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1、,International Business Negotiation,Bargaining process,Key points:1.tactics and strategies for making quotations;2.indicators for the end of a bargain;3.tactics and skills for making counter-quotations4.principles and strategies for making compromises,The bargaining phase is the core and most diffic
2、ult stage in the whole negotiation process.All negotiating parties confer about substantive(实质性的)issues and items.,In the bargaining phase,each negotiating party measures its own strength,intelligence and strategies against those of its counterpart.Each side may modify its original objectives,establ
3、ish a basic framework for the negotiation agreement,adjust its own strategies.,The negotiators ability to use their wisdom,strategies and skills in a correct,effective and flexible way will determine how well they can realize their final goals.,The definition of quotation,Narrowly:it is a way to ind
4、icate a particular price at which one party will buy or sell the specific commodity.Broadly:including other terms and conditions for a deal:the name of the commodity,quality,quantity,price,packaging,shipping,insurance,payment terms,inspections,claims索赔,arbitration仲裁,Guidelines for making a quotation
5、,The principle of making a quotation in business negotiation is“to sell dear”or“to buy cheap”.The seller should try to present his quotation at the highest price acceptable to the buyer;the buyer should bid for the lowest price bearable to the seller.The quoters should consider their own interests a
6、nd the demand and supply of the relevant commodity in the market.,价格谈判与价格谈判区间,买卖双方的价格区域,卖方的价格区域,最高报价,底价 底价,最低报价,买方的价格区域,卖方的首次出价,买方的首次出价,可能达成协议的区域,卖方底价,可能成交的区域,可能成交的区域,谈判区域,买方底价,Common ways to establish a quotation price:Assess the market situation at home or abroad,the competitors price level,set a
7、range of prices to quote;Set a bottom line as the last line of defense in the negotiation;Decide the initial level for the quotation.The seller can ask a sky-high price;the buyer can make a rock-bottom offer.,Quoting strategies,Be explicit and specific be decisive and resolute offer no explanation u
8、se differentiation(区别报价法)use psychological pricing(心理定价法)use midway price changes,Differentiation,This strategy allows a company to buy or sell the same product at different prices based on their grades,quantity,delivery destination,shipment,methods of payment and other related factors.,psychologica
9、l pricing,Units of measurement:RMB-Euro/Dollar3 Dollar-20 Yuan exchange rate汇率 换算单位 kilo-poundBreaking the whole into parts:Using smaller units 化整为零The decimal fraction:Odd number pricing：奇数定价￥19.99-￥20,Counter-offer,A counter-offer is an alternative quotation given as an explicit response to a quot
10、ation made by the other party.Making a counter offer helps to set the bargaining range or settlement range.It indicates respect for the quoter,proves ones sincerity in the transaction,and determines how a negotiation will proceed.,Three factors are involved in setting the starting point for bargaini
11、ng:Does your counterpart make any substantial improvement in their quotation after you countered?What is the difference between the improved quotation and your desired closing price?Do you plan to make further concession after your initial counter offer?,16 Golden Rules,The negotiation,in essence,is
12、 a process of making concessions.Do not make senseless concession;Do no make concessions blindly;Seize the“big fish”and let go of the small one;Choose the right time;Keep the bottom line a secret;,Do not promise to make concessions by equal margin;Look before you leap;Do not make it too easy for the
13、 other party to gain what he wants;Take back an improper and ill-conceived concession;Let the other party do it first and then follow suit;,Firmly control the times and margin of your concession;Dare to say“no”;Quantify a concession;Have the overall situation in mind;There is no need for making more
14、 concessions in return for a concession made by your counterpart;Withdraw to get the second best.,Typical hardball tactics,Used to force the other party to make concessions.1.being excessively demanding;2.emotional outburst;3.several persons take turns to fight one opponent to tire him out.(tag-team
15、 tactic);4.bring about a split-up of the counter team.(divide and conquer)5.involve competition;鹬蚌相争,渔翁得利,6.red face and white face routine(good guy and bad guy)7.research for a yard after getting an inch;8.feint to the east and attack in the west;9.take advantage of others faults10.the ultimatum最后通
16、牒 take it or leave it?,Strategies to prevent the counterparts attack,1.limited authority;2.no precedents;3.fatiguing tactics;(seesaw battle)4.adjournment;5.retreating in order to advance;6.seeking commiseration/compassion;7.show ones hand.,The Negotiation Process,1)Always try to negotiate for at lea
17、st 15 minutes.Any less than that and it is unlikely that either party has had enough time to fairly consider the other side.Generally,the size or seriousness of the negotiation determines the amount of time needed to negotiate it.Setting a time limit is a good idea.Approximately 90%of negotiations g
18、et settled in the last 10%of the discussion.2)Always offer to let the other party speak first.This is especially important if you are the one making a request for something such as a raise.The other party may have overestimated what you are going to ask for and may actually offer more than what you
19、were going to request.,3)Always respect and listen to what your opponent has to say.This is important even if he or she does not extend the same courtesy to you.Do your best to remain calm and pleasant even if the other party is displaying frustration or anger.Remember some people will do anything t
20、o intimidate you.4)Acknowledge what the other party says.Everyone likes to know that what they say is important.If the other party opens first,use it to your advantage,by paraphrasing what you have heard.Repeat their important ideas before you introduce your own stronger ones.,5)Pay attention to you
21、r own and your counter partners body language.Review the chart below to learn how to interpret body language during the negotiations.Make sure that you arent conveying any negative body language.,Body Language and its Possible Meanings,Avoiding Eye ContactLying Not interested Not telling the whole t
22、ruthSerious Eye ContactTrying to intimidate Showing angerTouching the face/fidgetingNervousness Lack of confidence Submission,NoddingAgreeing Willing to compromiseShaking the head/turning awayFrustrated In disbelief Disagreeing with a point,Language to use to show agreement on a point:,I agree with
23、you on that point.Thats a fair suggestion.So what youre saying is that you.In other words,you feel that.You have a strong point there.I think we can both agree that.I dont see any problem with/harm in that.,Language to use for objection on a point or offer:,I understand where youre coming from;howev
24、er,.Im prepared to compromise,but.The way I look at it.The way I see things.If you look at it from my point of view.Im afraid I had something different in mind.Thats not exactly how I look at it.From my perspective.Id have to disagree with you there.Im afraid that doesnt work for me.Is that your bes
25、t offer?,Conclusion,Bargaining is the most active,dynamic and vital part of the whole negotiation process.Whether the participants can make a profit and how much they can obtain ultimately depends on the skills and strengths they demonstrate in the bargaining phase.,Add your company slogan,Thank You!,
