Negotiating
Negotiating
Negotiating
Information-based
2.
3.
4.
Relationship-based
Ethical
Flexible
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Preparation
1.
Low
High
I. Balanced Concerns: Business
partnership, joint venture, merger
Importance
of Relationship
III. Transactions: Divorce, house
sale, or stock market transaction
Low
Negotiating
1.
2.
3.
4.
Preparation
2.
Competitors
Accommodators
Narcissists
Cooperators
Preparation
3.
4.
Specific opportunity/product/event/job
Price
Size of the deal
Share of budget
Terms and conditions
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Preparation
5.
6.
7.
Price
Terms and conditions
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8.
Determine tactics
Tit-for-tat
Warning
Bluff
9.
$150
$0
$250
During negotiations, people tend to gravitate toward their bottom line--the dominant
reference point--and measure success with reference to the bottom line as it is difficult
to reorient to an ambitious bargaining goal.
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10. Assess
Signaling Leverage
Your Leverage as You See It
Strong
Weak
Firm
How
You
Want
to
Act
Flexible
Be generous.
Anchoring
Framing
Framing Example
Group I
1
If Program A is adopted, 200 people will be
saved.
2
If Program B is adopted, 1/3 probability that all
will be saved, 2/3 probability that none will be
saved.
Group II
1
If Program A is adopted, 400 people will die.
2
If Program B is adopted, 1/3 probability that all
will be saved, 2/3 probability that none will be
saved.
76% in Group I chose Program A, only 12% in
Group II chose Program A.
Same deal.
Opening: Optimistic
or Reasonable
Optimistic Openings
Optimistic Openings
Concession Tactics
Concession Tactics
Concession Tactics
Building Agreement
Closing
Closing Tactics
Closing Tactics
The
The
The
The
The
The
Clincher Close
Assumption Close
SRO Close
Minor-Point Close
T-Account Close
Pin-Down Close
Closing
48-hour hold
Closing
Buyers Tactics
Buyers Tactics
Cherry Pick
Auction
Buyers Tactics
Buyers Tactics
Confidence
Low price
Someone else wanted it
High quality, reasonable price
Got the last one
Low risk of dissatisfaction
Get Commitment
Social Ritual
Public Announcement
Accountability
Simultaneous Exchange
Get Commitment
On Becoming an
Effective Negotiator
2.
3.
4.
5.
6.
Summary