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Tutorial: To get priorities addressed, disclose them
When you disclose priorities, the risk is that the other party will ignore your lesser demands. But if you don't, those on the other side may only deal with your minor demands and not give you what you really want. By the time you respond to their proposal, they have the advantage.
Be sure the other party is clear on your priorities. It's the best way to achieve what's most important to you.
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Don't cross my red line!
 For decades, countries have used red lines to set diplomatic boundaries to other powers (e.g. crossing a border or developing nuclear weapons).
From the Scotwork blog
In negotiations, red lines, not to be confused "bottom lines" or "must-avoid" positions, can be a useful strategy. Negotiators typically don't reveal bottom-line positions since they could change the perceived balance of power. If the seller reveals that his bottom line discount is 8%, the buyer has more power to secure that discount.
A red line relates to future actions by one party that will destroy the basis of a negotiated settlement. For example, I recently advertised a car online--a 7-year-old Kia with exceptionally low mileage. A dealer wanted to know lots of details, including the exterior condition. I told him the car had the "normal marks and scuffs" of a car its age. He made me an offer, subject to seeing the car. His "red line" was that if the car needed the paint shop, the price stands. But if it needed the body shop, the deal was off.
As it happens, the car had plenty of lines (none of them red) but no dents, so the deal was done.
Read entire post by Stephen White in the Scotwork blog. |
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Save the date! Only a few seats left
 Attend one of these upcoming sessions and have more rewarding negotiations.
Nov. 6-8, Houston, Texas: Scotwork Strategic Negotiating (SSN3)
Built for those who have to think beyond just individual transactions, SSN3 gives you the tools to better analyze your clients and prepare for your next major negotiation. The prerequisite is completion of ANS1.
Nov. 12-15, Toronto, Canada: Advancing Negotiation Skills (ANS1)
Learn the theory and practice behind the Scotwork 8-Step Approach© to negotiations. This course is appropriate for anyone with the authority to negotiate or vary the terms of any arrangement.
Register online or contact us for more information.
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Drought raises food prices...time for strategic negotiation
 Sometimes it takes national economic hardships to remind us how important it is to negotiate strategically. For example, the worst drought in 50 years continues to increase food prices, impacting supply chains nationwide. The same could be said about rising oil prices. So what's the strategy for each side?
Buyers, focus on value
Since you may not be able to negotiate on price, figure out where you can get more value such as with delivery, service and flexibility of the contract. Then, when the market stabilizes a little, you can once again incorporate price into your negotiations.
Suppliers, think long term about price
You won't make friends with customers by indiscriminately passing on massive price increases even though they're "not your fault." A few years ago, we advised a trucking firm coping with skyrocketing fuel costs not to raise prices, and to add a temporary surcharge instead. Then, when oil prices fell substantially, the surcharge was dropped. And when prices decreased further, the company gave buyers a rebate. So in the end, the trucking firm got what it wanted: a fair margin and more satisfied customers.
Let us help you figure out how to tailor negotiation strategies for any economic condition. Contact us.
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Stay tuned for more negotiation tips in our next newsletter.
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