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Andrew Hupert

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Tactical Tuesday: Dropping Anchor (aka: Stage Setting)

Posted by Andrew Hupert on Aug 1, 2017 10:04:29 AM

AKA: Stage setting, Ambitious Open, Seizing the agenda

Description: Deliver your ambitious opening offer first, and set the range of all subsequent discussion. Anchoring is useful for establishing a price or value range – and for determining the negotiating agenda.  You must be confident in your opening offer, however, since you can’t raise it later.

Intent: Seize the initiative, influence value, and set the agenda.

Style: Competitive – but can be Collaborative.

Category: Value Manager

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Topics: Tactical Tuesday, negotiating tactics, Negotiating agenda, Drop anchor, Anchoring

Why You Need a Killer Negotiating Plan.   Part 1

Posted by Andrew Hupert on Jul 27, 2017 8:53:01 AM

Why You Need a Killer Negotiating Plan.

Part 1: How do I prepare for a business negotiation?

Preparation is key to negotiating success. Just about every guide or coach will bang the same drum, but they are often less helpful about what you should prepare. Here’s the answer:

Every successful negotiator has three plans for the deal, whether he is aware of them or not.

1)  Strategic plans set your negotiating range.    
You need to decide on: Goals and walk-away limit. Ceiling and floor.
2)  Your tactical plan is your roadmap for moving towards your goals – and away from your bottom line.   Decide: Who makes the first offer? How do you maximize your results?
3)  The style guide tells how you will manage the relationship with your counter-party.   Decide: Partnership, transaction – or string of transactions.
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Topics: Negotiating strategy, how to negotiate, negotiating tactics, how to succeed at negotiation, planning your negotiation

Tactical Tuesday: The Stepping Stone

Posted by Andrew Hupert on Jul 25, 2017 9:12:50 AM

Name: Stepping Stone

AKA: Climbing the ladder, HK Love Affair,  Getting the Right Sequence

Description: Using one partner or counter-party as a ploy to negotiate a better deal with a more desirable partner. Working your way up the ladder of potential partners.

 Sample usage (Alvin and Bob):

Alvin – “Who is Quantum Associates?”

            Bob - “Oh – QA. Yeah – they were an outfit I talked to a year or so ago.”

            Alvin – “I met one of their new bizdev managers at a party last weekend.”

            Bob – “A salesman from QA? What did he say?”

            Alvin – “I didn’t get the impression he’s a big fan of yours.”

            Bob – “Ours.”

            Alvin – “Yeah. Not a big fan of ours. You backed out of deal with them last year?”          

            Bob – “No. I pulled out of a negotiation. I learned a lot about them, they learned a lot from me, and we decided not to go forward.”

            Alvin – “You pumped them for information and spread the word around that you were moving into the IoT space.   Then you signed an exclusive deal with someone else.”

            Bob – “That someone else was Mississippi.Com, and that deal is the reason we are sitting here today. Yes, I did use QA to set up the bigger deal. But I never signed or agreed to anything. They were nice enough, but didn’t have much to offer as far as marketing firepower. MisCom did. It was a business decision.”

Intent: Increase the perceived value of your brand or organization by seeming to negotiate with key players in the counter-party’s market or industry.

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Topics: Tactical Tuesday, Tactics

What is Your Negotiating Agenda?

Posted by Andrew Hupert on Jul 20, 2017 11:26:37 AM

 The old saying is true: If you fail to plan, you are planning to fail.

A negotiating agenda is your plan for success.   The first commandment of negotiation  is “never think and speak at the same time”. Your agenda is the advanced planning that will prepare you for any contingency once you are at the negotiating table. It is made up of 3 components:

  • Deal points / Variables
  • Process
  • Relationship 
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Topics: how to negotiate, Negotiating agenda

Tactical Tuesday: The Crazy Guy (aka: Loose Cannon)

Posted by Andrew Hupert on Jul 18, 2017 10:53:00 AM

Name: Crazy Guy

AKA: Loose Cannon, Madman

Description: You’ve become so irrational and unpredictable – they had better start making concessions and giving in if they want a deal. This is like Good Cop Bad Cop, but you are on your own.

Sample usage (Alvin and Bob): Bob cursed himself as he returned home from the meeting with Alvin. “I came on really strong back there. I’ve got to rein it in.”  

The meeting between Alvin and Bob was supposed to tackle 2 open issues in their ongoing partnership discussion – one was about ownership of IP, and the other about international expansion. Both were sore subjects with Bob, and he had been through them so many times with clients and service providers that he had no patience left.

The good news was that he seemed to have won the argument. Alvin had agreed to Bob’s terms – pretty quickly, actually.

The bad news was that it was an argument and not a discussion. As soon as Alvin brought up the subject of international markets, Bob let him have it with both barrels. Alvin agreed with him, but then just squirmed in his seat until he was able to escape.  

If Bob wanted to build this agreement into a real business, he would have to keep a lid on his temper and act more like a rational partner.

 Intent: Scare the other side into making concessions, giving ground, and signing a deal that is better for you. Can also disqualify you as a potential partner.

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Tactical Tuesday - Big Talk (aka: Where do you see yourself in 5 years?)

