UNIT 13.
GETTING WHAT YOU WANT.
Part1. KEY PRINCIPLES OF NEGOTIATING.
A key principle in negotiating is to give a little and get a little at the same time.
VOCABULARY.
Win win
In a successful negotiation, everyone should leave the negotiating table happy with the outcome: there shouldnt be winners and losers. The negotiation should try to reach a win-win solution: an agreement of equal benefit to both sides. This can be achieved in a number of ways.
Part2. PROBING, PROPOSALS AND COUNTER-PROPOSALS, TRADE-OFFS.
Probing
One way of furthering negotiations is probing (asking the right questions and listening carefully to the answers).
Here are some probing questions:
a) What is the situation on production at your plant at the moment?
b) What sort of quantities are you looking for?
c) What are we looking at in the way of discount?
d) What did you have in mind regarding specifications?
e) What were you thinking of in terms of delivery dates?
f) How important to you is the currency for payment?
Proposal and counter-proposal.
Through a series of proposals or offers from one side and counter-offers from the other side, the two sides work towards an agreement which will benefit them both.
| Here are some ways of making offer | |
| If you offer more flexible payment conditions, | will be able to+inf. |
| As long as engine performance improves by ten per cent, | can agree to +inf. |
| On condition that you deliver 20 engines by May. | could consider +-ing |
| then we | |
| Supposing that you provide good technical support, | may offer +noun |
| Provided that you supply documentation in French | might offer to +inf. |
| Providing that this contract works out OK, |
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Trade offs
When you offer to change your position to one that is less favourable to yourself, you make a concession. Perhaps this is in exchange for a concession from the other side, although there is no guarantee of this. Your concession may be a goodwill gesture: a concession that you make hoping that the other side will see this as friendly and make a concession in return.
Even in a friendly negotiation, there may be horse-trading, with each side making a series of concessions in return for concessions from the other side. (This expression is often used to show disapproval). If you argue about something for a long time, especially about the price of something, you haggle.
A series of concessions in exchange for concessions from the other side is a series of trade-offs. If you make a concession, you may not get anything back. If you make a trade-off, you give something away and get something in return.
DISCUSSION.
Exercise 1. Read the text above again and answer the questions.
1. What situation can you observe in a win-win negotiation?
2. What do you mean by probing?
3. What question from B do you suggest for the following reply: Wed prefer US dollars?
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4. What question from B do you suggest for the reply: Well need the first 30 units in six months?
5. What is the best translation for the following conjunctions:
| If | |
| providing that | |
| on condition that | |
| as long as | |
| supposing that | |
| provided that |
6. When do we usually make a concession?
7. What is meant by horse-trading?
8. What two expressions do we use to describe long negotiations with a series of concessions?
9. Whats the difference between to haggle and to make a concession?
Part 3. BIDDING, BARGAINING AN D MAKING CONCESSIONS.
Unit 13
Exercise 1. Read the following extract. According to the writer, are these statements about negotiating True (T) or False (F)?
a) Decide on the most important and less important issues.
b) Try to guess what the other side thinks.
c) Note answer to the questions you ask.
d) Deal with issues in isolation, one at a time.
e) Make concessions and get a concession in return.
f) If there are problems, you have to accept or reject what is on offer.
g) Tough bargaining can combine with a spirit of cooperation.
Effective negotiating requires clear thinking and a constructive approach.
It is necessary to have a clear understanding of what for you are the most important issues and at the same time what for you are less important. Try to identify aspects in the second category where the other side will be happy to gain concessions. Give what is not so important for you, but is valuable for the other side.
To do this, you have to do the following:
Ø Check every item of what the other side wants. Ask how important items are and look for flexibility.
Ø Do not guess their opinions or motives you could be wrong, or they wont like your speculation.
Ø Note the other sides answers, but dont immediately say what you think.
Ø Avoid being forced into considering one issue alone, consider two or three at once aim for an agreement to a package.
If there are big differences between the two parties, you have a choice of these opinions: to accept. To reject, or to carry on negotiating. If you decide to carry on, then the opinions in the next round are:
Ø to make a new offer;
Ø to seek a new offer from the other party;
Ø to change the shape of the deal (vary the quantity or the quality, or bring in third parties);
Ø begin bargaining.
