商务英语谈判1.ppt

Chapter Four-oneChapter Four-one Bargaining ProcessBargaining ProcessFocusFocuslTactics and strategies for making quotationsTactics and strategies for making quotationslIndicators for the end of a bargainIndicators for the end of a bargainlTactics and skills for making counter-quotationsTactics and skills for making counter-quotationslPrinciples and strategies for making compromisesPrinciples and strategies for making compromises编辑pptCase 1:Time: 2005Parts: a large group of Chinese purchasers major American Corporations including Boeing, Microsoft and GMBackground: In 2005, in order to reduce the trade deficit（赤字）（赤字） between the US and China, a large group of Chinese purchasers were dispatched to negotiate with major American corporations including Boeing, Microsoft and GM for the importation of products worth over 10 billion dollars.编辑pptPleased to hear the news, Boeing wondered how many Boeing airliners China would purchases this time.Chinese representatives proposed that the purchase of Boeing airliners should include the newly-developed Boeing 787.Problem: However, the representatives from Boeing said there would be no problem about the purchase of Boeing 737s, 747s, 767s, and 777s, but the Boeing 787 was a new product that had not yet rolled off the line, and it would be sold at an extremely high price.编辑pptThe Chinese representatives responded that there must be a price no matter how high it was, so how much was a Boeing 787 jetliner?After consulting together, the American representatives came up with a “ceiling price.The Chinese representatives thought it was unreasonably high.Large airline companies in China are regular clients of Boeing.You should not make it a “once-for-all” deal. 编辑pptTo enable us to continue our purchase of your airplanes, please consider whether you can give us a preferential price by reducing your offer by xx%.The American representatives replied:” We considered these factors before we quoted our preferential price. Therefore, we are not in a position to allow you X% discount, let alone xx%.You know that Boeing 787 jetliners boast a high safety coefficient and a fuel-efficient feature.”编辑pptThen the Chinese representatives responded:” If we purchase a large quantity, will you give a more favorable price?”The American said they would think about it.Initial Result: In the following rounds of negotiation, the Chinese side increased the number of the airplanes they ordered, step by step, and the Americans made several appropriate price concessions.编辑pptIt was not until the Chinese side agreed to buy 42 Boeing 787 jetliners that the American representatives were delighted, and felt that things were better than they had expected.And the Chinese side was also satisfied with the settlement of a price xx% lower than the initial offer.Another Problem: However, when the representatives from both sides were about to sign the contract, the American side went back on their word because 编辑pptsome American congressmen pointed out that the gyroscope （回转仪，陀螺仪）（回转仪，陀螺仪）installed in the Boeing 787 was a state-of-the-art sophisticated precision instrument.If airplanes with this kind of gyroscope were exported to China, they believed it would have an adverse impact on U.S. national security.Final result: Therefore, the American representatives came up with a new proposal: they would sell Boeing 787s without gyroscope or with old-generation gyroscopes to China, with a corresponding reduction in price.编辑pptThe Chinese side strongly disagreed:” We won’t buy a beautiful but blockheaded and dumb giant bird. The Boeing 787 must be furnished the advanced gyroscopes, or it will be impossible to know clearly how high it flies and what direction it goes.”Although the American representatives had raised a new issue under the pressure from their Congressmen, the Chinese side maintained their position.In the end, Boeing signed the agreement with the Chinese Aviation Administration of China.编辑pptThe bargain phase in international business negotiation-- covers broad period of time from the end of the opening phase to the beginning of the closing phase.--is called “the step of overcoming barriers to agreement”--constitutes the central and most difficult stage in the whole negotiation process.编辑pptIn the bargaining phase, each negotiating party--measures its own strength, intelligence and strategies against those of its counterpart.--adjusts its own negotiation strategies,--modifies its original negotiation objectives or targets, and then--establishes a basic framework for the negotiation agreement.Bargaining involves three key aspects:编辑ppt--quoting a price--bargaining over the price--making compromisesI.QuotationII.Case 2: III.Parts: the Macau Jockey（赛马）（赛马） Club in ChinaIV. an Australian jockey clubV.Background: The Macau Jockey Club in China was commissioned to negotiate with an Australian jockey club about introducing ten horses of fine breeding.编辑pptThe seller, the Australian jockey club, would sell the horses as long as the price was above 1 million Australian dollars per horse on the average;Macau Jockey Club, aimed to pay no more than 1.5 million Australian dollars per horse.The two sides did not know one another’s bottom price (quoted above), but both of them would benefit if they could close a deal including 10 horses at a total price of 10-15 million Australian dollars.编辑pptStep 1: The buyer requested the seller to quote a price first.The information the seller had gathered, included the following:--as the horse racing season was approaching in Macau, a number of local race horses had to retire because they were ill or overage.--but pure-bred European horses were over a million or even several million Euros each, so, it would not pay for a small jockey club like Macau Jockey Club to buy them for their racing season.编辑ppt--In contrast, Australian race horses, also thoroughbreds originating from Europe, were practically priced, and were the logical first choice for the Macau Club.Therefore, the seller estimated that the Macau Jockey Club would pay at least 12.5 million Australian dollars for these 10 horses, and may be they would pay as high as 17.5 million Australian dollars.Nevertheless, the Australian side had not planned to quote a price too high for fear that the buyer would perceive them as lacking sincerity, and would abandon the bargaining too soon and turn to New Zealand for the purchase.编辑pptThus, the Australian jockey club made an initial bid for a total price of 17 million Australian dollars for the 10 horses.Step 2: Though the Macau club had anticipated the seller’s bottom line, this quotation was higher than they had expected.Anyway, the seller’s first quoted price was 2 million Australian dollars higher than Macau’s highest acceptable price (resistant point).编辑pptHowever, judging from the quotation , the buyer estimated that the seller’s expected price would be above 15 million Australian dollars. If this were the case, it would be difficult to reach an agreement.Hence, the buyer made a probing（刺探性（刺探性的）的） counter-bid at a total price of 12 million Australian dollars. Step 3: Because there was a big gap between the opening prices that the two sides quoted, their representatives had to haggle over them.编辑pptThe seller’s counter-bid was a total of 15.5 Australian dollars and the buyer countered again with a bid of 13.5 million Australian dollars.Result: Finally, the seller suggested that meet halfway and agree on a price at 14.5 million Australian dollars.The Macau club accepted that price, feeling pleased without showing it: they had saved 0.5 million Australian dollars for their club! They did not know that the seller got 4.5 million Australian dollars more than their original bottom line.编辑pptThe definition of quotation:Narrowly defined, a quotation is --a way to indicate a particular price at which one party will buy or sell the specified commodity.Broadly defined, it involves--all that one party proposes to the other concerning mutual interests in a business negotiation, including the following terms and conditions for a deal:--the name of commodity--quality--quantity编辑ppt--price--packaging--shipping--insurance--payment term--inspections--claims--arbitration, etc.For large projects, it may include:--forms of cooperation--ratio of capital distribution--profit and loss distribution, etc.编辑ppt1.Forms of quotation2.Two forms:3.Oral or written4.Oral: in international business negotiation5.Written: in international business correspondence, telex, telegrams and e-mails as well as in a bid or tender submitted in an international project.1)Oral quotation2)It is characterized as convenient, prompt, and flexible.编辑pptAdvantages: Negotiating face-to-face or through International Dialing (IDD) may--help to eliminate barriers of time, space and language,--enable negotiators to quote and directly justify the price, the amount of their investment, the ratio of capital distribution and the like at which their party expects to close the deal.The biggest advantage of the oral quotation is :编辑ppt--negotiators can take advantage of their communication skills to build a favorable atmosphere and use emotional factors to facilitate the acceptance of their quotation.Disadvantages:If negotiators --lack the ability to act quickly in response to any unexpected contingency or emergency, or--do not have good communication skills and experience in dealing with people from different cultural backgrounds,编辑ppt--First, they may find themselves in a weak position, unable to quote the price at the right time..--Second, they may not know their counterparts well and may not realize when to quote, what price to quote, and how to quote the price.--Third, vulnerable to an adverse impact because of accent and nervous tension, negotiators may tend to make a slip of the tongue and engender（引起）（引起） misunderstanding.编辑ppt--Fourth, the quotation may be refused immediately on the spot.--Fifth, the two parties may haggle over unimportant details and slow down the negotiation.--Sixth, some complex and sophisticated technical specifications may require charts and diagrams, and would be difficult to express clearly in oral quotation.2) Written quotationIt refers to putting a proposal for a business transaction in the form of writing, including --relatively detailed data; 编辑ppt--using specific words, diagrams, and the like to express clearly to the other party the whole range of terms and conditions and other related items one party would be willing to accept.Advantages:--more explicit and formal than the oral one--may eliminate the possibility of misunderstandings arising from an accent or misstatements due to nervousness.--can help to cut the cost of time and effort because the companies involved do not need to make opening statements.编辑ppt(e.g. at the International Consumer Electronics Show (CES) held in Las Vegas, Nevada, U.S.A, the representative of a French TV manufacturer inquired of the representative of an LCD monitor company in Suzhou, China about the price of their Liquid Crystal Display (LCD) monitors. The representative from Suzhou presented a printed quotation to him, which included a list of the prices of various LCD monitors with their technical specifications, such as size and resolution（分辨能力）（分辨能力）.) 编辑pptDisadvantages:--may commit itself to a rather narrow range of options, leaving very little room for alternatives to be presented as subsequent quotations.--the atmosphere is less intimate than that which surrounds an oral quotation --and the communication between the parties is less personal as well.--may appear rather rigid and stiff.--when the quotation is translated into other languages, careless mistakes, omissions, oversights（疏忽）（疏忽） or misinterpretations are quite likely to occur, which can prove to be very embarrassing.编辑ppt3) Combination oral and written quotationThe interchangeable or supplementary use of oral and written quotations, with one of them playing the major role in turn during different phases of the negotiation, is usually called the combination oral and written quotation.It may eliminate the disadvantages or deficiencies encountered when using oral or written quotations alone.编辑ppt2. Guidelines for making a quotationThe principle:--”to sell dear” (at a high price) or “ to buy cheap (at a low price).That means:--the seller should try to present his quotation at the highest price acceptable to the buyer;--the buyer should bid the lowest price the seller can bear.In other words: if it is possible, each seller and each buyer attempts to maximize his own potential profit.编辑pptIt is ideal--for the seller to start with the “highest defensible quote; and --for the buyer, the corresponding guideline is of course the “lowest defensible offer”.Case 3: background: A foreign developer built six 5-star luxury apartment buildings, called the “Tomson Riviera Dedicated to the Elites”（汤臣一品），（汤臣一品）， in the center of commerce and finance, the Lujiazui area, Pudong, Shanghai. 编辑pptEach and every unit in this department complex has a riverfront view of Huangpu River, and allows the residents to view the busy Bund at a glance.And what’s more, all the material for building and decorating were imported.For example, the exterior walls are made of all imported natural stone, and coated with high tech equipments for safety and fire control.编辑pptThe security and automation control system is top-of-the-line, including such items as embossed（浮雕的）（浮雕的） Noblesse （贵族的）（贵族的）anti-theft sound-proof all-copper doors, which ensure the safety of the collection of luxury and prestige home appliances inside.What a perfect complement between the arts and technology!The apartment buildings were completed in 2005, and then sold globally, weighing in at a price as high as RMB 130,000 per square meter—about ten times higher of the average price of properties in downtown Shanghai at that time, and 3 to 4 times higher than the apartment buildings adjacent to them.编辑pptResult: As a result, a year after they were put on the market, not a single apartment had been sold in the city’s most expensive new housing project.What did actually happen?The problem can be traced to its source:The quotation was a one-sided wish, heedless of the market situation;and the price was unreasonable, quite beyond what was acceptable to any prospective buyers;thus it was a violation of the first principle for making quotation.编辑pptThe basic quotation principle is that--when negotiators are making a quotation, they should consider not only the profit they can get if they close the deal at the desired or quoted price, but also the demand and supply of the related factors.3. Quotation decisions1). Set the range of quotationTo select a reasonable range of prices for quotation, the negotiators should--assess the situation (i.e. demand and supply) in the national and international markets编辑ppt--learn the price level and offers of their competitors as references, and --make sure they will cover the cost of the transaction and earn a reasonable profit--consider their company’s operation objectives or goals(e.g. A state-owned pharmaceutical manufacturer in Thailand, produced anti-HIV aids drugs, modeled on the patents of American company, Pfizer Pharmaceuticals Limited.编辑pptWhen the pharmaceutical product was launched on the market, the quotation was limited to prices ranging from one-forth to one-half of the prices of similar medicines produced by Pfizer.The price was set so low because the Thai company took many factors into consideration:--the royalty fees for the use of patents--production costs--necessary profit and --the price levels acceptable in the local market编辑pptThey knew that most of the local Aids patients were lower or middle class citizens with low income who could not afford excessively-high-priced medicine and treatment at all.)2) Set the bottom lineNegotiators set the lowest price target first, that is the bottom line that they might be able to bear in the worst situation.The least acceptable price level basically serves to guarantee that编辑ppt--the transaction cost is covered, and--a little profit is made.The advantages of setting a bottom line for the price:A. It may help to prevent one side from accepting overly-harsh terms and conditions proposed by the other side.B. It may help one side avoid losing potential benefits.C. With the bottom line in mind, the negotiators are likely to be cautious enough so as not to make a careless decision in haste out of moment’s excitement.编辑pptD. the bottom line tends to generate among negotiation team members a sense of being or working in unison, and prevents the team from falling short of success due to lack of sufficient effort.As sellers:Negotiators may quote the highest price within the price range or scope they have selected, leaving room for later concession;As buyers:They should quote the lowest price.编辑pptAs long as the price is reasonable and acceptable, as long as the offer is not out of line and indefensible,-- the seller should be bold enough to risk asking a high price and --the buyers audacious（大胆的）（大胆的） in offering as low as possible.The reasons:A. The higher the selling price is or the lower the buying price is , the more leeway（余地）（余地）one can preserve for his or her company;编辑pptB. Doing so may exert great psychological pressure on the other side, diminishing their expectation;C. The price you quote may have an impact on how the other side assesses your strength; do not let the other side form a low opinion of your company.4. Quoting strategiesCase 4:Parts: an import and export company in New Zealand the Siberia Furniture and Decoration Company in Russia编辑pptBackground: An import and export company in New Zealand desired to export a batch of sheep’s wool to the Siberia Furniture and Decoration Company in Russia.The New Zealand company made a quotation at the following prices:”New Zealand-made merino（（美利奴绵羊（产美利奴绵羊（产细密的丝状羊毛）细密的丝状羊毛） sheep skin with wool, super grade, $28 per sheet; first grade, $25; second grade, $20, FOB, Auckland, 100,000 sheets available. This offer is valid within 3 days.”编辑pptThis case exemplifies how to make a quotation that will induce the other side to make their move.To achieve such an effect, the following points should be stressed:1)Specific 2)Be explicit and straightforward.3)Avoiding use ambiguous words like “ about,” “ approximately”,“ probably”.4)Better present your quotation in writing.5)In the case above, the quotation from the New Zealand exporter on merino sheep with wool in different grades serves a good example of explict and specific quotations.编辑ppt2) DecisiveYou ought to be decisive and resolute when you present your quotation.This requires that --you avoid hemming and hawing（恩恩哦哦，（恩恩哦哦，（表示踌躇或吱唔）（表示踌躇或吱唔） if an oral quotation is involved, and --instead, speak up clearly;In case of a written quotation, a prompt reply is always the best policy.Only in this way can you appear capable, experienced and confident.编辑ppt3) No explanationOnce you have made your quotation in a straightforward and specific way without any misunderstandings, you do not need to follow it up immediately with explanations or illustrations. This is because:A. There is no need for extra talking to explain something logical and reasonable;B. It will not be too late to add your explanation of how you formulated your price, your calculation basis and methods if the other side should raise these questions.编辑ppt4) DifferentiationDifferentiation quotations are often employed as useful tools for creating more possible deals.This strategy allows a company to buy or sell the same product at different prices based on their grades, quantity, delivery destination, shipment, methods of payment and other related factors.(e.g. New Zealand-produced sheep skin: the company made a quotation for the negotiated sheep skin at different price levels for different grades.编辑pptIn addition, the sheep skin was delivered at the export port, and so the price did not have to include the cost of shipment and insurance, etc.Payment was made through an irrevocable L/C at sight, instead of document against payment (D/P)（付款交单）（付款交单） or document against acceptance (D/A)（承（承兑交单）兑交单）. )Furthermore, for repeat business with long-term relationships or big accounts dealing in large quantities, sellers should consider granting a certain percent of price discount.编辑pptThe differentiated quotation is a common quoting strategy in international business negotiation.5) Psychological pricingIt takes advantage of human psychology that makes people tend to look for real bargains and buy cheap.Generally, there are three kinds of psychological pricing strategies:A. The actual price is not changed, but is quoted differently through the conversion of the original units of measurement into smaller ones.编辑ppt(e.g. for coffee at a price of $220 per kilo, the quotation can be $100 per pound; And for pearl powder at $32.5 per kilo, the quotation can be $0.9 per ounce.)Though the actual price remains the same, a quotation at a correspondingly smaller unit seems to easily make the buyer feel the price is relatively low, and thus quite acceptable.B. The actual price is not changed, but by using the strategy of breaking up the whole into parts, the quoted price of a whole packing is expressed as one for each individual item.编辑ppt(e.g. cigars at $50 per pack ( of 10 pieces) can be quoted as at $5 per cigar;A quotation of 100 cotton blankets at 1,200 Euro can be changed into 12 Euro per sheet.)Quite the same as with the quotation using smaller units, this method easily makes people fell it is quite a bit cheaper.C. The decimal fraction（十进制分数）（十进制分数） is used to indicate price in a quotation.编辑pptMany sellers believe that prices should end in a decimal fraction.It is recognized that people have a psychological tendency to see $19.99 as significantly cheaper than $20 because many of them see the former as a price in the $10 range while the later well above $20.This kind of pricing with a decimal fraction is called a psychological price, and is often used in marketing where it is known as “odd number pricing.”编辑ppt(e.g. an item may be priced at $49. 90 rather than $50.00; Or a price may be quoted at 199.99 Euro instead of 200.00 Euro.)In addition, the price is usually shown accurate to two decimal places (show two figures after the decimal point).These price ending in an odd number or decimal fractions --not only imply to people that there is a discount or it is a bargain, --but also convey the notion of high accuracy, and thus generates a sense of trustworthiness in more people.编辑ppt6) Midway price changeIt is also known as provisional（临时的，暂（临时的，暂定的）定的） shift of price.This is a tactic used in the process of making a quotation with changing the price while negotiation is in process.Specifically speaking, this means that:When the seller has been reducing the price gradually, he may suddenly and unexpectedly raise the price;or the buyer has been increasing his or her quote and then suddenly offers a lower price.编辑pptAs a result, they may lower the aspirations of the other side by conveying to their counterparts the notion of a change in the market, or perhaps of new competition cropping up.In this way, they may finally persuade the other side to accept their quotation.Case 5:Parts: John, an American businessman a shop keeper of a leather shop编辑pptBackground: John, an American businessman, went on a trip to Sao Tome and Principe. In the window of a leather shop at the roadside, he spotted a leather suitcase with a folded handle identical to his own, which he had left in the hotel.Out of curiosity, John stopped there to gaze at it.Seeing John standing outside the window, the shop keeper came out to greet him, and made a wild boast about the suitcase. 编辑pptHe tried very hard to persuade John to buy it, but John just would not be moved by him.John thought to himself, “ In any case, I won’t buy it. But I’d like to find out how on earth you will promote the sale.”As the shop keeper found that John was not interested in it, he lowered the price again and again, from $30 to $24, $20…to $17, and to $15, but only found John shaking his head with a smile.编辑pptSeeing this, he abruptly quoted a higher price, “$16 again”, changing the trend of the downward price. John opened his eyes wide at once, “but just now, did you say $15? You are pulling my leg aren’t you?”The shop keeper was annoyed,” $15 is my purchase price, and I won’t make any money!”John replied,” That’s impossible! Since you have said the price was $15, you have to sell it to me at this price!”编辑pptResult: Although the shop keeper appeared to be reluctant to do so, he was quite happy in his heart that he sold the leather suitcase to John at $15.Analysis: This case illustrates that there are no limits to human desires, and this principle can obviously manifest itself in international business negotiations.To strive to win a “better” outcome, negotiators will always try to bargain endlessly.编辑pptIf you change your quotation midway, and give your counterpart a “back thrust” (a reversed price), or make a reverse quotation, you seem to show you regret having quoted such a low price.This may enable you to inhibit their infinite demand.As a result, they may believe that it is your bottom line or resistance point and finally make a decision to close the deal at such a price.编辑pptExplain the following terms：：•1. horizontal negotiation•2.speak on good grounds•3.negotiation agenda•4.resonant opening•5.oral quotationAnswer the following question：：•During the bargaining process of an international business negotiation, what are the common ways of establishing a quotation price?编辑pptII. Bargaining Case 6:Parts: China’s State Ministry of Forestry Russian Federal Ministry of ForestryBackground: Due to rapid economic development, China is in urgent need of a great amount of timber.As Russia, a friendly neighboring country, is rich in forestry resources, China has decided to open a broad program of cooperation in natural resources with Russia.编辑pptIn 2006, China’s State Ministry of Forestry negotiated with the Russian Federal Ministry of Forestry about leasing one million hectares of forest land.The initial quotation made by the Russian negotiators was “ Forest land for lease: Tyumen State, Ural Federal District in the Mid-western Russia; 1 million hectares; period of lease: 25 years; rent: $1 billion.”The Chinese side thought that Tyumen was relatively too far from China, though it might be good as the next development target for joint venture;编辑pptBut for the initial pilot scheme, Siberia, which was much closer to China, seemed to be a more ideal site for the project as the cost would be lower. The Chinese felt that a lease of 25 years was too short, considering the impact of the cold climate in Russian on the lumbering business.They wanted a lease of 50 years.The quoted rent of $1 billion, they felt, was a sweeping（总括的）（总括的） estimate, without enough details.编辑pptTherefore, the Chinese side asked that the Russians design a detailed plan for commercial development, listing the specific investments item by item, so that the Chinese would be able to see whether the quotation was reasonable or not.In addition, the Russians did not plan to ask the local residents to migrate from the proposed leased forest land, so the Chinese insisted that the rent should not include any translocation expenses.编辑pptTherefore, the Chinese side hoped that the Russians would adjust the quotation which they felt was on the high side, and give a lower overall estimate.After one side gives a quotation, the other side may follow it up with bargaining.At any rate, quotation is simply a kind of exploration without commitment, in which the parties probe the possibility of reaching a contract, but the quoted terms and conditions are not firm and are subject to change without notice.编辑ppt1.Asking a price2.After one party receives a quotation from the other party and thinks it is not in accordance with its targeted aspirations or expectations, it may request their counterpart to adjust the price.3.This practice is referred to as asking a price.1)Approaches for asking a price编辑pptA.Initial phaseB.The buyer should choose to ask for an itemized priceC.—refuse the seller’s quotation as a whole and D.--request that the seller make another quotation. (due to inadequate knowledge of the formation and background of the seller’s price)E.(e.g. In the Sino-Russian negotiation about the lease of one million hectares of forest land, the Chinese side adopted this very method in response to the Russians’ quotation.)编辑pptB. Substantive phaseIn this period, one should ask a price with a specific intention: that of --identifying obviously unreasonable demands one by one, based on the counterpart’s quotation, and then--asking the other side to improve their quotation by reducing an indefensibly-high price to a proper level.C. Final phase: Upon receiving the counterpart’s reply to the questions and demands one has raised, one should --analyze the response and 编辑ppt--determine whether the quotation had actually been substantively adjusted or not.2) Times of asking price and closing indicationA. The first time: The quoter usually does not adjust the quotation the first time it is asked by the counterpart.(Doing so would imply that its initial quotation is padded（（虚报的虚报的），）， or that it is too eager to close the deal.)编辑pptGenerally speaking, at the outset（（开端开端））,the quoter invariably （（不变地，总是不变地，总是））sticks to its price, indicating reluctance to adjust the price.Or although the quoter may promise to optimize（（尽可能完善尽可能完善）） its quotation, it will not make any substantive revision in consideration of strategic demand. As the result, in most cases, one has to request price modification several times before one can break through the defense line of the counterpart.编辑pptB. Two concessions: On an average, quoters typically make two concessions before sending out signals indicating that there will be no more concessions.(e.g. the quoter might firmly claim,“ This is the final price!”, or may protest, “No, I’ll lose too much money if I lower the price any more”, or may look pathetic, as if he has no way out and is letting you know, “I have tried my best! Then , you say, what price is acceptable to you?”)At this moment, the bargainer --should not be moved by such words.编辑ppt(As long as the quotation is not modified substantively, it implies that it still contains a large profit margin.)The bargainer must not --rush to close the deal at this moment.Instead, --using the bargainer’s own analysis of the factors contributing to the quoted price,--finding any overestimates or errors in the calculation of the price quoted by the counterpart.编辑pptAt the same time, they should judge-- the limits of their counterpart’s authority, --the degree of their determination to close the deal, --the cooperative relationship between the two parties, and so forth.With full knowledge of all these factors as a solid basis, they can continue to ask the counterpart to offer a more favorable quotation.编辑pptC. Questions: Occasionally, the bargainer can prompt his counterpart with the following questions:--Is it possible that the producer is mistaken about the price?--Would you please consult the producer and see if they are in a position to lower the price?--Could you please ask your superiors for more detailed instructions?Purpose: --to give the counterpart a reasonable and graceful way out of an uncomfortable situation;编辑ppt--to encourage them to reduce the price further until their quotation is improved noticeably and is closer to one’s own target price.3) Attitude toward asking a priceThe following three points should be stressed:A.Be amiable to people.B.As an old saying goes,” Do business with a smile and you will make a pile.”C.Bear in mind that you shouldD.--try your best to be considerate of your counterpart’s feelings, and E.--avoid falling into a deadlock at the very beginning of the negotiation.编辑pptB. Talk in a measured and consultative tone.If you exert pressure on your counterpart, you are quite likely to make the negotiation break down.You should choose proper ways to influence the counterpart with skill and patience so as to induce them to reduce their price.C. Maintain an expectant atmosphere.As an bargainer, you should base your arguments on a well-founded analysis.Your suggestions should be timed so as to open the door to further price cuts before your counterpart can firmly close it.编辑pptYou should make your counterpart feel that you expect and are looking forward to their cooperation.2. Counter offeringAfter the first party has made a quotation, the receiver of the quotation --begins by considering it carefully, and --asking that the first party quote a more acceptable price. Then --based on the revised quotation, the second party gives an explicit response.This practice is called making a counter offer.编辑pptDefinition: a counter offer is an explicit quotation in response to the one made by the counterpart who has already revised his quoted price substantively.The counter offer indicates one’s intention to agree upon a contract.(e.g. part A makes an offer of $800 per ton (makes a quotation), which part B thinks is on the high side.Part B requests that Part A quote a more reasonable price (asks a price);Again, Party A quotes a new price $780 and in response, Part B proposes an explicit price for closing the deal--$750 (makes a counter offer).编辑ppt1). Why do you need to make a counter offer?A.Making a counter offer helps to set the bargaining range or settlement range.B.The counter offer will enable the other party to estimate their counterpart’s concession range and then propose a price acceptable to itself.C.B. Making a counter offer helps avoid offending the quoter.D.After the quoter has made a substantive improvement in his quotation, if you still refuse to give an explicit response, you will annoy your counterpart.编辑pptC. Making a counter offer helps to prove one’s sincerity in the transaction.The counter offer shows that you would be willing to close the deal at the price that you counter offer.D. Making a counter offer helps to determine the direction that a negotiation will take.A definite counter offer will enable the counterpart to figure out the tendency and scope of the price movement.As a result, they can decide their next move and understand how best to respond in the negotiation.编辑ppt2) How do you make a counter offer?With regard to the price range, a counter offer can either be a proportional one or one based on cost analysis.A.A proportional counter offer refers to:B.--a proposal in which one party asks the counterpart to adjust the quotation proportionally; to lower the total price by a certain percent.编辑pptB. A cost-based counter offer is--make on the basis of cost analysis of the items under negotiation, proposing an appropriate price for the counterpart’s quotation.With regard to the items concerned in the counter offer, there are three categories:a. Bargain item by item: In a counter offer, equipment of different types can be bargained for separately one by one, or different sets of equipment bargained for set by set.Alternatively, each factor in the negotiation, such as a design fee, material expenses and training fees and such components can be bargained one by one.编辑pptb. Bargain by classifications:The items under negotiation may be classified by such groups as models or price range.(e.g. They can be divided into three classes based on their prices: high priced, medium-priced and low-priced groups. Then, they can be bargained for one by one, with bargaining emphasis on the high-priced group.)c. Bargain as a whole编辑pptA counter offer might be made to bargain over the negotiating subject as a single entity, indicating a total price at which the parties might close the deal.Bargaining according to price range is more widely applied in business negotiations for common commodities,While bargaining for individual items is more prevalent in technology or service negotiations, such as purchase of a complete set of equipment.But this is not necessarily always the case.编辑pptThe selection of bargaining methods depends on--information about relevant prices and--the customary practices in hand.If there is inadequate information for reference, a counter offer based on cost analysis is highly recommended.Generally speaking, bargaining item by item favors the buyer.Bargaining by classifications is often acceptable to both sides. Bargaining as a whole appears to be more convenient and simple, but is more beneficial to the seller.