Okay. we are going to have a little bit of a follow up
here. And so what I'd like to do is very
quickly talk about what we just saw in
our discussions, in our conversations. So
getting more information is key. What do
we mean when we talk about getting more
information? Look back at the
conversation, at the dialog. You can see
that each side is trying to say, "Oh no
your information is wrong. Let me tell
you my information. Oh no no your
information is wrong let me tell you my
information." So both sides are always
trying to influence or give out that
information because information is king
in a negotiation. Information is
everything. "This is key to a
successful distributive bargaining." "The
four goals of the negotiator include one
find out the other side's resistance
point. 2.) Influence the other side's
guesses. 3.) Influence the other side's
outcome valuations. and 4.) Influence the
cost of delaying or leaving the
negotiation. The ways to actually get
this done are called the tactics." And
we've kind of mentioned these already
right? but we just review them quickly
because they're so key, right? What we
want to do is we want to keep our secret
secret, and we want to get the other side
secret information. We want to try to
figure out the resistance point if we
can. We want to, if we could, get their
target price. That would be good. We want
to influence what they think of us, and
then we want to influence what they
think the value really is. Okay, now we're
going to look at a few specifics. It's a
little bit too tiny here for the screen,
but you can look inside your book and
get the details. What we're doing is
we're looking at very specific tactics,
you see. So what we did is we started out
at the beginning talking about the big
idea, making some goals, getting a goal
package. Then we talked about some
overall
strategies, the four big strategies. Now,
we're talking about distributive
negotiation. Then we get down to how do
you actually do it? What is the actual
tactics that you use? And now we're down
to the very specific kinds of words you
can use and the specific kinds of
tactics you can use. So I'm not going to
go over each one in a super detail, but
what I would like to do is just quickly
shoot over a few of them. Indirect
assessment, for example. Indirect
assessment means how can you find out
what the other side's resistance point
is? How do you find out what that
resistance is? How do you find out what
that target is? You can try to check
information. Maybe check the newspaper.
Check some articles. Check the accounting,
a public accounting statements of the
other company. So you can always try to
get information. Check the internet. See
if you can find something out about the
other side, and that information will
help you understand this product or this
price that you're negotiating over now.
So indirect meaning try to find some
information from another way. Direct
assessment means find information
directly from the other side. How can you
do that? Well, you could just ask, right?
It's very doubtful they may tell you, but
you never know. They might not be careful
about keeping their secret information
secret so you could just ask. Another one
is when they talk, listen carefully to
what the other side says. They may be
giving you a clue about the resistance
point.They may be
giving you a clue about their limits. Are
you listening? In other ways, you can
just ask somebody on the team or maybe
you have friends of friends of friends
maybe who know someone who knows someone
who knows someone at the company. That's
another way. That....
sounds indirect, but it's actually a little
bit direct because you're getting
information from people there. That's another
direct way actually. Screening, selective
presentation, emotion-- all of these are
ways to observe the other side or
influence the other side to make them
think something which you want them to
think or to make them react in some way
to give you some information. You can
also use logic and hide information from
the other side. Keep your secret
information secret. Hide some information
like what is your inventory? what are
your sales numbers? what is your cost?
what is your capital cost? what is your
manufacturing capacity? You can keep
these things secret. You can hide them
and that could actually influence the
other side. So you can use logic. You can
use outside partners. You can change the
schedule of the meeting for example. "Oh,
we're supposed to meet this morning, but
actually we can't make it. We have to
postpone the meeting until tonight." Or
maybe the other team is flying in on an
airplane, and they fly for 12 hours on a
flight. Then you schedule the meeting for
early in the morning the next day, and
they only get a few hours sleep, so you
can schedule things or change schedules
to make the other side more tired. How
does this help you? It may mean that
they're not so good at keeping their
secrets. They may make mistakes and tell
you information that they would rather
not tell you. I know that all sounds a
little bit kind of sneaky, a little bit
harsh, but these are tactics that are
used in negotiation. Again, the key point
to remember is you want to get the other
side's secret information any way you can.
