7. Make as much money as you can
Player A proposes the split of £100. Minimum offer to
other party must be at least £1
Player B accepts or rejects offer by responding ACCEPT or
REJECT
Possible outcomes
ACCEPT - both players keep their respective sums.
REJECT - neither party makes any money
Note: only one bid is allowed. There shall be no re-negotiation.
8. Humans have inbuilt sense of fairness
Thirsty people would turn their nose up at a glass of water
if they thought the amount they were being offered was
too little, a study has shown.
Dr Nick Wright of the Wellcome Trust Centre for Neuroimaging at University College
London said: 'These findings show that humans, unlike even our closest relatives
chimpanzees, reject an unfair offer of a primary reward like food or water ' Photo: Alamy
9. 5 common mistakes of negotiators
• Talking too much
• Soft language
• Justifying
• Trying to win
• Splitting the difference
16. Gender differences
(Ref: Eckerl; De Oliveira; Grossman), Negotiation Journal, Harvard Law School, 2008)
• Females more egalitarian than men and tended to ask for less
• Females were more likely to reach agreement
• Stereotypes appeared to exist in this particular exercise
• Helps or hinders negotiation outcomes depending on the
outcomes
Selling establishing the need
Negotiation agreeing the terms
Trade Unions
Justification shows weakness to a negotiator
Also, if you have to justify, perhaps the other guy is not bought into your proposition
Re visit the Sales Process
Selling establishing the need
Negotiation agreeing the terms
Trade Unions
Justification shows weakness to a negotiator
Also, if you have to justify, perhaps the other guy is not bought into your proposition
Re visit the Sales Process
Selling establishing the need
Negotiation agreeing the terms
Trade Unions
Justification shows weakness to a negotiator
Also, if you have to justify, perhaps the other guy is not bought into your proposition
Re visit the Sales Process
How do you want the other party to feel after the negotiation
Not about the outcome but the satisfaction
You don’t believe me? Let me explain
Buying a house
Greed
Selling establishing the need
Negotiation agreeing the terms
Trade Unions
Justification shows weakness to a negotiator
Also, if you have to justify, perhaps the other guy is not bought into your proposition
Re visit the Sales Process
What in life is fair?
Not to be confused with building relationships
Confusion between fairness and economic efficiency - £10 fair split
£100 divided by 2 strangers in a bar (100 pound coins)
Fairness is subjective
Nick Clegg
What in life is fair?
Not to be confused with building relationships
Confusion between fairness and economic efficiency - £10 fair split
£100 divided by 2 strangers in a bar (100 pound coins)
Fairness is subjective
Nick Clegg
Power is governs the value in negotiation
What affects power?
Perception
Information or Knowledge
Time
Circumstance
Brand
Dependency
What in life is fair?
Not to be confused with building relationships
Confusion between fairness and economic efficiency - £10 fair split
£100 divided by 2 strangers in a bar (100 pound coins)
Fairness is subjective
Nick Clegg
What stops us opening optimistically/extreme?
Pride, Shame, Fairness, Politeness, Pre-conceived ideas, Assumptions, Fear, Anxiety
Sounds obvious but, the more extreme you open the more likely you are to get a better result.
Every price is an extreme opening because people have to make profit. Forecourts, tradesmen, shops even
How extreme depends on many factors
Why should you open extreme?
Shift expectation
Allows you to move
Delivers satisfaction