Bob Fishbein, AVP Business Operations Berkeley College Track: Management The Art of Vendor Negotiations 1 Annual Meeting April , 2013 Orlando, Florida

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 , 2013 Orlando, Florida 2

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 , 2013 Orlando, Florida 3

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 , 2013 Orlando, Florida 4

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 , 2013 Orlando, Florida 5

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 , 2013 Orlando, Florida 6

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 , 2013 Orlando, Florida 7

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 , 2013 Orlando, Florida 8

Positions of Power Legitimate Power (job description) Knowledge Power (subject matter expert) Negotiating Skill Power (training and experience) Assumed Power (mindset) Annual Meeting April , 2013 Orlando, Florida 9

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 , 2013 Orlando, Florida 10

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 , 2013 Orlando, Florida 11

Body Language Annual Meeting April , 2013 Orlando, Florida 12 Perceived Energy Level Pause Before Responding Hand Gestures Sitting Defensively Feet Direction Mirrored Behavior (smile)

Body Language Annual Meeting April , 2013 Orlando, Florida 13 – Reference Darcy Brooker Animation Study Up-Left Remembering Up-Right Creating Down-Left Searching Down-Right Feelings Quick-Close False

Cultural Differences Richard D. Lewis, Founder of Berlitz School of Language “When Cultures Collide,” (1996) Annual Meeting April , 2013 Orlando, Florida 14

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 Annual Meeting April , 2013 Orlando, Florida 15

Useful Websites Annual Meeting April , 2013 Orlando, Florida 16

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 , 2013 Orlando, Florida 17

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 , 2013 Orlando, Florida 18