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“Negotiation is all about the information
you have and how you use it”
Negotiation BasicsWith Examples
Dvir Cohen
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- Dvir Cohen -
VP Business Development & Products- Codletech -
www.codletech.net
BSc Computer Science
20 + Software Projects
5 Years at Businesses
23 Years of Negotiations
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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.
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What will be covered
Agenda
Goals
Credibility
Setting Next Steps
Win – Win
BATNA
Asking Questions
and Listening
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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.
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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.
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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.
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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”.
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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WHAT WHY WHERE WHEN WHO HOW
Any Question?
Done
