Placeholder Image

Subtitles section Play video

  • Okay. we are going to have a little bit of a follow up

  • here. And so what I'd like to do is very

  • quickly talk about what we just saw in

  • our discussions, in our conversations. So

  • getting more information is key. What do

  • we mean when we talk about getting more

  • information? Look back at the

  • conversation, at the dialog. You can see

  • that each side is trying to say, "Oh no

  • your information is wrong. Let me tell

  • you my information. Oh no no your

  • information is wrong let me tell you my

  • information." So both sides are always

  • trying to influence or give out that

  • information because information is king

  • in a negotiation. Information is

  • everything. "This is key to a

  • successful distributive bargaining." "The

  • four goals of the negotiator include one

  • find out the other side's resistance

  • point. 2.) Influence the other side's

  • guesses. 3.) Influence the other side's

  • outcome valuations. and 4.) Influence the

  • cost of delaying or leaving the

  • negotiation. The ways to actually get

  • this done are called the tactics." And

  • we've kind of mentioned these already

  • right? but we just review them quickly

  • because they're so key, right? What we

  • want to do is we want to keep our secret

  • secret, and we want to get the other side

  • secret information. We want to try to

  • figure out the resistance point if we

  • can. We want to, if we could, get their

  • target price. That would be good. We want

  • to influence what they think of us, and

  • then we want to influence what they

  • think the value really is. Okay, now we're

  • going to look at a few specifics. It's a

  • little bit too tiny here for the screen,

  • but you can look inside your book and

  • get the details. What we're doing is

  • we're looking at very specific tactics,

  • you see. So what we did is we started out

  • at the beginning talking about the big

  • idea, making some goals, getting a goal

  • package. Then we talked about some

  • overall

  • strategies, the four big strategies. Now,

  • we're talking about distributive

  • negotiation. Then we get down to how do

  • you actually do it? What is the actual

  • tactics that you use? And now we're down

  • to the very specific kinds of words you

  • can use and the specific kinds of

  • tactics you can use. So I'm not going to

  • go over each one in a super detail, but

  • what I would like to do is just quickly

  • shoot over a few of them. Indirect

  • assessment, for example. Indirect

  • assessment means how can you find out

  • what the other side's resistance point

  • is? How do you find out what that

  • resistance is? How do you find out what

  • that target is? You can try to check

  • information. Maybe check the newspaper.

  • Check some articles. Check the accounting,

  • a public accounting statements of the

  • other company. So you can always try to

  • get information. Check the internet. See

  • if you can find something out about the

  • other side, and that information will

  • help you understand this product or this

  • price that you're negotiating over now.

  • So indirect meaning try to find some

  • information from another way. Direct

  • assessment means find information

  • directly from the other side. How can you

  • do that? Well, you could just ask, right?

  • It's very doubtful they may tell you, but

  • you never know. They might not be careful

  • about keeping their secret information

  • secret so you could just ask. Another one

  • is when they talk, listen carefully to

  • what the other side says. They may be

  • giving you a clue about the resistance

  • point.They may be

  • giving you a clue about their limits. Are

  • you listening? In other ways, you can

  • just ask somebody on the team or maybe

  • you have friends of friends of friends

  • maybe who know someone who knows someone

  • who knows someone at the company. That's

  • another way. That....

  • sounds indirect, but it's actually a little

  • bit direct because you're getting

  • information from people there. That's another

  • direct way actually. Screening, selective

  • presentation, emotion-- all of these are

  • ways to observe the other side or

  • influence the other side to make them

  • think something which you want them to

  • think or to make them react in some way

  • to give you some information. You can

  • also use logic and hide information from

  • the other side. Keep your secret

  • information secret. Hide some information

  • like what is your inventory? what are

  • your sales numbers? what is your cost?

  • what is your capital cost? what is your

  • manufacturing capacity? You can keep

  • these things secret. You can hide them

  • and that could actually influence the

  • other side. So you can use logic. You can

  • use outside partners. You can change the

  • schedule of the meeting for example. "Oh,

  • we're supposed to meet this morning, but

  • actually we can't make it. We have to

  • postpone the meeting until tonight." Or

  • maybe the other team is flying in on an

  • airplane, and they fly for 12 hours on a

  • flight. Then you schedule the meeting for

  • early in the morning the next day, and

  • they only get a few hours sleep, so you

  • can schedule things or change schedules

  • to make the other side more tired. How

  • does this help you? It may mean that

  • they're not so good at keeping their

  • secrets. They may make mistakes and tell

  • you information that they would rather

  • not tell you. I know that all sounds a

  • little bit kind of sneaky, a little bit

  • harsh, but these are tactics that are

  • used in negotiation. Again, the key point

  • to remember is you want to get the other

  • side's secret information any way you can.

