Setting The Opening Offer In Negotiation Training Ppt

Slide 4

This slide explains the concept of opening offer in the negotiation process. Opening Offer in a negotiation process provides a preliminary insight around the bargaining zone and the possibility of agreements than can take place in this process. The opening bid should be the best possible outcome according to you that you hope to achieve in the negotiation process.

Slide 5

This slide mentions the two scenarios for opening offer in negotiation. The rules are – Make the first offer or Get the other person to open first. 

Slide 6

This slide elaborates on the relevance of making the first offer in negotiation. Research suggests that it is beneficial to take advantage of the first move when you have conducted detailed academic research on facts and figures of negotiation. It is said that 85% of the negotiated outcomes align with the person who goes first. It is beneficial to make an offer first as it will act as anchor in the negotiation process, and the other party will fixate on these. Even if concessions move the final price or terms away from the first offer, the final result will still be closer to your ideal deal than the other party making the first offer.

Slide 7

This slide explains the relevance of getting the other person to open first in negotiation. When the other person opens first, it gives you an advantage of getting critical information about their weaknesses, where they are coming from, and will give you a chance to unhook their anchor. Before putting an offer, you can always ask for a budget of the opposite person by asking questions like – ‘How much you typically spend’? ‘What’s your budget?’, etc. This will help you to customize your offerings according to the budget of the person and also considering your side of offerings.

Slide 8

This slide explains an example stating the relevance of getting the other person to open first in the negotiation process.

Slide 9

This slide explains in detail the meaning, causes, and example of the anchoring effect. The causes of the anchoring effect are uncertainties, investor bias, and perception or estimates built in brain. This slide also mentions ways to avoid the anchoring effect which are critical thinking, in-depth research, rejections, etc.

Slide 10

This slide explains the most critical skill of negotiation that is Listen. It explains the relevance of active listening and then coming to an agreement in the negotiation process.  

Slide 11

This slide explains the significance of verbal vs. non-verbal communication in negotiations. While negotiating, verbal and non-verbal communication both can make a difference. Sometimes Non-verbal communication, like body language can be more effective compared to the verbal communication. One can use ‘Flinching’ which is a visible negative physical action that sends an emotional message to the other party about the offer being unpleasant to them. This tactic can be used both on the part of buyer or seller to know the actual opinion of the other party on the budget quoted, and to see whether they flinch or not.

Slide 13

This slide lists negotiation tactics being used by the buyer and seller in the negotiation process. Some of the tactics used by buyers are – Mentioning the product/service as “not good enough”, knocking the product, the bogey tactic, playing dumb, lowballing, reluctant buyer/seller, etc. Tactics used by the sellers are high-balling, the salami, deadline, etc. The tactics common to both buyers and sellers are silence, high authority, playing the ego, closed questions, the trial balloon, if you were in my shoes, and surprise.

Slide 14

This slide lists negotiation tactics being used by the buyer and seller in the negotiation process. Some of the tactics used by buyers are – Mentioning the product/service as “not good enough”, knocking the product, the bogey tactic, playing dumb, lowballing, reluctant buyer/seller, etc. Tactics used by the sellers are high-balling, the salami, deadline, etc. The tactics common to both buyers and sellers are silence, high authority, playing the ego, closed questions, the trial balloon, if you were in my shoes, and surprise.

Slide 15

This slide explains ‘not good enough’ as a negotiation tactic used by the buyers. It is used when the buyer says ‘it has to be better than that.’ In such a case the buyer expects the seller to reduce the price as they feel that the quoted price is much higher than the quality of product/service offered.

Slide 16

This slide explains ‘Knocking the Product’ as a negotiation tactic used by the buyers. The buyer in such a case can try to knock the product by saying, ‘It’s not the product I wanted, I am preferring white color, but you don’t have that,” etc. They will request you to reduce the price for the alternative color offered. It might or might not be the reality but they will show it to you in such a way so that they can ask for a better price. 

Slide 17

This slide explains ‘The Bogey Tactic’ as a negotiation tactic used by the buyers. The Bogey tactic works on three fundamental principles involved – Ego, Help, and Better Deal Available. In this tactic, the buyer offers the seller a fixed price which is lower than the price quoted by the seller. The seller can use counter tactics like offering alternative designs, delivery, price packages.

Slide 18

This slide explains ‘Playing Dumb’ as a negotiation tactic used by the buyers. It says that “To act smart is dumb, but to act dumb in front of a seller like you know less than everyone is brilliant”. Acting dumb helps you test their accuracy and verify the efficiency of counterpart’s information. In such a case, the seller can ask multiple questions to the buyer to confuse them and test their knowledge.

Slide 19

This slide explains ‘low balling’ as a negotiation tactic used by the buyers. It states that when you start low, there are chances of going high, whether in terms of price or a deal. For example, when you know the pair of shoes you want to buy is worth 5k-7k, you can always start by offering 4k.