Your bargaining should be governed by three principles: be prepared, think about the whole package, and be constructive. In preparing, you must identify the issues and prepare your bargaining position. You need:
Ø an essential conditions list issues where you cannot concede anything;
Ø a concession list issues where you can make concessions;
Ø to grade the concessions from the easiest to the most difficult, where you need most in return.
As for the package, you must look for agreement in principle on a broad front.
When the time comes for compromise, each party will concede on one issue if they win a concession on another.
Unit 13
The final principle is to be positive and constructive. You should be fair and cooperative, even during difficult bargaining. This approach is most likely to move the negotiation towards a settlement that both sides feel is to their advantage.
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(From Negotiating by Bill Scott)
AFTER READING TASKS
Exercise 2. Read the text again to find out:
a) how to respond to what the other side wants;
b) three ways to change a deal;
c) three actions to prepare for bargaining.
Exercise 3. Read the extract again. Then make up a plan logically connected items with the key words for each that can help you to retell the story.
WRITING.
Exercise 4. Write an essay on the subject What you need for effective negotiating. An essay a piece of writing by a student on a particular subject.
STOP AND CHECK.
NEGOTIATIONS VOCABULARY
Exercise 5. Match the word to the correct definition.
| 1. | agenda | a) | a legal document that gives details of an agreement | |
| 2. | compromise | b) | meeting between at least two parties that aims to reach an agreement | |
| 3. | proposal | c) | plan for the meeting or negotiation | |
| 4. | priorities | d) | information used to help make your point in a negotiation | |
| 5. | contract | e) | agreement that is between the starting positions of both sides in a negotiation | |
| 6. | evidence | f) | most important needs or demands | |
| 7. | negotiation | g) | position (maybe a final one) that both sides accept | |
| 8. | agreement | h) | offer |
Exercise 6. Preparing for a negotiation.
1. Not all negotiations (or meetings) have a formal a ...
2. You should know your s ..... and w ...
3. Establish your o .
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4. Have all the i .. you need.
5. Prepare any v ... supports.
6. Prepare an o .. s ......
Exercise 7. About the opening statement.
Mark the following statements as True (T) or False (F).
| 1. | Everyone present should make an opening statement. | |
| 2. | The opening statement explains the purpose of the meeting. | |
| 3. | It is a good idea to make positive comments about the other side in the negotiation. | |
| 4. | In most situations it is best to try to work with and not against the other side. | |
| 5. | Both sides usually make an opening statement. | |
| 6. | It helps to try to understand the other sides point of view. | |
| 7. | The opening statement explains your minimum requirement from the negotiation. |
Exercise 8. Bargaining and making concession.
Choose the right alternative from the words in italics.
1. Its okay with us so long as / whereas you can supply the goods by January.
2. I f /Unless the specifications are right well be happy.
3. We wont pay that price if/unless you increase the quantity.
4. If you ask us to help you then well/we do send someone immediately.
5. If you pay in dollars we had to/will have to pay bank charges.
6. We can offer a discount but only/however if you pay at the time of the order.
7. We can reach agreement unless/on condition that the price is fixed for two years.
ITS INTERESTING TO KNOW.
BARGAINING.
Approaches to bargaining and negotiating can vary according to whether a company or culture is deal-focused or relationship-focused. Most negotiators lie somewhere between the two extremes. It is useful not only to recognise where your counterpart in the negotiation is placed, but also to identify which style reflects your own attitude to bargaining.
| Deal-focused | Relationship-focused | |
| Start the bargaining process | It is important to get down to business as quickly as possible. | It is important to develop a relationship before getting down to business. |
| Deal-focused | Relationship-focused | |
| Contracts | Written agreement is essential to prevent misunderstandings and to solve problems. | Personal trust is more important than a detailed contract. |
| Verbal communi- cation | It is better to be direct so that you can be clearly understood. | Indirect language helps to maintain harmony. It is very important to avoid giving offence. |
| Sincerity | It is better to be honest and say if something cant be done. | If you cant do something, you can at least show willingness to try. |
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Part 5. TYPES OF NEGOTIATOR
Exercise 1. Try to remember the tree different types of negotiation described in the beginning. We may also speak about three types of negotiator: the fighter, the creative negotiator and the one who looks for independent advantage.
To find out which one you are, answer the following questions and check your answers with the key at the end.
