News Updates

Creating Value Through Haggling – Setting the

Stage for Negotiation Success

Once your ZOPA is identified, you have terms for negotiation.

BY PON STAFF — ON JANUARY 16TH, 2017 / BUSINESS NEGOTIATIONS

Suppose your research reveals that the TV you want is fairly new on the market.

Further research about your local store leads you to believe it may be willing to go as low as

Amazon.com’s price of $900. Now you have a general sense of the ZOPA, or zone of possible

agreement: between $900 (your estimate of the store’s reservation price) and $975 (your reservation

price).

Discover step-by-step techniques for avoiding common

business negotiation pitfalls when you download a copy of the

FREE special report, Business Negotiation Strategies: How to

Negotiate Better Business Deals, from the Program on

Negotiation at Harvard Law School.

Thus, your goal in the upcoming negotiation is to get a deal

that’s as close to $900 as possible.

Once you’ve done your homework, it’s time to set the stage

for success. Consumer Reports advises you to negotiate early

or late in the day, when stores are often quiet, and late in the

month, when salespeople may be especially eager to meet

quotas.

At chain stores, where regular sales staff may not have the

power to haggle, you might need to approach a manager.

Open negotiations out of earshot of other customers,

recommends Consumer Reports, as sales staff may not want

others to get wind of your haggling.

Bring along up-to-date information about competitors’ prices

(your BATNA) and expect the other side to verify it.

Be polite and cordial throughout the negotiation process, and also be willing to accept no for an answer.

Finally, because stores typically pay fees on credit-card purchases, keep in mind that salespeople may

be more willing to bargain if you offer to pay in cash.

When to make the first offer

After you discuss the pros and cons of your desired item, the salesperson might offer to give you a

discount without any prompting. If not, open the negotiation yourself: “I can buy this TV online this

weekend at a much lower price. Can we work together toward a more competitive deal?”

If the salesperson is willing to negotiate, and if you have a strong sense of the ZOPA, you are positioned

to make an offer: “Can you beat Amazon.com’s price? It’s $900. I can pay in cash, by the way.”

Imagine that the salesperson tells you his store has a new policy against matching, let alone beating,

Internet deals. Furthermore, he reminds you that your great online deal is about to expire.

Even so, by dropping this “anchor,” you have likely swayed him away from the previous anchor—the TV’s

$1,100 list price—and toward your end of the ZOPA.

What’s more, because you proved you’ve done your homework, he is likely to view your offer as credible,

if not entirely reasonable.

Discover step-by-step techniques for avoiding common business negotiation pitfalls when you download

a copy of the FREE special report, Business Negotiation Strategies: How to Negotiate Better Business

Deals, from the Program on Negotiation at Harvard Law School.

Original article can be seen here: http://www.pon.harvard.edu/daily/business-negotiations/creating-value-through-haggling-setting-the- stage-for-negotiation-success/

How Can Contract

Audits Add Value to

Managing Contracts

A good contract not only identiifies clearly the obligations of the provider, but also forms the foundation for a productive relationship built on communication and trust. 10 practical actions to take away 1. Identify if your organisation has a contracts register 2. Review the contracts register to establish if records are up to date 3. Does this contracts register reference risk? 4. Are the risks of the contract documented? 5. Establish if the risk appetite of the business or contract owner is known and documented 6. Establish if internal audit have been involved with contract management previously 7. Talk to the business owner of the arrangement and ask what they would like from internal audit 8. Brainstorm how internal audit can add value to the arrangement 9. Review services provided are in line with the contract 10. Consider invoking the right to audit clause

Related Posts

In negotiation, it’s all in the

timing

What are the Top Three

Defensive Negotiation

Strategies You Need to

Know?

Are You Ready to Negotiate?

How to Find the ZOPA in

Business Negotiations

7 Tips for Closing the Deal in

Negotiations

281-914-8085

News Updates

Creating Value Through

Haggling – Setting the Stage

for Negotiation Success

Once your ZOPA is identified, you have terms for

negotiation.

