Negotiation Basics With Examples By Dvir Cohen

“Negotiation is all about the information

you have and how you use it”

Negotiation BasicsWith Examples

Dvir Cohen

2

- Dvir Cohen -

VP Business Development & Products- Codletech -

dvircn@gmail.com

www.codletech.net

BSc Computer Science

20 + Software Projects

5 Years at Businesses

23 Years of Negotiations

3

Real Life Negotiations

Selling a product or a service.

Negotiating over a salary and employment terms.

Negotiating a task deadline with your boss.

Negotiation a service or a product price.

Cell phone bills

Insurance bills

Negotiating a meeting place.

4

What will be covered

Agenda

Goals

Credibility

Setting Next Steps

Win – Win

BATNA

Asking Questions

and Listening

5

Win-Win Negotiation Win-Win negotiation is a deal that satisfies both sides.

The majority of negotiations end in win-win situations.

If the other party isn’t satisfied with the deal, there

will probably be no deal.

Listen to your partner.

Listening is the key to understand what deal will make

your partner satisfied.

Listening is essential for figuring

out the common ground.

6

Win-Win Negotiation Your Win - Don’t forget there are 2 winning sides.

Stick to your goals.

Look out to reach for your own interests.

Your partner is looking for a win-win as well (if he isn’t,

walk away).

Use your body language to signal you’re not satisfied

with the current deal. Body language has strong affect

and most likely, won’t risk the deal.

Say “no” - If you’re not getting what you want out of

the negotiation, reject it.

7

Goals

Know what are the results you want to achieve, plan the

negotiation based on your goals and stick to them.

Set SMART goals: specific, measurable, attainable,

relevant and time-bound.

Prioritize your goals. Evaluating the

importance of each objective will help

you know where to put more efforts.

8

Goals - Examples Bad

“I want a lower price” – not measurable.

“I want half of the price” – not attainable.

“I want the product to be tested” – not time-bounded,

not specific.

Good

“ I want 8% discount from the original offer”.

“I want that the product’s UI will be tested by a QA

expert. The testing process need to be completed by

Monday”.

9

BATNA

Prior to the negotiation, know your BATNA .

If the current negotiation offers a lower value than your

BATNA, there is no reason proceeding with the deal.

If you’ve a decent BATNA, bargain and achieve a better

deal – It’s your leverage.

If you don’t, you might need to withdraw

your low-priority goals.

Best alternative to a negotiated agreement

10

BATNA - Examples

You’re negotiating a price of a product you want to

purchase and you’ve already got good offers from other

suppliers.

You’re selling a house and there is a couple that willing to

buy it for the price you’ve asked.

You’re negotiating the terms of a partnership with a small

company while you already have collaboration with other

companies in the same field.

Best alternative to a negotiated agreement

11

BATNA – Negative Examples

You’re negotiating a price of a product you want to

purchase and the offers you’ve got are not in your budget.

You’re selling a house and all the offers you’ve received

are lower than the price you’ve asked.

You’re negotiating the terms of a partnership with a big

company and you’ve been rejected by some other

companies.

Best alternative to a negotiated agreement

12

Credibility Credibility and trust built prior the negotiation and while

it’s taking place.

Losing your credibility meaning losing the negotiation.

If your partner lacks reliability, you better walk out

than close a bad deal.

Never assume that your partner believes you.

Build trust with telling the truth and

pointing out the disadvantages.

13

Credibility - Examples

Losing Credibility

Giving an unreasonable discount.

Get caught lying.

Hiding the disadvantages of the service or the product.

Not returning phone calls.

Gaining Credibility

Justify discounts by changing the deal.

Present the advantages as well as the disadvantages.

Be responsive.

Be professional.

14

Asking Questions and Listening Asking questions as well as sitting down and listening to

your partner will provide you a valuable information which

you’ll be able to benefit from and use as leverage.

Prior the negotiation, do a research and write down

questions.

Try to figure out what makes your partner satisfied, what

are his goals and which of them are in his top priority.

Listen to what your partner says

without disagreeing or interrupting.

15

Questions – Get valuable information Open-ended questions

“How you’ve priced your service?” Leading / Persuading Questions

“With all the advantages we’ve pointed out, do

you agree there is a great opportunity for

collaboration?” Listening – Let the other party know you’re listening

Nod with your head. Repeat and summarize what your partner said. Ask follow-up questions.

Asking Questions and Listening - Examples

16

Setting Next Steps

Determine the actions that should be taken in order to

proceed with the deal.

Assign tasks to yourself and to your partner.

Assign a reasonable deadline for each task.

Schedule your next conversation or meeting.

17

WHAT WHY WHERE WHEN WHO HOW

Any Question?

18

Dvir Cohen

Get in Touch dvircn@gmail.comwww.codletech.net

Done