Posted by Andrew Hupert on Jul 11, 2017 11:27:37 AM

Big Talk

AKA: Tell me about YOU, What’s your story?

Description: This is not bragging — rather it is the opposite of “small talk”. These are big, open-ended questions that give him the opportunity to talk about his business philosophy, where he sees the industry going, how his business differentiates itself from the rest of the market, etc. Should be very low pressure — just move the conversation to serious but non-sensitive issues. It gets him used to talking, and allows you to subtly take control of the direction of meeting.

 Sample usage (Alvin and Bob):   “Where do you see yourself in 5 years?” Bob asked Alvin and sat back in the seat. This was one of his standard questions at the beginning of a negotiation.

            “Running 3 major project teams, building a new navigation architecture for IoT devices, and opening a new branch in Seoul — or maybe Beijing.” Alvin stopped.           

“Ok. Why Seoul?” Bob had no interest in setting up a branch in Seoul – but he was extremely interested in hearing Alvin’s reasons for wanting to do so…

 Intent: Big Talk is a relationship builder that is designed to move the conversation where you want it to go.

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Topics: Tactical Tuesday, relationship building, negotiating tactics, Big Talk

Negotiating Tactic:  The Walkaway. (Because not every deal is good for you.)

Posted by Andrew Hupert on Jun 6, 2017 2:52:00 PM

Walk Away

AKA: All over now. I’m outta here.

Description: It’s the biggest power move. You are ending the negotiation. Someone has just said “Take It Or Leave It” (it doesn’t really matter if it was you or him) and now it’s time to go. Do it the right way.    

         Boss tip: Your approach should be: I’m not walking away from you – I’m walking to another counter-party with a better deal.

Intent: Terminate the negotiation - or at least make him think you are willing to.

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Topics: Tactical Tuesday, negotiating tactics, Walk Away

Negotiating Tactic:  Poor Me (AKA: Limited Mandate)

Posted by Andrew Hupert on May 30, 2017 8:31:00 AM

Poor Me

AKA: Limited Mandate, Empty Pockets, Nothing I Can Do.

 Description: You would like to help – nothing would make you happier than to cut your price or improve your offer. But you don’t have the budget, the authority, or the resources. Nothing you can do.

 Sample Usage (Alvin and Bob):

  • Bob: “That’s impossible. Way too expensive.”
  • Tim, the technical rep at Global Cloud Solutions: “I’m sorry Mr. Clauson. That’s the only price I can offer.”
  • Bob: “But that’s 33% over last year. I’ve been a client of GCS for 5 years.”
  • Tim: “I’m very sorry. There’s nothing I can do”

 Intent: Support a claim that you have hit rock bottom and can’t go any further.

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Topics: Tactical Tuesday, Tactics, how to negotiate

How to Negotiate Successfully: Fear Tactics (Part 4)

Posted by Andrew Hupert on May 25, 2017 2:32:19 PM

Negotiators who can’t use pure Power to force their terms on the other side have to rely on Influence – which means pressing his Hope and Fear buttons.  In the last article we looked at Hope.  Now it’s time to look at Fear - the pressure people feel when they face risk and possibility of loss.   

Fear tactics are all about the emotional trigger, and the basis of all emotional triggers is Take It Or Leave It (TIOLI) and the Walk Away.  The thing to remember about Fear tactics is that they are designed to influence – so there is a bit of a Bluff here.  If you really have the ability and intention of following through with your threats, then it is Power.  Fear indicates you want to maintain some kind of relationship or post-deal service. 

Use the Fear button when you are dealing with a counter-party who is constrained by internal pressures.  He’s afraid of telling a boss he came home without a contract – or worse, that he lost the relationship with a strategic partner.  Fear works best when the other side has a low BATNA and will be blamed by internal stakeholders for failure.   Fear tactics are designed to amplify his stress – you are making his “no-deal” option seem even bleaker, and his relationship with your organization even more tenuous.

 There are 2 big categories of Fear tactics:  loss of this deal, and loss of this relationship. 

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Topics: Tactics, how to negotiate, Power, PIHF, Fear, Hope

Negotiating Tactic: Foundation (the Test Order)

Posted by Andrew Hupert on May 23, 2017 10:24:29 AM

Tactics:  Foundation

AKA: Start Small, Slow and Steady, Building Block, Short List, Test Drive

Description: You’re taking a building block approach. Maybe it’s your idea – maybe it’s his.  But someone wants this to be a test drive – or the foundation of a strongerrelationship.

Intent: Build trust – very intentionally, and very slowly.

Sample Usage:  

Bob: “Maybe we’re moving a little too fast here.”

            Alvin: “What are you talking about?”

            Bob: “We’re going from occasional client to full partners pretty quick. What do you say we find a way to test things out a little?”

            Alvin: “ I understand why you would want to do that, but from my perspective it’s a different situation. I’ll do the design work and navigation systems. For a major one-off project we’d have to talk about licensing and residuals. Or pay me standard rates for a job this size – with this kind of IP.

            Bob: “My client’s not going to want to hear about that.”

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Topics: Tactical Tuesday, Tactics, Foundation

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