1. Basic Negotiating Skills
Tips to Successful &
Productive Negotiations

2. Basic Common Sense Rules
Strategy
Tactics

3. Basic Common Sense Rules
Be True to Your Word
Don’t Take Anything Personally
Don’t Make Assumptions
Repack Your Bags
Always Do Your Best

4. Setting The Stage for Achieving Results
Negotiation Strategy
Setting The Stage for Achieving Results

5. Where to Start Having a negotiating plan is critical to success.
Communication with your team PRIOR to negotiating is essential.
Education & research = results.

6. Establishing Your Plan
Separate people from the issues & goals.
Focus on interests, not positions.
Invent options for mutual gains.
Insist on using objective criteria.

7. Best alternative to a negotiated plan.
Develop your BATNA
Best alternative to a negotiated plan.

8. Education & Research
An uneducated consumer is the vendors dream, the less you know the more likely you will fail and the vendor will profit.

9. Pre-planning and Communication
Meet with your negotiation team prior to your negotiations.

10. Who is your negotiation team?
End Users
Share Holders
Subject Experts
Group spokesperson.

11. What does the team do? Define Goals Develop Objective Criteria
Iron out differences before negotiations
Define needs versus wants
Discuss tactics
Develop Questions
Agree on who does what research
Prepare for the group dynamics
Select a group spokesperson

12. When should the team meet?
Planning Meeting
Follow up on Research
Right before Negotiations

13. Tactical Aspects of Negotiations
What to do when the day arrives.

15. Set the stage for the meeting, location counts!!
Introductions
Break the ice.
Establish level of authority.
Explain the role of the players.

16. Focus on Interests, Not Positions
Positional negotiations RARELY work effectively

17. Clearly define what you can bring to the table
Increased business
Increased market share
Influence of additional opportunities
Value of business partnership
Length of commitment
Great references

18. Clearly define your expectations
Objective criteria
Hospital Strategic Plan
Departmental Strategic Plan
Any issues or concerns
Key factors in the decision process

20. Ask Penetrating Questions
Have you list of questions ready
Present your research
Compare the hospital mission statement to the companies mission statement
Compare hospital profits to corporate profits
Compare hospital industry standards to corporate standards.

21. What is OK to ask I don’t know or understand I need help I’m sorry
I need more time

22. How to Put Your Foot In Your Mouth
Don’t blurt anything out, carefully consider your comments
Do not give the impression no other company or product will work
Relationships are more important than value of the deal
Don’t split the team
I just have to have this one

23. Psychology & Human Nature
BIG FACTORS IN NEGOTIATIONS!!!

24. Psychology Appearance of Ignorance Lack of Confidence
Willingness to cooperate rather than be assertive
Perception
Location

25. Human Nature Avoid Conflict Want to be liked Want to be valued
Will buy more than actual needs
Want to help
Trust

26. Trust Them, but, Keep Your Eyes Open

27. Educate the vendor to your world
Education
Educate the vendor to your world

28. I’M THE CUSTOMER
You’re the vendor

29. Vendors are taught to control the timing of the sale.
Timing of the Deal
Vendors are taught to control the timing of the sale.

30. Timing of the Deal
It is far more likely to fail with a rushed decision than a well thought out one.

31. Vendor Control of Time Line
Company sales goals
Pressures from management
Commission
Sales Incentives
Company overstock or close outs.

32. How to set your time line
Needs of the organization
Money available & cash flow
Time to plan & research
Fit into your personal work load
Be very honest and direct with the vendor
We all have changing priorities, it is OK to change timing

33. Time Line Cycle
Both parties need time for approval for structure of the agreement
Information Sharing
Additional Research
Legal review

34. Time Line Psychology
The more time it takes to close the deal, the more concessions you will get.

35. The Close
Buyer Beware

36. Tricks & Threats Increase prices Loss of Service No longer supported
Expensive Buy Outs
Last Chance for this deal
Buy now or your delivery be delayed for months

37. What are your costs ? Purchase price Service or support fees
Cost of education
Cost of domino effect
Supply cost changes or increase supply utilization
Reimbursement changes

38. Terms & Conditions
The critical rules on doing business which are a legal obligation
Written to favor vendor
Are always part of the sale
Vendors are not trained to understand them
In court, the spoken word in worthless
Impossible To Read

39. Actual T&C in contract

40. Service Agreements Highly profitable for the vendor
Costly for the hospital
Consider getting additional warranty as part of the agreement
Time & materials may be less expensive
BEWARE OF THE FEAR FACTOR

41. Critical Concepts Educate yourself Utilize subject experts
Have a plan on strategy and tactics
Communicate
You’re the customer, control the process.
Quick deals cost money

42. The ultimate goal is getting to yes!
Make both parties win
The ultimate goal is getting to yes!

43. The Beginning

44. Questions?