Cross Cultural Negotiations
July 13, 2010
Cross cultural negotiation is one of many specialized areas within the wider field of cross cultural communications. By taking cross cultural negotiation training, negotiators and sales personnel give themselves an advantage over competitors.
There is an argument that proposes that culture is inconsequential to cross cultural negotiation. It maintains that as long as a proposal is financially attractive it will succeed. However, this is a naïve way of approaching international business.
Let us look at a brief example of how cross cultural negotiation training can benefit the international business person:
There are two negotiators dealing with the same potential client in the Middle East. Both have identical proposals and packages. One ignores the importance of cross cultural negotiation training believing the proposal will speak for itself. The other undertakes some cross cultural training. He/she learns about the culture, values, beliefs, etiquette and approaches to business, meetings and negotiations. Nine times out of ten the latter will succeed over the rival.
This is because 1) it is likely they would have endeared themselves more to the host negotiation team and 2) they would be able to tailor their approach to the negotiations in a way that maximises the potential of a positive outcome.
Managing the Sales Negotiation Process
February 15, 2010
How many times have you heard:
- “You’ve got to drop your price by 10% or we will have no choice but to go with your competition.”
- “You will have to make an exception to your policy if you want our business.”
- “I know that you have good quality and service, but so do your competitors. What we need to focus on here is your pricing.”
- “I agree that those special services you keep bringing up would be nice, but we simply don’t have the funds to purchase them. Could you include them at no additional cost?”
Every time you hear statements like these, you’re in the middle of a difficult sales negotiation. How you handle that negotiation will determine whether or not you close the sale and how profitable that sale will be. In order to give you a real edge every time, I have listed below some key points taken from my sales negotiation training seminar.
Don’t Believe Everything You See and Hear
Games are a Reflection of Behavior
September 20, 2009
You are standing on a small stage yelling, "What’s the name of the game?!"
"Win as much as you can!!!" comes roaring back.
"Who’s responsible for your score?!"
"I am!!"
The audience is composed of ninety men, all prisoners in a federal maximum security prison.
One more thing ? you’re a woman.
For three years, Alicia volunteered every Thursday at FCI (Federal Correctional Institute) in Bastrop, Texas-
"I used my skills as a corporate trainer to help these men learn to shift their perspective on themselves and the world."
"Along the way the prisoners taught me as much, perhaps more, than I taught them."
"In my training business, I use games as a way to break down barriers and shift perceptions. What I came to realize is that your behavior in a game is an exaggerated reflection of your behavior in real life."
Games are an opening to behave true to our natures, to react immediately rather than with a careful response. Depending on the other players, we may monitor our behavior less in a game than in the real world, but we aren’t acting differently. In a game there are no emotional holds barred.
Power Pricing - Getting the Right Price for Your Products and Services
April 25, 2009
There’s an old joke about the New York City blackout. Power was out everywhere, and the electric company couldn’t figure out what was wrong or how to fix it. Finally, they decided that the only one who could solve the problem was a long-retired worker who knew the system inside and out. He came out to the power plant, looked around, picked up a hammer and tapped one of the generators.
Suddenly, lights came on all through the area. Overwhelmed with relief that the problem was solved, they asked how much they owed him. “$20,000,” he replied. $20,000? For tapping with a hammer? “Well,” he said, “tapping with the hammer is $10. Knowing where to tap is worth $19,990.”
There are a couple of lessons to be learned from the joke. First of all, the value is higher when the problem still exists than after it has been solved. After all, if told he could restore the power for $20,000, officials would have written him the check immediately, without question. Afterward, the problem wasn’t so urgent–it was solved. Quote your price and get agreement while the customer still feels the urgency (and the pain that you will remove). That’s when the value is highest to them. Your agreement can include conditions and guarantees, such as the results you will obtain, and deadlines, if they want assurances about results.
The Art of Negotiation in 535 words
November 29, 2008
I want to get better at negotiation, but where to start? UK Amazon currently has 2332 books on negotiation. Google indexed nearly 4 million relevant (yeah right) pages. All I need is a simple, straightforward model that I can put to use now.
Phased by the glut of information, I went within and remembered the wise teachings from a senior manager in my early working life. So, come closer, listen up, because he was very wise indeed?
He said "Do you know your LIMits?"
"My what? said I cautiously, wondering if he was asking about my drinking capacity, driving speed or something equally off the wall.
Being worldlier than I, he noticed my confusion and helped me out.
"Lyndsay, if you want to be successful in life, you need to know your LIMits. Let me explain. What would you Like to have? What do you Intend to have? What Must you have? What are your LIMit’s?"
Slowly it dawned on me that he was talking the strange management language of mnemonics.
He wrote down the word for me like this.
LIMITS
And next to the letters he wrote
A One Stop Financial Solution
July 1, 2008
Amy Wright, 34, was extatic when her realtor showed her the three bedroom townhome overlooking the lushious golf course. It was exactly the home she was looking for. The interior was sunny and bright, with a newly remodeled kitchen, spacious bedrooms, and the perfect little study area to set up her new home office. It had a spectacular pool and a lovingly tended flower garden. Best of all-the seller had to move immediately, so the home was a steal and miraculously within her budget! Amy was already making moving preparations when suddenly, a devastating blow paralyzed her plans. Her credit application for a mortgage had been denied. She couldn’t understand how this had happened-just a year ago, her credit had been almost perfect! The last year had been a little tight, and sure she had a few late payments here and there?but she had no idea it was so bad that now she couldn’t even get the home of her dreams.
Writing an RFP (Request for Proposal)
February 7, 2008
A while back, a potential client provided me with some general details of the writing work he wanted me to do for his company. Then he asked me to send him a proposal.
Proposal?! I panicked as I tried to confirm with him what he meant by that since I had never done one before, at least not as a freelancer.
I must’ve not really wanted to pursue this opportunity since I didn’t bother to do research or follow up with the company after submitting a contract instead of a proposal. A little time passed, I came across an article on writing RFPs (Request for Proposal). Ding! The light bulb went on. This guy verbally gave me his RFP and wanted a written response. When a company needs a project to be completed by a contractor or outside source, they write a RFP. This is a formal document describing the project, how the contract companies should respond, how the proposals will be reviewed, and contact information. Often, the company documents the submission guidelines to make it easier for them to compare responses. There are no specific standards or guidelines for creating the RFP, but government agencies usually strict standards they follow when conducting the proposal process. Outside companies read the RFP and write a proposal (a bid) explaining how they can best provide and meet those needs. When writing the proposal, the company should closely follow the guidelines established in the RFP to avoid being removed from consideration for the potential project. A typical proposal contains:
Negotiating Skills Will Get You Ahead
September 11, 2007
Negotiating skills can help you manage lots of different kinds of life situations, both at work and in your personal relationships. Here are a few examples of where these skills can help you build an even better life for yourself:
1. Many family situations require negotiating with others. Deciding which movie to see, planning how to spend money, choosing a vacation spot, and many other decisions work best when you have these skills.
2. Being a good negotiator enables you to get what you want more often without resorting to becoming aggressive or pushy. Negotiating with others is more effective than simply demanding what you want or just caving in.
3. You will be more successful in the workplace if you know how to negotiate. These skills enable you to stand up for yourself and get what you want more often without harming relationships with bosses and coworkers.
4. Negotiation skills increase your personal effectiveness in any group situation, such as volunteer groups, the PTO, and church or synagogue groups.
5. Knowing how to negotiate lessens the chances that others will take advantage of you.
6. Negotiating a fair solution makes you feel good about yourself and increases others’ respect for you.
