Posts Tagged ‘compromise’

Sales Negotiators Know The 6 Words That Let Them Fight The Law – And Win!

Friday, August 19th, 2011
Image Credit Just Because There's A Regulation Doesn't Mean You Can't Win

Just Because There's A Regulation Doesn't Mean You Can't Win

Talk about running into a brick wall! Sometimes when we are in the middle of a negotiation, especially with a state or federal official, we come face to face with a regulation that prevents us from getting what we want. Is it time to give up? Nope, you just need to know the magic 6 words that you need to say…

Excuse Me But…

I can almost hear you saying “tell me, tell me – what are the 6 words of power?” Not so fast.

First, let’s set the stage. Just image that you’re in a negotiation and you’ve just been told that there is a regulation that will prevent you from doing what you want to do. What’s a sales negotiator to do?

What you need to do is to change the way that that the other side of the table thinks about that regulation. Right now they view it as though it’s written in stone – there’s no way to change it. This is where the power of the 6 magic words comes in.

You need to look the other side of the table right in their eyes and say “… but it doesn’t apply in this situation…” What these words do is call into question whether or not the regulation applies in this case. You aren’t saying that the regulation is wrong – because you can’t. Rather you’re doing an end run and saying that there’s no need to discuss the regulation because it has nothing to do with what is being negotiated.

What happens next is that both parties will crack open the regulation and read it carefully. The good news here is that it is always possible to read something the way that you want to read it. You should always be able to find a condition or exception that will allow you to ignore the regulation.

Why Regulations Are Just A Starting Point

All of this is actually part of a much larger tactic. What those of us who don’t create laws and regulations seem to forget is that these things are never nice and neat. Instead they are the result of a lot of compromises and because of this there may be many different ways to look at them.

Your job as a negotiator is to make sure that you get the other side of the table to look at any regulation the way that you want them to look at it. Generally this means that you want them not to doubt the validity of the regulation, but rather you want them to doubt the applying of the regulation to the current situation that is being negotiated.

What All Of This Means For You

Inexperienced sales negotiators can feel like they’ve reached the end of the road when they encounter a regulation that blocks their way. Seasoned sales negotiators know that this isn’t as bad as it may seem at first.

The first thing that you need to do is to use a sales negotiator’s 6 words of power: “… it doesn’t apply in this situation…”. Just by uttering these words you can transform something that appeared to be fixed into something that can be changed. This is the start of a bigger realization – all regulations are really just a set of compromises. What they mean and if they apply can be negotiated.

A good sales negotiator never lets a little thing like a regulation get in the way of striking a good deal. Instead, you need to see regulations as just another step in your journey to finding a solution that meets the needs of both sides of the table.

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

Question For You: How long do you think you should wait before challenging the validity of a regulation?

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What We’ll Be Talking About Next Time

Is it possible that a person who is not present at a negotiation could be the one person who controls how the negotiation turns out? The answer, somewhat surprisingly, turns out to be an unequivocal yes! If you want to make this negotiating technique work for you (and learn how to defend against it), we’re going to have to have a talk…

No Ha, Ha At Tata – Negotiation Over Land & A Car Plant

Tuesday, September 16th, 2008
The Tata Nano Auto Plant Needed To Be Negotiated

The Tata Nano Auto Plant Needed To Be Negotiated

Negotiation is a skill that is used everyday, all around the world. There’s a great example of just how careful one must be when negotiating – remember, as Yogi Berra said “It’s not over until it’s over”. Tata Motors thought that they had successfully negotiated a deal until it started to come undone. Let’s take a look at what happened and see if there are any lessons to be learned here.

Tata Motors Ltd is part of the enormous Indian Tata Group company. The eyes of the world are on Tata Motors right now because they have announced that they are going to be building a car called the Nano which is expected to be the world’s most inexpensive car priced at $2,500. The car is scheduled to be launched in October.

Tata Motors had decided to build their car in India’s state of West Bengal which is located in eastern India. West Bengal is a economically poor part of India and the arrival of a large car manufacturing operation was viewed by many as a very good thing. Tata Motors negotiated with the West Bengal government in order to obtain the 1,000 acres of land that was needed to build the plant and the shops for their suppliers. The local government obtained the land, signed a deal with Tata Motors and construction was started. End of story right? Nope, not by a long shot.

It turns out that the land for the auto plant used to be farmland. The West Bengal government says that they paid the affected farmers in most cases and legally seized the land in a few cases. The issue is that the farmers don’t see it that way! In fact about 400 of the 1,000 acres are in dispute. So what did the farmers do? Simple, they demonstrated and got violent. Construction on the auto plant came to a halt. As though this wasn’t bad enough, Tata Motors said that if the issue was not resolved, then they would move their auto plant to a different Indian state.

What’s a local government to do? The West Bengal Governor sat down with the leader of the protests (who also happens to be the head of a local political rival to the current West Bengal government) and started to negotiate. After three days of negotiation, a compromise was reached. The exact deals of the compromise have not been released yet; however, the government has stated that they will try to return some of the land that had been forcibly taken from the farmers.

So what is to be learned from all of these international events? Ultimately, you need to do your homework and make sure that the parties that you are negotiation with have the power to deliver what they are promising. In this case Tata Motors relied on the West Bengal government to deliver land and it turns out that the land was not theirs to give. What could Tata Motors have done differently? They could have split the negotiations into two parts: various permissions and incentives from the local government and buying the land directly from the farmers. This would have been more time consuming; however, it would have prevented the turmoil and the delays that resulted from assuming that the local government had the power to provide the land.

What would you have done if you were the CEO of Tata Motors and no compromise had been reached? Would you have moved the plant and lost the $100M that you had already invested or would you have done something different? Leave a comment and let me know what you think.