Buyer and Seller : in 2 minds? Welcome to CIPS Yorkshire Branch Meeting
Introductions O Deb ebbie ie Shore e O Sarah Morga gan
Sales people? What phrase springs to mind? Vote now Wide-boys A. B. Your new best friend C. The guru D. The consultant Honest John E.
University of Houston says… O The Assurer O The Engager O The Compellor
Negotiating, not trading We e often en res esor ort t to la lazy tr trad ades es in our dai aily ly li lives es
A state of conflict ‘Negotiation is applicable where there is disagreement or potential disagreement between suppliers and buyers’ (Lysons and Farrington)
The sales person’s objectives O To achieve revenue targets O To achieve profit/yield O To build long term relationships O To achieve customer satisfaction O Market growth/marketshare O New business development
“When others sense your willingness to walk k away, , your ur hand nd is strengthened….Sometimes you are better off not getting to yes.” Rober ert t Rubin, n, former mer US Secre reta tary y of the Treasur easury y and co- chairm rman n of Go Goldma dman n Sachs s
Sales tactics Structure ucture O Prepare Prepare DIPADA / AIDA O Argue Debate FABs O Signal Propose Competitor O Propose Bargain knowledge/ weaknesses O Package Objection handling O Bargain – real, imagined O Close and hidden objections O Agree Adding value (Gavin Kennedy, CIPS) Test and probe
Negotiation planning Neg egoti tiati tion on BATNA – Best Alternative – offer choices of proposals Upselling/cross selling Top, middle and bottom Shopping list Never concede, trade
Closing the deal Closin ing Trial closes Closing techniques e.g. assumptive close Win-win ZOPA (Zone of possible agreement)
Building relationships Inter erpe persona onal l Motivation - of sales person and buyer Blocking, stalling developmental tactics Customer satisfaction Listening Metacommunications Paralanguage
The solution, we are told, is not to sell to people, but to help them buy Grant Leboff, Marketing Donut (http://www.stickymarketing.com/)
In the context of your own organisation, what is the most prized outcome of a negotiation Writ ite e it on a post t it note • Eliminat iminate e duplic ication ation by placing ing your note e on top • of simi milar lar one ne/gr /groupin uping g similar milar one nes s together er
The Buyer’s objectives O Review post – it notes O Any comme omments? ts?
Win/Win • A focus on results not methods • High levels of motivation • Rewards and goals orientated Wit ith win in/win in acc ccou ounta tabi bili lity ty, , peop ople le eval valua uate th thems mselv lves Stephen R. Covey
Results of negotiation Win-lose : one party gets what he wants at the expense of the other party Lose-lose : neither party gets what he really wants. Compromise comes into this category. Win-win: both parties get as close as possible to what they really want. (Cornelius and Faire)
Key words O Collaborative O Integrative O Distributive
Hard, Soft, Principled Negotiation I Problem Solution Positional Bargaining: Change the Game: which Game Should You Play? Negotiate on the Merits Soft (cosy) Hard (adversarial) Principled (partnership) Participants are friends Participants are Participants are problem- adversaries solvers The goal is agreement The goal is victory The goal is a wise outcome reached efficiently and amicably Make concessions to Demand concessions as Separate the people cultivate the relationship a condition of the from the problem relationship Be soft on the people Be hard on the people Be soft on the people, and the problem and the problem hard on the problem
Hard, Soft, Principled Negotiation II Soft (cosy) Hard (adversarial) Principled(partnership ) Trust others Distrust others Proceed independent of others Change your position Dig into your position Focus on interests, not easily positions Make offers Make threats Explore interests Disclose your bottom Mislead as your bottom Avoid having a bottom line line line Accept one-sided Demand one-sided Invest options for losses to reach gains as the price of mutual gain agreement agreement Search for the single Search for the single Develop multiple answer: the one they answer: the one you options to choose will accept will accept from; decide later Insist on agreement Insist on your position Insist on using objective criteria
Hard, Soft, Principled Negotiation III Soft (cosy) Hard (adversarial) Principled(partnership Try to avoid a contest Try to win a contest of Try to reach a result of will will based on standards of independent will Yield to pressure Apply pressure Reason and be open to reasons; yield to principle, not pressure Source: Getting to Yes (Fisher and Ury)
Conflict modes
Conflict-handling styles (Thomas -Kilmann) Avoiding: ding: you withdraw from the conflict or attempt to sweep it under the carpet. Compet eting ing/f /forcin cing: you impose your solution on the problem. Accommo moda dati ting ng: you concede the issue without a fight, to preserve harmony. Compromising mising: you use bargaining or negotiation, so that each party trades some concessions for some gains. Collaborat rating ing: you work together to try and find an outcome which meets the clearly stated needs of both parties as far as possible.
Which style are you? Vote now Competitive A. Compromising B. Collaborating C. D. Avoiding Accommodating E. P.S if you want to do the Thomas-Kilmann diagnostic questionnaire later, ask us for a copy
The Relationship Spectrum
Collaborative advantages O Open book accounting O Transparency O Value-added opportunities O Supports internal relationships O Flexible contracts O Innovation and value engineering opportunities O Long term relationships O Minimise supply chain risk O What others do you currently use?
Room 100
Guerrilla Negotiation Tactics
Win-Win
Commission only sales people
Which would you banish ? Vote Now Guerrilla Negotiation Tactics A. B. Win-Win C. Commission only sales people
Negotiation is… O Agreeing terms of the exchange O Takes place once the intention to exchange has been stated O The achieving of each party’s objectives – finding the common ground O Consider conflict carefully!
Thank you O Any questions? Contac act t detai etails Debbie Shore Curriculum Area Manager, CIPS Tel: 0113 216 2099 Deborah.shore@leedscitycollege.ac.uk Sarah Morgan Curriculum Leader, CIM Tel: 0113 216 2374 Sarah.morgan@leedscitycollege.ac.uk
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