Typical negotiated business transactions
- Price, terms, and accessory items on an automobile purchase.
- Price, terms, and length of escrow on a home purchase.
- Turnaround time and cost for car repairs.’
- Hourly rate to charge a new customer
Study the dynamics of building a relationship and learning the importance of my counterpart’s needs.
Negotiation outcomes:
- Lose-Lose
- Win-Lose or Lose-Win
- Win-Win
- No Outcome
Keys for win-wins:
- Avoid narrowing the negotiation down to one issue
- Realize your counterpart does not have the same needs and wants as you
- Don’t’ assume you know your counterpart’s needs
Explicit needs-price, delivery date, terms, warranty, service agreements, training, support, and upgrades. Leading Closed-ending Questions. “In the event, we can meet your needs, would you be willing to sign a contract.”
Implicit needs-reputation and credibility, a feeling of being right or being like, a sense of importance, trust in the relationship, loyalty to a company or its product or service, approval of the boss or a significant other, a sense of safety and security, and the ability to act autonomously.
Elements of negotiation:
Times, information, and power.
80/20 20 rule by Pareto
Open-ended questions and restricted questions. A job does not just mean income. Conversational Negotiation: Focus on Winning, Concede Stubbornly, Assert
What is?:
- The discussion aimed to reach an agreement
- About specific products, services, actions
- Implicitly controlling personal feelings and behavior
- Negotiator recognizes
- Physical Negotiation
- Turkey-Ceremonial; Tea
2 TYPES
- Distributive
- US-75% Increase
- Europe: 50-70
- Africa: 20-30
- Asia: 90%
Avoid narrowing the negotiation.
Marisol/Separate people from the problem
Is there any way to get a better price? Phone-time
Lip of glass for elder’s cheers higher
Integrative Negotiation
- Interest-based or principled
- Close-ended questions
- Focus on interests, not positions
- What they say to us vs. what they say
- The position is your decision, interest is the cause
- Why is your interest not to share your apple
- Generate multiple solutions/options
Barriers to Negotiation:
- Lack of Preparation
- Poor Communication
- Overreacting/Emotional
- Misunderstandings
- Conditional or learned responses
- Relationship Dynamics
Prisoners Dilemma
- 6 Perceptions of behavior
- Perception is reality
- All behavior is motivated
- Behave is situational
- Only behave you change is your own
- Behavior breeds behavior
- You can choose your behavior
TYPICAL NEGOTIATED BUSINESS TRANSACTIONS: