TYPICAL NEGOTIATED BUSINESS TRANSACTIONS

 

  1. Price, terms, and accessory items on an automobile purchase.
  2. Price, terms, and length of escrow on a home purchase.
  3. Turnaround time and cost for car repairs.’
  4. 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:

  1. Lose-Lose
  2. Win-Lose or Lose-Win
  3. Win-Win
  4. No Outcome

Keys for win-wins:

  1. Avoid narrowing the negotiation down to one issue
  2. Realize your counterpart does not have the same needs and wants as you
  3. 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?:

  • 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 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
  • 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

 

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