What is the most profitable? In the eyes of Roger Dawson, a renowned American negotiation master and advisor to former President Clinton, negotiation is the most profitable. Sellers always want to raise prices higher, while buyers always want to lower them. With related costs fixed, profit is determined in this process. In business activities, negotiation is ubiquitous, and to successfully achieve the ideal outcome, every step in the negotiation process is crucial. Just as a good actor is full of drama from the moment they appear on stage, it can be said that the final result of negotiation is the result of mastering every step. Although some steps seem simple, it is precisely the 'negotiation momentum' accumulated through the interconnected steps that ensures the negotiation goals are met or even exceeded as expected.
Below, the author presents a typical case of a supermarket chain procurement manager to illustrate the 49 sequential negotiation strategies used in this process, offering insights and food for thought.
At 9:30 AM on November 11, Li Jun, the procurement manager of Huamei Supermarket Chain, sent a fax (Strategy 1: Sending a written notice of price objection is more convincing) to Wang Jie, the sales manager of Surui Company. The fax read:
Surui Company:
We are very surprised by your second quotation of 12 yuan per unit for the 2015 A-series shampoo on the 6th (Strategy 2: Never accept the other party's first offer; express surprise at their quotation). This price is 20% higher than what we can accept (Strategy 3: The data for price objections should appear very accurate)! After our research department's 8-person team spent four days surveying 10 similar brands and 5 supermarkets, such a price not only leaves us no room for operation, but even if we sell at cost, the product has no advantage among similar products (Strategy 4: Persuasion should be based on numbers, making it more scientific)! Not to mention helping us assist your company in seizing market share from Green Clean Company (Strategy 5: Leverage the other party's expectations for market share to make them weigh pros and cons).
To better help your company promote this product and achieve our common goals (Strategy 6: Despite objections, this approach is still for better cooperation), we can only accept a purchase price of 9.96 yuan (Strategy 7: Propose a lower price, and a price precise to two decimal places makes the other party think it has been carefully calculated). If you accept this price, please have your representative, Manager Wang Jie, come to our company at 10:10 AM tomorrow (Strategy 8: Bring the other party into your own territory to maintain a home-field psychological advantage; using precise time shows your rigor) to sign the cooperation agreement (Strategy 9: Use cooperation to strategically lure the other party). Otherwise, we can only express regret (Strategy 10: An ultimatum is a very stressful method, but it loses effectiveness if not achieved).
Best regards!
Huamei Supermarket Chain November 11, 2014
At 9:35 AM on November 11, Wang Jie received a call from Li Jun. After confirming that Wang Jie had received the fax, Li Jun immediately complained, "Manager Wang, your company has ruined me! What kind of price did your company quote? It made me lose face in front of my boss (Strategy 11: Complain, express grievance, and make the other party feel their quotation is indeed problematic). The same product from Sancai Company is only 9.8 yuan (Strategy 12: Use information about the other party's competitors to support your point, regardless of its accuracy, as it will make the other party worry). To be honest, I'm only considering our years of friendship; otherwise, this cooperation would definitely end here (Strategy 13: Psychologically draw the other party closer and comfort them; give a slap, then a rub). You decide!" Without waiting for Wang Jie's response, Li Jun hung up (Strategy 14: Show your anger and keep the other party tense).
At 9:45 AM on November 11, Wang Jie entered the general manager's office and came out an hour later. During that time, through the glass door, someone saw Wang Jie arguing with the general manager at one point. Finally, the general manager threw a sentence at Wang Jie: "You must sign this deal tomorrow no matter what; it's very important to the company" (Strategy 15: One of the smartest negotiation methods is to make the other party fight for themselves, becoming your ally in negotiation).
