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workshop presentation by Rob Hook of the Business Co-Pilot
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Sitting alongside senior business leaders to help keep
them on the business flight plan
Negotiating skills
How to Negotiate and keep your profits
Me? Negotiate?• I cant negotiate
• I do not have the confidence
• I do not have the skills
• They know more than I do
• How can I tell if they are lying
The negotiation is the end of the journey, not the beginning
3 P’s of negotiations
• Profit• Purpose• Preparation
An exchange of VALUENot an exchange of money
How are profits made?
Sales income-
Costs=
Profit
How to increase profit?
Increased sales income-
Lower costs=
Increased profit
Example
Sales income = £10,000
Costs = £8,000
Profit = £2,000
Example
Sales income = £10,000 + 10% = £11,000
Costs = £8,000 = £8,000
Profit = £2,000 = £3,000
% = 20% = 27%
Example
Sales income = £10,000 = £10,000
Costs = £8,000 -10% = £7,200
Profit = £2,000 = £2,800
% = 20% = 28%
Example
Sales income = £10,000 +10% = £11,000
Costs = £8,000 -10% = £7,200
Profit = £2,000 = £3,800
% = 20% = 35%
Example
Sales income = £10,000 -10% = £9,000
Costs = £8,000 + 10% = £8,800
Profit = £2,000 = £200
% = 20% = Zip!
Purpose
• What do you want to achieve?• Get the business! • Long term or short term deal• Trophy client or introductory offer• Training upsale• Multi year support contract• Referral client• Value exchange – what can they give you• Equity for discount
Preparation
Do the thinking in advanceThe heavy lifting
Scenario plan to assess what could happen
Negotiation zone
Seller - Entry point
The Highest point at which they will enter the
negotiation
Seller - Exit point
The Lowest point at which they will exit the
negotiation
Buyer - Entry point
The Lowest point at which they will enter
the negotiation
Buyer - Exit point
The Highest point at which they will exit
the negotiation
Trading – swopping value
• Not haggling – commoditising on price
• What do you have that clients value?
• What do clients have that you value?
If you can do this for me,
then I will do this for you.
Need to understand the client’s pain