Negotiations Skills Training
With
over twenty-five years of proven industry experience, the
Negotiations
Training Institute of America is the recognized leader in
negotiations training, consulting and performance coaching. Through public open
enrollment seminars and private on-session training sessions, we
have helped leading corporations, non-profit organizations and governmental
agencies improve their ability to
negotiate
better outcomes for their constituencies.
First-time
negotiators as well as those with the greatest
competitive
drive and amount of first-hand experience and
negotiations
wisdom can benefit from our time-tested workshops. Whether focusing
on
negotiating
a contract with a vendor or jumping in to the often-stressful
car buying process to
deal
with a dealership, our courses provide useful skills, proven techniques
and various classroom role plays to help you
become
more aware of negotiations that you must face on a daily basis.
For more information on our negotiation skills training courses please
contact us.
Negotiation Skills Training: How To Create A Range
There are lots of areas of importance in a negotiation. This negotiations article will focus on the value of being clear about the 5 parts to creating and staying with an effective negotiating range. What is a negotiating range? Many negotiators focus only on the monetary aspect when thinking about their negotiating range. We encourage using this same principle in any area in which concessions will be traded. In addition to a range for dollars, additional examples for application are: service hours included, delivery times, percentages... Be creative! And, always think mutuality-based, win-win.
Here are the five interactive areas that make up the negotiating range:
Power of the WISH:
1) A range has a top and bottom to it. Many negotiators on either side of the sale start with a figure that is too low. Example - Selling a House. The seller creates a range of asking $350,000 to the bottom line of $335,000. The way the Wish works is to think outside the box of reason when doing the preparation: this figure is never revealed to the other party. In the ideal world, what could you get for the house? "Ah, I would really like to get $375,000!" Well that is a little unrealistic but now he/she is thinking bigger. They may now start their range at $360,000 instead of $350,000. You will never get $350,000 if you start at $350,000. Create more give and take room.
Power of the Aspiration:
2) When you allow the Wish to be BIG, then you’re starting points will be bigger. The amount of money (and other concessions) left on the table because we start with a figure that is too low (for sales) or two high (buying) is incalculable. The Aspiration needs to be realistic but the "biggest realistic" number or amount you can go before offending the other party. In this case, the seller's Aspiration is $360,000.
Power of the Bottom Line:
3) The Bottom Line is the least you will accept as a seller or the most you will pay as a buyer. I have asked hundreds of people in our Bold New Directions training programs if they have ever gone past their Bottom Line. 90% of people have. There is a reason it is called the Bottom Line. You have to do your negotiating prep work fully to know what your limits are. And if you have a limit, make sure it is your limit. In this case, the limit is $335,000 from the seller's perspective.
Power of the BATNA:
4) BATNA is the Best Alternative To a Negotiated Agreement; the negotiation has ended without a negotiating deal. The BATNA is the best guard you can have to never going past your Bottom Line. Why? because you have alternatives. You have negotiating options. When you have alternatives, you need not ever again feel pressured into going past what you said were your limits. You will be fine with turning to your alternatives (the more alternatives the better). In this case, an alternative for the negotiating buyer is that he/she sells to someone else. Another is to be okay with keeping the house on the market longer.
Power of the WATNA:
5) WATNA is the Worst Alternative to a Negotiated Agreement. In your preparation phase, you need to consider; what is the worst that will happen if you do not sell (or buy) in a particular negotiation. Going to the worst case scenario has this benefit: you might reconsider your bottom line. That is good to know. In this case, you may need to sell in order to move out of town and buy elsewhere for your new job. Well, that limits your options. In that case, you might restructure your bottom line back to $350,000 or even lower to sell faster.
All five of these work together. Use all of the negotiating tools and you will be much more successful in getting what you want in negotiations.
Source: Dori Kelsey Link
For Negotiation
Skills Seminar information please
contact
us.
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Negotiation Skills Training
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