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  • Okay, let's do a little bit of a follow up here, follow-up to the conversation. So

  • Fred and Jane, they're having a disagreement that's normally what we

  • call it, maybe you'd even call it a fight if they start yelling at each other, get

  • angry, I think it's easy to get frustrated. But, in reality they're just

  • negotiating

  • so, this is a kind of negotiation. Negotiation have some key parts we want

  • to remember, let's look at what those key parts are. They include: goals strategies,

  • issues and planning so, when you have a negotiation it's important to remember

  • that you have some goals, you have some strategies, you have some issues, you have

  • some planning. Now, we just saw Fred and Jane, did they have goals? Mmmh!! kind of, Fred

  • wanted to go overseas, Jane wanted to go to Disneyland, so it's kind of their goal

  • and remember there another goal was, they want to have a vacation together with

  • the family, so again that's kind of a goal. But then, did they have a plan?

  • Did they have a strategy? Then, have those things in fact, they were a little bit just

  • making things up as they went along.

  • Did they have an issue that was very clear? Hmm, not really no, so what happens

  • is they're just kind of talking and that's not a good way to negotiate,

  • because it means, how are you going to win? This is a key point in negotiation

  • that we're going to learn about in a minute, how do you know if you win or lose?

  • Well, you begin with having goals, strategies, issues and planning.

  • Okay, let's take a look at the parts of a negotiation that we just mentioned, but

  • let's look a little bit deeper into how they fit together into a kind of a chain

  • of negotiation.

  • Okay, what we can look at here is the very first part of the negotiation which are

  • the goals and then after the goals, you need to work on the strategy, after

  • the strategy, you need to work on the issues, and after the issues you need to

  • work on the planning. So, these four parts kind of fit together

  • before your negotiation begins, not doing your negotiation,

  • this is not, this is not like steps to a negotiation.

  • These are actually all inside every negotiation at any time, these are all

  • inside so, you've got your goals, your strategy, your issues, your planning, this

  • is all inside of a negotiation. Before your negotiation begins however, if you

  • want to increase your chance to win, to do better, before the negotiation you

  • think: what are my goals? What are my strategies?

  • What are my issues that are important to me? And what is my plan to win this

  • negotiation, or at least to get what I want? Which is really the key point to

  • every negotiation, to get what your goals are. So, every negotiation has these parts,

  • every, every negotiation has goal strategies, issues and planning, but some

  • people don't do them well, some people try to ignore them, they don't make a

  • plan, they just start talking maybe that's kind of their plan to make people

  • confused by just talking a lot. But, you win your negotiation by doing these

  • better so, in this unit were going to focus on how do we do these better? And

  • in later units, we're going to focus on each one in detail to show you how to do

  • that.

  • 00:03:38,430 --> 00:03:42,780 Okay, you have some exercises in the book and I'd like you to go ahead, and look at

  • those exercises, give them a try. These exercises aren't really hard and I

  • didn't make the exercises to make it hard for you,

  • the goal is not to be hard, the goal in fact it's not to take a test or to

  • get the right answer, the goal is to help you think about these ideas for a

  • negotiation.

  • Why is this important? Because when you negotiate, it's really key to get your

  • mind in the right perspective, to get your mind in the right situation so that

  • you can win. That's a key point, so you can win, so these exercises are made to

  • help you get ready to get your head in the right space, to get thinking in the

  • right direction, and to remember some of the words. It's not hard, it's easy but I want

  • you to start thinking this way, so do some of these filling the gap exercises

  • which include these gap exercises, go ahead and write up a short answer to

  • some of these topics on the next page, like 123 and four down there 123 actually,

  • right? And I want you to begin to think about negotiation, now before I let you go then,

  • let me go ahead and introduce a little bit more about why we should begin to

  • think this way. Why for example, pull up my slide here

  • 00:05:20,840 --> 00:05:22,289 Okay,

  • why should we focus on

  • this part here? Why are there parts of negotiation so important? Why do we

  • need to pay attention to these parts?

  • Well, let me begin by maybe just reminding you of some negotiations

  • you've seen before, maybe you've gone to the night market with your mother or

  • father or aunt, maybe you've gone to night market with some friends, maybe you've

  • bought something, or you were with somebody who bought something. You saw them

  • negotiate really hard, they really focus they really argue, what you thought maybe was

  • arguing, but actually it was negotiation for a long time. Now, the question is: if you

  • do go negotiate, how do you know that you're getting something you want ?How do

  • you know that you win?

