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.
Negotiation Training Workshop: Why Not Barter?
When most of us think about negotiating, we're presuming that money will be involved in the transaction.
For instance, if you want to buy a house, you'll fork over some cash, and not get away with asking, "Would you accept one red paperclip for it?"
Yet, this is exactly what a fellow did, not in one step but a sequence. He bartered a single, red paperclip for a house!
Kyle MacDonald is a Canadian blogger who pulled this off, and you can read all about his exploits at Wikipedia by searching "one red paperclip" or his name.
It's a fascinating story, but my purpose here is to use it to illustrate a much larger principle. Bartering is a Best Practice In Negotiation, one that is not used often enough.
Who barters, and why?
My Dad was a radio station executive and he also produced a little TV. Typically, the companies he worked with arranged what he called, "Trade-outs."
They would trade unsold radio and TV commercial time for whatever they could use, for which otherwise they'd have to fork over cash. My Dad drove a hot black-on-black Mustang GT that was part of one of those exchanges.
Early in my consulting practice, I was engaged by a cell phone company. The contract I negotiated provided cash, two cell phones, and thousands of dollars worth of air time.
They "owned" the air time, had an excess capacity of it, just as the radio and TV stations had too much time on their hands, literally.
Trade-outs with airlines, hotels, and cruise lines are especially attractive-to them-for the same reason. Unsold seats and accommodations are a total loss.
You cannot sell yesterday's unsold airline seat. If unoccupied, it was a 100% revenue loss.
So, carriers and others that have "perishable" inventory have a keen interest in getting SOMETHING in exchange for what they are unlikely to sell for cash.
True, you might have to stand-by to enjoy some of your bartered tickets, unless you bargain for "positive space," but it is an inconvenience worth the bother. If you don't get on the 2 o'clock flight, you'll probably get on the 5 o'clock.
I prefer "Half-cash, Half-trade"deals, where I'm earning at least some cash money along with perks. From the cash portion, I retire my direct costs and make at least a slight profit.
The bartered bit provides a sweetener, an enhancement.
Sometimes, using the lure of a partial trade-out, you can close deals that you would miss, otherwise. Plus, if you don't want to cut your prices, by using a partial trade you can effectively deliver your goods and services "for less," without earning less.
There are various ratios that you can establish, which are themselves subject to negotiation. For instance I traded some seats in a seminar I was conducting to an airline company that gave me a five-to-one payback on the retail value of the seats.
For $1,500 worth of tuition, I received $7,500 worth of positive-space airline tickets.
A good deal for everyone! For those that advocate striking win + win bargains, I can think of no other type that does it as well as bartering, again, making this a "Best Practice In Negotiation."
Source: Dr. Gary Goodman Link
For Negotiation
Workshop information please
contact
us.
Related:
Negotiation Training Workshop
|