Business negotiation strategy has a wide range. However, there are different strategies in each stage according to the practice.
2.3.1 The strategy of the first phase
a. Consensus-style
Apply: there is no business between the two sides before; their strength are close for the first contact.
Practice: he uses of diplomatic language, and chooses a neutral topic, with the attitude of respect for each other, neither overbearing nor servile.
b. Frank style
Apply: the two sides had business dealings before, and a better understanding of each other. Their relations are very good; and strength is less than the other negotiators.
Practice: he gives a sincere, passionate talk about the friendly and cooperative relations in the past, and frankly takes the views of one’s own statements as well as the expectations of each other; and frankly show one’s own weaknesses
c. Carefully opening ceremony
Apply: the negotiating parties have had business dealings over the past but the other side had not a satisfactory performance
Practice: he expresses regret that the inadequacies of the other party in the past and hope that they can change this situation through this cooperation. In no hurry to reduce the relationship, he uses of a courtesy question to check each other’s attitudes and thoughts.
d. Start-style attack
Apply: the other side is condescending, and has the tendency to force and do not respect one’s own side
Practice: he should be rational and advantage, and to hit the key issues and he can not be too aggressive, to change their practices in a right time.
2.3.2 The strategy of the pricing stage
First, prices starting point strategy
a. suspended construction of the high-profile (Continental quote)
It refers to a negotiation strategy that a seller makes a higher price than the actual requirements in the starting point and bargains with the opponent and makes concessions to reach an agreement.
Do: outcry hard; make concessions slowly
Methods to deal with: ask for basis of quotation or counter-offer.
b. throw the ball down (Japanese-style quotations)
It refers to a negotiation strategy that first of all the seller propose a lower starting point than actual requirements of its own for negotiations in order to attract each other, trying to beat the opponent who take part in the competition, and then take real negotiations with the buyer who be tempted to hook, force them to make concessions to reach their own purpose.
Methods to deal with: first, the buyers compare and calculate the contents of the bid of each other with other vendors’, and straightforward to raise objections. Second, he is not tempted by the small profit of the other side.
Second, division pricing strategy
Divisor is commodity prices and dividend is that quantity of goods or the use of time. It comes up with a very small price. So buyers feel price cheap and low.
Third, adder pricing strategy
In business negotiations, sometimes it is afraid that high prices offered will scare customers. The price had gradually broken down into several levels to make a number of quotations. And the final total is still equal to the original one-time price.
Fourth, differences in pricing
According to the nature of the customer, the number of purchase, trading hours, the payment ways, it adopts a different pricing strategy.
Fifth, Comparison Price
It refers to the other side point out quotations of similar commodity of many businesses which is beneficial for one’s own side to establish reference prices, and then make comparisons between these goods traded and similar goods of businesses in terms of performance, quality, service, and other transaction conditions, and as the basis of price for this side.
Sixth, the number traps
He shows their cost of production of goods to the buyer to support the reasonableness of the total price.
Apply situation: it is a multi-commodity trading, the complex cost, no uniform standard method of calculating the cost, or each other is very offensive to use the case.
2.3.3 The strategy in consultation phase
First, negotiation strategy under the conditions of the advantages
a. do not set a precedent
in the negotiations, it means a party who hold the advantage in order to adhere and raise their own terms of trade to use no precedent as reason for refusing to make concessions, let the other side to accept their conditions.
It is a good way to refuse the other party and do not injure the face of the other party.
b. the first bitter; after sweet
first in the negotiations use harsh conditions to cast doubt on the other side, depression of mind, etc., in order to significantly reduce the opponent’s expectations, and then gradually in the actual negotiations, make concessions step by step, to make each other’s psychology have been met and reach a agreement.
c. the price trap
It refers to the party use of market prices increased trends expected, as well as the widespread concerns psychological, to attract the other sides on the price to let them neglect other important provisions.
d. period strategy
It refers to business negotiations, a strong party put forward the time limit to reach an agreement. Over this period, sponsors will withdraw from the negotiations, as to put pressure on the other side to make a decision as soon as possible.
e. diversionary
In order to achieve a particular purpose and needs, one’s own side consciously direct the subject of consultations to irrelevant false momentum, transfer their attention in order to realize their goals
f. the head start
In the start of the negotiations through the use of one’s own strengths and characteristics, in order to seize the psychological advantage, and he seizes the initiative.
