Collide,” (1996)
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Basic Do’s and Don’ts
Do’s
Don'ts
Know your wants and needs
Don’t do all the talking
Know their pressure points
Don’t be intimidated
Set high targets
Don’t trust your assumptions
Take time to pre-plan
Don’t rush to contract
Challenge their facts and numbers
Negotiation is a process not a contest
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Useful Websites
• www.karrass.com
• http://www.amanet.org/
• http://www.negotiationskills.com/
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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Q&A
• What negotiation strategies will you start doing
when you return to your campus?
• What negotiation strategies will you stop doing
when you return to your campus?
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
17
NAEP Professional Development
• Tier II - Procurement Academy
• February 2014
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Nancy Brooks, MPA, Iowa State University
Christopher Johnson, C.P.M., University of Idaho
Burr Millsap, CPA, M.B.A., University of Oklahoma
Robert Haverkamp, Esq., The Ohio State University (retired)
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
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