Negotiation Skills Training Workshops
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 workshops 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 classes 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 workshops please
contact us.
Best Practices in Business Negotiation Workshop: It Isn't What You Charge, It's What You Earn!
I’m a huge fan of 99 Cent Stores.
Yesterday, for example, it occurred to me I could use some sink stoppers, you know those super simple rubber plugs. Naturally, I thought about hitting a hardware store, where I figured I'd probably have to pay about $2.99 each.
Instead, I drove to an even closer 99 Cent Store, and they had them. While I was there I picked up a can opener and a few other necessities, which would have set me back three, four, or five times as much money at other outlets.
At roughly a buck an item, this chain and similar ones have revolutionized retailing, while earning for themselves tidy profits.
Essentially, they're focusing on what people want to pay, not on what they'd like to charge.
Along with tremendous inventory sourcing and some other trade skills, this is the real entrepreneurial lesson of 99 Cent Stores.
Negotiators usually ask the wrong questions when they prepare to transact. One of them is, "How MUCH can I get?"
Maximizing our gains is only rational, right? Isn't this what we've been taught in Capitalism 101?
Generally this is true, but in retailing, for example, the traditional formula still applies. Profits result from one's margin over costs times product turns. 99 Cent Stores may be earning pennies on each item that leaves the store, but they're selling a lot of items!
If this company decided to become the $1.99 Store, their product turns would diminish probably by much more than half, shrinking profits as a consequence.
For a very long time in my consulting practice I took pride in how much money I charged. That's right, if I had been an automobile, I would have been well into the high range of "luxury class."
To me, price signaled value. "I'm worth it!" was the unspoken motto. Indeed, when one prospect balked at my fees, he said "Why, the average consultant charges only X dollars a day."
You know what I said? "I charge what I do because I'm NOT AVERAGE!"
But I was arrogant, and when a world of competitors entered the scene, ushered in by the Internet, I had to rethink my positioning. No longer was it self-evident that I was the best.
The message I was hearing was clear. Adjust to charging what people want to pay, not what you want to charge; that is, if you would prefer to stay busy plying your trade.
The primary gain in business and in negotiations is achieving a profit, not in maintaining and justifying premium pricing.
That's my 99 Cents worth of advice for the day!
Source: Dr. Gary Goodman Link
For Negotiation
Skills Seminar information please
contact
us.
Related:
Business Negotiation Workshop
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