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The Art of Vendor Negotiations. Bob Fishbein, AVP Business Operations Berkeley College Track: Management. Agenda. Negotiating Mindsets (Buy/Sell Sides) Positions of Power Negotiation Tactics Deadlock Strategies Cultural Differences Basic Do’s and Don’ts Useful Websites Q&A.

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the art of vendor negotiations

The Art of Vendor Negotiations

Bob Fishbein, AVP Business Operations

Berkeley College

Track: Management

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

agenda
Agenda
  • Negotiating Mindsets (Buy/Sell Sides)
  • Positions of Power
  • Negotiation Tactics
  • Deadlock Strategies
  • Cultural Differences
  • Basic Do’s and Don’ts
  • Useful Websites
  • Q&A

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

bob fishbein professional background
Bob Fishbein: Professional Background
  • 20+ Years Multi-Unit Business Operations
  • Higher Education
    • Berkeley College
      • AVP of Business & Auxiliary Operations
    • Columbia University
      • Executive Director of Operations
  • Corporate Operations
    • BJ’s Wholesale Clubs
      • AVP Regional Operations
    • CompUSA
      • Regional Director of Sales

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

berkeley college
Berkeley College
  • 7 Campus locations within NY and NJ
  • Approximately 8,500 Students
    • The School of Professional Studies
    • The School of Liberal Arts
    • The Larry L. Luing School of Business
    • Berkeley College Online

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

negotiating mindsets buy sell sides
Negotiating Mindsets (Buy/Sell Sides)
  • What are the “pressure points” of the other side?
    • Sales Quotas
    • End of Life Merchandise
    • Rebate Dollars
    • Margin Dollars
    • Deadline Dates
    • Service Levels
    • Market Share
    • Vendor Competition

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

4 main pressure points
4 Main Pressure Points
  • Time(biggest leverage point in negotiations)
  • Vendor Options (real or perceived)
  • Controlling Emotions (able to walk away)
  • Information(ask focused questions)

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

negotiating mindsets buy sell sides1
Negotiating Mindsets (Buy/Sell Sides)
  • Ask focused questions
    • Was vendor ‘XXX’ in the news recently?
    • When does the proposal price expire?
    • Is the expiration date negotiable?
    • What is the “cost breakdown” of the service or product?
    • Do you work on commission?
    • Are you meeting your quota?
    • Must Have / Would Like to Have (wants or needs)
    • No predetermined assumptions

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

positions of power
Positions of Power
  • Power as a mindset (perception is reality)
  • Plaintiff (first position)
  • Defendant (second position)
  • Assumptions create anchors (good and bad)
  • Create anchors in the right place (high or low)
  • Create “needs” for the other side (the iPad marketing)

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

positions of power1
Positions of Power
  • Legitimate Power (job description)
  • Knowledge Power (subject matter expert)
  • Negotiating Skill Power (training and experience)
  • Assumed Power (mindset)

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

negotiation tactics
Negotiation Tactics
  • Reference Karrass Effective Negotiating
  • The Bogey (“I love the proposal but only have $xxx dollars”)
  • The Crunch (“You’ve got to do better than that!”)
  • The Nibble (“What tie are you giving me with this suit?”)
  • Garbage on the Lawn (Listing all the past service issues)
  • The Flinch (Showing shock on price and waiting for response)
  • Tying a String (Added concession for agreement)

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

deadlock strategies
Deadlock Strategies
  • Change Meeting Location
  • Introduce New or Updated Information
  • Change Negotiating Team Members
  • Change the Shape and/or Time of Money
  • Take a Break or Time Out
  • Talk off the Record

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

body language
Body Language
  • Perceived Energy Level
  • Pause Before Responding
  • Hand Gestures
  • Sitting Defensively
  • Feet Direction
  • Mirrored Behavior (smile)

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

body language1
Body Language
    • Reference Darcy Brooker Animation Study
  • Up-Left Remembering
  • Up-Right Creating
  • Down-Left Searching
  • Down-Right Feelings
  • Quick-Close False

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

cultural differences
Cultural Differences
  • Richard D. Lewis, Founder of Berlitz School of Language
  • “When Cultures Collide,” (1996)

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

basic do s and don ts
Basic Do’s and Don’ts

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

useful websites
Useful Websites
  • www.karrass.com
  • http://www.amanet.org/
  • http://www.negotiationskills.com/

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

slide17
Q&A
  • What negotiation strategies will you start doing when you return to your campus?
  • What negotiation strategies will you stop doing when you return to your campus?

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

naep professional development
NAEP Professional Development
  • Tier II - Procurement Academy
  • February 2014
    • Nancy Brooks, MPA, Iowa State University
    • Christopher Johnson, C.P.M., University of Idaho
    • Burr Millsap, CPA, M.B.A., University of Oklahoma
    • Robert Haverkamp, Esq., The Ohio State University (retired)

Annual Meeting

April 7 - 10, 2013

Orlando, Florida

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