Negotiation Strategy - Part Five

"How the Negotiating Strategy and Tactics Approaches Each Would Deal With This?"

Section targeting

let's see in such circumstances, how the negotiating strategy and tactics approach would deal with this negotiation.




Firstly – The Basic Negotiation Approach

Following the basic negotiation approach and applying all the tactics learned, the company will get good discount because of the large up front payment it is willing to pay and the basic negotiation skills applied to the situation.

But here is the problem: as soon as this software is purchased and installed the whole balance of power for all future purchases and upgrades changes in favour of the supplier. This usually happens because once such “proprietary" software gets installed, it becomes very difficult to replace. It is no longer a commodity.

Maintenance fees will inevitably spiral out of control and the next time the buyer tries to negotiate another deal with the same supplier he/she will find that their negotiating world has been completely changed.

The same nice yielding sales people that they were used to dealing with have now turned into real pack of sharks putting their conditions and demands on the company – now do we think it is possibly that they used their strategic negotiation skills in the first place to ensure that they lead them to this powerful position?


Continue...

Negotiation Strategy - Part One
Negotiation Strategy or Just Tactics: What do They Teach You?

Negotiation Strategy - Part Two
Understanding the Difference between the two approaches.

Negotiation Strategy - Part Three
There is irony in both approaches.

Negotiation Strategy - Part Four
A Case Study to illustrate both approaches to negotiation.

Negotiation Strategy - Part Five You Are Here!
Firstly – The Basic Negotiation Approach or Bargaining.

Negotiation Strategy - Part Six
Secondly - The Negotiation Strategy Approach.

Negotiation Strategy - Part Seven
With this kind of preparation, the buyer has....


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