Where are these places in Dublin?

2

Let me introduce myself

© Robert Farrell

ROBERT FARRELL

3© Robert Farrell

4

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.

© Robert Farrell

5

ContentsINTRODUCTION

STEPS

PREPARATION

BARGAINING

INTEGRATIVE NEGOTIATION

TACTICS & DEFENCES

© Robert Farrell

6

Negotiation

© Robert Farrell

7

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)

8

Negotiation Steps

© Robert Farrell

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

9

Preparation

© Robert Farrell

Failing to plan is planning to fail

10

“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

© Robert Farrell

11

General Negotiation Tips

© Robert Farrell

12

Basic Bargaining

“Distributive Negotiation”

© Robert Farrell

13

Basic BargainingTips

© Robert Farrell

14

?What do you look

for when:

Buying a Car

© Robert Farrell

15

Buying a Car

© Robert Farrell

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

16

Integrative Negotiation (Win-Win):

Creating value:

“Expanding the pie”.

Claiming value:

“Slicing the pie”

© Robert Farrell

17

Integrative Negotiation Tips

© Robert Farrell

18

Relationship Building - Hidden Dangers

© Robert Farrell

Tip forSuppliers

19

What do you look for when:

Meeting Suppliers

© Robert Farrell

?

20

Meeting Suppliers

© Robert Farrell

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

21

Tactics

© Robert Farrell

22

Tactics

Playing Hardball

© Robert Farrell

Tough guy approach

23

Tactics Threats

Handle with care

© Robert Farrell

24

Tactics

Nibbling

© Robert Farrell

The Piranha Approach

25

Tactics

Commoditisation

© Robert Farrell

Its all about price

26

Tactics

The Glassroom

© Robert Farrell

Battle Royale

27

Tactics

General Defences

© Robert Farrell

28

Key Messages

© Robert Farrell

29

Thank you for attending

www.TheSmallBusinessGuides.com/Negotiations.html

© Robert Farrell

30

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.

© Robert Farrell

31

Terminology

Reservation Point

Must have

BATNA

Concession

Position

Bargaining Zone

PieNice to have

© Robert Farrell