Negotiation

Let us never negotiate out of fear. But let us

never fear to negotiate.
John Fitzgerald Kennedy

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 Outline

Types of
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negotiation

1 3 Negotiation
process
Definition
4 If
sentences

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To warm up …

What makes a good negotiator?

Be versatile, be adaptable, be able to change behavior according to circumstances,

be able to manage conflict, be able to plan effectively, be analytical, be open-
minded and creative, have self-discipline…

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What is the importance of negotiation?

It is very important in business communication to avoid conflicts

and find an alternative that suits all.

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1. Definition

Negotiation is a method by which people settle

differences. It is a process by which compromise
or agreement is reached while avoiding
argument and dispute.

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 2. Types of negotiation

Match the phrases to their correct definition:

0 A win-win situation A A situation in which a benefit

1 gained by one side means a
0 loss to the other side
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0 A zero-sum situation
0 B A situation in which both sides benefit.
2 3

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Integrative Approach Distributive approach

Win-Lose Strategy /
Win -Win Strategy Zero-Sum Strategy
A situation in which both A situation in which a
sides benefit benefit gained by one side
means a loss to the other
side
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 Integrative Approach

Buying from a broker can result in a win-win.

The broker has buying power not available to the consumer. The broker
passes on a percentage of their discount to the consumer. The discount given
to the consumer exceeds what they could have gained by negotiating with
the supplier.

The consumer has won twice - saved the work of negotiating and saved
money. The broker wins the commission

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 Distributive Approach

Business practices
A firm or individual who profits at the expense of the environment.

A trucking company that purchases old diesel trucks that have unusually
high particulate emissions, but are extremely cheap.

This is a win for an individual and loss for everyone else.

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 3. Negotiation process

Reach a
Make proposals stalemate
Probe interests

Make counter 6
Build rapport Begin bargaining 4
2 procedure
proposals

Make suggestions Reach a situation where

Find out the other
3 5 no progress can be made
1 side's expectations
React to suggestions
Develop an understanding to Start to negotiate the
communicate with someone terms of an agreement
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 Make concessions Work out the
details Return to the
negotiation table
Reach a
7 compromise 9

Give up things in order to

reach an agreement
8 Discuss all the
aspects of the deal
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Arrive at an agreement where
both parties reduce their
demands in order to agree. Re-negotiate an
agreement
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 Example

B: We are looking to make an order B: We were hoping for unit price of

for 100 cases. around £4.50.

Build Begin bargaining Make counter

rapport procedure proposals

Probe Make proposals

interests

A: I notice you have a Russian name. A: Come on, let's be reasonable here. We've
A: What sort of price did you have
B: Yes, my father is from Moscow. never gone that low on any deal before, even
in mind ?
on much higher quantities.
A: Oh really? Do you speak the For your stated volume, the lowest I could go
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language? is around e7.50.
 A: If you cut your delivery time by, say, 10
days, we would be prepared to pay the price
you have proposed.
B: I suppose we could manage that. But we'd B: Oh, transportation is
need to see a bit more flexibility on terms of included, isn't it?
payment. A: Sure. We can throw that in.

Reach a Reach a
stalemate compromise

Make Work out the

concessions details

B: Listen, I don't have any more A: Fine. It's a deal.

room to negotiate this fee. £7.50 is
the bottom limit.
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 How to nail the negotiation process ?

Never make
Make every sentence
concessions.
an If sentence
Trade concessions.

If you give something We will be able to bring

away, make sure you the price down by 5%, but
always get something only if you increase your
in return order by at least 10%.

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 Look at this example of the wrong way to trade concessions:

Mr. Alex: We’d really like Miss Jules: OK, I think

you to increase your order by we can accept that.
10%. So we’re prepared to Thanks a lot.
cut our prices by 5%.
Q. What exactly has Miss Jules accepted here?
A. The price cut
Q. What about the increased order?
A. Mr. Alex didn’t get confirmation that the order really will be
increased 15
On the one hand …

Jules’s answer caused confusion. She didn’t mention that her

company is going to increase the order by 10%.
Hence, Alex didn’t conclude the deal.

On the other hand…

Alex didn’t trade concessions straightforwardly. He said ‘’we’d

like you to increase … so we’re prepared’’ instead of explicitly
saying …

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“If your company increases the order by 10%, we will cut our
prices by 5%.”

No increased order = No price cut

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Therefore…

We use conditionals to:

• Ensure that any concessions we appear to be making are

tied to something we want from the other party.
• Avoid misunderstandings and messy situations .

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In which conditional types are the following sentences?

If you increase your order by 10%, we will give you a

discount of 5%. Conditional Type … Type 1
 

If you increased your order by 10%, we would give

you a discount of 5%. Conditional Type … Type 2

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In negotiations, the first conditional form
(If + present + future) is used when we think the expected
outcome of a situation is very likely. .

However, the second conditional form

(If + past + would infinitive) is used when the outcome is
less certain or is imaginary.

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If you give us a 10% discount, we'll place a firm order of
2,000 units.
If you don't deliver on time, we won't order from you
again.
If you gave us a 5% discount, we would place a much
bigger order.
If they didn't have a guaranteed market, their business
wouldn't survive.
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We can express conditionals using certain expressions

Supposing you increased your order by 10%, we would be

able to give you a discount of 5%.
Unless you increase your order by 10%, we won’t give you a
discount of 5%.
As long as / Provided you increase your order by 10%, we
will give you a discount of 5%.

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To recapitulate …

Type 1 Type 2

A possible condition A hypothetical condition

and its probable result and its probable result

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Remember …

No matter how sad you feel about being confined …

If an ex-girlfriend/boyfriend phoned me, …

…………………………………………………………

And …

You won’t get infected by Coronavirus, if you ………

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T H A N K S F O R YOUR ATTENTION

Any Questions?

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