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.

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. …

Cash for Clunkers: Some Simple Lessons in Timing and Value

If you live in Spain, Germany, France, Italy or the United States, or are following the automotive or economic news, you are probably aware of the government programs commonly referred to as “Cash for Clunkers”.  If you aren’t aware, here’s a simple view of how they work. Individuals that own older (but not too old) autos which get relatively poor fuel economy are encouraged to trade their car in for a new, more fuel efficient one.  The encouragement is in the form of a (presumably) inflated trade-in value paid directly by the government to the seller.  Buyers immediately get the benefit of the difference between the actual trade-in value of the auto and the government payment.  Over time, buyers and the environment both benefit from the improved economy of…

A "Happy" view of value

"Admiral produces boringly good numbers" is a headline from the fall Times Online (UK).  At K&R, we often write about the linkage between value and negotiation success (or sales success).  Well-done value arguments are compelling.  They result in shorter selling cycles and in more revenue and profit.  Poorly done ones lead to longer sell cycles and discounted prices.  Perhaps the most common value argument error we see is that people stop short of linking their value argument to a business result that the buyer cares about.  Something like "My product will make you more efficient."  It isn't enough.  We know that to be effective, "efficiency" has to be followed to its logical business-outcome endpoint.  In a simple way, Admiral gives us a clue for creating better value chains. To…

Saving your way to prosperity

Times are tough.  The stock market is at 1997 levels.  Unemployment is high.  Sales are down.  You need to manage your business results for 2009.  What do you do, and why? If we were playing the television game show "Family Feud" (or Family Fortune, if you're in London), the number one answer is...  Stop spending! How about it?  Can you save your way to prosperity?  While careful spending is always a good practice independent of the economic conditions, will it make you or your company successful?  Probably not. Let's look at the economics of earnings.  The big number isn't the cost line.  Well, the big number shouldn't be the cost line - too many people are losing money at the moment.  The real leverage to improve your business results is in the revenue / profit line.…

Value, Benefit, and Cost in Negotiations

In a K&R Negotiation Skills Training Workshop toward the end of last year, one of our clients brought in this formula... Value = Benefit - Cost Not perfect, but persuasive in many ways.  Let's discuss a couple of critical pieces of it. The first negotiating mistake we see related to this is that "value" is one of the most misused words in technology sales.  A maddeningly high percentage of the time, it is used by Sellers as a substitute for "price".  An example: "This deal provides you with $250,000 worth of software value for only $167,000."  This sort of presentation reminds me of the magazine subscription solicitations I get in the mail. "Photographing Travelling Automobiles, a $360 value, for only $14.95 for one year."  I do not believe there is anyone left in the world…

A Buyer's look at 2009 Opportunities

There are no original-but-excessive descriptions left for the present condition of the world markets and growth projections.  Insert one that resonates with you here... We agree with it completely. K&R had an interesting discussion about what the 2009 recession means with a significant buyer of technology hardware, software and services.  The company provides services to their own clients, and in the course of providing those services they deal with over 1000 vendors and spend over $100 million with those vendors each and every year. We wondered what the implications of the year would be to their vendor management. Many sellers will see extreme versions of historic buyer behavior in the coming year.  Many Buyers will choose based on price, and look for the absolute lowest pricing. …

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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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