CIC Negotiation skills and closing techniques

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​الام المصرية الاصيلة

Buzz words

Hard negotiator

Soft negotiator

Negotiation Styles

Win/Win

No deal is better than a bad deal

Negotiation definition

​It is the use of information and power within a period of time to affect someone’s behavior.

​Competing
(Win-Lose)

​How important it is or not to satisfy our needs?
How important it is or not to satisfy others' needs?

​Distributive

​High assertiveness

​Low cooperativeness

​Collaborating
(beyond win-win)

​How important it is or not to satisfy our needs?
How important it is or not to satisfy others' needs?

High assertiveness

High cooperativeness

Integrative

​Avoiding
(Lose-Lose)

​How important it is or not to satisfy our needs?
How important it is or not to satisfy others' needs?

​Low assertiveness

​Low cooperativeness

​Accommodate
(Lose-Win)

​How important it is or not to satisfy our needs?
How important it is or not to satisfy others' needs?

​Low assertiveness

​High cooperativeness

Compromise
(beyond win-win)

​How important it is or not to satisfy our needs?
How important it is or not to satisfy others' needs?

I don't want to lose..

But I can't have a full win

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Open Ended

First scenario

Your client is the Arab contractors has purchased over $2 million in product from you annually for 5 consecutive years. Their rep Amr is proposing a new deal now as the management has a new direction during the economic challenges. Amr asks for a 20% price discount ($400K) on their next $2 million order, far beyond your normal 5% loyalty discount. You estimate this will cut your negotiated 25% profit margin in half. Now you meet with Amr to discuss multiple solutions: Keep in mind if you Stand your position due to the same reason (current economic challenges) and refuse to make any changes to the pricing you risk losing a long term client.

And if You agree with the 20% discount asked by Amr because you do not want to risk losing a long term client, this tremendously affects your commission cut and the management perception of your decision as weak. Which behavioral style of negotiation you will follow?

Open Ended

2 nd Scenario

You are a sales executive at a company that offers data analytics services. Your potential new client is Fawry, an Egyptian payment technology company. Fawry wants to buy your product to help them market to customers' better. Your product can analyze customer data to target marketing. But Fawry doesn't want to pay the full amount upfront. They have a policy of 60 days wait before payment. A conflict arises here between Fawry's request and your company's payment policy, as your company cannot wait the 60 days in full and your normal rules say customer pay within 30 days.

You decided to arrange a meeting with the finance manager to understand the reason behind the 60 days request and you found out due to Fawry's expansion plan and fast growth they need to keep high cash reserves. What behavioral style you will follow?

Open Ended

Third scenario

You work for a company that works in the intersection of data and software in the pharmaceutical and healthcare sector, your client – Eva Pharma – requests significant new custom features for your next platform release: specialized medical data integrations and customized real-time data visualization dashboards. Your roadmap is already overloaded.

You meet with their CIO, emphasize your partnership, but explain difficulties committing to major unplanned custom development right now. The Chief Information officer insists on the needed customization; how would you handle this challenge? Which behavioral style you will follow?

Open Ended

Fourth scenario

You are a sales team manager, and your team is proposing a hard offering of 20-30% discounts to land on more deals in Q4 to reach the target of the year, skewing far from the 10% policy you have among the company. You appreciate their motivation and in the process of assessing if you gave them the green light to start implementing the offer.

If you did, you might be risking the devaluation of your brand in the market against the competitors, hurting the long term plan of your product. You called for an urgent meeting with the team to discuss this decision. What would be the behavioral style to follow in this situation and why?

Open Ended

Fifth scenario

You are the commercial director at your company and one of your mega clients is Orascom that accounts for 20% of your revenues. An intel has been discovered that Orascom might defer to one of your competitors (EFG) for a better offering concerning the lower price by 10%.

You rapidly booked a meeting with the CEO of Orascom in order to discuss and retain the business between both of your companies. What is the behavioral style you'll follow and why?

​Harvard 4 principles of negotiation

​1- Separate the person from the issue.

​Harvard 4 principles of negotiation

​2- Negotiate not position focused but interest oriented.

​Harvard 4 principles of negotiation

​3- Develop criteria that a solution must fulfill.

​Harvard 4 principles of negotiation

4- Develop alternatives.

​Best Alternative to a negotiated agreement (BATNA)

​Best Alternative to a negotiated agreement (BATNA)

Worst Alternative To a Negotiated Agreement (WATNA)

Zone Of Possible Agreement

Closing types

2- Foreground suggestion: are explicit but they deflect the source of the request from the demander.

1- Command: an instructional statement that creates a binary type of yes or no response from the recipient.

3- Background suggestion: lead recipients to believe they are acting on their free will when in fact they have been directed to follow a message.

Closing techniques

2- Linkage: events, subjects, or ideas.

1- Time based technique.

3- Power of legitimacy documentation.

Closing techniques

1- Time-based technique. This technique incorporates a time-based deadline.

-Command (hard close): “This is the last time we’ll be able to extend this offer and we need your answer now.”

-Foreground suggestion (medium close): “My boss told me that this pricing expires December 31 at midnight.”

-Background suggestion (soft close): “Think it over tonight and I will call you at 10 o’clock tomorrow morning.”

Closing techniques

2- Linkage. This technique connects different events, subjects, or ideas.

-Command (hard close):“If we give you those terms, then you must have our contract signed by the end of our quarter.”

-Foreground suggestion (medium close): “I’ll talk with my boss and if he okays the terms, could we have the purchase order by month end?”

-Background suggestion (soft close): “Our implementation team will be fully booked starting in September, so to complete your project by year end, we’ll need to have the contract signed in the next couple of weeks.”

Closing techniques

3- Power of Print. This technique leverages a document or printed company policy.

-Command (hard close): “Our new price list is coming out in thirty days, and I can’t hold these current prices for you after that.”

-Foreground suggestion (medium close): “Here’s our volume discount schedule. If you spend another $100,000, you’ll receive an additional 10 percent off the entire order.”

-Background suggestion (soft close): “Should I send you a formal quotation that details the purchase price and terms?”

​It's just me, myself, and I