(Buyers do not like this method of bargaining, especially for complex transactions, such as the purchase of a large complete set of equipment.)编辑pptBargaining as a whole should be avoided in the initial phase of negotiations.Reasons: If the buyer makes a counter offer that is too low, the seller may feel so discouraged as to withdraw from the deal.On the contrary, if the buyer bargains slowly item by item, the seller will not give up the deal at once before a total price is calculated and suggested.Therefore, bargaining as a whole is more appropriate for the final phase of bargaining.编辑ppt3) Bargaining tacticsA.Strike where there is a weakness.B.It means:C.--While you recognize that your counterpart has improved the quotation, you point out the unreasonable or impractical parts of the quotation, or any part which is not well-founded.D.You focus attention on these issues until your counterpart makes a new substantial concession.编辑pptB. Watch carefully and understand the other side’s thinking.During the bargaining process you should keep a close eye on your counterpart’s mood and guess his thoughts.C. Be flexible and well-prepared.You need to work out a few bargaining plans to choose from, identifying which should be held firm, which could be flexible , and how much flexibility you should allow.When both you and your counterpart refuse to budge over key issues, you can turn to the more flexible aspects and draw your counterpart’s attention to them.编辑ppt4) Starting point of bargainingIt refers to --the counter offer, or initial offer with which the buyer responds to the asking price, and terms and conditions the buyer would like to accept for closing the deal—the first number he will quote to his counterpart.The principle for setting the starting point of bargain is that--it should be low but not too low.On one hand, a good initial offer must be low to maximize one’s own interests and create enough room for concessions.编辑pptOn the other hand, the starting point cannot be too low or too far below the target point. It must be reasonably close to the acceptable price for the seller.In this way, it maintains the seller’s willingness to negotiate, rather than annoying the seller and placing the buyer in a weaker position.There are three factors involved in setting the starting point for bargaining:编辑pptA.Has your counterpart made any substantial improvement in their quotation after you have asked for a better price?B.What is the difference between the improved quotation and your desired closing price?C.Have you planned to make further concession after your initial counter offer?D.5) How many times should you counter the asking price and how should you determine the bargaining range?编辑pptA. There is no optimal（（最适宜的，最理想的最适宜的，最理想的）） number of times for countering the asking price.It depend on how much room is left for making concessions after you make the initial counter offer.On average, the bigger the gap between the counter offer and the asking price is, the more room you have for making concessions and thus the more times you can make concessions.If there is not a large gap between the asking price and the counter, you can make fewer concessions.编辑pptB. The bargaining range is generally determined by the category and the ratio of performance and price of the transacted goods.For common primary products, there are prices in the international markets for reference, and they are priced by grade.There is not much room for bluffing and consequently limited bargaining range.As for manufactured goods of relatively advanced technology and large machines and complete sets of equipment, the total price tends to be on the high side and allows for considerable bluffing.编辑pptDuring the bargaining process, you can ask the seller for a 5%-10% reduction in price each time, or You can make several counter offers within the bargaining range.III. Making CompromiseCase 7:Parts: ROVER Company BMW CompanyBackground: ROVER is a famous brand name of a British car with a history of more than a hundred years.编辑pptExplain the following terms:•1.horizontal negotiation•2.speak on good grounds•3.negotiation agenda•4.resonant opening•5.oral quotationAnswer the following questions: 1.During the bargaining process of an international business negotiation, what are the common ways of establishing a quotation price?2.As an international business negotiator, how many times in a business negotiation should you counter the asking price and how should you determine the bargaining range?编辑pptDue to the company’s recent poor performance, ROVER was acquired for ￡￡0.8 billion by BMW with which it merged in 1994.However, after BMW spent ￡￡3.8 billion on Rover, it was disappointed to find that Rover’s operations were not going up.Eventually, BMW divested itself of（（放弃，放弃，抛弃抛弃）） the financial burden that ROVER had become, except for the MINI brand mini vans, which BMW kept under its control.编辑pptIn 2000, BMW sold all its other Rover assets, nominally {（（金额）微不足道的金额）微不足道的} for ￡￡10，， to the Phoenix Consortium under the control of UK government.Meanwhile, however, BMW was still in charge of the operations of the MG-ROVER Company. Rover declared bankruptcy in 2005.Because BMW had to offer a large amount of “dowry payment” or “payment for support of the company and its employees”, it was considering getting rid of this magnificent shambles（（混乱，一团糟混乱，一团糟））.编辑pptAt this juncture, two Chinese automakers became attracted to the brand name “Rover”—Nanjing Automobile Group Corp (NAG) and Shanghai Automobile Group Corp (SAG).These two companies started negotiations with Phoenix and BMW successively for the acquisition of Rover Company.Apart from these four companies involved directly in the negotiations, this acquisition also involved the Transport and General Workers Union (T&G) and the UK Department of Trade and Industry (DTI).编辑pptAt the beginning , NAG and SAG each had intended to acquire Rover independently.However, Rover was tied up in heavy debts, and faced with the tough problem of deploying its displaced workers.In addition, BMW and Phoenix planned to avail themselves of any possibilities of selling Rover at a good price by segmenting the company into several divisions and selling each separately to a different buyer.编辑pptFaced with the combination of these disparate（（无联系的，不相同的无联系的，不相同的）） interests,NAG and SAG found themselves in a dilemma concerning the negotiations for this acquisition.SAG felt that it was better to back up a step rather than let BMW lead it by the nose in the bargaining phase of the negotiation;SAG considered acquiring some of Rover’s high-quality assets, such as R&D institutions, engine factories and such, 编辑pptand then when a better opportunity arose, they would design another plan of action.As a result, SAG acquired Rover’s body designs for the two most famous sedans—Model 75 and Model 25 and the property rights for Rover’s whole range of engines for ￡￡67 million (as soon as Rover was in trust, Honda, the Japanese Company, took the opportunity to acquire the blueprints and production facilities for Rover’s Model 45).