BY PON STAFF — ON JANUARY 16TH, 2017 /

BUSINESS NEGOTIATIONS

Suppose your research reveals that the TV you want is

fairly new on the market.

Further research about your local store leads you to

believe it may be willing to go as low as Amazon.com’s

price of $900. Now you have a general sense of the ZOPA,

or zone of possible agreement: between $900 (your

estimate of the store’s reservation price) and $975 (your

reservation price).

Discover step-by-step techniques for avoiding common

business negotiation pitfalls when you download a copy of

the FREE special report, Business Negotiation Strategies:

How to Negotiate Better Business Deals, from the Program

on Negotiation at Harvard Law School.

Thus, your goal in the upcoming negotiation is to get a deal

that’s as close to $900 as possible.

Once you’ve

done your

homework, it’s

time to set the

stage for

success.

Consumer

Reports advises

you to negotiate

early or late in

the day, when

stores are often

quiet, and late

in the month,

when

salespeople

may be

especially

eager to meet

quotas.

At chain stores,

where regular

sales staff may not have the power to haggle, you might

need to approach a manager.

Open negotiations out of earshot of other customers,

recommends Consumer Reports, as sales staff may not

want others to get wind of your haggling.

Bring along up-to-date information about competitors’

prices (your BATNA) and expect the other side to verify it.

Be polite and cordial throughout the negotiation process,

and also be willing to accept no for an answer.

Finally, because stores typically pay fees on credit-card

purchases, keep in mind that salespeople may be more

willing to bargain if you offer to pay in cash.

When to make the first offer

After you discuss the pros and cons of your desired item,

the salesperson might offer to give you a discount without

any prompting. If not, open the negotiation yourself: “I can

buy this TV online this weekend at a much lower price. Can

we work together toward a more competitive deal?”

If the salesperson is willing to negotiate, and if you have a

strong sense of the ZOPA, you are positioned to make an

offer: “Can you beat Amazon.com’s price? It’s $900. I can

pay in cash, by the way.”

Imagine that the salesperson tells you his store has a new

policy against matching, let alone beating, Internet deals.

Furthermore, he reminds you that your great online deal is

about to expire.

Even so, by dropping this “anchor,” you have likely swayed

him away from the previous anchor—the TV’s $1,100 list

price—and toward your end of the ZOPA.

What’s more, because you proved you’ve done your

homework, he is likely to view your offer as credible, if not

entirely reasonable.

Discover step-by-step techniques for avoiding common

business negotiation pitfalls when you download a copy of

the FREE special report, Business Negotiation Strategies:

How to Negotiate Better Business Deals, from the Program

on Negotiation at Harvard Law School.

Original article can be seen here: http://www.pon.harvard.edu/daily/business- negotiations/creating-value-through-haggling-setting-the-stage-for-negotiation- success/

How Can Contract

Audits Add Value to

Managing Contracts

A good contract not only identiifies clearly the obligations of the provider, but also forms the foundation for a productive relationship built on communication and trust. 10 practical actions to take away 1. Identify if your organisation has a contracts register 2. Review the contracts register to establish if records are up to date 3. Does this contracts register reference risk? 4. Are the risks of the contract documented? 5. Establish if the risk appetite of the business or contract owner is known and documented 6. Establish if internal audit have been involved with contract management previously 7. Talk to the business owner of the arrangement and ask what they would like from internal audit 8. Brainstorm how internal audit can add value to the arrangement 9. Review services provided are in line with the contract 10. Consider invoking the right to audit clause

Related Posts

In negotiation, it’s all in the

timing

What are the Top Three

Defensive Negotiation

Strategies You Need to

Know?

Are You Ready to Negotiate?

How to Find the ZOPA in

Business Negotiations

7 Tips for Closing the Deal in

Negotiations

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