Getting to Yes - Negotiation Skills

welcome to this week's single sales principle webinar today is within the perceived value part of SSP and very much how to get from no to yes the art of negotiating but without having to give in and very much we're going to be using the content of the book getting to yes which is written by Roger Fisher and William ury both of the Harvard Business School so their discussion is very much around the challenge that you have a positional bargaining the more conventional style of negotiating and what they call principled negotiation so let's take a look at the video which I think highlights some of the classic issues with negotiating within a business context which you wouldn't really see in everyday normal life hi there a problem sir oh yes I'm a question about the final toll yes um you see yeah we we didn't budget for this excuse me yes sir this was Mark 1999 yeah well I've only got seven dollars set aside for this so what do we even do today well I'd like the highlights mm-hmm but for now I can only pay for a trim okay so today we're only gonna do the trim no the highlights but I can only pay it for the truth I mean what did the taco stand what was one about twelve dollars Yeah right right right about twelve dollars sir mo we're not the taco Sid you know if it was higher beef the same thing as I had here you had the filet yeah cow okay let me make a phone call see what I can do maybe I can get you 8:15 can you do 850 I'll pay for the highlights next time but for now I need you to just go ahead and throw them in so basically you want me to work for free no I don't want you to I don't want you to work for free it's just a test that way I can see if my husband likes it and then you can roll the cost over until the next time I need color if he likes it I went through in line-item some of the stuff that we couldn't just remove I'm not making any money on this either you got to help me out we got a discount bin I know I've checked the discount bin but I want this one we can do this this this is not a challenge this is an opportunity we tried but 3-0 yes you ordered three entrees are you willing ordered by disorder me eating yeah we want what's your name Todd Tom you got to work with me that one's $19.99 Mike come on let's do this let's do this well I can cover your hard cost but that's really as far as I'm willing to go I'll give you 850 today I'll come back next Tuesday we're gonna make it up on the next one what do you say what ah excellent um well go ahead people pay this this time but what we need to do is show us how you made it so we can do it on our own in-house for now on you did it's great to her so fairly amusing wouldn't really happen well it does doesn't it it happens all the time in a business context but we just kind of put up with it so within the book they talk about five problems with positional bargaining and the first one is that you tend to lock yourself into a position once you've locked yourself in that position you start to have to defend that position because you put yourself there in the first place and as you start to defend that position your ego starts to take over so instead of focusing on the issue the problem and a mutual outcome you start to present your ego and it's now become a win-lose situation and you certainly don't want to lose so your ego starts to take over the situation okay so number one problem is don't lock yourself into this position because once you do you're almost backing yourself into a corner which is they're very difficult to come back from number two it is inefficient to have positional bargaining it can take a lot of time with you at that end then at that end and starting to sort of come down slowly gradually and of course in doing that it takes a lot of effort it takes a lot of rational effort but emotional effort on both sides as well and of course within all of this that can start to cost third problem it can start to endanger the relationship between both parties particularly depending on the type of individual that that you are obviously on the program we talked about the insights colors and if you're at the feeling end of the spectrum then are you feeling in terms of earth green or sunshine yellow there is a danger that when the other person starts to get a bit heavy then you can feel a touch resentment about the fact you've had to compromise your position the fourth problem is that it's all really good saying I start here you start there let's meet in the middle but when there are more people involved it becomes more and more difficult to get that agreement because they may not be in the same room or they may have their opinions about where the positions should start and where the walkaway point might be which is different to your opinion and of course this side have got the same thing going on as well so it starts become increasing ly difficult to actually get an agreement even on the same side number five being nice doesn't help in fact in negotiation being nice is positively a hindrance they've done a lot of study around this whereby they've got a hard negotiation style and a soft negotiation style and when they come up against each other invariably the hard negotiation style in incites what we would call the fiery red persona this fiery red hard negotiation style typically will win the day the problem with that as we said earlier it can start to endanger the relationship between those two parties so let's take a look at the different way that the soft and the hard side tend to position themselves and the way that a few different areas in terms of participants relationship position resolution and criteria so for our soft side in terms of participants they tend to see them as friends whereas with the hard they see them as adversaries with relationships they're soft and the people and the problem with hard they're hard on the people in the problem position they tend to change their positions readily relatively quickly and also easily where with the heart they tend to dig into their position on resolution they search for the answer that they will accept ie the other side where it is hard they search for the answer but you will accept ie the other side criteria they yield to pressure whereas with hard they're the ones applying the pressure so we talked a lot about the two areas of negotiation the substance ie the issue ie what we're trying to negotiate / and the relationship so in summary the soft tends to be quite low in terms of focusing on the substance but are quite high in terms of nurturing the relationship whereas with hard kind of the other way round very high or what the substance is without too much thought or attention on how it is affecting the relationship so what does this look like in terms of principled negotiation well in terms of participants rather than friends or anniversaries they are seen as problem solvers in terms of relationship instead of soft and ER people or hard on a person or soft on the problem or hard on a problem they are very much soft on the person because they want to nurture the relationship but they are hard on the issue they want to get this sorted without having to giving their position rather than changing or digging in they focus on interest instead of positions and this is absolutely key to the way that you then structure a a negotiation resolution