Second, negotiation strategy under the conditions of the disadvantages
a. fault-finding
In Business negotiations, in response to each other’s products or related issues, he over and over again deliberately finds problems and the other side’s confidence will drop, and so to make concessions.
The key point is that critical issues should be raised rightly.
b. take a soft approach to meet the other’s hard attitude
When there is a crisis situation in the negotiations or the other side does not make concessions, and he can take a soft approach to meet each other’s hard attitude to avoid facing conflict, so as to achieve the purpose.
The main points: the use of indirect tactics, insisted reasoning
c. woolly-headed
It is defensive strategy is that in the event of adverse situations, pretending to confuse, and use it as cover to paralysis of the will to fight each other in order to achieve the purpose and muddle through.
d. tired tactics
It refers to the negotiations like the marathon, and gradually wear down the opponent’s spirit, to fatigue, to reverse the own side’s disadvantage and passive of the situation, when the opponent exhausted, dizziness brain up, the party may be anti – from defensive to offensive, with the attitude of reasoning, put the views of this side to reduce the other side to accept the conditions.
e. power is limited
It refers to business negotiations, the weaker party was asked to make excessive concessions on certain conditions to the other side. They claim that the mandate on this issue is limited, and have no right to make such a concession to the other party, or established fact can not be changed in order to make the other side give up conditions. f. turn around telling. It refers to the party at a disadvantage, let the other side to pay more for the negotiations, so that they change from passive to active, to turn disadvantage to advantage.
Third, negotiation strategy under the conditions of the balance of power
a. testing the waters
The negotiators intended to propose a number of assumptions, through the other side responses and answers to detect the other side’s intentions and seize the good opportunity to make a deal.
b. first rally; after counter
It refers to after the other side make offer, in no hurry to make a counter-offer, but point out that changes in market situation, or to emphasize the strength and advantages to build the situation in favor of the own side, and then raised prices.
Response: refused, adhering to offer, make a concession carefully
c. first “vertical” post “capture”
It refers to although the party would like to make a deal, but put on a nonchalant way, cover up their eagerness, it seems merely to satisfy the needs of the other party for the negotiations, so that the other side is eager to take the initiative to make concessions.
d. put on foolish, but clever in fact
It refers to a party put on deliberately confused, frightened, hesitant, slow response in order to let the other side down, for sufficient time to achieve the purpose.
e. for the cursory
It refers to the party at the negotiating table, encounters the key issues, or there are insurmountable differences between each other, or to remedy its own mistakes, make an excuse for their own that the decision can not be done by them, to further negotiations by another.
f. fish in troubled waters
It means in the negotiations, he deliberately disturb the normal order, and put many of the problems out once, making it difficult to meet in order to let the other side make mistakes.
g. private contacts
It means through the personal contacts, using a variety of ways to enhance understanding and emotional contact, the establishment of friendship, he can use this way to promote the negotiation.
There are many forms of private exchanges, such as telephone contact, visits, entertainment, and dinner and so on.
h. lubrication strategy
It refers to the negotiators in order to express the feelings of friendship to feed gifts for each other, for a better effect of negotiation, the West humorously referred to it as “lubrication strategy.”
To consider: cultural differences, the value of gifts, gift-giving occasions and rituals.
i. emotional transfer
It refers to when the formal negotiations have difficult impasse or obstacles, the organizers of the negotiations should be conscious to transfer the environment of the negotiations, the atmosphere and forms, so that the other side’s emotion transfer