Posts Tagged ‘negotiation style’

C’est La Vie – French Lessons For Sales Negotiators

Tuesday, April 28th, 2009

Sales Negotiations With The French Requires Understanding Of Two Key Differences

Sales Negotiations With The French Requires Understanding Of Two Key Differences

So what is your view of the the French? Is your view of this magnificent county and its people shaped by those Inspector Clouseau movies that you used to watch while you were growing up? If it was, then it’s time to get over it and move on – they negotiate much differently than you do.

As with all things in sales negotiations, there is no right or wrong as long as you are able to eventually reach a successful conclusion to your sales negotiations. The trick when dealing with the French is to realize that they approach negotiations differently than either Americans or British do.

There are two key characteristics that every sales negotiator needs to know when dealing with French negotiators. The first is HOW they approach sales negotiations, and the second is HOW they view concessions.

In all honesty, we Americans always seem to be in a rush when we enter in to a negotiation – we work from the bottom up. We pick the first point, try to hammer out an agreement, and then move on to the next point. The French have a completely different approach – if I had to use a 50 cent word I’d call it a more “holistic” approach.

The French prefer to work on a sales negotiation from the top down. They’ll try to reach agreement on the basis of some broad principles first, and spend time working out the details. While they are working out the details, they will constantly refer back to the central agreement on the broad principles. Since you start from a point of agreement, it always seems like the rest of the work is just sorting out the details and that an agreement will eventually be reached.

When it comes to concessions, the French have a very strong sense of quid-pro-quo: they always want to get something in return. Unlike Americans, the French have no problems tying strings to their concessions – you are going to have to give something up if you want to get them to give in on a point.

There you have it, it is possible to reach a successful sales negotiation deal when the other side of the table is French. You just have to remember that their approach to the negotiation and to concessions will be different than yours and you are going to have to change to make the deal work out.

Have you ever had a chance to participate in a sales negotiation when the other side of the table was French? Did they seem to be approaching the negotiation in a top-down fashion? Did you end up giving up something every time they made a concession? Leave me a comment and let me know what you are thinking.

A Sales Negotiator’s Friend: The Telephone

Tuesday, March 31st, 2009
A Telephone Is A Two-Edged Blade For Sales Negotiators

A Telephone Is A Two-Edged Blade For Sales Negotiators

What’s your mental picture of a typical sales negotiation? When you close your eyes do you see a lushly carpeted board room with a large oval table in the center and padded leather chairs all around it? If so, then in most cases you are sadly mistaken.

An amazing number of sales negotiations occur over the telephone. Everyone has one and in fact in this day and age of mobile phones we all seem to have more than one phone. Given that by using the phone you can reach someone directly at almost any time, phones have become an important tool in negotiating sales.

However, as with any tool, a phone can be a danger to any negotiator’s hope of success. Using a phone to negotiate can be quick and easy, but that’s actually part of the problem. I’m not telling you to not use the phone, I’m just saying that you need to watch out when you do. Here are some of the things that can go wrong when you use the phone to negotiate a sale:

  1. Deal / No Deal: Because you can’t look the other side in the eye when you are negotiating with them on the phone, it’s entirely possible that you may conclude the call thinking that you have a deal when you really don’t.
  2. Can You Hear Me Now?: What you think that you are saying is not necessarily what the other side is hearing. However, since you are on a phone, there is no way for you to realize that they have gotten the wrong message.
  3. What Did You Say?: Often when we are negotiating on the phone, we are out and about. Although we may reach agreement, it won’t count until such time as we write it down. That may be hours later and what we write down may be different from what we agreed to.

Once again, the phone is a powerful sales negotiation tool; however, you have to be careful how you use it in order to make sure that you don’t get burned.

Have you ever used the phone as part of a sales negotiation? Did you have any communications problems? Were the problems on your side or on the other side? When did you first realize that there was a problem? How did you finally resolve this problem? Leave me a comment and let me know what you are thinking.

Whatever Happened To That Boeing Negotiation?

Thursday, October 2nd, 2008
Boeing Workers Are On Strike And Everything Is Shut Down

Boeing Workers Are On Strike And Everything Is Shut Down

We’ve talked before about the labor negotiatons and the strike that is happening at Boeing. Since we last talked, the International Association of Machinists and Aerospace Workers has gone out on strike against Boeing. This has caused Boeing’s commercial airplane factories to be idled for over three weeks so far. Probably what’s even more important here is that this strike is starting to show signs that it could turn into a protracted standoff. Where’s a good negotiator when you need one?

There appear to be two major issues on the table right now: job security and rising health care costs. Both sides seem to feel that if they are the first to suggest a resumption of negotiations, then the other side will believe that they blinked and will negotiate from that position. The end result of all of this is what we’ve seen in other negotiating situations: the party that hurts the most will be the party that requests to resume negotiations. The strikers will start to feel the pinch from their lost paychecks soon and Boeing is rumored to be losing $100M per day of the strike. Oh, and Boeing has the extra problem that their suppliers are going to start to get skittish when they can’t deliver and can’t get paid.

Federal negotiators have become involved (that’s where the negotiators are!). The union has presented a long list of items that they say must be addressed before they would be willing to accept a new contract. Boeing is trying get the union to shorten the list before they will agree to participate in the negotiations.

Doug Kight is the lead negotiator on the Boeing side. What’s interesting is that Doug is the head of HR and as been so for the past two years. Before that he was a lawyer. Hmm, that’s all good stuff, but how good of a negotiator do you think he is? More importantly, has he been involved in major labor negotiations before?

Folks close to the strike believe that it could last 45 days or more. The workers have missed one paycheck so far and the union has started distributing strike pay of $150 / week per member. Meanwhile, suppliers are starting to furlow their workers in order to not create too much of a backlog of parts.

So negotiators what needs to happen here? First, the two sides definitely need to get back together and start talking. It really doesn’t matter what they talk about, just start talking. Next, they need to find some common ground. If the union has been able to create a long list of demands, then that’s the place to start. Boeing needs to agree to some minor issues and push back on others. This will get the ball rolling. They’ll encounter big issues that can’t be solved right now, but that’s ok – put them off to the side. Eventually all that will be left will be the big issues. Perhaps everyone can agree to go back to work while these are worked on? If not, then both sides need to be willing to give in some. Boeing won’t be able to get all of the health costs that they want to push to the workers to be agreed to. However, they can probably get the workers to take up some of the costs. Boeing needs to find ways to keep its workers healthier so that their health costs go down due to lifestyle changes. Boeing can probably get permission to allow some suppliers to get closer to the production line. However, they aren’t going to get everything that they are asking for. The workers will have to give a little, but not too much. The real question is just how long it’s going to take before both sides can get here…?

What do you think that Doug Kight should do? Do you think that Boeing or the strikers should make the first offer to go back to the negotiating table? How do you think that whomever makes the suggestion can not appear to be weak? Leave a comment and let me know what you are thinking.