Negotiation, step 4: propose

Your proposal sets the agenda for the negotiation. Be sure it addresses the key issues, is supported by facts, and doesn't go beyond the other side's limit. Begin the process with a brief introduction, after which you propose, explain and summarize. Then invite a response (the power of the proposal!) with these questions:

In March, we'll talk more about propose, addressing who should make the first proposal and how to receive the other side's proposal.

Tutor's corner: re-negotiate by offering choices

Sandy Sbarra Bio Email Sandy

Whenever we're told to re-negotiate an agreement previously consummated between a predecessor and a client or supplier, it can be a daunting task, especially when the other side enjoys its position.

One of the best approaches is to first identify the other side's relative priorities, and then offer an either/or proposal, a choice of two options based on its expressed priorities.

When you offer a choice, the other side is much less likely to simply say "No" and more likely to indicate which choice it favors (though probably not in the current format). Any response along this line signals where the other side will negotiate, allowing you to continue bargaining until you reach a new agreement. 

Buying a car? Get a better deal  

Many of us dread negotiating with auto dealers. See the lessons Marty Finkle learned in his recent experience:

I started with a dumb question: "Do you negotiate on price?" Crap, he said, "No!"

Lesson: Don't ask a question for which you may not like the answer.

Then I asked, "What will you negotiate on?" He replied, "Try me."

Lesson: When you're challenged to a competitive negotiation, be prepared with what you're looking for.

So I pulled out my 14-item wish list, and after two hours of negotiating, I made the deal, winning $7,600 of add-ons and waived fees! Plus, when he asked me to sign, I asked him to honor a $500 online coupon. He said, "Yes," giving me a total value package of $8,100!

Lesson: Prepare for personal negotiation. (And since I'm better negotiating for others, I need to prepare extra hard for my own!)

School district has power over teachers

The La Habra, CA School District holds the power over the teachers' union, say Chaine Casner and Kevin Tuel of GlaxoSmithKline, winners of the contest in the Jan. issue.

Highlights of their winning analysis

The judge should rule in favor of the school district, which must reduce a $1 million budget deficit, a hard fact giving it the power to demand salary reductions. Plus, both sides agreed to a mediator, who called for a 3% salary reduction, but they settled on a 2% cut. Still, the terms of the ruling should require the district to conduct a study on which operational improvements can lower costs and then track progress.

Enter this month's contest on the NFL dispute, and you could win a bottle of wine! 

NFL revenue split: you decide

No football in 2011! It's possible, with the collective bargaining agreement expiring March 3. The most critical issue is how to divide about $9 billion in total annual revenues. In 2010, owners took $1 billion for cost credits (operating expenses) and gave players 59.5% of the remaining $8 billion.

Owners

-We need $1 billion more in cost credits for a fair return on investment so we can keep investing in the game.

-Players could receive 60% of the remaining $7 billion.

Players

-Much of the additional cost credits will be used to pay for enhancing stadiums, which belong to owners. That's like asking a secretary to help pay for office renovations.

-We would accept a 50% share of total revenues.

Other facts

-With no season, the NFL could lose $400 million a week.

-The average player's career lasts 3.4 years.

Give us your opinion, win a bottle of wine!

 
Simon Letchford
Bio  Email Simon

See Sandy Sbarra's bio and email in the Tutor's Corner. 

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