Plug

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Plug Play Negotiating

• ML Taylorposted on line until March 2002
• mltweb.com/seminars/seminar.htm

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Objective

• Win without fighting!
• Sun Tzu
• Prepare for war and do everything you can to win
  before it starts

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Negotiation is a Frame of mind

• Personal planning commitment
• Prepare to win
• Teamwork admin, maintenance users
• We win together
• Establish common goals
• Long term success is a driver for each department

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Goals

• Build a wish list ahead of timeEstablish needs
  vs. wants
• Build an agreement of consensus
• Each point of agreement is one step closer to a
  deal
• After a lot of little steps, its a long way back

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Never too soon to start

• Most negotiations are over before they start
• Common mistakes
• Youre the sole source
• Competitor cant
• I have a deadline
• First impression sets the stage
• Why are they talking to you?
• Competition is a powerful friend!

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Fact Finding

• Gather information
• Tour, travel and read
• Hard questions are easier when not negotiating
• What is the failure rate?
• Ease of repair?
• Service response time?
• Listen (dont give up information)
• Confirm all assumptions
• Record (save it for when you need it)

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Pick the Person, Place and Time

• Who will make the decision?
• Who stands to gain the most if an agreement is
  reached?
• When is the best time to negotiate with a
  salesman on a commission?
• Be ready to close the deal? (With an order)
• Include powerful friends
• Precedent, policy, president

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Leading Questions

• Shape the answer you want with the question you
  ask
• Make sure you get the answer
• Focus the question on the issue not people
• Article Leading Questions

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Leading Questions

• Is there a competitive product?
• What makes yours better than the competition?
• How many have you had to fix?
• What is the turn time for fixes?
• Why cant you?
• How can we make this happen?

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Dont negotiate with yourself

• If you dont ask for it, you wont get it
• How long is the extended warranty?
• If you haven't asked you dont know.
• How extensive is the included spare parts kit?
• We are ready to place the order today if you
  accept it that way
• Article Dont be afraid to ask

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Ask Better Questions

• Do I get a price break?
• How much is the price break?
• Do we get maintenance service?
• How long is the maintenance coverage?
• Can I buy a warranty?
• What warranty?

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Is there a better way to ask?

• Does it come with a spare tire?
• Does the pump include a coupling?
• Is mounting hardware included?
• Has it been approved by this city building
  inspector before? Where? When? Who?
• Where is the approved repair station?
• What are you going to do if it doesnt work?

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Serve the Ball

• Whos problem is it?
• Price is too high
• Doesnt meet specs
• None in stock
• Cant deliver on time
• Dont waste energy fretting about it, serve the
  problem to the other side
• Id buy today if the deal was right
• Make the other person turn the deal down.
• Are you saying we cant reach an agreement?
• You mean we have to start all over?

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Break A Deadlock

• Change the terms
• If we agree to a 2-year purchase can we make a
  deal?
• Change the people
• Is there someone who does have the authority?
• Leave them a way to save face
• Dont make them admit it. Blame it on a typo
• Give uhem a way to sell it to their company
• This is a great opportunity for long term business

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Strategies

• Im on your side, the boss wont like it
• Just one more thing after another
• I thought we agreed?
• It isnt in the budget
• Our Procedure/ policy wont allow it
• The plumber principle

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Summary

• Plan Ahead
• Start First
• Gather facts
• Pick Who and When
• Ask the right questions
• Serve the ball

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Discussion
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Plug Play Negotiating

• ML Taylorposted on line until March 2002
• mltweb.com/seminars/seminar.htm

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RESOURCES

• Purchasing Toolbox
• Purchasing Articles
• Purchasing Links
• Purchasing References

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Negotiation Checklist

• What can be negotiated?
• Dont leave home without it!
• http//www.mltweb.com/tools/what.htm

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NEGOTIATIONS SEMINAR
Presented by Dr. Tom Tripp   Sponsored by
      Date Thursday, February 21,
2002 Location Red Lion Hotel Richland,
WA Time 800 a.m. - 1100 a.m. and 100 p.m. -
430 p.m. (the regularly scheduled monthly
meeting of NCMA will take place from 1130 a.m.
- 1230 p.m.) Cost 95/NCMA members
125/nonmembers NCMA, Attention Clo Reid, P.O.
Box 711 Richland, WA 99352.
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RESOURCES

• Resource Guide Negotiation Skills in Purchasing
• ISM Articles
• Team Negotiations in a Single Voice.
• Negotiation for New Product Designs.
• On-Line Negotiation An Evolution of e-Commerce.
• Improving Your Sole Source B2B Negotiation
  Techniques!
• 21st Century Negotiations.

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Personal Strategy

• Review the checklist before you begin
• Mark all important issues
• Assumption/ Confirmed/ Source
• Post a cheat sheet of common questions
• Build the contract as you go.
• Touch all the bases, document it and get it
  signed
• Dont forget the net as a research tool
• Failure analysis
• We do it for equipment, why not our negotiating
  skills

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Discussion
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