Theme 12. Negotiation. Contract.

Ведение переговоров, обсуждение и подписание договоров.

 

Text 1. Tips for successful negotiation:

Every manager needs to know how to negotiate, both with his own people and with customers.

Start by always using the 'negotiating zip'. In any negotiation you need to be able to move from a position of agreement to a position of future agreement. Inexperienced negotiators tend to begin by thinking: 'Well now, the biggest problem we've got to agree on is this. If we can agree on that, the rest is easy.' So they begin the negotiation by saying: 'Well George, the biggest problem we have got to look at is this, so that's where we'll start.' That is a fundamental error.

Supposing, instead of starting with the biggest area of disagreement, you started with an area of agreement, then you can say: "Right, we've got a variety of things to discuss, and I believe that we both agree that'. There must be something that you can agree on, even if it is only the need for a negotiation. 'There seem to be a lot of differences between us but obviously you agree with me that it's worthwhile sitting down and trying to negotiate some agreement over this, isn't it?' At which point the other guy says 'Yes', and every salesperson knows that if you can start with a yes you are moving in the right direction.

You then continue along the zip, taking each item in ascending order of difficulty. What you are doing is teaching the other person how to work with you, showing that you can reach agreement on things. He learns that you do give concessions, but that sometimes he has to do the same. By the time you reach the most difficult problem at the top of the zip the situation is completely different, because the other person has spent all this time agreeing with you, while learning how to negotiate with you. If you have agreed ten other things with him, he will feel much more inclined to agree the eleventh, and hardest thing, than if you had produced it right at the beginning.

Striking a better deal

Once you have reached an agreement, you should then see if you can find ways of improving the deal for both sides. Supposing he's agreed to buy eighty tons of your product the month after next. It would help you if he would order 100 tons, because that's a truckload, and it would help you if you could deliver a month early because you have a slack month coming up. That gives you two financial inducements which you can offer him.

The important thing is that the improvements have got to work for both sides, and the same goes for concessions. You should never just give them away, always trade one concession for another. So you always say to somebody: 'If you will do that, I can do that.' If he offers to give you a concession for nothing, of course, then you just take it and keep quiet. It means he's never done a course on negotiating.

Have you ever tried to negotiate a deal for software, computer equipment, or consulting services with a technology company? The task can be daunting. Unfortunately, the sales forces of most IT companies are armed to the hilt with techniques to get the best deal for them, and not necessarily the best deal for you. And even worse, most of us computer folk (like myself) have never been trained in the art of negotiation, so it can be difficult to spot a snake in the grass. Before you begin negotiating a technology deal, know what you're getting in to.

Solicit, Don't Be Solicited

I receive at least three calls each day from technology vendors interested in selling something: hardware equipment, software tools, consulting services, etc. Usually, these calls are "cold". My name somehow landed on a telemarketing list in the hands of some vendor who is calling me out of the clear blue sky hoping that what they sell somehow matches what I need. You can waste hours on the phone letting some non-technical, script-reading, telemarketer or sales representative chew your ear off about their latest and greatest gizmo. Very rarely do these types of calls ever translate into a real business opportunity.

The most popular cold call opening is "Good morning. This is Joe from the XYZ software company. We offer break through whatever solutions to help you reduce your total cost of ownership for whatever. Let me ask you, are you responsible for managing your companies whatever investment?" I get so many of these calls that I can answer them in my sleep. Years ago, I used to engage in some level of discussion with these people and it always went nowhere. Unless you really think they've got something you might want to buy, cut them off immediately. And just like any telemarketer, they have a scripted response for anything. If you answer the above question with "No. I am not". The immediate response will be "Could you direct me to someone in the company that is responsible for whatever". If you hand out a name and number, you're just passing the buck to some other poor soul in your organization. My favorite response is "No. We don't respond to phone solicitations." Nine times out of ten, they will give up. Sometimes, the cold caller will make another run at it and re-state their purpose or as they close the call, sneak in another sales pitch. "Yes sir. I understand. We offer something really great for your company and would love to send you a free trial version at absolutely no cost. It’s free to try." You could be tempted to say "Free? Tell me more." Again, this type of response will just open up the sales speech flood gates and you will be wasting your time trying to get a word in edgeways. Stick to your guns: "As I said. We don't respond to phone solicitations." is the proper response. If they make yet one more run at it, the final blow would be "Not sure if you're deaf, but I said we don't respond to phone solicitations. Tell me your name and transfer me to your supervisor." You will either hear apologies or a dial tone. Either way, you've just gotten yourself off of a call list and will never be bothered again.

If you're interested in buying something, you do the calling, not the other way around.