Business Negotiations

Discussion Questions:

1. Do you ever have to negotiate at work or in life?

2. Do you have any special rules you use to successfully achieve what you want?

3. What advice would you give to a new Medical Sales Rep about negotiating?

Five “GOLDEN RULES” OF NEGOTIATING

1) Always try to negotiate for at least 15 minutes. Any less than that and it is unlikely that either party has had enough time to fairly consider the other side.

2) Always offer to let the other party speak first. This is especially important if you are the one making a request for something such as a raise.

3) Always respect and listen to what the other party has to say. Do your best to remain calm and pleasant, even if the other party is showing frustration or anger. Remember some people will do anything to intimidate you.

4) Acknowledge what the other party says. Paraphrase what you hear, and repeat the other party’s important ideas before you introduce your stronger ideas. Ex: “So, you’re saying that you want…. I have a solution to offer…”

5) Pay attention to your own and the other party’s body language. Make sure you’re not showing any negative body language

Body LanguageCan you guess what the following body languages show?

Avoiding Eye Contact

What does this indicate?

Possible Meanings:

• Lying• Not being transparent (leaving out info)• Uninterested

Serious Eye Contact

Possible Meanings:

• Showing Anger• Trying to Intimidate

Touching Face/ Fidgeting

Possible Meanings:

• Nervousness• Lack of Confidence• Submission

Nodding

Possible Meanings:

• Interested / Listening• Agreeing• Willing to Compromise

Business Negotiation VocabularyCommonly used in contract & Formal Negotiations

The person or people on one-side of a negotiation is called a __________(person)

_____ “A” and ______”B” have both agreed on the new contract.

The person or people on one-side of a negotiation is called a Party

Party “A” and Party ”B” have both agreed on the new contract.

When one party is unable to pay / or refuses to pay for the product or service from another party, they “go into _________________”

“Dan and Anne have gone into ___________ on their mortgage. They haven’tmade their payment in almost 1 year.

When one party is unable to pay / or refuses to pay for the product or service from another party, they “go into DEFAULT

“Dan and Anne have gone into DEFAULT on their mortgage. They haven’tmade their payment in almost 1 year.

When you agree to a contract or a negotiation, you should carefully readthe contract to see which party is ________________ if something goeswrong.

“The hospital can refuse to treat a patient if they patient doesn’t signauthorization forms. That’s because if something goes wrong, the hospitalmay be __________________, and could be sued by the patient.

When you agree to a contract or a negotiation, you should carefully readthe contract to see which party is LIABLE if something goeswrong.

“The hospital can refuse to treat a patient if they patient doesn’t signauthorization forms. That’s because if something goes wrong, the hospitalmay be LIABLE , and could be sued by the patient.

When you negotiate, you should carefully read the _________& ________ section.This means anything that must be necessary, before another action can take place.

The TERMS & CONDITIONS of my bank loan states that if I am late with my payment by 6 months or more, the banks is legally allowed to take my house.

When you negotiate, you should carefully read the TERMS & CONDITION section.This means anything that must be necessary, before another action can take place.

The TERMS & CONDITIONS of my bank loan states that if I am late with my payment by 6 months or more, the banks is legally allowed to take my house.

A disagreement or misunderstanding during a negotiation may lead to a ______________________.

“Terms & Conditions should be very clear and specific to avoid later____________________.”

A disagreement or misunderstanding during a negotiation may lead to a DISPUTE.

“Terms & Conditions should be very clear and specific to avoid laterDISPUTES.”

Usually in every contract, there is a condition about death & crime. If one Party dies during the time of the contract, the contract is considered_________________. Thesame goes for if one Party is arrested or commits a crime.

“Chris had a secure contract with his employer; however, when he was arrested for drunk driving, the contract was considered _______. and his employer legally fired him.

Usually in every contract, there is a condition about death & crime. If one Party dies during the time of the contract, the contract is considered NULL or VOID. Thesame goes for if one Party is arrested or commits a crime.

“Chris had a secure contract with his employer; however, when he was arrested for drunk driving, the contract was considered NULL. and his employer legally fired him.