Negotiating Strategies

You often get not what you deserve, but what

you negotiate.

We Are AllNegotiators!

Winners and Losers

• WIN/lose • Distributive bargaining

• lose/lose

• WIN/WIN• Integrative bargaining• Can you make the pie

bigger?

Negotiation Steps

1. Planning

2. Setting the Stage

3. Tactics

4. Follow Through

Planning – Your Position

• What is your GOAL?

• What are your ALTERNATIVES

• What is your BATNA?

• What is your WALK AWAY POINT/ PRICE?

Planning

Planning – Their Position

• What is their GOAL?

• What are their ALTERNATIVES

• What is their BATNA?

• What is their WALK AWAY POINT/ PRICE?

Planning – Their Negotiators

• Who are they?

• What is their background?

• What has been their past negotiating strategy?

• What is their authority?

Setting the Stage

• What is the best environment to ensure a favorable outcome?

• Comfort• Venue• In Person?• Seating Options

Negotiating Tactics• Who Goes First?

Substantial psychological research suggests that, more often than not, negotiators who make first offers come out ahead… By making the first offer, you will

anchor the negotiation in your favor.

Negotiating Tactics• The Early Anchors• Zone of Possible Agreement (ZOPA)

Prospect Theory

• Unbundle • Gains• Concessions• Good news

• Bundle • Losses• Costs• Burdens

You Can’t Always Compromise

Concessions

• Give and take

• No major early concessions

• Not all concessions are created equal

Concessions

• Concessions might not mean same thing to both parties

• Concessions tentative until agreement signed

• Think before accepting

Games People Play

• Stonewalling• Company policy• Take it or leave it

• Overcoming Stonewalling• Real or a ploy?• Ask for a manager• Gentle pushing

Games People Play

• Artificial Deadlines• We must have your decision today…• If you order in the next 5 minutes…

• Overcoming Artificial Deadlines

• Real or a ploy? Ask why• Did you do your homework?

Games People Play

• Contingent Friendship• Just between you and me…• Look, I want to help you…

• Overcoming Contingent Friendship• He’s not your friend• Focus on your

• Goal• Walk away point• BATNA

Games People Play

• The Screamer

• Overcoming The Screamer• Do not escalate• Maintain composure• Walk away • Ask for a manager

Games People Play

• Nibbling• Just one more thing…• It’s not really much…

• Overcoming Nibbling• Keep score• Small concessions can

become large ones

Games People Play

• Good Cop/Bad Cop

• Overcoming Good Cop/Bad Cop

• Identify it’s happening• Focus on your

• Goals• Walk away point• BATNA

What Works?

• Why?• What if?

• Swapping• Quid pro quo

• Write it down as you go • Especially for complicated deals

• Is it WIN/WIN?• Will you do business again?• How do you feel?• How do they feel?

• Give something extra• More likely to do business again• More likely to offer referral

Follow Through

It’s Time for the Negotiation Case Study