Slide 20

This slide explains ‘Reluctant Buyer/Seller’ as a negotiation tactic used by the buyers. Sometimes the buyer/seller both can be reluctant in terms of their offerings. In most cases, the buyers are found to be more reluctant. For example, a person comes to buy a laptop bag from your shop. He states that his experience with you has not been good to date, but if you can offer him a better deal, he could purchase the bag from you. Also, a person can say they prefer a local buyer, but if you offered them lower prices, they would purchase from your store. The Reluctant seller can look for excuses to charge extra for his offerings. The most common example of this is a home tutor delaying his job, saying that the location is too far for him to come. But if you can offer extra payment for distance, he can accept the deal

Slide 21

This slide lists negotiation tactics being used by the buyer and seller in the negotiation process. Some of the tactics used by buyers are – Mentioning the product/service as “not good enough”, knocking the product, the bogey tactic, playing dumb, lowballing, reluctant buyer/seller, etc. Tactics used by the sellers are high-balling, the salami, deadline, etc. The tactics common to both buyers and sellers are silence, high authority, playing the ego, closed questions, the trial balloon, if you were in my shoes, and surprise.

Slide 22

This slide explains ‘high-balling’ as a negotiation tactic used by the sellers. The seller starts with a higher price at first and then moves to the lower price. Sellers sometimes show very high quality (price range) products to the buyers to increase their desires and expectations. This eventually causes them to spend more than they decided. The buyer in such a case can ask for price breakdown, low-balling strategy, etc.

Slide 23

This slide explains ‘the salami’ as a negotiation tactic used by the sellers. This technique is referred to as salami because it relates to the seller's situation of cutting salami (services here) into slices and offering it to the customers. It states that the buyers usually keep on asking for additional benefits like 'Can I have a bit of this?', etc. in such a case, the seller should very smartly set the prices, say if you want this, you will have to leave that, or think of some other smart offers. If the buyer's demands do not suit the seller, they should simply say ‘no’ so that they do not land up in a situation of no loss-no profit or a loss. The buyer in such a case can look for additional offers, say no to the offer, or look for alternative sellers, etc.

Slide 24

This slide explains ‘the deadline’ as a negotiation tactic used by the sellers. Sellers can put a deadline for the deal to put pressure on the other person. Deadline should be carefully set and planned, as it can give you either the best results or can work against you. The buyer in such a case can ask open-ended questions like the reason behind imposing deadline, request to move the deadline, etc.

Slide 25

This slide lists negotiation tactics being used by the buyer and seller in the negotiation process. Some of the tactics used by buyers are – Mentioning the product/service as “not good enough”, knocking the product, the bogey tactic, playing dumb, lowballing, reluctant buyer/seller, etc. Tactics used by the sellers are high balling, the salami, deadline, etc. The tactics common to both buyers and sellers are silence, high authority, playing the ego, closed questions, the trial balloon, if you were in my shoes, and surprise.

Slide 26

This slide explains ‘silence’ as a common negotiation tactic used by both buyers and sellers. It is better to remain silent when the negotiation has hit a critical stage. Keep silent for 10-15 seconds and see what happens. The most uncomfortable party with try to fill the gap and offer better deal to make other party speak. This tactic can be used when a person wants to create pressure, seeks more information, etc. 

Slide 27

This slide explains ‘High Authority’ as a common negotiation tactic used by both buyers and sellers. This happens when someone on behalf of the person offers you something, but has to discuss with the higher authorities for more detailed information and a better deal. Sometimes a person does not have the authority to fulfill your request, in such a case a person needs to consult the higher authority. This tactic can be used when a person does not have the authority, and when the deal gets complicated, etc.

Slide 28

This slide explains ‘Playing the Ego’ as a common negotiation tactic used by both buyers and sellers. This tactic can be used by both parties to check whether the opponent has the power to take decisions. Many a time. you will see people are compelled to say YES as it hurts their ego. Ask the person dealing whether he is the final decision-maker or not. If not, ask him to call the person concerned to make a decision. This tactic can be used to avoid delay in decision and to avoid any confusions at the time of closing the deal.

Slide 29

This slide explains ‘closed questions’ as a common negotiation tactic used by both buyers and sellers.

Slide 30

This slide explains ‘The Trial Balloon’ as a common negotiation tactic used by business organizations. In a business context, it states that when the business suffers (balloon bursts), not too much is lost or it can be brought to the same position again in sometime by making constant efforts.

Slide 31

This slide explains ‘if you were in my shoes’ as a common negotiation tactic used by both buyers and sellers. This tactic can be used by asking your counterpart “what would you do if you were in my shoes”? This tactic makes the other person stop and think about the situation from the other person’s point of view. This can be used when the counterpart asks for something unreasonable and they are underestimating your position or finding it difficult to understand your perspective.

Slide 32

This slide explains ‘Surprise’ as a common negotiation tactic used by both buyers and sellers.

Slide 33

This slide mentions statistics relating to the effectiveness of negotiation tactics used by the sellers and buyers.

Slide 48 to 63

These slides contain energizer activities to engage the audience of the training session.

Slide 64 to 91

These slides contain a training proposal covering what the company providing corporate training can accomplish for the client.

Slide 92 to 94

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