Negotiation Skills Essay

9763 Words Mar 13th, 2014 40 Pages
Negotiation Skills Training Manual 2006

By Desmond Oliveira Corporate Dimension Business Management Services

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Index

Topic
Page

What negotiation is and why it is important
Adversarial versus co-operative bargaining
Planning the negotiation
Preparation checklist
Development exercise 1. Case study
How to structure negotiations
Personal power and how to increase it
Development exercise 2. Personal power
Behavioral analysis
How to deal with behavior styles
Development exercise 3. Behavioral styles
Negotiating tactics
Movement and concessions
Dealing with price
The closing stages
The 40 most common mistakes in negotiation
Development exercise 4.
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The importance of negotiation to your business is vital and the impact of good or bad negotiating can be shown as follows:

SALES
COSTS
PROFITS

|Company A |Company B |
|£10m |£10m |
|8m |8m |
|£2m |£2m |
Assume Company A has sales people and buyers who by improved negotiating techniques increase sales by 5% and reduce costs by 5%.

SALES
COSTS
PROFITS

|Company A |Company B |
|£10.5m |£10m |
|7.6m |8m |
|£2.9m |£2m |
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3

By achieving relatively modest improvements in buyers’ and sellers’ performance, the effect is an increase in profits of £0.9m. This represents a 45% increase over the previous profit figure.

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Effect on Customers

Successful negotiations can lead to increased profits, but can also lead to greater customer satisfaction. For example, you are buying a second car and you see a car advertised in the paper for £14,500. You decide to make

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