Negotiation Examples: Building a Value Case

 

All negotiators should build a value case for the positions they would like the other side to accept.

As a buyer, you would like the seller to understand the value of doing business with you because, for example, you are a flagship account and a reliable customer who pays on time.

As a seller, if you don’t build a value case for the product or service you’re selling, the buyer may not see that value. Even if they see the value, they may see it very differently than you do or they may not acknowledge it, since acknowledgement of value gives you leverage.

In addition, failing to articulate value may affect your credibility. The buyer may feel you are not listening to what matters to them – and, as a result, you lose credibility. Alternatively, in acknowledging the value impact to a customer, you gain credibility by showing them you understand what they consider important.

Articulation of value requires you to know something about the other side. The more you know, the better – especially in a negotiation. Knowledge is power. You have to know the gaps the customer has to fill – and then fill them. When you use value properly, you’re usually successful. Read more

Six Principles Every International Negotiator Must Know: Concessions Easily Given Appear of Little Value

This is the seventh post in a series entitled: The Principles of International Negotiation: Finding Universal Value in a Complex World

It’s a worldwide phenomenon: You’re on vacation in a foreign country and decide to buy a souvenir. You know you shouldn’t pay the price they’re asking, so you make a lower offer on that “locally produced” carving. The vendor takes it. As your purchase is being wrapped, you’re thinking, “That was too easy. I could have bought it for less.”

We’re not trying to teach you to deprive starving artists of their living. But whenever someone asks for and easily gets a concession, Read more

Six Principles Every International Negotiator Must Know: A Divided Team is a Costly Team

This is the sixth post in a series entitled: The Principles of International Negotiation: Finding Universal Value in a Complex World

As many have learned, cracking the united front of a negotiation team can yield prized concessions. As with a teenager who knows how to play one parent against another to get permissions and privileges, the party across the negotiation table will pick your team apart if given a chance. Even if it’s an opportunity they don’t take, disunity can severely damage your credibility, and prolong or sometimes cripple negotiations. In an international environment, where team members can often be in different time zones, keeping a unified voice is a particular challenge.

A Negotiation Example

In a key negotiation meeting with a Japanese buyer, our team firmly held that the product we were selling had to be clearly differentiated by the Japanese before it was resold. Read more

Negotiation Examples: The Power of “Face”

 

“Face” is a person’s standing in the eyes of others. In negotiations, that means looking good to each negotiation side, peers, management, spouse and family. It avoids putting someone in an awkward position that could humiliate or embarrass them, particular with a direct confrontation. When confronted negatively, negotiations can quickly deteriorate. However, giving someone “face” makes them feel good and helps form good business relationships.

A Business Negotiation Example – Saving “Face”

At K&R Negotiations, we have extensive experience in business negotiations. We’ve collected numerous negotiation skills examples from a wide variety of business negotiations. Here’s an illustration of saving face from our collection of negotiation examples.

We were representing a buyer of equipment from a Chinese company. We were buying, not selling. Harvey was in the second seat, sitting across from the most senior negotiation on the opposing team. We’ll call him “Lu Jiang”. He was serving as a mentor for a much younger team member, Chang Lee, who was the lead negotiator for the Chinese team. As the mentor, Lu Jiang had a lot of face riding on this negotiation. Read more

Six Principles Every International Negotiator Must Know: M.O.R.E.

This is the fourth post in a series entitled: The Principles of International Negotiation: Finding Universal Value in a Complex World

International Negotiation

In our two previous posts on international negotiation, we discussed the importance of P&L (Patience and Listening) and the dynamics of credibility and leverage. One is a practice, the second is a conceptual understanding. They are interlocking and dependent. Patience and listening yield trust and information. Trust and information help us generate credibility and leverage – the two things you must have if you want to negotiate successfully.

What are some other ways to generate credibility and leverage? Over decades of collective experience as international negotiators, K&R has formulated six principles that serve as a guide to the fundamentals of negotiating. Read more

Negotiation Examples: Diffusing Intimidating Tactics

 

Negotiation Tactics Versus Gamesmanship

negotiation-examples

Negotiation tactics are techniques or actions intended to influence a negotiation. However negotiation gamesmanship consists of techniques or actions, unrelated to the merits of the transaction, used to gain an advantage in a negotiation. Thus, gamesmanship is a subset of tactics. For example, yelling, screaming, intimidation or walking out are types of gamesmanship tactics.

Why Understand Negotiation Games?

Gamesmanship is not for everyone, but all negotiators should recognize and understand these tactics. Gamesmanship as a tactic is used to cause confusion, intimidate, accelerate or improved leverage or momentum. Thus it’s a key skill to recognize gamesmanship tactics when they occur so that the skilled negotiator can deal with them. Read more