Nogotiation Blog

Insights on Business and Sales Negotiation

Join us for insights on how to negotiate a winning balance, where where both sides understand and appreciate the value they receive. As a result, you are more likely to forge a long-lasting relationship that yields more and better opportunities in the future. This idea underpins K&R Negotiations’ Win Wisely™ approach and underlines the importance of using leverage wisely.

Forensic Forecasting - More business in 2009

We have added an article on Forensic Forecasting to the K&R Web Site.  The article begins: “Forensic” is an adjective meaning “appropriate for use in legal or public discussions”.  In today’s popular culture it often refers to the use of technical analysis for criminal cases.  We’re not taking your sales forecast to court, but we can tell you how to improve its accuracy - and your results.  When year-end measurements are coming, improving your results can have an even bigger impact. You can read and download the complete article here: Forensic Forecasting Best Wishes for every success in closing more business in 2009.

Effective Persuasion - The "stint work" story

Recently, the Mayor of Kingston NY and the President of the Civil Service Employees Association (CSEA) for the area got to air their beliefs about a work rule in a public forum – the Kingston Daily Freeman.  Their views were most likely collected independently, but were aired in the single major local paper.  Let’s see how well they used persuasion skills on the constituency. The work rule under discussion was one referred to as “stint work”.  Under this rule, the city-employed garbage collectors have the option of working until their route is complete, and then calling it a day.  If, for example, they hustle through the job in 4 hours, they can leave.  But they still get paid for 8 hours.  To us, some of this can be described as workers’ discretion - for example they skip…

More on Lose Credibility, Lose Leverage

Well, after last week’s “Lose Credibility, Lose Leverage” story about T-Mobile, Microsoft and the Sidekick, we can barely keep up.  Hitting the news this week: Microsoft and T-Mobile recover (sort of), IBM and the state of Indiana, “Balloon boy”, Raj Rajaratnam arrested, Energy Star© appliances that are not actually more efficient… Where will it all end?  Google those, and get the scoop.  All of these fall into a fundamental category of credibility and the impact credibility has on leverage.  Will Rogers said, “Rumor travels faster, but it don’t stay put as long as truth.”  There is plenty of opportunity in the interim to feel pain, and if the rumor and truth coincide, the long-term outlook can be grim.  Preserve your credibility. (td)

Lose Credibility, Lose Leverage - Another real-life example

Well, we hope you didn’t have to read this, “Sidekick customers, during this service disruption, please DO NOT remove your battery, reset your Sidekick, or allow it to lose power.”  That’s the message from T-Mobile and the Sidekick data services provider after a reported “cloud computing” failure, which is expected to cause clients to lose their contacts, calendar entries, and photos. We now have the latest in a long line of real-life “credibility and leverage” scenarios.  T-Mobile is scrambling to regain credibility and the satisfaction of T-mobile clients.  As part of that scramble, they have offered credits to affected clients. You may expect to see their competition start advertising something like this: “Your personal information is safe on your phone, and is…

Subcontractor Negotiations Foil Penske Bid to Save Saturn

By now most of you have heard that the Penske Automotive deal to save Saturn fell apart.  (See page 1 of the Wall Street Journal, for example)  The reason given is that Penske failed to secure a commitment from a third party to manufacture cars for sale under the Saturn name.  GM has guaranteed to do so for 2 years, but the issue was what happens after that. Penske was negotiating with Renault to be that supplier two years from now.  But Renault balked at the plan.  In our opinion, this was a good business decision by Penske.  Too often the requirement of a subcontract relationship to make a deal happen is left for later, especially if it seems that there is time to secure the subcontract.  But the risk does not go down just because there is more time.  In fact, as in this case,…

Cash for Clunkers - Part 2

In our recent “Cash for Clunkers” post, we discussed leverage in government car purchase incentive programs.  One question we posed was: “who has more leverage – the salesperson or the buyer?”  We thought the buyer had more leverage, feeling that it was easier for them to walk away given how long they had already owned a clunker. (You just get used to some things.)  We used this example in a recent K&R Negotiations Workshop, and heard a different view from someone who had experience with the program as a buyer.  He told us that at the car dealership he used, they were so busy that if you didn’t get “in the queue” early (days early!) you weren’t going to get processed before the program expired.  He told us that he waited over 3 hours to see the financing manager. …

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Creating Value-Based Leverage

In this short video, learn why negotiation is really the art of finding agreement.

Mladen Kresic introduces the concept of value-based negotiations leverage and why it is a powerful tool for moving conversations to an agreement.

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