Insights in preparing for any negotiation

This weekend I had the opportunity to spend time with a young business man that is doing exceptionally well. Having started in the proverbial two stall garage eight years ago and now expanding his eight million dollar operation for the fifth time, he obviously knows something.

We talked about several situations he recently had involving some negotiation tactics and the results of both.

This week's article will cover two examples of negation tactics being applied and examine why they obtained the results they did.

If you want more insight into negotiations, read on...

Pat started out explaining how an insurance company exec had contacted them about becoming a preferred supplier for the Insurance Company. The meeting was cordial, yet the exec and Pat both seemed to give the air of not really caring if a deal was struck or not. The exec indicated they had suppliers, even though some were of questionable quality. Pat responded with a no concern attitude that his parts will be sold to the Insurance Company or to some one else, and he was not highly motivated.

Pat offered to sign the agreement and give it a try; the Insurance exec indicated Pat should think it over for a week or so.

Pat's sales rep was confused by the whole thing, as he had set it up!

A week later, on Friday, Pat signs the papers and has the sales reps deliver them. The Insurance Company asks for their dedicated phone line number as they want to start full tilt on Monday! They had everything setup and ready to go!

There were no closing questions, no deadlines set and no real commitment yet the business got done! What were the tactics applied here?

Read on to find out.

Another executive related this story to me. They were working with a very large wholesale account in Spain. The President and Don arrived in Spain and met the president of the wholesale company.

The first thing they did was go for an evening meal at a very high priced club. After three hours of a seven course meal and lots of wine they went the Villa of the Spanish executive.
Here they had more wine and some excellent cigars and talked well into the night, but not about business!

Don says it was like letting a hungry tiger out of the cage. At three AM the Spanish Executive lets loose and starts negotiating with the president. He says it was brutal and the President was completely caught off guard. Yes the deal went in favor of the Spaniard! They still do huge volumes of business together and have become good friends.

So what negotiation tactics were applied here? Why did they work?

Both examples exhibit what many of us miss in planning our presentations or negotiations.

Let's just step back for a moment and recall where persuasion and influence takes place. Is it in our head or in the other parties mind?

Yes we plan, yet the actual persuasion, hopefully occurs in the other parties mind!

So what was being done in both of these negotiation examples? You might call it feel them out, or reading the other party and you would be right.

Just like in persuasion or sales, we need to understand the other party in a multiplicity of ways if we are to package, present and have acceptance of our ideas.

Pat and the Insurance Exec were reading each other and getting a good understanding of each other. Both had done their homework and knew plenty about each others companies that were not being stated. Their real purpose was to verify they could actually work with the personalities of the principles, thus the companies.

The Spanish Exec was doing the same; he was using the time to read the President and Don. He was strategizing how to avoid the strengths and work on those items or issues they were vulnerable on. Neither Don nor the President has ever forgotten that lesson!

The challenge we find is most people in planning such encounters view the situation only from their view and what they want. They then plan on how they can overpower or convince the other party to come to their side. Examine your last strategy or planning session, the focus was?

In these two examples the focus was not on what "I" want, rather on who is the other party? Then how can that insight be applied in our persuasion effort.

So what are some of these "items" we should be looking for? Here are a few:
What is their behavior style? This affects their decision making.
What is their view on the situation and how is it similar and different from ours.
What are their beliefs and values? These are the foundation of all choices.
What is their body language saying? Poker player's call this "tells".
What type of words do they use? These are great keys to behavior types and values.
What is their real situation? What are they trying to accomplish?

Now there is more to look for, the question is; do you know this about the other party before you go into a negotiation or sale? How good are you at reading these items in other people?

Ok, some of you may be saying this is stuff you have heard, yet have a hard time buying it! That's ok, until you study these items and look for them, you will not see them.

Last week on a sales call I met an exec for the first time. As we discussed his company and his goals, I found myself trying to determine if his behavior pattern was a high I or S. Both were very prominent in his behavior and language. When I mentioned the DISC he indicated he had just attended a short program on it. His profile; an equally high I and S. He was quite impressed that I had pegged his profile in just a few short minutes! Yes, we discussed what this could mean if his salespeople and managers could do the same!

Yes you can determine a great deal about another person IF you know what you are looking for.

Every day people are utilizing these skills to assist them in sales, negotiations and relationships. What level are your skills in these areas?

For more specifics, view the web at www.BusArcOnLine.com for information on..
Body language
DISC behavioral
Values & Beliefs
Persuasion tools

Till next week, make it the best week of your life!



Harlan Goerger
National Director of Training

© Harlan Goerger 5/2007