So now I want to look at some
negotiation positions. We kind of talked
about this earlier in another unit when
we talked about how do you begin the
first offer? How do you do a follow-up
offer? So what I want to talk about is
the tactics, the tactics you use to
actually influence or to give the signal
to help you win as
you negotiate. Remember first that
distributive bargaining is all about
getting something from the other side. So
it's important that the other side give
up something, and you don't give up
something, or the other side gives up
more, and you give up less. The key to
this is to start with an opening offer
that is not close to the resistance
point. Remember that? Even your target
point, right? we talked about, what's your
target price, what's your resistance. Now,
you want to be away from your resistance,
and then you want to even be a little
bit away from your target because the
other side will push you over your
target. Now, of course, once you begin, you
can say things like in this example, "I
won't give up anything. I want to help
you, but I'm not going to give up
anything." So this is kind of the stand
you need to take. "I'm trying to cooperate,
but I'm not going to give anything up. I
want to help you, but I'm not going to
give in. I would like to come to an
agreement, but this is my bottom line." So
this is the kind of normal negotiation
stand you take with your position. You
try to sound like you're helpful, but
actually you're going to keep a solid
position. You're not going to move. Now
that's what you present to the other
side. That's what you make the other side
hear, so that they think you're being
positive when actually you're trying to
also be tough. So what we have here are
basically two attitudes: friendly, I'm
trying to help you, and tough, I cannot
give you anything more. Friendly-- I want
us to be happy. I want us to win win, but
tough-- this is my bottom line. So these
two ideas together, these two attitudes
these two ways, these two tactics to
express yourself, call them friendly and
tough. One way is friendly. One way is
tough. Now when you negotiate, you mix
these together of course. But you tend to
prefer one. Are you going to be mostly
friendly or are you going to be
mostly tough? So if you're going to be
mostly friendly, then the opening offer
is going to be further from the
resistance point, and if you're going to
be tough, in other words, if you're going
to be friendly, then your resistance
point, you need to begin much further
away because you're going to have to
give up more beacuse you are trying to be nice.
You're trying to be friendly. "Oh Ok. I'll
give you something. I'll give you
something." They'll give you something.
This makes the other side think that
you're being friendly. You're
cooperating, so you give up more, and then
they give up more, and then you come to a
conclusion sooner. The other way is to be
tough. And if you're gonna be tough, that
means I don't give in. I don't give you
one cent. I don't give one dollar. You keep
saying it's my bottom line. I cannot give
you any more, but if you do that then you
must begin closer to your resistance
point. Because the other side is going to
keep trying to push you, but you're not
going to move. If you begin very, very far
away, and you're very very tough, it's
going to be very hard to get an
agreement because you're so far and
you're not going to move. And remember in
negotiation, it's a process. You have to
give things up. You cannot give nothing
up, right? But the question in
distributive is can we give up less, and can
we get more? "Even though the other side
may not like the tough attitude, this
approach can make the negotiation
shorter." Because you begin closer to your
resistance, and you say, "That's it. That's
all I'm going to do, and I'm not going to
change." And if you give something, you get
very, very little bit at one time, and
then the other side gets tired, and then
you come to a conclusion faster. On the
other hand, if you're going to be
friendly, you need to begin further away.
And if you begin further away from your
resistance point, you have to give up
something. Give up something. Talk, talk
talk. Give up something. Give up something.
And it takes more time, so the tough
negotiation, although it seems like it's
harder, actually in the end, may make the
negotiation
shorter. Not always, but it is possible.
Once the other side sees how hard it is,
they're going to give up. They don't want
to keep fighting, and then you can move
forward. Okay, but if you're too tough, if
you're too hard what happens? Well, if
you're too tough, if you're too hard, if
you're too far from the resistance point,
and you're over the other side's
resistance point, they will just walk away. They
will give up. They will not negotiate.
That's possible. Okay, now let's go ahead
and look at a nice simple diagram here.
And in this diagram, we can see what I'm
talking about, a little bit more
graphical, right? Let me give you a nice
clear look at that. So we have an
arrow, right? And this is moving through
tim, moving through time, so we're going
to be moving across time, from the
opening offer up here, over to opening
attitude first concession, more
concessions final offer, over there at
the end. So we begin, and then we continue
until the end. So what happens when we
have our opening offer? Well, let me give
you a nice clear shot here, a nice
close-up. Opening offer-- don't start too
close to your resistance point. Start
further awa. And then opening attitude
means you start out friendly or tough.
You can be friendly or tough. You, of
course, could have a little bit of both
there. You could be mostly friendly or
mostly tough, but you can't really be
half tough and half friendly because the
other side will be confused. At one
minute, you say, "I will not give
anything. This is my bottom line okay
I'll give you what you want, but that's
my bottom line. Okay. I'll give you that
too, but that's my bottom line, OK. I'll
give you but that's really my bottom
line. This is my last bottom line." You see
that's very strange, right? Can't really do
that. So what do we do? If you're going to
be friendly, start further away from your
resistance point.
If you're going to be tough, begin
closer. But try to be mostly one or the
other. So as you move across, you have a
consistent attitude. If you take a strong
stand, then your first concession will be
tiny. If you take a friendly one, then
it may be bigger and you may give more.
And then you give more concessions. How
many do you give? If you're being
friendly, you give many. If you're being
tough, you give few, and finally you get
to the final offer. So the key point here
is to remember the negotiation has a
beginning and an end. So you've got to
move through time. As you move through
time, you're going to give something. How
much do you give and how much time does
that take? Those are key questions. Are
you being friendly? or are you being
tough?
