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Negotiating anchoring



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Negotiating anchoring

  1. 1.
  2. 2. Negotiations<br />
  3. 3. Negotiations<br />How to Negotiating to winfrom a Position of Weakness<br />The Roosevelt Campaign<br /><ul><li> 1912 – U.S. Presidential election
  4. 4. 3 million copies photograph have been printed
  5. 5. Permission has not been granted
  6. 6. Copyright law: owner can demand $1 per copy
  7. 7. No time to reprint brochure
  8. 8. Brochure is critical for the campaign</li></li></ul><li>Negotiations<br />How to Negotiating to winfrom a Position of Weakness<br />The Roosevelt Campaign<br />Campaign manager sends telegram to copyright owner:<br />"Planning to print three million copies of campaign speech with photographs. Excellent publicity opportunity for photographers. How much are you willing to pay to use your photographs?"<br />
  9. 9. Negotiations<br />How to Negotiating to winfrom a Position of Weakness<br />The Roosevelt Campaign<br />Photographers Reply: <br />"Appreciate opportunity, but can only afford to pay $250”<br />
  10. 10. Negotiations<br />Common mistakes when negotiating:<br /><ul><li> Entering negotiations with a preset mindset
  11. 11. Not knowing who has final negotiating authority
  12. 12. Not knowing precisely what power they possess and how to use it effectively
  13. 13. Failing to advance positions and arguments of substance
  14. 14. Losing control
  15. 15. Failing to let the other side make the first offer
  16. 16. Ignoring time and location as a negotiating weapon
  17. 17. Giving up when negotiation seems to have reached a deadlock
  18. 18. Not knowing the right time to close</li></li></ul><li>Negotiations<br />Tips – Anchoring<br />2 examples:<br />1 – How Wikipedia anchors customers how to give larger donations<br />2 – How a sex crime gets a higher prison sentence<br />
  19. 19. Negotiations<br />Anchoring – Example 1 – Wikipedia<br />1 – A poor college student sees that one of his favorite sites,, is seeking donations to keep its valuable sources available to the pubic for free. As an avid Wikipedia user, he wished to donate $10, as that was all he could afford. But from the time he got his credit card from his wallet to the time he made the donation he changed his mind and donated $20.<br />…Why?<br />
  20. 20. Negotiations<br />Anchoring – Example 2 – Prison Sentence<br />2 –Sabine K and Peter F got to know each other at a party and started flirting passionately. They had a few glasses of wine together. At the end of the party, Peter offered to give Sabine a lift home. However, rather than taking her home, he took her to a forest and attempted to have sex with her. Sabine resisted but Peter eventually penetrated her, which Sabine experienced as rape. Eventually he took her back home.<br />
  21. 21. Negotiations<br />Anchoring – Example 2 – Prison Sentence<br />2 –  16 judges were provided with a recommended prison sentence for the defendant. Half were given a recommendation for a 12-month prison sentence, while the other half were given a 34-month sentence.<br />Where the judge’s decision influenced? How? <br />
  22. 22. Negotiations<br />Tips – Walk Away<br />Who wins in a negotiation? The one who is willing to walk away.<br />Guess what? Be willing to walk away. Even if you are willing to pay the asking price, pretend like you can walk away. This technique is especially useful for people who don’t see themselves as hard line negotiators.<br />
  23. 23. Negotiations<br />Tips – Walk Away<br />Next time you are negotiating with a business supplier, nicely tell the person:<br />“Thanks for your help but the price you’re offering is beyond my budget” (or whatever reason you want to give).<br />“But I’ll tell you what I’ll do. I’ll leave you my name and number and if you can do me a better deal, then give me a call and we can take it from there.”<br />If that is the best price the salesperson can do then you probably will not get a phone call, in which case you can just go back the next day or so and buy the product. But if they can do you a better deal then they will call you. <br />What is more, 9 times out of 10 you will not even have to come back. If the salesperson is able to do a better deal, they will usually offer it to you on the spot. It will probably be along the lines of, “alright let me try asking my manager again and see if we can do you a better deal”.<br />
  24. 24. Negotiations<br />Other Tips<br />1 – Prepare, Prepare, Prepare<br />2 – Pay attention to timing<br />3 – Leave behind your ego<br />4 – Ramp up your listening skills<br />5 – If you don’t ask, you don’t get<br />6 – Anticipate compromise<br />7 – Don’t absorb their problems<br />8 – Stick to your principles<br />
  25. 25. Negotiations<br />Discussion Questions:<br />1 – What other tips would you have for a new negotiator?<br />2 – When negotiation, how does ‘confidence’ affect outcomes?<br />3 – Who is the best negotiator you know? What do you think are the keys to their success?<br />4 – Have you ever agreed on terms you were not completely comfortable with? Why? What happened?<br />5 – Given the right opportunity, do you think you could be a kick-ass negotiator? Why or why not?<br />
  26. 26. Negotiations<br />