Posts Tagged ‘facts’

Negotiators Know That You Can Only Win By Taking The High Ground

Friday, October 21st, 2011
Image Credit
If you aren't on the high ground, then you're not going to reach a good deal

If you aren't on the high ground, then you're not going to reach a good deal

When it comes to how you want to conduct your next negotiation, there are an almost limitless number of ways to go about doing it. Some of them are above board and some of them are downright sneaky. I’m going to suggest that if you want to walk away from the negotiating table with a deal that both sides are going to feel good about, then you’re going to have to take the high ground…

What Is The “High Ground” And Why You Should Care

In order to reach the outcome of a negotiation that you want to, you need to be in the driver’s seat – you need to be controlling the direction that the negotiation takes. The challenge here is that the other side of the table will be trying to do exactly the same thing at the same time.

During the negotiation process, you will take positions and you will ask the other side to make concessions to you. As you might well expect, they are probably not going to be all that interested in making those concessions to you. Your negotiating skills will have to come into play as you attempt to convince them to adopt your views and make concessions.

This process can either be easy or hard to do. You can make it much easier on yourself if you choose at the outset of the negotiating session to take the high ground. This isn’t one of the negotiating techniques that we are talking about. Rather it’s more a part of an overall principled negotiation philosophy.

Taking the high ground during a negotiation means that instead of trying to bully or verbally overpower the other side of the table, instead you rely on solid evidence in the form of both logic and facts. It’s not all about you, rather the reason that the other side should adopt your viewpoint is because of the compelling evidence that shows that it really is the correct way to go.

How To Reach The High Ground

Realizing that the high ground is the correct way to go during a negotiation and then actually taking it are two completely different things. Any negotiation definition tells you that you are going to have conflict with the other side during the negotiation and staying on the high ground can be a difficult thing to do.

There are many negotiation styles that you can choose from when you are starting your next negotiation; however the following four components must always be included in what you do in order to allow you to keep the high ground:

  • Have A Solid Direction: You have got to know where you are going. Having a strong sense of where you want the negotiations to lead to is key to allowing you to retain the high ground.
  • Having History On Your Side: Do your homework before the negotiation and be able to point out how your positions are simply a continuation of what has been agreed to by the other side in the past.
  • Love That Logic: The nice thing about logic is that people can’t really argue with it. Take the time to think out your positions and then present them in a logical fashion to the other side.
  • Use Standards: If somebody else has established a standard then make sure that your proposal is supported by this standard and make sure that you tell the other side this.

What All Of This Means For You

Negotiating can be a tough job. As you enter a negotiation you need to make a decision about how you want to get to the end. There are a lot of different ways to get there, some are above board and a whole bunch are not.

Experienced negotiators know that sticking to the high ground is the best way to conduct a negotiation. Using solid backup material consisting of factual evidence and well-though out logic allows you to convince the other side of the table that you really are looking to strike a deal with them.

Negotiators can be tempted to forego the high ground if they find themselves in a rush – they just need to get a deal done quickly. However, it’s been proven time after time that if you don’t take the high ground during your negotiations, the deal that you negotiated won’t be one that either side will want to live with.

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

Question For You: What do you think that you should do if your management doesn’t want to take the high ground?

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What We’ll Be Talking About Next Time

Negotiations can go on for a long time. When you start a negotiation, you probably have a pretty good idea of where you want to get to. The big question is does the other side of the table share this goal with you? Will they be able to remember this goal throughout the entire negotiation? Hmm, sounds rather iffy to me. Perhaps what you need are a set of guiding principles…

Stand Your Ground: Two Ways To Not Fold During A Sales Negotiation

Friday, April 30th, 2010
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In Order To Defend Your Side Of A Negotiation, Always Have An Exit

In Order To Defend Your Side Of A Negotiation, Always Have An Exit

So there you are: the classic sales negotiator in the headlights. You’ve got a firm fixed price that you’ve been told to not budge on and yet you know that you’re getting ready to start a negotiation during which the other side is going to be hammering you to lower your price. Sure doesn’t make you want to get up early in the morning, does it?

Rule #1: Slow Down

When I’m working with clients who have a technical background, the question of how fast to move during a negotiation often comes up. Specifically, if you think that the price that you are asking for is going to be a big bone of contention, then should you just cut to the chase and start talking about price right off the bat?