instead of looking for one side or the other they are trying to invent options which will help us create a mutual game and largely criteria instead of yielding or applying pressure they are they insist on using an objective criteria yielding to principle not to pressure and in terms of the principle negotiation on the right hand side there that's very much the areas that Fisher and ury focus on they present four principles of negotiation separating the people from the problem focusing on the interest not positions inventing options for mutual gain and insisted on using objective criteria so let's take a look at each of these as we go through so number one separating people from the problem we've touched on this already it's all about taking the relationship and try to take that away so that we don't become emotional it talks about or they talk about very much in the book as in motion there are perceptions that get involved with a relationship so it is important to try to just separate that and concentrate on what we actually need to deal with secondly focusing on the interests not the positions they use the example of a library where two men are quarreling in a library one what's over the window the other one once it closed enter the librarian she asked one why do you want the window open motor get some fresh air this is his interest getting fresh air just the other one why do you want it closed what to avoid a draft this is his interest to avoid the draft after thinking for a moment she opens a window in the next room ie bringing in the fresh air but without the draft very much the two interested the two men are the desire for fresh air and the desire to avoid draft the men's positions therefore in their mind was window open or window closed so they were taking positions not thinking about their interests the authors of the book say that we need to focus not on whether the window in their room is open or closed but how we can meet the need for fresh air and to avoid a draft more often than not unfortunately we tend to focus on interests and therefore we're not looking for that creative solution so when we communicate in a negotiation it's important to communicate exactly what our interests are we can't assume that we know what they are we can't assume that they're the same as our interests we need to have a strong discussion and this is a vital step in how to negotiate a win-win some of the interest rather than positions could be things around their security either for themselves or for the business the economic well-being it could be even softer things such as the sense of belonging a sense of recognition or a need for a certain amount of control about what's going on so some of these in we'll certainly be affecting what we want from the actual negotiation thirdly inventing options for mutual gain the problem often with a negotiation it comes down to one thing and that's invariably price and if it's all about price or presents percentage of rebate or whenever it may be and I'm here and you're there how on earth can we get to a price that's in the middle without compromising and this is the issue if we're always compromising there could be a resentment along the way so the key to actually gain in this is to try to broaden out the options it's becoming more creative in the way that we present this because if there are different variables or trainable that we can start to introduce to a negotiation it gives us much more chance to prevent given away something that's important but still create a sense of win-win for both parties on the program we talk about very much variables and we talk about the fat bits blow cross to you and a high value to the customer and if we can list all of the sort of variables tradable x' that we can throw in and start to identify the ones that are low cost high value rather than the ones that are normally given away which is the high cost to us giving away margin is high cost potentially extending credit terms could be high cost of the business can we create some other variables that we can throw in we still gives the customer a sense of win-win without having to give away all of the family silver so very much the problem with negotiation is often it's a single outcome try to create multiple outcomes which create a sense of win-win and the fourth area fourth principle of negotiation is using objective criteria and this is where we start to have a shared search to create this criteria we very much need to keep an open mind on both parties and lastly we should never be given into pressure of threats or bribes okay we need to set out a clear objective criteria we'll meet both parties needs but what some of the problems when one of the party doesn't want to play or actually if one of the parties has a lot more power in a negotiation than the other well this is where the term Batna comes from it was created within the book by Fisher and ury and it stands for the best alternative to a negotiated agreement or what I like to think of it as the best alternative to no agreement what would happen if we didn't agree a deal right now what options what alternatives would we have now this is not to be confused with one of the options in the negotiation this is very much if we did not agree a deal right now with you what alternatives do I have and the more alternatives I come up I can come up with and the stronger those alternatives are the better my power in the negotiation itself at the time will be because if I know that I've got other options that I can turn to if you decide not to go with this it increases amount of strength and power that that I have for example if I was buying a home and it was the only property that came up in that village and it's the only one that's come up for the last 10 years and it's our perfect dream home it's next to the school that we want to send the kids to it's got exactly the size garden that we're after it's the perfect village there's a great social life in the village and quite frankly we would love to be living here what's my alternative well not a huge amount quite frankly therefore in the negotiation for that property it's probably weaker than the one whereby the house next door is up for sale well you know what I've probably got a much better chance of negotiating with this person because I've got an alternative there or there's another village next door which is still near the same school that still has a great social life a great pub etc etc etc so understanding your Batna is vital and keen mediators they always talk about that what is your alternative because at the moment you're going to call okay that's not a particularly great alternative so what's your alternative to do in the deal here and now so that's the summary of the book getting to yes the key is all about principled negotiation not positioning negotiation because that very much puts you into a position that you can not back away from and ultimately will lead to a compromise in some way so I urge you to play around with principled negotiation good luck creating those win-win deals and we'll speak to you next time thank you

Channel: LAMMORE

Views: 24,854

Rating: 4.7788019 out of 5

Keywords: Selling Techniques, Sales Techniques, How to sell, Sales Training, Sales Skills, Selling Skills

Id: hsFJQ5qx3yE

Length: 17min 28sec (1048 seconds)

Published: Mon Apr 25 2016