  • So now I want to look at some

  • negotiation positions. We kind of talked

  • about this earlier in another unit when

  • we talked about how do you begin the

  • first offer? How do you do a follow-up

  • offer? So what I want to talk about is

  • the tactics, the tactics you use to

  • actually influence or to give the signal

  • to help you win as

  • you negotiate. Remember first that

  • distributive bargaining is all about

  • getting something from the other side. So

  • it's important that the other side give

  • up something, and you don't give up

  • something, or the other side gives up

  • more, and you give up less. The key to

  • this is to start with an opening offer

  • that is not close to the resistance

  • point. Remember that? Even your target

  • point, right? we talked about, what's your

  • target price, what's your resistance. Now,

  • you want to be away from your resistance,

  • and then you want to even be a little

  • bit away from your target because the

  • other side will push you over your

  • target. Now, of course, once you begin, you

  • can say things like in this example, "I

  • won't give up anything. I want to help

  • you, but I'm not going to give up

  • anything." So this is kind of the stand

  • you need to take. "I'm trying to cooperate,

  • but I'm not going to give anything up. I

  • want to help you, but I'm not going to

  • give in. I would like to come to an

  • agreement, but this is my bottom line." So

  • this is the kind of normal negotiation

  • stand you take with your position. You

  • try to sound like you're helpful, but

  • actually you're going to keep a solid

  • position. You're not going to move. Now

  • that's what you present to the other

  • side. That's what you make the other side

  • hear, so that they think you're being

  • positive when actually you're trying to

  • also be tough. So what we have here are

  • basically two attitudes: friendly, I'm

  • trying to help you, and tough, I cannot

  • give you anything more. Friendly-- I want

  • us to be happy. I want us to win win, but

  • tough-- this is my bottom line. So these

  • two ideas together, these two attitudes

  • these two ways, these two tactics to

  • express yourself, call them friendly and

  • tough. One way is friendly. One way is

  • tough. Now when you negotiate, you mix

  • these together of course. But you tend to

  • prefer one. Are you going to be mostly

  • friendly or are you going to be

  • mostly tough? So if you're going to be

  • mostly friendly, then the opening offer

  • is going to be further from the

  • resistance point, and if you're going to

  • be tough, in other words, if you're going

  • to be friendly, then your resistance

  • point, you need to begin much further

  • away because you're going to have to

  • give up more beacuse you are trying to be nice.

  • You're trying to be friendly. "Oh Ok. I'll

  • give you something. I'll give you

  • something." They'll give you something.

  • This makes the other side think that

  • you're being friendly. You're

  • cooperating, so you give up more, and then

  • they give up more, and then you come to a

  • conclusion sooner. The other way is to be

  • tough. And if you're gonna be tough, that

  • means I don't give in. I don't give you

  • one cent. I don't give one dollar. You keep

  • saying it's my bottom line. I cannot give

  • you any more, but if you do that then you

  • must begin closer to your resistance

  • point. Because the other side is going to

  • keep trying to push you, but you're not

  • going to move. If you begin very, very far

  • away, and you're very very tough, it's

  • going to be very hard to get an

  • agreement because you're so far and

  • you're not going to move. And remember in

  • negotiation, it's a process. You have to

  • give things up. You cannot give nothing

  • up, right? But the question in

  • distributive is can we give up less, and can

  • we get more? "Even though the other side

  • may not like the tough attitude, this

  • approach can make the negotiation

  • shorter." Because you begin closer to your

  • resistance, and you say, "That's it. That's

  • all I'm going to do, and I'm not going to

  • change." And if you give something, you get

  • very, very little bit at one time, and

  • then the other side gets tired, and then

  • you come to a conclusion faster. On the

  • other hand, if you're going to be

  • friendly, you need to begin further away.

  • And if you begin further away from your

  • resistance point, you have to give up

  • something. Give up something. Talk, talk

  • talk. Give up something. Give up something.

  • And it takes more time, so the tough

  • negotiation, although it seems like it's

  • harder, actually in the end, may make the

  • negotiation

  • shorter. Not always, but it is possible.

