negotiation skills presentation

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Negotiation Skills Workshop

In negotiation you don’t get what you deserve, you get what

you negotiate !

Seminar agenda

� Your business challenges today

� Case study one

� Golden Rule No. 1 and No. 2

- Initial demand

- Answering concession requests

� Case study one, part two

� Golden Rule No. 3

- Concessions and Trade-offs

� Golden Rule No. 4 and No. 5

- Go back in smaller steps

- Lead the customer to a conclusion

What keeps you awake at night?

� Write down the three major

business challenges that you

face in your job today

� 1-

� 2-

� 3-

Objectives for this training session

� Facing your customer as a equal partner in negotiations

� To know and apply the relevant rules for negotiations

� To work on Adecco specific case studies and receive supporting

feedback

� To have an overview of the Best Practices in negotiation

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Philosophy of Negotiation

PLEASE MENTION THE MAIN TOPICS

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Philosophy of Negotiation

• Build trust over time

• Focus on agreement areas

• Be tough on the issue, not

on the people

• Choose your own style of

communication

� Win-Win

� Efficient

� Creative

� Positive attitude

� Understanding of needs

and motivations

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A method to prepare the negotiation

1 - List possible negotiating points

2 - Prioritise them

3 - Define objective – desirable position

4 - Define bottom line – essential position

5 - Define initial demand level – Optimum position

6 - Prepare to explain selling

points adapted to customer requirements

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Your Negotiation Matrix

Selling PointsEssentialDesirableOptimumVariable

Ensure that this matrix becomes part of your preparation for customer negotiations.

In the most difficult situations:

1 - Make at least one unacceptable request on a minor point

2 - Whenever possible, present an offer which cannot be compared

3 - Whatever happens, announce the price you initially decided

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Game (Case study One, Part One)

1 x Account Manager 1 x Customers

Agenda

10 min - Preparation

10 min – Meeting

5 min – Feedback from observer

Scoring

system

1 Coach 1 Observers

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Golden Rule #1

"You must have the courage to start

with a high initial demand".

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Resisting the other party

Inoculate yourself

1) Develop supporting arguments for

your position only.

2) Then, develop arguments against

your position.

3) At last, develop counterarguments

to refute them!

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Golden rule # 2

"When the opposition requests a concession,

you must first answerwith a defence of your offer”

Use your selling points!

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Seller’s

goal

Buyer’s goal

Keep the negotiation away

from your own goal

� to keep the danger away

� to become the strongest psychologically

� to keep ahead in the score

NEEDSNEEDS

QUALITYQUALITY

PRODUCTSPRODUCTS

SERVICESSERVICES

PRICEPRICE

REBATESREBATES

CONDITIONSCONDITIONS

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Building up a

Value Proposition matrix

MotivationMotivation AdvantageAdvantage ProofProof BenefitBenefit

1 - Remember your buyer will only remember 3 to 5 elements

they exchanged during the Meeting !

2 - Take into account their motivations

3 – Provide proof for each selling point that you present

4 – Present the selling points to appeal to their personal motivations

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Game (Case study One, Part Two)

1 x Account Manager 1 x Customers

Agenda

10 min - Preparation

10 min – Meeting

5 min – Feedback from observer

Scoring

system

1 Coach 1 Observers

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Golden rule # 3

"You will only make a concession if you can obtain a Trade-off in return -

first.”

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Why should you secure a Trade-off

first ?

1. It supports the credibility of your initial demand

2. It improves the profitability of the agreement

3. It stops the risk of ‘rolling concessions’

4. It gains you self-respect

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1 - It is vital that you can support each negotiating point. Prepare using the negotiation matrix

2 - checking question "And yourself, would you consider the following point…”

3 - opening"If you (...), then possibly..."

4 - counter-offer"Under those conditions, I can offer..."

Proceed in four steps

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Trade-offs

•Get exclusivity of the orders for the first 24 OR 48 hours

•Have access to the CV’s client database

•Reduce prices for correct ter,s of payment

•Reduce GM vs new business across outher countries

•Exclusivity on 1 site

•Cross selling (LHH, Permanent placement…)

•Different prices vs Volumes

•Provide consulting activity (legal, admin…)

•Extention or reduction of garanties for permanent placement

•Consistancy in service

•Lenght of contract vs smaller prices

•Pre payment for permanent placement

•Training

•Smaller short list vs smaller prices in permanent

•On site

•B to B

•Client brand advantage

•Exploit the direct hiring

•Co supplier introduction

•Master vendor

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Golden rule # 4

"If you have to go back,do it in small

and decreasing steps"

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Key points about giving

concessions

1 - Reduce what you offer with every additional

concession“Think about what you think it will take to get the deal and offer half of it”

2 - Increase the time before giving each additional

concession

3 - Don’t hesitate to ask counterparts that we know

the buyer won’t accept

4 - Resist the temptation to go straight for your

essential position by pushing the attack aside

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How to push the attack aside

"On this particular point, I can’t do anything.

I can however make a proposition…”

Resist the temptation to get caught negotiating on the same point if you have got close to your essential position. Try to push the ‘attack’ to one side by raising a new Trade-off and concession:

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Golden rule # 5

“You will lead the customer towards the conclusion”

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Example:

Initial question:

"Beside this point, do we fully agree on everything else?"

Leading question:

"So, if we come to an agreement on this point, we can come

to a full agreement on the contract. Are you happy with that?”

Isolate areas of agreement from disagreement. Focus on the

positives and talk in terms of finalising the agreement

Pre-closing to lead the customer to

a conclusion

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1. You must have the courage to start with a high initial demand

2. When asked for a concession you must defend your offer first

3. You will only make a concession, if you can obtain something in

return

4. If you have to go back, do it in small decreasing steps

5. You will lead the customer towards the conclusion

The 5 Golden Rules Summary