Where are these places in Dublin?
Jun 20, 2015
Where are these places in Dublin?
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Let me introduce myself
© Robert Farrell
ROBERT FARRELL
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Learning Outcomes
• Have a good grounding in negotiation.
• Be aware of the negotiation process.
• Be able to use basic frameworks for planning & evaluating deals.
• Be aware of tactics & defenses used.
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ContentsINTRODUCTION
STEPS
PREPARATION
BARGAINING
INTEGRATIVE NEGOTIATION
TACTICS & DEFENCES
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Negotiation
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Introduction“Negotiation is an interpersonal
decision-making process.”(Leigh Thompson, 2009)
“No problem is so intractable that it cannot be resolved through talk & negotiation rather than force & violence”
(Nelson Mandela)© Robert Farrell
“Negotiation is your key communication and influence tool, in and outside the company”(Leigh Thompson, 2009)
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Negotiation Steps
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1. Preparation
2. Negotiation Dance
3. Signal cooperation
9. Implement or Maintain
4. Propose Solutions
5. Package Deals
6. Bargain Items
7. Close
8. Agree
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Preparation
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Failing to plan is planning to fail
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“Trades would not take place unless it were advantageous to the parties concerned”
Benjamin Franklin
Sellers Reservation Point
Buyers Reservation Point
Sellers Target Price
Buyers Target
€230k €240k
Seller’s Bargaining range
Buyer’s Bargaining range
€225k €235k€220k€215k €245k
Bargaining Zone
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General Negotiation Tips
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Basic Bargaining
“Distributive Negotiation”
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Basic BargainingTips
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?What do you look
for when:
Buying a Car
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Buying a Car
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1 2 3 Decending 1, 2, 3
Description Worst Medium Best Priority Rank ScorePrice 20K 18K 15K 9 2 18Model 8Year 7Miles 6Defects 5Warranty 4Trade-In 3Owners 2Seller Type 1
Total
Grade each carYour requirements
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Integrative Negotiation (Win-Win):
Creating value:
“Expanding the pie”.
Claiming value:
“Slicing the pie”
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Integrative Negotiation Tips
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Relationship Building - Hidden Dangers
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Tip forSuppliers
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What do you look for when:
Meeting Suppliers
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Meeting Suppliers
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1 2 3 Decending 1, 2, 3
Supplier Poor Average Great Priority Rank ScorePrice 2 9 2 18Range 3 8 3 24Strategic fit 1 7 1 7Service level 6Stability 5Admin support 4Problem occurance 3Market knowledge 2Merchandising 1
Total
Grade each suplierTheir Performance
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Tactics
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Tactics
Playing Hardball
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Tough guy approach
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Tactics Threats
Handle with care
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Tactics
Nibbling
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The Piranha Approach
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Tactics
Commoditisation
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Its all about price
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Tactics
The Glassroom
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Battle Royale
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Tactics
General Defences
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Key Messages
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Thank you for attending
www.TheSmallBusinessGuides.com/Negotiations.html
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Questions
• Should you reveal you reservation point.• Should an upcoming potential deal be my
BATNA.• Should I make the first offer.• Should I give concessions without taking
anything back.• How do you respond to unreasonable
demands.
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Terminology
Reservation Point
Must have
BATNA
Concession
Position
Bargaining Zone
PieNice to have
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