At 9:50 AM and 10:15 AM on November 11, Li Jun called the sales managers of Green Clean and Sancai, the two rivals of Surui, Zhou Ming and Zheng Bin, respectively. He invited Zhou Ming to come at 9:30 on the 12th to catch up and bring the sales manager evaluation form that Green Clean uniquely requires customers to fill out; he invited Zheng Bin from Sancai, who had always wanted to cooperate, to bring five sets of new product samples at 10:30. (Strategy 16: To do a good job, one must first sharpen one's tools; make thorough preparations)
At 9:40 AM on November 12, Wang Jie arrived at Huamei's 9th-floor meeting room half an hour early. He found Li Jun chatting warmly with Zhou Ming from Green Clean in Meeting Room 3. The receptionist led Wang Jie to Meeting Room 1 and served him tea. Wang Jie noticed that Li Jun and Zhou Ming seemed to be discussing some papers animatedly. This was Huamei's largest partner, and his company had never surpassed Green Clean in status at Huamei. Wang Jie tried to listen, but with a meeting room in between, he couldn't hear anything. Wang Jie was very nervous, feeling that Zhou Ming's visit boded ill. (Strategy 17: Use your main partner to make the other party realize that if they don't handle this well, their market position may be threatened)
At 9:55 AM on November 12, Wang Jie waited anxiously; in the past, Li Jun would have received him early. (Strategy 18: Break routines to make the other party speculate)
At 10:00 AM on November 12, Wang Jie saw Li Jun sign his name on a paper, then both Li Jun and Zhou Ming smiled with satisfaction, shook hands in celebration. Afterward, Li Jun escorted Zhou Ming to the elevator, and it seemed Li Jun would accompany him downstairs, but Zhou Ming declined. (Strategy 19: Create the impression that an agreement has been reached and cooperation is smooth)
At 10:05 AM on November 12, Li Jun came to Meeting Room 1 and had the receptionist refill Wang Jie's water. (Strategy 20: At all times, regardless of negotiation progress, do not lose etiquette) Wang Jie tried to ask if what Li Jun and Zhou Ming signed was the cooperation contract for next year. Li Jun gave an evasive answer, saying, "Manager Wang, when can you satisfy me like Zhou Ming does? You got me scolded by my boss." Li Jun looked angry, with none of the attitude he had shown Zhou Ming. Wang Jie scratched his head awkwardly. (Strategy 21: Continue to reinforce the other party's sense of indebtedness)
At 10:10 AM on November 12, both sides got down to business. Wang Jie handed Li Jun the new quotation sheet. Li Jun's attitude softened a bit, but he didn't look at the quotation, saying, "Manager Wang, this isn't a bomb that will get me scolded a second time, is it?" (Strategy 22: Express concern in advance to remind the other party of the consequences of a high price). Then when he saw the quotation of 10.7 yuan, he was delighted inside, as it was close to the company's target of 10.5 yuan. But Li Jun remained expressionless (Strategy 23: At all times, stay calm, even if the price is very satisfactory). He said, "Manager Wang, I have no face to report this price to my boss (Strategy 24: Flatly refuse, express surprise, and make the other party feel their offer is still above your expectations). Give me your cost breakdown; either your price is inflated or your costs aren't controlled well." Wang Jie handed the cost breakdown to Li Jun, who studied it carefully (Strategy 25: Have the other party break down costs; in doing so, they will naturally reveal flaws). Wang Jie heard only the sound of people coming and going outside the meeting room and the ticking of the clock inside (Strategy 26: Study seriously to show your carefulness and attention, and to pressure the other party). After about two minutes, Li Jun said, "Manager Wang, I understand your company will add two new production lines by the end of this year, and with the current economic crisis, your main raw material costs have dropped by at least 20% (Strategy 27: Information; always have sufficient information in negotiation so the other party cannot refute). But the raw material prices on your breakdown are the same as last year's? Your quotation still has a lot of water (Strategy 28: Always maintain objections to the other party's cost figures, no matter how they guarantee them)!" Wang Jie hadn't expected Li Jun to notice this oversight. The company's procurement costs had actually dropped by 22%, and he hadn't expected Li Jun to know this. Wang Jie said, "Brother, tell me the lowest price you can do." Li Jun said firmly, "9.96 yuan" (Strategy 