Finally, before and during negotiation, learn from similar situations in your or a different industry. What did the parties do to achieve favorable outcomes? A franchisor haggling on price can present a tremendous negotiating opportunity for the marketing company. The marketing company can give an acceptable discount in exchange for a longer contract term with […]
Establish social standards If a clear norm exists regarding intelligent behavior, social comparisons hardly matter in negotiation. Often the rule is not clear, and parties are quick to select appropriate or inappropriate comparisons. In 1998, some enterprise resource planning specialists discovered that those who know SAP software products earn over $200 per hour. Within a […]
When a reference benchmark is not determined and agreed upon in advance, there is a high probability of conflict and deadlock. Each side is tempted to compare itself to a standard that favors its position. Frequently, a clear criterion is not apparent. In such situations, it is even more critical to work with the other […]
Know the other side’s benchmark It’s also important to consider who or what your negotiating opponent has selected as a yardstick. In all likelihood, she wanted favorable comparisons, which may cause her to be overly optimistic about what she can achieve. If so, try to help her adjust her aspirations and work with her to […]
Are people concerned about status in any negotiation? Yes, they are. The question is, how do you deal with your concerns and those of the others? This is part one of six-part knowledge letter sharing guidelines applicable in most situations. Select the correct benchmark Often the negotiators make tacit comparisons with others. When the other […]
John, the majority owner of hotel Dixie in West palm, offered to sell the hotel to its manager, Ajit, at its book value. This was a once-in-a-lifetime opportunity for Ajit. He quickly lined up an investor. Since hiring Ajit three years ago, the hotel performance had zoomed from forty percent to full occupancy. Ajit, however, […]
I intended to write the next issue of “Negotiating with difficult people.” However, I am compelled to respond to a question raised by several readers of my newsletter. Question: How do I deal with a person who is known for being a stubborn haggler? If I adopt a collaborative approach and be cordial, my opponent will […]
Pay careful attention to your opponent and look for signals. Recognize that not all of her needs may be readily evident. These are usually unstated needs. A homeowner who will not cooperate with a real estate agent to help sell her house may turn out to have deep-seated uncertainty about selling. Realizing that, you might […]