Mastering Vendor Negotiations with Bob Fishbein at University of Texas at Dallas
Explore the art of vendor negotiations through the expertise of Bob Fishbein, the AVP of Auxiliary Services at the University of Texas at Dallas. Discover negotiating mindsets, positions of power, strategies for deadlock situations, the impact of cultural differences, and essential do's and don'ts. Gain insights into pressure points, leveraging time, vendor options, emotional control, and information gathering techniques to excel in negotiations.
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The Art of Vendor Negotiations Bob Fishbein, AVP Auxiliary Services University of Texas at Dallas The University of Texas at Dallas The University of Texas at Dallas utdallas.edu utdallas.edu
Agenda Negotiating Mindsets (Buy/Sell Sides) Positions of Power Negotiation Tactics Deadlock Strategies Body Language Cultural Differences Basic Do s and Don ts Useful Websites Q&A 2 The University of Texas at Dallas utdallas.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 Dallas utdallas.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 4 The University of Texas at Dallas utdallas.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 Dallas utdallas.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 Dallas utdallas.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) 7 The University of Texas at Dallas utdallas.edu
Positions of Power Legitimate Power (job description) Knowledge Power (subject matter expert) Negotiating Skill Power (training and experience) Assumed Power (mindset) 8 The University of Texas at Dallas utdallas.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) 9 The University of Texas at Dallas utdallas.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 10 The University of Texas at Dallas utdallas.edu
Body Language Perceived Energy Level Pause Before Responding Hand Gestures Sitting Defensively Feet Direction Mirrored Behavior (smile) 11 The University of Texas at Dallas utdallas.edu
Body Language 12 The University of Texas at Dallas utdallas.edu
Body Language Reference Darcy Brooker Animation Study Up-Left Remembering Down-Left Searching http://4.bp.blogspot.com/_LMWvcRE5ZUA/TQNwGSlxYgI/AAAAAAAABm0/0QSPH14JPmE/s400/Body%2BLanguage.bmp Up-Right Creating Down-Right Feelings Quick-Close False 13 The University of Texas at Dallas utdallas.edu
Cultural Differences Richard D. Lewis, Founder of Berlitz School of Language When Cultures Collide, (1996) 14 The University of Texas at Dallas utdallas.edu
Cultural Differences 15 The University of Texas at Dallas utdallas.edu
Basic Dos and Donts Do s Don'ts Know your wants and needs Don t do all the talking Know their pressure points Don t be intimidated Set high targets Don t trust your assumptions Take time to pre-plan Don t rush to contract Challenge their facts and numbers Negotiation is a process not a contest 16 The University of Texas at Dallas utdallas.edu
Useful Websites http://www.karrass.com/ http://www.amanet.org/ http://www.indiabix.com/ http://www.negotiationskills.com/ 17 The University of Texas at Dallas utdallas.edu
Q&A What negotiation strategies will you start doing at your campus? What negotiation strategies will you stop doing at your campus? 18 The University of Texas at Dallas utdallas.edu
