InternationalBusinessNegotiation1/29BargainingprocessKeypoints:1.tacticsandstrategiesformakingquotations;2.indicatorsfortheendofabargain;3.tacticsandskillsformakingcounter-quotations4.principlesandstrategiesformakingcompromises2/29Thebargainingphaseisthecoreandmostdifficultstageinthewholenegotiationprocess.Allnegotiatingpartiesconferaboutsubstantive(實質性)issuesanditems.3/29

Inthebargainingphase,eachnegotiatingpartymeasuresitsownstrength,intelligenceandstrategiesagainstthoseofitscounterpart.Eachsidemaymodifyitsoriginalobjectives,establishabasicframeworkforthenegotiationagreement,adjustitsownstrategies.4/29Thenegotiators’abilitytousetheirwisdom,strategiesandskillsinacorrect,effectiveandflexiblewaywilldeterminehowwelltheycanrealizetheirfinalgoals.5/29ThedefinitionofquotationNarrowly:itisawaytoindicateaparticularpriceatwhichonepartywillbuyorsellthespecificcommodity.Broadly:includingothertermsandconditionsforadeal:thenameofthecommodity,quality,quantity,price,packaging,shipping,insurance,paymentterms,inspections,claims索賠,arbitration仲裁…6/29GuidelinesformakingaquotationTheprincipleofmakingaquotationinbusinessnegotiationis“toselldear”or“tobuycheap”.Thesellershouldtrytopresenthisquotationatthehighestpriceacceptabletothebuyer;thebuyershouldbidforthelowestpricebearabletotheseller.Thequotersshouldconsidertheirowninterestsandthedemandandsupplyoftherelevantcommodityinthemarket.7/29價格談判與價格談判區間買賣雙方價格區域

賣方價格區域最高報價底價底價最低報價買方價格區域賣方首次出價買方首次出價可能達成協議區域

賣方底價可能成交區域可能成交區域談判區域

買方底價8/29Commonwaystoestablishaquotationprice:Assessthemarketsituationathomeorabroad,thecompetitors’pricelevel,setarangeofpricestoquote;Setabottomlineasthelastlineofdefenseinthenegotiation;Decidetheinitiallevelforthequotation.Thesellercanaskasky-highprice;thebuyercanmakearock-bottomoffer.9/29QuotingstrategiesBeexplicitandspecificbedecisiveandresoluteoffernoexplanationusedifferentiation(區分報價法)usepsychologicalpricing(心理定價法)usemidwaypricechanges……10/29Differentiation

Thisstrategyallowsacompanytobuyorsellthesameproductatdifferentpricesbasedontheirgrades,quantity,deliverydestination,shipment,methodsofpaymentandotherrelatedfactors.11/29psychologicalpricingUnitsofmeasurement:RMB-Euro/Dollar3Dollar---20Yuanexchangerate匯率換算單位kilo---poundBreakingthewholeintoparts:Usingsmallerunits化整為零Thedecimalfraction:Oddnumberpricing：奇數定價

￥19.99---￥2012/29Counter-offerAcounter-offerisanalternativequotationgivenasanexplicitresponsetoaquotationmadebytheotherparty.Makingacounterofferhelpstosetthebargainingrangeorsettlementrange.Itindicatesrespectforthequoter,provesone’ssincerityinthetransaction,anddetermineshowanegotiationwillproceed.13/29Threefactorsareinvolvedinsettingthestartingpointforbargaining:Doesyourcounterpartmakeanysubstantialimprovementintheirquotationafteryoucountered?Whatisthedifferencebetweentheimprovedquotationandyourdesiredclosingprice?Doyouplantomakefurtherconcessionafteryourinitialcounteroffer?14/2916

GoldenRules

Thenegotiation,inessence,isaprocessofmakingconcessions.Donotmakesenselessconcession;Donomakeconcessionsblindly;Seizethe“bigfish”andletgoofthesmallone;Choosetherighttime;Keepthebottomlineasecret;15/29Donotpromisetomakeconcessionsbyequalmargin;Lookbeforeyouleap;Donotmakeittooeasyfortheotherpartytogainwhathewants;Takebackanimproperandill-conceivedconcession;Lettheotherpartydoitfirstandthenfollowsuit;16/29Firmlycontrolthetimesandmarginofyourconcession;Daretosay“no”;Quantifyaconcession;Havetheoverallsituationinmind;Thereisnoneedformakingmoreconcessionsinreturnforaconcessionmadebyyourcounterpart;Withdrawtogetthesecondbest.17/29TypicalhardballtacticsUsedtoforcetheotherpartytomakeconcessions.1.beingexcessivelydemanding;2.emotionaloutburst;3.severalpersonstaketurnstofightoneopponenttotirehimout.(tag-teamtactic);4.bringaboutasplit-upofthecounterteam.(divideandconquer)5.involvecompetition;鷸蚌相爭,漁翁得利18/296.redfaceandwhitefaceroutine(goodguyandbadguy)7.researchforayardaftergettinganinch;8.feinttotheeastandattackinthewest;9.takeadvantageofother’sfaults10.theultimatum……最終通牒

takeitorleaveit?19/29Strategiestopreventthecounterpart’sattack1.limitedauthority;2.noprecedents;3.fatiguingtactics;(seesawbattle)4.adjournment;5.retreatinginordertoadvance;6.seekingcommiseration/compassion;7.showone’shand.20/29TheNegotiationProcess1)Alwaystrytonegotiateforatleast

15minutes.Anylessthanthatanditisunlikelythateitherpartyhashadenoughtimetofairlyconsidertheotherside.Generally,thesizeorseriousnessofthenegotiationdeterminestheamountoftimeneededtonegotiateit.Settingatimelimitisagoodidea.Approximately90%ofnegotiationsgetsettledinthelast10%ofthediscussion.

2)Alwaysoffertolettheotherpartyspeakfirst.Thisisespeciallyimportantifyouaretheonemakingarequestforsomethingsuchasaraise.Theotherpartymayhaveoverestimatedwhatyouaregoingtoaskforandmayactuallyoffermorethanwhatyouweregoingtorequest.

21/293)Alwaysrespectandlistentowhatyouropponenthastosay.

Thisisimportantevenifheorshedoesnotextendthesamecourtesytoyou.Doyourbesttoremaincalmandpleasanteveniftheotherpartyisdisplayingfrustrationoranger.Remembersomepeoplewilldoanythingtointimidateyou.

4)Acknowledgewhattheotherpartysays.

Everyonelikestoknowthatwhattheysayisimportant.Iftheotherpartyopensfirst,useittoyouradvantage,byparaphrasingwhatyouhaveheard.Repeattheirimportantideasbeforeyouintroduceyourownstrongerones.

22/295)Payattentiontoyourownandyourcounterpartner'sbodylanguage.Reviewthechartbelowtolearnhowtointerpretbodylanguageduringthenegotiations.Makesurethatyouaren'tconveyinganynegativebodylanguage.23/29BodyLanguageanditsPossibleMeaningsAvoidingEyeContactLyingNotinterestedNottellingthewholetruthSeriousEyeContactTryingtointimidateShowingangerTouchingtheface/fidgetingNervousnessLackofconfidenceSubmission24/29NoddingAgreeingWillingtocompromiseShakingthehead/turningawayFrustratedIndisbeliefDisagreeingwithapoint25/29Languagetousetoshowagreementonapoint:Iagreewithyouonthatpoint.That'safairsuggestion.Sowhatyou'resayingisthatyou...Inotherwords,youfeelthat...Youhaveastrongpointthere.