  • Once the other side sees how hard it is,

  • they're going to give up. They don't want

  • to keep fighting, and then you can move

  • forward. Okay, but if you're too tough, if

  • you're too hard what happens? Well, if

  • you're too tough, if you're too hard, if

  • you're too far from the resistance point,

  • and you're over the other side's

  • resistance point, they will just walk away. They

  • will give up. They will not negotiate.

  • That's possible. Okay, now let's go ahead

  • and look at a nice simple diagram here.

  • And in this diagram, we can see what I'm

  • talking about, a little bit more

  • graphical, right? Let me give you a nice

  • clear look at that. So we have an

  • arrow, right? And this is moving through

  • tim, moving through time, so we're going

  • to be moving across time, from the

  • opening offer up here, over to opening

  • attitude first concession, more

  • concessions final offer, over there at

  • the end. So we begin, and then we continue

  • until the end. So what happens when we

  • have our opening offer? Well, let me give

  • you a nice clear shot here, a nice

  • close-up. Opening offer-- don't start too

  • close to your resistance point. Start

  • further awa. And then opening attitude

  • means you start out friendly or tough.

  • You can be friendly or tough. You, of

  • course, could have a little bit of both

  • there. You could be mostly friendly or

  • mostly tough, but you can't really be

  • half tough and half friendly because the

  • other side will be confused. At one

  • minute, you say, "I will not give

  • anything. This is my bottom line okay

  • I'll give you what you want, but that's

  • my bottom line. Okay. I'll give you that

  • too, but that's my bottom line, OK. I'll

  • give you but that's really my bottom

  • line. This is my last bottom line." You see

  • that's very strange, right? Can't really do

  • that. So what do we do? If you're going to

  • be friendly, start further away from your

  • resistance point.

  • If you're going to be tough, begin

  • closer. But try to be mostly one or the

  • other. So as you move across, you have a

  • consistent attitude. If you take a strong

  • stand, then your first concession will be

  • tiny. If you take a friendly one, then

  • it may be bigger and you may give more.

  • And then you give more concessions. How

  • many do you give? If you're being

  • friendly, you give many. If you're being

  • tough, you give few, and finally you get

  • to the final offer. So the key point here

  • is to remember the negotiation has a

  • beginning and an end. So you've got to

  • move through time. As you move through

  • time, you're going to give something. How

  • much do you give and how much time does

  • that take? Those are key questions. Are

  • you being friendly? or are you being

  • tough?

  • Okay. Let's do a little bit more follow

  • up here, and then this follow-up: "If no

  • concessions are made, the negotiation will

  • not move forward. What does this mean? If you

  • don't give anything, you cannot possibly

  • move forward. So you got to give

  • something. You got to give something. You

  • ... cannot give nothing. A tough

  • stand, fewer concessions. A friendly stand,

  • more concessions. In both cases,

  • concessions are important. So I don't

  • want to tell you be tough, and you never

  • give anything. You give something, but how

  • many concessions and how much do you

  • give depends on your stand. Concessions

  • should become smaller though, even if

  • you're being tough, even if you're being

  • friendly, your concession should become

  • smaller and smaller. In this way, the

  • other side will think the concessions

  • are nearing the resistance point. Let me

  • give you a little picture here to show

  • you what I mean. So I like this picture

  • because it's very easy to understand. So

  • what we're saying in this picture here

  • is as the negotiation moves forward, you

  • give more concessions. You begin and you

  • give something. You give something. You

  • give something, okay. Now, what you can do

  • is you can say, "I'm going to give you

  • something, four dollars" or you can say "I'm

  • going to give you nothing, zero dollars."

  • So I'm going to give you nothing. I'm not

  • going to give. I'm not going to give up

  • anything. I'm not going to change at all.

  • Or I can say, "here four dollars." So what

  • does this mean? "Well, I'll give you four

  • dollars. I'll cut the price four

  • dollars for you", and then you say, "oh

  • thank you. Okay. blah blah blah. Then I say

  • "Okay, I cut the price another four

  • dollars for you", and you said, Okay, thank

  • you." But you know the price is still too

  • high, and I say, "Okay, I'll cut the price

  • four dollars for you." You follow me? So if

  • I keep giving you four dollars, four

  • dollars, four dollars, what do you think?