  • Let's say, I go to the night market and I want to buy this cup here and I like

  • this cup then, so I ask the person in the market and you know, what does this

  • cup doing? He says well, this cup is great, he tells me the features you can

  • keep the hot tea hot, you can keep the cold water cold, and has a top, and has a

  • really good handle on, it can last a long time. I say: "how much is this cup sir?" And

  • he says: "this cup is maybe 100 NT dollars" and so now, I need to think, do I want

  • to pay 100? Or do I want to negotiate different price? Of course, if I can

  • negotiate a different price

  • what does that mean? If I negotiate a price of 80 then I save 20, and that

  • person was selling to me, does he lose 20?

  • Well, he certainly makes 20 less than he would have made if I paid 100, right? If I

  • paid 100 for this cup, the seller makes 100, the buyer spends 100. By paying 80, the

  • buyer spends 80, and the seller makes 80, 80 is 20 less but does he lose 20?

  • right?

  • You see, I don't know because I'm not the seller, I don't know, we don't know the

  • price, we don't know the cost, right? So, what happens when you negotiate in a

  • night market like that, if you say something like I'll give you 80 very

  • often what does the salesperson says? He says: "huh

  • It costs me 100, you'd make me lose,

  • lose 20, I would lose 20". This is a very normal thing to say, right? and

  • then you say: "oh! I am sorry, I don't want you to lose money ", right?

  • Do they really lose money? Well, we don't know this is a key part negotiation, the

  • secret information is secret, we really don't know. I guess we can check, we could

  • go call up the supplier and ask how much one buys? If one wants to buy this

  • from the supplier, how much is it? Then we would know, but we usually don't do that,

  • we don't know. So, I have no way to know if the seller is going to really lose

  • money but I do know me, the buyer if I pay 80 or I pay 100, the difference is 20 for

  • sure.

  • Now, the next question becomes what's the value of this cup to me? What do I think

  • I get from this cup? Is it worth keeping my tea hot? Is that worth 100? Was it

  • worth 80? Was it worth 50? Now, here's what we begin to look at these ideas of the

  • goals, the strategies, the issues and the planning, because if I think about it and

  • I say: "well, you know, I don't know, I don't care, I just want to pay less, less is

  • better, right? Of course, if you could give me this cup for free, that would be best.

  • I don't think, he's going to give me the cup for free, but that would be best,

  • and so what do I do, I begin to negotiate or in Taiwan we say ..... , right? Cut

  • down the price, argue with the price, right? And then, sometimes people give you a

  • rule of thumb, like people save you travel to China and you negotiate, always

  • cut the price in half, begin at half.

  • Well, what I'm saying is: how much is this cup worth to me? Now, if i say 100

  • you know, Mmmh

  • I have another cup, it's okay, it's not as good as this cup maybe, it doesn't really

  • keep my tea warm. So, maybe 100 is a little bit too much, if it's 100 I just keep my

  • other cup, I don't need it. Now, if I want 80 and I say 80 is worth it, I'm

  • willing to pay 80, because I think keeping my tea warm is worth the 80 and

  • my other cup doesn't work that good so 80 is my goal. Now, if my goal is 80 and

  • then I say: "Okay sir, you say 100 I'll give you 80" and then the salesperson

  • says:" 80, okay".

  • Sold, what's your first reaction? Your first reaction is huh,

  • I should have said 60, I said 80 but he gave it to me right away,

  • obviously I paid too much.

  • So, here we run into the key point of negotiation. Of course, you can always

  • feel better, if you get a lower price and of course, you will feel better if you

  • get something for less and this seller makes less money. Of course, and when the

  • seller agrees very quickly ,you say: huh,

  • I should not have done that, why? Because the seller made more than he

  • expected, he was happy to make that, I could have, I could have made the price

  • lower and he would have not been so happy, and I would be more happy. So that

  • always happens, that's always true.

  • That's the problem in negotiation is: how do you know if you win or lose?

  • How do you know if you did a good job or a bad job? If you're just waiting for the

  • seller to say: "OhI okay, I'll give it to you and that's a bad job, then you'll feel

  • bad. But, what about the cup? Does the cup do what you want? Does the cup do what you

  • need?

  • Does this cup keep my tea hot? And is that worth eighty dollars to me? If

  • that's worth eighty dollars and the salesperson sold it to me for 80, what I

  • wanted was 80, then actually I should think

  • good I got what I wanted, it's worth 80 to me for this Cup.

