The University of Texas at Dallasutdallas.eduThe University of Texas at Dallasutdallas.edu The Art of Vendor Negotiations Bob Fishbein, AVP Auxiliary Services University of Texas at Dallas

The University of Texas at Dallasutdallas.edu 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 2

The University of Texas at Dallasutdallas.edu Bob Fishbein: Professional Background 20+ Years Multi-Unit Business Operations Higher Education – University of Texas at Dallas AVP Auxiliary Services – Berkeley College AVP of Business & Auxiliary Operations – Columbia University Executive Director of Operations, Student Services Corporate Operations – BJ’s Wholesale Clubs AVP Regional Operations – CompUSA Regional Director of Sales 3

The University of Texas at Dallasutdallas.edu University of Texas at Dallas Approximately 23,000 students 56% Male / 44% Female 88 Freshman Merit Scholars Biology- Psychology- Computer Science - Business- Supply Management- Neuroscience - Information Technology- Electrical Engineering -Finance

The University of Texas at Dallasutdallas.edu 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 5

The University of Texas at Dallasutdallas.edu 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) 6

The University of Texas at Dallasutdallas.edu 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 7

The University of Texas at Dallasutdallas.edu 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) 8

The University of Texas at Dallasutdallas.edu Positions of Power Legitimate Power (job description) Knowledge Power (subject matter expert) Negotiating Skill Power (training and experience) Assumed Power (mindset) 9

The University of Texas at Dallasutdallas.edu 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) 10

The University of Texas at Dallasutdallas.edu 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 11

The University of Texas at Dallasutdallas.edu Body Language 12 Perceived Energy Level Pause Before Responding Hand Gestures Sitting Defensively Feet Direction Mirrored Behavior (smile)

The University of Texas at Dallasutdallas.edu Body Language 13 – Reference Darcy Brooker Animation Study Up-Left Remembering Up-Right Creating Down-Left Searching Down-Right Feelings Quick-Close False

The University of Texas at Dallasutdallas.edu Cultural Differences Richard D. Lewis, Founder of Berlitz School of Language “When Cultures Collide,” (1996) 14

The University of Texas at Dallasutdallas.edu Basic Do’s and Don’ts Do’sDon'ts Know your wants and needsDon’t do all the talking Know their pressure pointsDon’t be intimidated Set high targetsDon’t trust your assumptions Take time to pre-planDon’t rush to contract Challenge their facts and numbersNegotiation is a process not a contest 15

The University of Texas at Dallasutdallas.edu Useful Websites

The University of Texas at Dallasutdallas.edu Q&A What negotiation strategies will you start doing at your campus? What negotiation strategies will you stop doing at your campus? 17