Okay. Let's do a little bit more follow
up here, and then this follow-up: "If no
concessions are made, the negotiation will
not move forward. What does this mean? If you
don't give anything, you cannot possibly
move forward. So you got to give
something. You got to give something. You
... cannot give nothing. A tough
stand, fewer concessions. A friendly stand,
more concessions. In both cases,
concessions are important. So I don't
want to tell you be tough, and you never
give anything. You give something, but how
many concessions and how much do you
give depends on your stand. Concessions
should become smaller though, even if
you're being tough, even if you're being
friendly, your concession should become
smaller and smaller. In this way, the
other side will think the concessions
are nearing the resistance point. Let me
give you a little picture here to show
you what I mean. So I like this picture
because it's very easy to understand. So
what we're saying in this picture here
is as the negotiation moves forward, you
give more concessions. You begin and you
give something. You give something. You
give something, okay. Now, what you can do
is you can say, "I'm going to give you
something, four dollars" or you can say "I'm
going to give you nothing, zero dollars."
So I'm going to give you nothing. I'm not
going to give. I'm not going to give up
anything. I'm not going to change at all.
Or I can say, "here four dollars." So what
does this mean? "Well, I'll give you four
dollars. I'll cut the price four
dollars for you", and then you say, "oh
thank you. Okay. blah blah blah. Then I say
"Okay, I cut the price another four
dollars for you", and you said, Okay, thank
you." But you know the price is still too
high, and I say, "Okay, I'll cut the price
four dollars for you." You follow me? So if
I keep giving you four dollars, four
dollars, four dollars, what do you think?
You think, "Well, he gave me four dollars,
and he gave me four dollars. Then he gave
me four dollars. He can give me another four
dollars." So if you give up more, and you
keep giving the same amount, then the
other side will think you can still give
more. But a better way is you begin by
giving four dollars, and then next time,
you give two dollars. Then next time, you
give one dollar, and in this way, it looks
like you've already given everything you
can give. So I begin by giving up a
little bit more, then I give a little bit
less, and then I give a little bit less,
and each time I give less. Now it looks
like I have no more to give you, see. So
over time, if you're being tough or if
you're being friendly, it's the same
thing. It's just how long does it take?
You give up less and less so that the
other side thinks you don't have
anything more to give up. You cannot give
nothing. You cannot just say I give you
nothing because then it won't move
forward. You have to give some
concessions, but how much do you give?
Well, it depends on are you being tough?
Are you being friendly? And then you need
to overtime change that to be less and
less.
So as the negotiation gets very near the
end, you give less and less. The other
side gives less and less. What happens? As
you get to the end, that's when the
negotiation may get very hard. At the
beginning, I give something, you give
something, we both give something, that's
normal. But then, we get to the hardest
questions, the hardest part. This is when
we need to have that final push. This is
very normal in negotiation. You spent a long
time. You worked out many things. You made
a lot of progress. Now is the final push,
and that is not easy. So how do you final
push to find your agreements? What's the
things you can do, the tactics you can do
for the final push? Here, we have a few
things in our book. For example, provide
alternatives. Maybe, you can give
something else or do something else.
Another thing you can do is assume a
deal. This is very common. What does assume
a deal mean? It means that we're
talking, talking, and I want, I need one
more dollar. And you say, "No, I will not
give you a dollar." It's just a dollar and
you say, "No, I cannot give you a dollar."
And then I say, "Okay, it's a deal." And you
say, "No, no well. I didn't give you a
dollar." I say, "No, no. That's okay. I know
you're gonna give me a dollar." I assume. I
assume. I just say, "Well we can do it. It's
okay. I think you'll do it. I trust you. I
believe you." And then you just say, "It's a
deal." It's not really a deal, but
sometimes that works. You can also split
the difference, whether split the
difference half and half. The little bit
that's left, just cut it in half. A
deadline offer means I'm going to give
you some time and before this time if
you agree, it's okay. But after this time,
game over. I'm walking away. That'll give
the other side pressure to push to the
end. Sometimes you can do what's called a
sweetener. The sweetener means you give
something extra. Maybe you promised to
buy more or you promised to in the
future buy from them again. Or as a
supplier, you promised to give them a new
product in the future
or a product they don't have today or
product that's very popular in the
future, like in our example. So to sum up
today, a lot of material in this
chapter, a lot of technical material, a
lot of detail material, especially on the
vocabulary and those charts showing you
the different tactics. Why so much detail?
because today's chapters about tactics
how do I do it? It's easy to talk about,
but how do I actually do it. And then
what's the main point today we take away
from this chapter, this unit? We take away
this idea of you've got to make the
other side lose something so you can
gain something. There's just no other way
in distributive bargaining. How do I do
that? Well, you got to give something.
You've got to give something, but make
sure what you give is smaller than what
you get. How do you do that? Carefully
make sure, as you're moving forward
through the negotiation, you make the
other side think, "I cannot give any more.
I've given you four dollars. I've given
you two dollars. I've giving you one dollar.
That's all. I don't have anything more to
give." By making the other side think this
you create a situation where they will
soon stop. Or the other thing is get
their secret information. If you know the
resistance point, if you know their
target point, then you're able to make
offers that benefit you more. Not easy to
do. How do you do it? Talk to them, ask
them, watch them carefully, listen to them.
Watch their group, who is saying
something. Maybe ask friends of friends.
Check information. OK. So a little bit
detailed. Hope you didn't fall asleep.
Good luck with your negotiation and see
you next time.