Category Archive for: ‘Negotiations Leverage’

Oh No Mr. Bill! (Part 2) Patents at Qualcomm and Nokia

In our preceding article we applied the principle of Negotiation Leverage to a sales argument for replacement software.  The case we looked at used an overstated fear of the risks of lack of support to attempt to drive a client to buy a replacement.  We called it the “Oh No Mr. Bill!”[1] argument, because it relied on using the fear …

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Oh No Mr. Bill! Your Software is Going End-of-Life.

When negotiating, you should be aware of the principle of Negotiation Leverage.  Leverage describes the use of facts, rationale or conditions to move the other party closer to your way of thinking.  Here are some simple examples: Your software is already installed and in production, or your services team has completed 2 phases of a 3 phase implementation project. You …

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Monopoly Value, or Not?

K&R believes (and teaches) that you should understand your “leverage position” in a negotiation.  As a seller, the worst position you can have (in terms of the price you can get) is to be a commodity, the best is to be a monopoly.  As a buyer, you will get your best prices and terms when buying commodities, your worst when …

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BEA and Oracle (Part 3)

When last we looked, BEA had asked for $21/share, Oracle had offered $17, and key shareholder Carl Icahn was threatening the BEA board with a lawsuit to force action on the offer.  Now everyone is in agreement at $19.375.  What happened?  It’s negotiation leverage and the Negotiation Success Range™ (NSR™) in action. Disclaimer: we know nothing from the inside. We …

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How Expensive is a Public Embarrassment?

Suppose you are a toy manufacturer located in China.  The news is full of stories of contaminated toys.  Plenty of unfounded rumors are tagging along.  One of your key customers is re-negotiating a contract that is important to you, and price (as always) is an issue.  Your customer raises the quality concerns.  The customer talks about the massive financial risks …

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Toray Industries (Japan) and Boeing

How do you act when you are the incumbent?  In a article, Boeing is reported to be in talks with Japan’s Toray Industries regarding a possible 40% increase in Boeing’s orders for carbon fiber reinforced materials.  The materials are used in building the Boeing 787 airplane, and are Toray’s most profitable line of business.  This is how the discussions …

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