29: When the other party leaves room, you should be more resolute). Yesterday in the general manager's office, Wang Jie had been authorized a minimum price of 10.6 yuan, because the company was eager to secure this client, which would guarantee sales for 2015. After deliberation, Wang Jie decided to give another 0.1 yuan. Li Jun said, "9.96 yuan is the highest; if you give this price, I can promise you a 15% growth next year. You know, in the current economic crisis, this increment is equivalent to a 30% growth in normal times (Strategy 30: Use comparisons to highlight the significance of the increment). This is an increment you can't get from other companies; I know your sales at Zijin Supermarket have been flat this year compared to last year (Strategy 31: By knowing the other party's information at other supermarkets, highlight your company's position)." This was the increment guarantee Wang Jie had been striving for; Huamei's brand and strength were evident, and achieving this could indeed fill the gap in sales decline at other supermarkets. Wang Jie was delighted but pretended to be reluctant, gritting his teeth and saying, "If you can guarantee that, I'll give another 0.1 yuan. 10.5 yuan." Although the company's target price had been achieved, Li Jun laughed heartily and said, "Manager Wang, we're not buying vegetables. I also want to tell you that if the A-series product isn't settled, we won't talk about your upcoming B-series products. You know, our company values not your A-series (Strategy 32: Belittle the other party's product to dampen their morale), but your B-series (Strategy 33: Feint to the east while attacking to the west; when necessary, give the other party an expectation to complete this negotiation)."
At 10:30 AM on November 12, Zheng Bin from Sancai arrived at the 9th-floor reception with five samples on time. The receptionist led Zheng Bin to Meeting Room 3 and informed Li Jun in Meeting Room 1. Li Jun said, "Manager Wang, I won't hide it from you; if you don't do it, someone else will. Look, Sancai has come to us. With your status and influence in the company, I don't believe you can't settle this price (Strategy 34: Use the other party's competitors to maintain pressure and appropriately use provocation). I'll excuse myself for a moment to say hello (Strategy 35: Seize the right moment to leave the negotiation table; leaving gently is a powerful technique, giving the other party room to maneuver and consult)."
At 10:32 AM on November 12, Wang Jie saw through the glass of the meeting room that Li Jun was in Meeting Room 3, looking at Zheng Bin's samples with great interest. The two were also chatting warmly. Wang Jie also noticed that those samples seemed to be competitive products to his A-series. Wang Jie picked up the phone and called the general manager (Strategy 36: Control time, create atmosphere and pressure points, make the other party anxious first). Li Jun saw this out of the corner of his eye and was delighted.
At 10:40 AM on November 12, Wang Jie's phone call lasted nearly 10 minutes. Li Jun didn't rush over to interrupt. Seeing Wang Jie hang up, Li Jun asked Zheng Bin to wait and came to Meeting Room 1. As soon as he entered, Li Jun said, "Manager Wang, to be honest, Sancai's products are similar to yours, and today he came for next year's cooperation. We're open for business; if we can't reach an agreement, the company will have to choose someone else. Then I won't be able to help, don't say I didn't warn you (Strategy 37: In negotiation, the party with more options has more power)." Wang Jie said, "Well, I just consulted the general manager. If you can guarantee an 18% increment next year, we can compromise at a unit price of 10.25." This price exceeded Li Jun's expectations and was already below the company's target. Li Jun remained expressionless and said, "The price must be as I proposed; then I can report to the company to ensure an 18% increment next year, but you must add 50,000 yuan in promotional expenses on top of the original promotional policy (Strategy 38: When the key conditions are basically agreed upon, ask for additional concessions), and I must report to my boss before deciding (Strategy 39: In negotiation, always set up a boss for yourself, even if you can decide; this boss may not exist, but it gives you room to maneuver)." This wasn't required by the company; it was just an additional bargaining chip Li Jun added. The company stipulated that Wang Jie could adjust promotional expenses for each customer based on actual conditions, so Wang Jie didn't show difficulty.
