Part 2. Negotiation strategies.

Exercise 1. What is the best approach to negotiation?

The win – win approach, where both you and the other person can feel happy with the outcome, or the I win – you lose approach, where the strongest person gets the bigger share?

Which of these strategies are best for finding a win-win solution in a negotiation?

1. If you don’t agree, say “no”.

2. Support your proposal with reasons and arguments.

3. Ask questions to find out what your partner’s position is.

4. Keep repeating your demands.

5. Look for alternative solutions.

6. Take time to think.

Unit 12

Exercise 2. Viktor, a supplier, talks to two of his buyers, Xavier and Yacoub, about new delivery charges.

Read the two negotiations and answer the questions:

1. Which buyer is more likely to reach an agreement with Viktor?

2. How does Xavier respond in the first negotiation?

3. How does Yacoub respond in the second negotiation?

4. In the second negotiation, how does Viktor respond to the proposal?

Conversation 1.

Viktor:	Well – the thing is – we need to discuss the delivery terms. Up to now, we’ve always included free delivery in the price. But unfortunately, our transport costs have risen so much in the last few months that we’re now going to have to charge for delivery.
Xavier:	Pay for deliveries? That’s no way! None of your competitors charge for deliveries!
Viktor:	Not for the moment, no. But we think they’ll have to take a similar step very soon. After all, their costs have risen just as much as ours!
Xavier:	In the meantime, it’s totally unacceptable. We’ll have to switch to another supplier if you insist on this.

Conversation 2.

Viktor:	Well – the thing is –we need to discuss the delivery terms. Up to now, we’ve always included free delivery in the price. But unfortunately, our transport costs have risen so much in the last few months that we’re now going to have to charge for delivery.
Yacoub:	I see. Well, I can understand your position. But how much are you thinking of charging?
Viktor:	We’d like to propose five per cent on each order.
Yacoub:	Do you mean five per cent of the order value on each delivery?
Viktor:	Yes, that’s right.
Yacoub:	Let me think… Here’s another idea. How about a flat rate of – 20 euros per delivery? That way, we could save money by ordering less frequently and by ordering larger quantities. And you’d gain because you wouldn’t have to deliver so often. And you could carry more in each load which would be economical.
Viktor:	So you’re saying you’d be willing to buy in large quantities?
Yacoub:	With flat rate, we’d have the pinion to save money by doing that, yes.
Viktor:	Well, it sounds like a reasonable idea… But I’ll need to do some calculations to see how it would work.

Unit 12