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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


    The art of vendor negotiations
    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