Interestingly enough, and somewhat counter intuitively, the answer is no. If you jump to talking about the issue that you think is the most important, then you’ve lost an important opportunity to find out what the other side of the table thinks is the most important issue – and it may not be the same thing that you are worried about.

Taking your time also gives you a chance to gauge the other side of the table’s interest in the overall negotiation. If they need to get this deal done and move on to other things, then there may really be no sticking points at all if you don’t bring them up.

Finally, by taking time to get around to a major issue in the negotiations you are sending a signal to the other side of the table. Specifically, you are telling them that you are not all that anxious about this negotiation and that you won’t be caving in to their demands.

Rule #2: It’s All About Your Exit Plan

If you are going to look the other side of the table in the eye and tell them that your price is the best price that they are going to get from you, then you’d better be ready to back that statement up. This means that you’re going to have to have done your homework if you want to have an exit plan that will allow you to avoid having the negotiations end in a wreck.

Why are you charging the price that you are charging? Is your price as good as anyone else’s? Prove it. Is it based on what you charged this customer last time they bought from you? Prove it.

Your goal here is to boost the credibility of your price in the eyes of the other side of the negotiating table. The more that you’re able to do this, the better the odds are that you’ll eventually be able to get them to agree to doing a deal with you.

There is one additional side benefit to doing your homework and providing a solid backing for the price that you are asking. If in the end you find yourself having to make some sort of concession, no matter how small, on your price, then having presented a solid case for the price will end the discussion. The evidence that you provided should stop the other side from asking for even more concessions.

What All Of This Means For You

Starting a negotiation when you know that you you’ve got to defend a price that will be coming under heavy assault from the other side of the table is never fun. However, it is possible to be successful if you’ve done your homework before the negotiations begin.

Speed kills in a negotiation. Don’t dive in and start talking about the most challenging part of the negotiation right off the bat. Instead let the other side drive the discussion and find out what’s important to them. Also always have the facts to back up your price – it will make your job that much easier.

It is possible to come out of a negotiation with your price intact. All it takes is the good sense to take it slow and to come prepared to explain why your price is one that the other side is going to be willing to live with.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Help For Technical Staff

Question For You: Do you think that you should ever bring up a negation point, or should you always leave this to the other side to do?

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

What We’ll Be Talking About Next Time

Ok, so it’s time to get down and dirty about this sales negotiating stuff. Time after time I keep seeing sales negotiators making the same two mistakes over and over again and it just has got to stop. You can build the best product in the world, have the best sales team, but if you keep dropping the ball when it comes to negotiating the sale, then it’s all for naught…

A Sales Negotiator’s Friend: “Just The Facts, M’am”

Tuesday, March 17th, 2009
Sales Negotiators Should Not Be Afraid Of Facts & Stats - They Are Just Here To Help!

Sales Negotiators Should Not Be Afraid Of Facts & Stats - They Are Just Here To Help!

So there you are, getting ready to fire up your side of a sales deal when all of a sudden you get hit with a volley of facts, averages, and statistics. You’re hit! Each one of those figures came with a sharp point that has embedded itself, perhaps fatally, into your arguments. Is there any way that you can survive?

Good news, the answer is yes. It turns out that these powerful negotiating weapons: facts, averages, and statistics are ALWAYS negotiable. We have trial lawyers to thank for showing us the way. The key here is not to argue with the numbers themselves, but rather dispute what lies behind the numbers.

Questions that a good salesperson will ask right off the bat after being attacked with numbers include:

  1. Who collected these numbers?
  2. What sources did they use to get the numbers?
  3. What techniques did they use to collect the numbers?
  4. Were there any assumptions used when collecting the numbers?
  5. Why were the numbers collected in the first place?
  6. What values were hidden behind the numbers?
  7. Were there any biases that might have influenced the collection?

A key point to always remember is that any facts, statistics, or averages are always based on things that have happened in the past. What you are in the process of trying to do is to negotiate a deal that will live in the future.

One final point is to not allow yourself to get too worried by statistics or averages. They are just ways of trying to be able to talk about large amounts of data. The most important thing to remember here is that by their very definition, statistics and averages really don’t apply to anyone including you.

Have you ever been trying to work a deal when the other side suddenly whipped out a bunch of numbers? What was your reaction? What did you do next? Did the numbers end up influencing how the deal came out? Leave me a comment and let me know what you are thinking.