bob fishbein, avp business operations berkeley college track: management the art of vendor...

Bob Fishbein, AVP Business Operations Berkeley CollegeTrack: Management

The Art of Vendor Negotiations

1Annual MeetingApril 7 - 10, 2013Orlando, Florida

Agenda

• Negotiating Mindsets (Buy/Sell Sides)• Positions of Power• Negotiation Tactics• Deadlock Strategies • Cultural Differences• Basic Do’s and Don’ts • Useful Websites• Q&A

Annual MeetingApril 7 - 10, 2013Orlando, Florida

2

Bob Fishbein: Professional Background

• 20+ Years Multi-Unit Business Operations

• Higher Education– Berkeley College

• AVP of Business & Auxiliary Operations– Columbia University

• Executive Director of Operations

• Corporate Operations– BJ’s Wholesale Clubs

• AVP Regional Operations– CompUSA

• Regional Director of Sales


3

Berkeley College

• 7 Campus locations within NY and NJ

• Approximately 8,500 Students

– The School of Professional Studies– The School of Liberal Arts– The Larry L. Luing School of Business – Berkeley College Online


4

Negotiating Mindsets (Buy/Sell Sides)

• What are the “pressure points” of the other side?– Sales Quotas– End of Life Merchandise– Rebate Dollars– Margin Dollars– Deadline Dates– Service Levels– Market Share– Vendor Competition


5

4 Main Pressure Points

• Time (biggest leverage point in negotiations)

• Vendor Options (real or perceived)

• Controlling Emotions (able to walk away)

• Information (ask focused questions)


6

Negotiating Mindsets (Buy/Sell Sides) • Ask focused questions

– Was vendor ‘XXX’ in the news recently?

– When does the proposal price expire?

– Is the expiration date negotiable?

– What is the “cost breakdown” of the service or product?

– Do you work on commission?

– Are you meeting your quota?

– Must Have / Would Like to Have (wants or needs)

– No predetermined assumptions


7

Positions of Power

• Power as a mindset (perception is reality)

• Plaintiff (first position)

• Defendant (second position)

• Assumptions create anchors (good and bad)

• Create anchors in the right place (high or low)

• Create “needs” for the other side (the iPad marketing)


8

Positions of Power

• Legitimate Power (job description)

• Knowledge Power (subject matter expert)

• Negotiating Skill Power (training and experience)

• Assumed Power (mindset)


9

Negotiation Tactics– Reference Karrass Effective Negotiating

• The Bogey (“I love the proposal but only have $xxx dollars”)

• The Crunch (“You’ve got to do better than that!”)

• The Nibble (“What tie are you giving me with this suit?”)

• Garbage on the Lawn (Listing all the past service issues)

• The Flinch (Showing shock on price and waiting for response)

• Tying a String (Added concession for agreement)


10

Deadlock Strategies

• Change Meeting Location

• Introduce New or Updated Information

• Change Negotiating Team Members

• Change the Shape and/or Time of Money

• Take a Break or Time Out

• Talk off the Record


11

Body Language


12

• Perceived Energy Level• Pause Before Responding• Hand Gestures• Sitting Defensively• Feet Direction• Mirrored Behavior (smile)

Body Language


13

– Reference Darcy Brooker Animation Study

• Up-Left Remembering• Up-Right Creating• Down-Left Searching• Down-Right Feelings• Quick-Close False

Cultural Differences

• Richard D. Lewis, Founder of Berlitz School of Language• “When Cultures Collide,” (1996)


14

Basic Do’s and Don’ts

Do’s Don'ts

Know your wants and needs Don’t do all the talking

Know their pressure points Don’t be intimidated

Set high targets Don’t trust your assumptions

Take time to pre-plan Don’t rush to contract

Challenge their facts and numbers Negotiation is a process not a contest


15

Useful Websites

• www.karrass.com

• http://www.amanet.org/

• http://www.negotiationskills.com/


16

Q&A

• What negotiation strategies will you start doing when you return to your campus?

• What negotiation strategies will you stop doing when you return to your campus?


17

NAEP Professional Development

• Tier II - Procurement Academy • February 2014

– Nancy Brooks, MPA, Iowa State University– Christopher Johnson, C.P.M., University of Idaho– Burr Millsap, CPA, M.B.A., University of Oklahoma– Robert Haverkamp, Esq., The Ohio State University (retired)


18

bob fishbein, avp business operations berkeley college track: management the art of vendor...

Documents

florida slide

power mindset annual

agreement annual meeting

record annual meeting

body language annual

ipad marketing annual

positions of power power

art of vendor negotiations