At 11:00 AM on November 12, Wang Jie said, "10.25 unit price, ensure 18% increment, add 50,000 yuan in promotional expenses on the original policy, but you must ensure no cooperation with Sancai." Li Jun clarified, "The 9.96 yuan unit price is non-negotiable, add 50,000 yuan in promotional expenses on the original policy, and we can ensure an 18% increment. Once both parties sign the agreement, the company will not cooperate with Sancai (Strategy 40: As the contract negotiation nears its end, repeat to confirm the results and remaining disputes)."
At 11:05 AM on November 12, Li Jun told Wang Jie that his director appreciated Wang Jie and happened to be in today, so he led Wang Jie to the director's office. Li Jun's director said, "Xiao Wang, sit down, sit down! We've had a pleasant cooperation this year, and your partnership with Li Jun has been instrumental. Tell your General Zhao that we'll continue to support you strongly next year!" Li Jun's director invited Wang Jie to stay for lunch, but Wang Jie insisted on not disturbing, saying Li Jun still had guests waiting and needed to return. In fact, Wang Jie wanted to hurry back to report. Li Jun didn't insist. (Strategy 41: Use the good cop/bad cop strategy to prevent the other party from feeling too frustrated)
At 12:00 PM on November 12, Wang Jie reported to the general manager in his office. Half an hour later, Wang Jie walked out of the general manager's office, looking relaxed. He called Li Jun to confirm the unit price at 10.15. But Li Jun still didn't agree (Strategy 42: Never accept such a price. Persist, persist, persist! In negotiation, you must not yield an inch, no matter how much the other party concedes; don't stop until you achieve your goal). He still insisted on the 9.96 yuan unit price.
At 10:30 AM on November 13, Wang Jie received a courier from Li Jun (Strategy 43: Once the contract is confirmed, act quickly to prevent the other party from backing out). Inside was a contract in duplicate, with the unit price column clearly showing 9.96 yuan, and the guaranteed increment changed to 18.5% (Strategy 44: Acting first and reporting later can be effective; by creating a fait accompli, the other party feels there's no room for change; and generally, the other party won't quibble over minor details; additionally, giving the other party a pleasant surprise makes your goal easier to achieve). It was already signed and stamped (Strategy 45: No matter what, always draft the contract yourself; don't easily hand over the drafting power to the other party).
At 11:00 AM on November 13, Wang Jie, with a stiff upper lip, walked into the general manager's office with the contract approval form. After reviewing the contract, the general manager hesitated, shook his head, but ultimately signed his name on the approval form. After all, the 18.5% increment far exceeded his expectations, and it was the first major order for next year; Wang Jie had done well (Strategy 46: Give the other party what you can give and ensure they can show performance to their boss; this is one of the foundations for getting what you want). Wang Jie walked out of the office with the approval form and let out a long sigh of relief; after all, next year's performance was secured (Strategy 47: In negotiation, give the other party conditions that make them feel a sense of achievement; these conditions are what they care about, but not the most important to you, and you can ensure them).
At 10:30 AM on November 14, Li Jun received a courier from Wang Jie. Inside was the contract he had mailed, with the second party's signature and stamp. Li Jun smiled happily, then a thought flashed through his mind: if he had initially proposed 9.96 yuan, perhaps they would have agreed; had he offered too high? (Strategy 48: A negotiation expert always maintains self-doubt and high standards)
At 11:00 AM on November 14, Wang Jie received a call from Li Jun, who said, "Manager Wang, you are the most outstanding sales manager I've met. Congratulations on winning first place in performance again next year (Strategy 49: After negotiation, no matter what, always sincerely congratulate the other party first, emphasize what they value, and make them feel they have won. Don't let them wake up the next day feeling they were fooled. Also, negotiation is never a one-time deal; you must strictly execute the contract and create execution expectations beyond the contract for your client, so you can have the opportunity to win the next negotiation)!"
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