Welcome to Negotiation 360
- the series that will help you broaden your vision
and improve your Results.
A tailor made content for you who work with sales and need to get more customers.
Or for you, who own your own business and wouls like to leverage your results.
In this first video I'll start with the most important element of a negotiation.
Which element do you think is the most important?
What do you think is the most important thing in a Negotiation?
You're watching Negotiaion 360
- the series that will help you see the other side of a Negotiation
and improve your results.
I am Rodolfo Araújo and I asked:
What is the most important thing in a negotiation?
A definition I like very much says that "Negotiation is an information game"
When you isolate all the elements of a Negotiation, Information stands out
because it is where everything else begins.
Even so, it is one of which people value less.
And this is even easy to explain:
we usually go for a Negotiation
thinking we already know everything there is to know.
We think we know the person on the other side,
what she wants, what she has to offer in return,
and what she is going to do with what we will give her.
Anyway, we already have the whole plan
and the Negotiation itself seems to be a mere formality
And then we go for it, everything goes wrong and we do not know why.
Or worse yet, everything goes wrong and we still think
that everything went well.
This happens because people don't have the right information.
And we don't have the right information, because we don't ask the right questions.
Once an American company was buying
an electronic component from an European supplier.
The key to the agreement was an exclusivity clause
which the buyer demanded, but the supplier didn't agree to.
The buyer proposed a minimal order, without success.
He offered to increase the unit value, but the supplier did not want.
He increased the minimum order, but it still didn't work.
When they were about to give up, another negotiator was called upon
to try to solve the deadlock
- and with a simple question everything became clear,
the parties understood each other and the deal was closed.
How did he break the deadlock?
What important information was this and how did he get it?
What kind of magic question was that?
The new negotiator simply asked "why?"
Why don't you want to close the deal?
Why don't you want to give exclusivity?
And the answer ...?
Well, the answer was that the manufacturer already had an agreement with his cousin
who lived in the USA
and bought a small amount each year.
They simply didn't want to give exclusivity
because of this old agreement.
They saw exclusivity as something absolute
and not as something that could admit an exception.
But they didn't ask
and were about to lose a valuable business.
The buyer, on his side, needed exclusivity to protect his investment,
but thought the seller didn't want it
in order to get more customers
or a better deal later.
But all he wanted, actually, was to honor his previous commitments
- and that wouldn't be a problem at all.
But eager to try to understand what the other side wanted,
the buyer even offered to increase the price.
How much did this mistake cost?
A totally trivial detail
stucking a multimillion-dollar deal
just because the parties did not talk about what needed to be talked,
and didn't exchange the most important information.
Just because a banal question was not asked.
Before the arrival of the new negotiator, someone with a more open mind,
each one drew their own conclusions
about what the other was thinking
and everyone was walking in circles.
This case illustrates that many of the impasses in Negotiation
can be broken with questions as simple
as WHY?
- that any infant asks all day long.
So, don't be afraid to ask quastions.
Sometimes we think that if we keep asking questions
the other side will think we don't understand what we're talking about
or we don't understand the market
or we are unprepared for the conversation.
But that's not the point.
When we ask, at least we're showing interest in the conversation.
We're making it clear that we want to have a better understanding
of the subjects that matter
and look for alternatives.
Even the most experienced negotiators
think questions are useful
to find out what the other side wants.
But this belief sometimes gets in the way even in simple Negotiations.
Because when you focus too much in WHAT the other side wants,
you get distracted and forget to try to understand
WHY they want the things they want.
If you really want to be a good negotiator,
you need to lose the fear of asking - and answering too.
You need to exercise your curiosity
and break some communication barriers.
So do not fall for this pitfall anymore: never start a negotiation
thinking you already know everything there is to know.
Negotiation is an information game
and you need information from the other party.
And the best way to get it is asking questions.
"Why?" is always a great start.
This is Negotiation 360,
the series that will give you precious tips so you can negotiate better
and create more value for you and for your business.
Here you will have TEN videos with the state of the art in Negotiation.
So you can watch and start using right away.
No outdated tips, no old school hints you find on any channel.
Only new, only useful and relevant tips
so you can stand out in the crowd.
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And if you already liked this video, the best is yet to come.
In the next one I'll talk about a theme that still confuses many people
- and maybe just doesn't confuse those never thought about it
what is the difference between Selling and Negotiating?
Don't miss it!
The best content on Negotiation you've ever seen!
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