  • The thing I get keeping my tea warm, better than my old cup that is worth 80

  • to me, if that's worth 80 to me then I should feel I've won, I've been victorious,

  • I've done a good job, my negotiation is successful.

  • Okay well, if I don't think 80 I just think cut the price, cut the price, cut

  • the price.

  • How do I know I win? Well, I probably never know I win, unless I get the cup for 0

  • which is impossible, I'm always going to think I should have negotiated more. and

  • If I get the price down to 80, and I keep pushing, no 70, I keep pushing no 60,

  • and maybe sell it to me for 60, I'm still going to say: Oh! I should have held out

  • longer,

  • I should have cut that price more, I should have gone for 40, right? So, in

  • negotiation, the very beginning of a negotiation we don't really know what we

  • want,

  • that's not good and at the end of a negotiation we don't know

  • did we win? Or did we lose?

  • did I do good? Or did I do bad? Do I need to improve or should I just keep doing it

  • this way? On the other hand, at the beginning of a negotiation if you set

  • your goal clearly, what is the value to me? How much do I want to pay to get what

  • I get from this? Then you negotiate and then you get it, if you get it you can

  • say I did a good job or I did a bad job. If my value is 80, and I negotiate and the

  • salesperson only goes down to 90 then I say, that's it I don't want it, because if

  • I pay 90 that is more than my value, if he goes down to 80 then I got what I

  • wanted.

  • If the next person comes and they negotiate behind me, and they get it for 70,

  • I should still think my goal was 80, I got it for 80 now maybe in the future, maybe in the

  • future when I negotiate another time, I need to consider the value again

  • carefully maybe I thought the value was more than its worth to me.

  • But for now, if I thought it was 80 and I get 80 then that's my goal.

  • So, in negotiation it's important to think beforehand, what are your goals,

  • strategies, issues? And then, that will help you come up with your planning to

  • make a plan. If you have all of these together, well thought out cause you

  • always have these in a negotiation maybe you don't think about it ,maybe you don't

  • do it well, maybe you try to ignore it, maybe you're just always trying to go for 0 which

  • is impossible.

  • Lower, lower is better, better I guess so but what about your time? What about your

  • energy? And what about the thing you want to get? So, maybe I argue and I just keep

  • saying lower, lower, 70, 70 and the man says: "no, I won't give it to you for 70

  • and then what happens? I have to go home and I have to use my old cup and then I

  • have to suffer another week or two weeks, or three weeks using my old cup,

  • it doesn't keep my tea warm and I say : "Oh" ,that really make me angry, I went there, I

  • spent the time, I came back ,I got to use this old cup and now, I feel it was worth 80.

  • Instead of fighting for 70, I should've just paid 80, I think you have that

  • experience too, don't you?

  • I think we have both those experiences, everybody you go somewhere, you bargain

  • the seller says: "okay, I'll give it to you and you said" Oh! I bargained,

  • I gave up too fast, I bargain to easily, I should have fought more or the

  • other hand, when you bargain really hard and then you go home, you don't buy it,

  • then you keep regretting, I should've bought it, I wasted time there, I got to

  • go back again and I feel that I should have just bought it for the other

  • price. So goal, strategy, issues and planning, this is what I want you to

  • begin to think about in this class,

  • don't just go to a strategy code and begin no, think before hand, right? Number

  • one, you must have something in common,

  • he has a cup, I want a cup. Number 2, you have to have something that's different.

  • I want to pay 80, he wants me to pay 100, now you begin, now I think what are my

  • goals? What are my strategies? What are my issues? What is my plan? Then I execute, when

  • I'm done, I can go back and say did I get my goals? If I got my goals then that is a

  • a success, if I miss my goals, how much did I miss by?

  • How much did I do? That's not good, did I miss it by twenty percent? Did I missed

  • it by fifty percent? Did I miss it by ten percent? Two percent? And then I can judge

  • it.

  • Okay, so that's our beginning of this class, I want you to begin thinking that way,

  • thinking of goals.

  • Let's start with goals about that, that's really a good idea, clear, clear goals not

  • just cut the price, cut the price, cut the price.

  • Okay, see you next time in our negotiation class.

Okay, let's do a little bit of a follow up here, follow-up to the conversation. So

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A2 US negotiation cup negotiate price seller goal

Follow Up Part 1

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    Tony posted on 2019/05/22
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