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  • 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