techniques for negotiating win- win agreements kw050

Techniques for Negotiating Win-Win Agreements

KW050

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Presenter

Bruce Hardie

1. Spokane, WA

2. Agent, Owner, and International Master Faculty Member

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Session Title

Main Ideas

1. Power Negotiations

2. Critical Elements of Negotiation

3. Negotiations and Personality Types

4. Tactics and Counter-tactics of Negotiating

A copy of this presentation is available for download at www.kellerwilliamsuniversity.com

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Power Negotiations—An Art Form

1. Underlying Facts About Negotiating

a. You are always negotiating

b. Anything you want is owned or controlled by someone else

c. Responses to strategic maneuvers and gambits

d. Three critical factors in every negotiation

e. Differing personality types must be accounted for in negotiating

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Power Negotiations—An Art Form (continued)

2. Simple Rules of Win-Win Negotiating

a. Include all of the issues

b. Get to know the other person

c. Never assume that money is the bottom line

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Power Negotiations—An Art Form (continued)

3. Three Stages of Every Negotiation

a. Establish negotiation criteria

b. Gather information about the other side

c. Reach for the compromise and find the win-win situation

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Power Negotiations—An Art Form (continued)

4. Requirements for a good negotiator

a. Know that negotiation requires interaction

b. Desire to acquire negotiating skills

c. Understand principles and gambits

d. Practice

e. Desire to create win-win outcomes

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Critical Elements of Negotiating

1. Power

2. Information

3. Time

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Critical Elements of Negotiation (continued)

1. Power—Understanding It and Gaining It

a. Possibly the most important element

b. In any negotiation One is controlling (has power) One is being controlled (no power)

c. Eight types of power

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Critical Elements of Negotiation (continued)

Eight Types of Power

1. Legitimate 5. Charismatic

2. Reward 6. Expertise

3. Punishment 7. Situation

4. Reverent 8. Information

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Critical Elements of Negotiation (continued)

2. Informationa. Information = Powerb. Gathering Information

Ask open ended questions Keep repeating the question Question other people Bring an expert Carefully select the negotiation location Shop around

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Critical Elements of Negotiation (continued)

3. Time

a. Flexibility and concessions come with pressure and time

Higher pressure = worse outcome in negotiations

80% of concessions occur in the last 20% of negotiation time

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Negotiations and Personality Types

1. Success Requires

a. Understanding personality types and styles

b. Adapting negotiation tactics to personality types and styles

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Negotiations and Personality Types (continued)

2. Negotiating types/styles based on personality

“D” – Pragmatic “I” – Extrovert “S” – Amiable “C” - Analytical

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Negotiations and Personality Types (continued)

Pragmatic – “D”

1. Street fighters

2. Go for what they want

3. Certain there are winners and losers

4. Want to win

5. Fight hard and see little need for concessions

6. Negotiation challenge: Hold a

fixed position

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Negotiations and Personality Types (continued)

Extrovert – “I”1. Enthusiastic, often overly so

2. Lose sight that others are not as enthusiastic

3. Negotiation challenge: Often ignore feelings of others in negotiation

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Negotiations and Personality Types (continued)

Amiable – “S”

1. Pacifiers

2. Goal is to make everyone happy, not necessarily win the negotiation

3. Dread high pressure encounters

4. Long for a solution, even if it

doesn't meet their requirements

5. Negotiation challenge: Easily swayed

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Negotiations and Personality Types (continued)

Analytical – “C”

1. An executive by nature

2. Rigid in negotiation

3. Reluctant to be flexible

4. Precise on the details

5. Concerned with underlying principle

of any issue

6. Negotiation challenge: Inflexibility

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Tactics and Counter-tactics

1. What are the tactics and counter-tactics of negotiation

a. There are many; we will review the tactics, and how to counter them next

2. Why are they important for me to understand?

a. Know when to use them and how

to respond when they are being

used on you.

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Tactics and Counter-tactics (continued)

3. Will I use all of them?

a. Probably not; use what is appropriate based on the situation and the personality type of the other player(s).

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Tactics and Counter-tactics (continued)

The Tactics

1. Nibbling

2. Hot Potato

3. Higher Authority

4. Set-aide Gambit

5. Mediator

6. Never Take the First Offer

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Tactics and Counter-tactics (continued)

7. Good Guy / Bad Guy

8. Feel, Felt, Found

9. Smart / Dumb

10. Service Value

11. Walk Away

12. Flinching

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Tactics and Counter-tactics (continued)

13. Trade-off Principle

14. Vise Technique

15. Power of the Printed Word

16. Withdraw Offer Principle

17. Easy Acceptance

18. Funny Money

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Tactics and Counter-tactics (continued)

19. Decoy Technique

20. Red Herring

21. Puppy Dog Close

22. Reluctant Buyer

23. Want-It-All Philosophy

24. Splitting the Difference

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Remember

1. Always maintain perspective when negotiating

2. Don’t lose sight of the key issues

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Ideas into Action

1. Study the Personality Types (DISC)

2. During Your Next Negotiation, Track the Tactics and Counter-tactics Used

3. Practice Negotiating with a Partnerto learn What Works Best for You

Thanks for Being Here!Don’t forget to complete your evaluation!

KW050