Inspirational Negotiation Skills & Techniques Speaker Mike Hourigan
Inspirational Negotiation Skills & Techniques Speaker
It is always an honor for me as a motivational negotiation skills and negotiation skills training speaker to offer helpful hints on effective methods to improve negotiation bargaining positions.
In my keynote addresses, I frequently talk about the many negotiation skills that can be effectively used to ensure that the potentially equitable deal is not diminished by wasting away opportunities and leaving us with regret.
Reasonable, but Not Impractical.
I’d like to give you a practical example of how some negotiators use a technique known as “The Nibble,” and what to do if it comes your way.
Before I begin with the specifics of “Nibbling,” I would like to reiterate another point that I view as important.
Successful negotiation skills should make both sides feel as though they have reached an equitable agreement. This is especially true when you are in a setting where, over time, there are many negotiations. For example, a buyer for a large chain of fitness centers might frequently have to negotiate with a major seller of cardio equipment. If the negotiation ends such that the centers take advantage of the seller, more than likely the relationship will be lost.
Using the example above, let’s talk about Nibbling. The chain of fitness centers, who I’ll call Muscle Head Recreation, has an experienced buyer. She is interested in buying 950 treadmills. “Oh wow,” thinks Audrey, the sales rep for Blockhead Fitness Equipment, “I’m going to make my year and win the trip to the French Riviera.”
When Audrey is almost certain that she’s got the sale (“Honey, go to the pharmacy and buy a case of sunscreen and a new camera!”), the buyer throws in a kind of off-handed request:
“You know, I’m 99 percent there, Audrey, but a lot of our clients really love to speed walk with hand weights. You know what would seal the deal?”
The sales rep, warily asks “What?” The buyer then comments that Blockhead Fitness Equipment has a vinyl covered set of hand-weights in one, two-, three- and five-pound sizes in a spiffy little rack. She would love Blockhead to throw in 450 sets.
This is called “Nibbling”, a common negotiation skills technique. The buyer waits for the seller to think there’s a sale, and then throws in an unexpected request. Audrey does some quick and sloppy calculations and she thinks, “Why not? Each set plus a rack is only going to cost us $150 delivered.”
It is only after the deal is signed that Audrey realizes she has given away nearly $68,000 in profits! As the treadmill margin is small, Audrey’s boss goes through the roof. She never sees the French Riviera, but her co-worker Elizabeth does. Why? Because in a similar deal, not even as large, Elizabeth counters The Nibbling request (go with me on this one), with:
“I’ll be glad to throw in hand-weights if you buy our Deluxe Treadmill for only $155 more.”
The negotiation in the second case, Elizabeth’s negotiation, is a win for everyone. It answered the nibbling request with a reasonable counter offer. Blockhead Fitness Equipment sells a bunch of treadmills and weights, and Elizabeth’s customer gets Deluxe treadmills.
The idea of a successful negotiation skills isn’t to crush anyone but to reach an agreement that benefits everyone.
Book Mike Hourigan, Inspirational Negotiation Skills & Techniques Speaker for your next industry gathering, breakout session or sales meeting. For more information call today at: (704) 875-3030 or by filling out the contact form on this page.