Archive for 2011

Merry Christmas – Take The Week Off!

Friday, December 30th, 2011
Here's Hoping That You Name Shows Up On The "Nice" List This Year!

Here's Hoping That You Name Shows Up On The "Nice" List This Year!

Loyal readers & subscribers, here’s hoping that this upcoming Christmas season week is a great week for you – I’m taking it off! Blogging will resume after the holidays…

Everyone seems to celebrate something different this week, but I’m hoping that no matter how you choose to spend your time, you will enjoy yourself. The world can wait, let’s spend time with friends and family and we’ll get back to the madness when the new year begins…

Have a happy and safe week no matter where you are and we’ll talk again next week.

- Dr. Jim Anderson

Sales Negotiators Need To Know How To Use Regulations And Laws To Reach A Deal

Friday, December 16th, 2011
Image Credit
Regulations and laws can work with a negotiator or against you

Regulations and laws can work with a negotiator or against you

I can only speak for myself, but when I’m headed into a negotiation I like to have as much freedom to do things as possible. That’s why I tend to shudder when I discover that there are regulations or even laws that are going to impact the negotiations. However, maybe I’m not looking at the complete picture.

How Regulations And Laws Can Harm A Negotiation

When we enter a negotiation, one of the things that we need to know even before we sit down is just exactly who is in the room? Sure there are the people who are physically there, but are there requirements and restrictions placed on either side of the table by others? This can have a big impact on the negotiation styles and the negotiating techniques that we can use.

When regulations and laws get involved, that negotiating room can get pretty crowded, pretty quickly. When we have to negotiate with these kinds of restrictions, all of a sudden our options start to narrow. I for one start to fell rather constrained. The negotiation definition is altered in these negotiating situations.

One of the biggest challenges that I’ve encountered to conducting principled negotiation is when the laws that you are negotiating under require you to reveal more information to the other side than you normally would. This tends to screw up the whole negotiation process for me. A great example of this is when you are negotiating with the government – after all, they get to make up the laws. Often times you’ll find that you are required to reveal elements of your product or services’ costs that you normally would not share with the other side of the table. Ouch!

How Regulations And Laws Can Help A Negotiation

Having regulations and laws come and sit at the negotiating table with you is not always a bad thing. If it turns out that they are working for you, then this can actually be a good thing.

The key here is to do your homework before you start any negotiation. What you need to be looking for are those regulations, statutes, rules or laws that support your negotiating position. The more of these that you are able to find, the easier it is going to be to get the other side to come around to agreeing with your position.

In addition to helping you with the other side of the table, regulations and laws can help you better manage your own company. When others in your company see the constraints that you are operating under, they will be more likely to put their support behind your negotiating positions and provide you with the support that you’ll need to be successful.

What All Of This Means For You

Negotiations can be tricky to do well. When regulations and laws get involved, things can become a great deal more challenging. Sales negotiators need to understand how to work in these situations.

These conditions can require that a negotiator reveal more to the other side of the table than they normally would. It’s very important to take the time to understand just exactly what the regulations require you as a negotiator to do.
Depending on exactly what the restrictions are, they can work in your favor. If they limit the other side of the table’s options, then it may become easier for the other side to agree to your requests and reach the deal that you wanted to have negotiated. In the end, that may make it worth all of the extra effort that these restrictions require.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: When you discover that regulations and laws may impact a negotiation, what is the best way to research how they will impact how you negotiate?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

How did your last negotiation go? Did you and the other side of the table spend your time working through a long list of demands that the other side had made? Did you end up feeling as though you had negotiated for a very long time? The next time that you prepare for a negotiation, you need to come up with a way to streamline the process so that you can reach an agreement quickly. It turns out that you can make this happen by bringing a purple monkey to the negotiations.

Negotiating In France & Korea: It’s Like A Whole Different World

Friday, December 9th, 2011
Image Credit Negotiating In A Different Country Is Like Visiting Another Planet

Negotiating In A Different Country Is Like Visiting Another Planet

Got a great email from reader Nadir Benouali the other evening. Nadir has a fantastic set of negotiating experiences and was willing to share them. Nadir is a US citizen of Algerian origin, and speaks Arabic, Spanish, and French. He has spent the last 20 years negotiating business around the world which provided exposure to all of the differences that the world has to offer.

Negotiating In France

Nadir tells the following story about negotiating in France.

“While in Paris, France our distributor took us to a wonderful local restaurant serving “une restauration du terroir” an authentic French cuisine indeed. The next day my French distributor wanted me to ask my boss about his experience in that restaurant. To my dismay, my boss told me how it was the worst meal he ever had, and how that evening he called a cab to take him to Burger King on the Champs Elysées! I almost had a heart attack. I told my French distributor in French how my boss will never forget that experience (I never lied).”

Nadir says that the French negotiation skills are indeed different than ours for one simple and so important reason. They think and act philosophically! Americans think and act mathematically!

He goes on to explain: the French educational system is based on elaborate essays whether in science, math or otherwise. A French student must explain his reasoning. An American student answers multiple choice questions, and he is allowed one hour during his exam whereas the French student is allowed between two and four hours.

History plays a role in French everyday life. The French still feel the effects of Montesquieu, Voltaire and Rousseau. Therefore when negotiating with the French an American should expect a debate rather than a yes or no process.

The French mind and psyche carries a social spirit. Not socialist, but social! They view wealth as a Marie Antoinette syndrome, and tend to favor a middle class approach to business. This view is shared among most small to medium companies whereas the elite French corporations like Loreal, Channel, Michelin etc. not only never share information about their wealth publicly, but also act as royals in private. Nadir believes that the spirit of Louis XVI is still alive.