编辑pptJust when SAG thought its action had laid a solid foundation for its future acquisition of Rover as a whole, BMW and Phoenix announced unexpectedly, in July 2005, that NAG had acquired Rover’s complete production lines and the brand MG for ￡￡50 million.So it turned out that both SAG, which then owned the former Rover’s R&D institutions and the body designs of two sedan models, and NAG, which took over Rover’s complete production lines, were in a very delicate situation: 编辑pptNAG had expected to acquire the Rover brand so as to accomplish its genuine acquisition as a whole, while SAG hoped that BMW would sell the Rover brand to it.After bargaining for more than a year, NAG finally made a “concession”—giving up its competition with SAG for the Rover brand.Theoretically speaking (because Ford possessed the priority for acquisition of the Rover brand unless it gave up that right), if SAG paid ￡￡1.15 million more, it could possess the “Rover” brand.编辑pptIt seemed that SAG would be successful in the acquisition very soon, but two months later, what SAG feared most happened:Result: Ford declared that it would use its priority to purchase the Rover brand.So what had appeared to be a well-done duck in SAG’s plate, suddenly flew away!At the same time, due to its previous concession, NAG now could claim ownership of the MG brand without the slighest worry.编辑pptThe negotiation process is in essence a process in which both parties make concessions.To become a wise negotiator, you must know--when to acquire the interests you must gain and --when to give up the interest you can sacrifice.The concession made in a negotiation are measures taken on purpose to “venture” in order to “gain”.(e.g. NAG gave up the Rover brand and secured the MG brand instead. This was a wise concession.)编辑ppt1.Principles for making concessions2.The general principle for making concessions is to 3.--exchange a bigger interest with a smaller one.4.In particular, concessions should be made in accordance with the following 16 “Golden Rules”:A.Do not make a senseless concessionB.As a last resort, or for long-term interests, or in exchange of the counterpart’s concession, you may be forced to make concessions.C.Otherwise, you should never make a meaningless “sacrifice”.编辑pptB. Do not make concessions blindlyBefore you have a clear picture of your counterpart’s ultimate intentions, do not make concessions easily.C. Seize the big “fish” and release the small oneIt is better to persuade the other party to make concessions on issues which are regarded as important to your side.Meanwhile, in various situations, one can make considerable concessions on less important issues.编辑pptD. Choose the right timeIf you make concessions too early, the other party may become greedy, asking you to make more concessions;But if you make concessions too late, you may fail to direct the desired outcome.Your major concessions should be made right before the closing phase while minor ones are better made at the beginning of the negotiation or even at the last moment.E. Keep the bottom line a secret编辑pptYou’d better not let your counterpart know what your target is.The disclosure of one’s lowest limit concessions may bring about losses or trouble with subsequent negotiations.F. Do not automatically accept a bid to match concessions by an equal marginThis is usually a trap set by your counterpart. (e.g. The other party quotes $100 and you counter it for $60, then he says, ”Let’s meet each other half way and have the average $80.” You should refuse to automatically accept it.)编辑pptG. Look before you leapBefore you make a concession, you should think twice to avoid making a concession on impulse and allowing the other party to gain an unexpected advantage.H. Do not make it too easy for the other party to gain what he wantsEven though you are ready to make a concession, you should not be too “frank and straightforward”, or you may cause your counterpart to think you are too easy to deal with.Do remember: you counterparts are not likely to value the concessions they get too easily.编辑pptI.Take back an improper and ill-conceived concessionII.Any concession which is not thought through thoroughly must be withdrawn as soon as possible.III.It is legal to withdraw any concessions before the two parties shake hands to close the deal.IV.Though it might hurt one’s reputation, preserving one’s interests is more important than saving one’s face.V.J. Let the other party do it first and then follow suit编辑pptWhen you are prepared to make a concession, most often, you should ask the other party to present their request or conditions first and then, based on the real situation, make a decision about the bargaining margin.K. Firmly control the times and margin of your concessionYou should not make concessions too many times; otherwise, it will not only nibble away your interests but also reduce the effectiveness of your negotiation.You should not make a concession of a large margin, or you may encourage the other party to see you as weak and vulnerable.编辑pptL. Dare to say “no”When you say “no” repeatedly to the concession you do want to make, you can convince the other party that you are at the end of your rope and unable to make concessions any longer.M. Quantify a concessionA concession that has drifted off target is a waste of resources.After each concession, you should re-evaluate your situation and know to what extent your concession has changed the picture, and whether you have achieved your desired effect.编辑pptN. Have the overall situation in mindIf, on the whole, the contract is not satisfactory, the concessions made on individual issues will be meaningless or will not make sense.O. There is no need for giving a plum in return for a peachYou should feel at ease and justified to accept your counterpart’s concessions.You should not feel a sense of pressure, obligation or responsibility to match your countpart's concession.Do not begin to consider at once what concession to make in return for their concession, or the concessions you have gained will become meaningless or less valuable.编辑pptP. Withdraw to get the second bestIn cases where you have learned what will fully satisfy your side, and you are clearly aware of the real distribution of negotiation power between your side and your counterpart, as well as other relevant factors, you may realize it is impossible to reach your highest goal.In such a situation, you should not continue to work for the best possible result when you are quite clear it will not do.Instead, it is then wise to withdraw a little and work toward the second best target.Here you may take the opportunity to secure the successful outcome of the negotiation in hand for the second priority, rather than the first.编辑ppt2. Tactics of making concessionsDifferent patterns of making concessions will have different effects and lead to different outcomes.(Currency: US$ Planned reduction: 80 First step-Second step-Third step-Fourth step )There are nine patterns of making a concession in a negotiationA.Keeping up until last concession (0-0-0-80)B.Characteristics: No concession is ever made before the negotiation, leaving no room for the other party to bargain.