  • You think, "Well, he gave me four dollars,

  • and he gave me four dollars. Then he gave

  • me four dollars. He can give me another four

  • dollars." So if you give up more, and you

  • keep giving the same amount, then the

  • other side will think you can still give

  • more. But a better way is you begin by

  • giving four dollars, and then next time,

  • you give two dollars. Then next time, you

  • give one dollar, and in this way, it looks

  • like you've already given everything you

  • can give. So I begin by giving up a

  • little bit more, then I give a little bit

  • less, and then I give a little bit less,

  • and each time I give less. Now it looks

  • like I have no more to give you, see. So

  • over time, if you're being tough or if

  • you're being friendly, it's the same

  • thing. It's just how long does it take?

  • You give up less and less so that the

  • other side thinks you don't have

  • anything more to give up. You cannot give

  • nothing. You cannot just say I give you

  • nothing because then it won't move

  • forward. You have to give some

  • concessions, but how much do you give?

  • Well, it depends on are you being tough?

  • Are you being friendly? And then you need

  • to overtime change that to be less and

  • less.

  • So as the negotiation gets very near the

  • end, you give less and less. The other

  • side gives less and less. What happens? As

  • you get to the end, that's when the

  • negotiation may get very hard. At the

  • beginning, I give something, you give

  • something, we both give something, that's

  • normal. But then, we get to the hardest

  • questions, the hardest part. This is when

  • we need to have that final push. This is

  • very normal in negotiation. You spent a long

  • time. You worked out many things. You made

  • a lot of progress. Now is the final push,

  • and that is not easy. So how do you final

  • push to find your agreements? What's the

  • things you can do, the tactics you can do

  • for the final push? Here, we have a few

  • things in our book. For example, provide

  • alternatives. Maybe, you can give

  • something else or do something else.

  • Another thing you can do is assume a

  • deal. This is very common. What does assume

  • a deal mean? It means that we're

  • talking, talking, and I want, I need one

  • more dollar. And you say, "No, I will not

  • give you a dollar." It's just a dollar and

  • you say, "No, I cannot give you a dollar."

  • And then I say, "Okay, it's a deal." And you

  • say, "No, no well. I didn't give you a

  • dollar." I say, "No, no. That's okay. I know

  • you're gonna give me a dollar." I assume. I

  • assume. I just say, "Well we can do it. It's

  • okay. I think you'll do it. I trust you. I

  • believe you." And then you just say, "It's a

  • deal." It's not really a deal, but

  • sometimes that works. You can also split

  • the difference, whether split the

  • difference half and half. The little bit

  • that's left, just cut it in half. A

  • deadline offer means I'm going to give

  • you some time and before this time if

  • you agree, it's okay. But after this time,

  • game over. I'm walking away. That'll give

  • the other side pressure to push to the

  • end. Sometimes you can do what's called a

  • sweetener. The sweetener means you give

  • something extra. Maybe you promised to

  • buy more or you promised to in the

  • future buy from them again. Or as a

  • supplier, you promised to give them a new

  • product in the future

  • or a product they don't have today or

  • product that's very popular in the

  • future, like in our example. So to sum up

  • today, a lot of material in this

  • chapter, a lot of technical material, a

  • lot of detail material, especially on the

  • vocabulary and those charts showing you

  • the different tactics. Why so much detail?

  • because today's chapters about tactics

  • how do I do it? It's easy to talk about,

  • but how do I actually do it. And then

  • what's the main point today we take away

  • from this chapter, this unit? We take away

  • this idea of you've got to make the

  • other side lose something so you can

  • gain something. There's just no other way

  • in distributive bargaining. How do I do

  • that? Well, you got to give something.

  • You've got to give something, but make

  • sure what you give is smaller than what

  • you get. How do you do that? Carefully

  • make sure, as you're moving forward

  • through the negotiation, you make the

  • other side think, "I cannot give any more.

  • I've given you four dollars. I've given

  • you two dollars. I've giving you one dollar.

  • That's all. I don't have anything more to

  • give." By making the other side think this

  • you create a situation where they will

  • soon stop. Or the other thing is get

  • their secret information. If you know the

  • resistance point, if you know their

  • target point, then you're able to make

  • offers that benefit you more. Not easy to

  • do. How do you do it? Talk to them, ask

  • them, watch them carefully, listen to them.

  • Watch their group, who is saying

  • something. Maybe ask friends of friends.

  • Check information. OK. So a little bit

  • detailed. Hope you didn't fall asleep.

  • Good luck with your negotiation and see

  • you next time.

Okay. we are going to have a little bit of a follow up

Subtitles and vocabulary

Click the word to look it up Click the word to find further inforamtion about it