Negotiating in Korea

Nadir went on to tell stories about negotiating in Korea. Needless to say, it was completely different from his experiences of negotiating in France. Here’s what he had to say.

“In Korea my distributor humiliated my boss by telling him how I was better than him. I knew the reason for such a comment came from the fact that I knew well the history of South Korea, its sacrifices and today’s rewards and achievements. Also that I shared my enthusiasm for his country.

Nadir said that “His key motivation for offering me this complement was that I had helped him achieve more than he had expected. He had been able to gain the respect of his largest customer because I had understood the expectation of this customer.”

Nadir had been able to offer a solution in a form of a consultative selling which had nothing to do directly with his product. Therefore, he created a need for his company’s product in the eyes of his distributor and it took only 5 minutes to turn all the negotiations on prices, products and orders into a real winning recipe for Nadir’s company.

Nadir believes that Asians, whether Koreans, Japanese or Chinese, uphold respect from their customer or boss as the pinnacle of their professional achievement. He uses this “sweet spot” to his advantage by anticipating what would the big bosses want their employee to achieve with him or what would their large customers want and expect from them.

Nadir offers the solution in front of either the big boss or their respected customer, and enjoys watching his distributor get approval. From that moment he not only get the respect he needs, but he can also impose a specific product at a specific price that he was able to explain to their largest customer, and who was enthusiastic about.

What All Of This Means For You

Nadir’s stories drive home a key point that all sales negotiators need to remember. Negotiations are different in every country. Everyone has different negotiation styles and different negotiating techniques.

Nadir’s examples pulled from experiences in France and Korea show that much more than a knowledge of what is being negotiated is needed. A knowledge of the culture and how respect is earned and shown is needed in order to be able to conduct a successful sales negotiation.

It’s stories like the ones that Nadir has shared with us that make us aware that even though the world that we live in is growing smaller, we are all still different. In order to be able to successfully reach a deal during a negotiation, we all need to be able to understand and work with a variety of other cultures.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: What is the best way to learn about a culture that you will be negotiating in?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

I can only speak for myself, but when I’m headed into a negotiation I like to have as much freedom to do things as possible. That’s why I tend to shudder when I discover that there are regulations or even laws that are going to impact the negotiations. However, maybe I’m not looking at the complete picture.

Video: Japanese Sales Negotiation Secrets

Friday, December 2nd, 2011

 

Dr. Jim Anderson looks into why Japanese negotiators have been so successful.

What he discovers is that there are three secrets that Japanese negotiators use during a sales negotiation in order to get the deal that they want. Dr. Anderson shares these 3 secrets with you in this short video.

If you want to get more negotiating secrets, subscribe to the free The Accidental Negotiator newsletter here: http://goo.gl/Yqf70

Why The Standard Answer Can Help A Negotiator Close The Deal

Friday, December 2nd, 2011
Image Credit
Standards Can Be A Negotiator's Best Friend

Standards Can Be A Negotiator's Best Friend

Magical mind control powers. That’s what every sales negotiator would like to have. The ability to bend the other side of the table’s mind to your way of thinking would be the set of negotiation styles or negotiating techniques that would make life so much easier. Sadly, I don’t believe that such powers exist. However, there is something that comes pretty close – standards.

What Standards Are And Where You Can Find Them

So right off the bat I guess we should tackle the big question: just what the heck is a “standard”? Standards are documented ways of going about doing something that were created by someone else. Note that I didn’t say that a standard is recognized as an official source by anyone in particular nor did I say that it was created by a person who is well regarded in a particular field. Don’t worry, using standards is still a part of conducting a principled negotiation!

A standard is simply that: documentation about something. The important thing from your point of view is that during a negotiation when you introduce a standard into the discussion that both sides start to treat the standard as the ultimate source of information. Using standards should almost be considered part of the negotiation definition.

If you are preparing for a negotiation and you find that there is no existing standard that will support your position, then it may be time for you to create your own standard. Even if you don’t create the standard, you can at least have someone within your company create it for you. Remember that who creates a standard doesn’t really matter, it’s just the simple fact that the standard exists that gives it its power.

How To Use Standards To Get Your Way In A Negotiation

Once you have the standards that you’re going to need in order to conduct a successful negotiation, you need to understand how to use them as part of the negotiation process. The real power from a standard comes from the fact that it now equips you with legitimacy.

During the negotiations you can refer to the standards and say things like “I’ve got to stay within these standards, that’s what my management has told me to do.” The other side of the table might not like this, but what can they do?

Just by having a standard, you can make it easier for the other side to agree to go along with the proposals that you are making. The standards provide you with an air of legitimacy and they help to guide the other side to reaching the decision that you really want them to make.

What All Of This Means For You

As a negotiator you are always looking for new ways to gain legitimacy in the eyes of the other side of the table. You really want to find ways to make your way of seeing the world their way too so that a negotiated deal is that much easier to reach.

Standards that you bring to the table can provide you with the support that you are looking for. These standards don’t have to be fancy internationally recognized standards. Standards that have been developed by your company (perhaps just for this negotiation!) often have as much weight. Simply by having a standard, you can reduce the amount of push-back that the other side will give to your proposals.

Take the time to plan your next negotiation. Look for ways to boost your position by the introduction of one or more standards. When the time is right, bring them to the table and defer to them. You may be amazed at just how powerful the right standard at the right time can be!

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: What do you have to do to make an internal standard be accepted as legitimate by the other side?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time