Advanced Negotiation Skills

Choose the Right Negotiation Style

Positional/Distributive Negotiations

Involves a fixed pie, and there’s only so much to go round

Information is kept confidential

No interest in forming a positive relationship

Letting other party make offer first

Principled/Integrative Negotiations

Based on cooperation and involve problem solving

Multiple issues

Some concessions

Information sharing

Bridge building and trust

Keeping information confidential

Trying to extract information from the other party

Letting the other party make the first offer

For example, you don’t want a car salesman to know how badly you need a new car or how much you are willing to pay.

In a negotiation, knowledge truly is power. The more you know about the other party’s situation, the stronger your bargaining position is.

It might be just what you were planning to offer yourself!

Set Strong Objectives

Top-line objective: best possible outcome

Target objective: realistic outcome

Bottom-line objective: lowest acceptable outcome

ESPECIALLY WHEN YOU’RE SELLING…

Main learning points:

Delegates learn the importance of developing a total of 6 objectives – 3 for ourselves and 3 for our counterpart so the negotiation has scope for agreement. 1 or two are limiting if you don’t reach agreement, negotiations could end quickly without a proper review of each others priorities

• “Why do we set objectives?”
• “How many do we need to be fully prepared for a negotiation”
• “What’s the minimum?” (Six: three for us and three for them)
• “What is the strategic importance of speculating on your counterpart’s objectives?”

Trainer makes the point that the counterpart’s objectives may be totally different to their own – as we know from the negotiation between the agency and the customer, totally different priorities.

Bargain Without Giving Away Value

We can agree to that …

That would be acceptable …

if …

on the condition that …

so long as …

provided (that)

Main learning points:

Bargaining strategy requires a deal making strategy, win-win mindset and an integrative negotiation style. As well as the right tone and language

• Delegates are empowered to propose solutions to deadlocks.

Trainer asks, “What’s the most important word in bargaining? (IF)

Trainer set up:

• “When met with a request, try to avoid saying yes. Instead, a more tentative acceptance followed by a condition is advised. This dangles the carrot… before the concession is requested. For example, in a negotiation for commercial real estate, “we can be flexible on the monthly price IF you can commit to a lengthier lease term?”

Highlight the success of this approach in bridging gaps between negotiators and overcoming deadlocks

Ensure that IF is used mid-sentence.

Handle Tactics and Roadblocks

Repeats to wear you down

Aggressively rejects your offer

Real / invented time constraint

“I’ve never had to pay for that…”

Threatens consequences

Phrases their demands as goodwill

”The boss insists…”

Final concessions before close

“That demand cannot be met”

Mentally prepare, keep calm

“I’ll need more time…”

Seek out advice

Keep calm, propose compromise

Ask for a favour in return

Clarify decision-maker in advance

Agree on an agenda upfront

Negotiation tactics are invariably rehearsed to cause you doubt and change your direction in a way that favors the position of the counterpart. We can anticipate these tactics and respond accordingly when they are used.

• Brainstorm to “expand the pie” by coming up with a range of options
• Emphasize shared values to help create options that will meet the interests of both parties
• Change the scope of the negotiation: making it larger or smaller
• Identify issues to be set aside for future negotiations