编辑pptIf the buyer is weak-willed, he will give up early;If the seller can not stick to it any longer, the buyer will gain a lot in the end.However, both the buyer and the seller risk falling into a deadlock with this pattern.B. Concessions by equal margin (20-20-20-20)Characteristics: making concessions of the same margin several times.This method encourage the other party to continue their efforts to strive patiently for more concessions of the same margin.编辑pptGenerally, experienced negotiators do not use this approach in making concessions.C. Progressive increase in concessions (10-15-25-30)Even worse than the second pattern.May result in greater loss to the seller because the buyer will believe that he can narrow the price difference continuously by an increasingly wider range.Thus his demand is likely to go up in proportion to the seller’s concessions.D. Progressive decrease of concessions with a minor range (30-25-15-10)编辑pptFeature: It indicates that the seller is willing to make concessions, but is more and firmer in his position,which implies to the buyer that each possible concession will be progressively smaller.E. Progressive decrease with a middle range (40-25-20-5)Feature: The party making the concession has a strong desire to compromise, but unfortunately, the concession is limited.At the early stage of a negotiation, the party making concessions in such a way can raise the counterpart’s hopes, 编辑pptBut as the concessions made become smaller, the party making concessions can reduce its risk.If the countering party is wise enough, it will take this opportunity to close the deal.F. Progressive decrease with a large range (50-20-8-2)Feature: an initial large-margin concession, which can raise the other party’s expectations greatly.编辑pptHowever, as the concessions become progressively smaller, the other party might feel depressed and unwilling to accept what is proposed.This kind of concession tends to change one’s role from that of a leader to that of a follower.It is often used when one party is weak.G. Decreasing progressively and increasing at the end (45-30-(-5)-10)Feature: a sudden reverse in the process of making concession, to which the counterpart is sure to object strongly.编辑pptHowever, the final concession will make them overjoyed at the unexpected gain.It is not appropriate for a formal occasion because it seems that the party making concessions goes back on their word.H. Unstable concession (55-3-20-2)Characteristics: a great concession made first which may imply a strong tendency to continue making great concessions, and then a dramatically-reduced concession margin which may make the counterpart fell dissatisfied.编辑pptThe third concession margin becomes relatively large again, and is then followed by another small concession.This kind of concession process is very risky for it is difficult for the other party to adjust to it.Inexperienced negotiators may fall into this pattern.Experienced negotiators might try this method occasionally, depending on their counterpart’s condition, to achieve an unexpected result.I. Showing one’s hand at the beginning (80-0-0-0)编辑pptCharacteristics: making one’s only concession once and for all at the very beginning of the negotiation.The party who makes such a concession will lose any chance or room for maneuvering（（操纵操纵））.Meanwhile, the counterparty will be overjoyed at first and then become extremely discouraged.This approach may cause the negotiation to fall into an impasse.Therefore, it is usually unwise to use it.编辑pptPatterns D and E: the most commonly used methods in actual practice.These two approaches --enable the party making concessions to advance gradually and --dig in or consolidate at every step and maneuver the other party to lower its expectations gradually.Patterns F and G: involve a high level of skill and the courage to take great risks.If they are used properly, there will be no need to make many concessions, and this can result in quick deals.If they are used poorly, more concessions will be made or the negotiation will end in a deadlock.编辑pptPatterns B and H: seldom usedPatter A: almost never used.3. Typical hardball tactics used to force the other party to make concessionsA.Excessively DemandingB.Also called: ” Bitterness ends and happiness begins”C.At the outset: one party will propose very harsh terms and conditions for a transaction, D.--lower the other party’s aspirations and thenE.--give preferential treatment or make concessions gradually later in the process.编辑pptAfter the other party is aware of the benefits offered: They ( the seller) will be more ready to make corresponding concessions.This approach can encourage the seller to reduce the price and also leave enough room for the buyer to bargain.In addition, the party using it may imply to the counterparty that they are dealing with a tough opponent who will not be taken in easily by any tricks.It also offers an excuse for a down-sale ( a sale at a reduced price).编辑pptB. Emotional outburstSometimes, negotiators purposely burst into feigned anger as a deliberate tactic.--When neither side is ready to yield, --When the counterpart’s attitude and behavior are not appropriate, or--When the counterpart raises an excessive demand,You may consider taking this opportunity to show your anger, to blame your counterpart and create an impasse（僵局）（僵局）. This is done to frighten him and make him reprove himself so that he will adjust his negotiation targets and make concessions.编辑pptWhen the other party gets angry: you should --bear it with equanimity（平静，镇定，沉着）（平静，镇定，沉着） as if nothing has happened; or --adjourn the meeting and then--point out the impolite behavior of your counterpart.Finally, you may call for a fresh start of the negotiation.C. Tag-team tactic （（车轮战术车轮战术）） This is a tactic of --having several persons take turns fighting one opponent to tire him out（（拖垮拖垮））.编辑pptIt involves using a calculated delay.When the negotiation is stalemated, you may excuse yourself from the meeting by saying that you have certain other business to do and have another person replace you to continue the talk.Through constantly changing negotiation representatives, your side may try to postpone the negotiation or delay a decision until a time your side thinks favorable or when the other side makes concessions.When the other side uses this tactic, you should be fully and psychologically prepared for it.编辑pptDo not argue with the newcomer about issues that have already been discussed.If your counterpart denies concessions that have been made by his or her predecessor, your side may take that opportunity to take back your former concessions and begin all over again.It may be the best policy to shelve（搁置，暂缓（搁置，暂缓考虑）考虑） the negotiation until your former counterpart resumes his post.D. Divide and conquerThis tactic calls for--bringing about a split-up of the counter negotiation team.编辑pptThe member of your counter team may have different ideas or may disagree among themselves.You may take advantage of this disagreement by affirming and supporting positively those whose ideas favor your side and thus you form an invisible alliance with them.As a result, they may become confused and lose negotiation power.In the end, they may have to retreat or concede.编辑pptE. Involving competitionTo create and utilize competition is always an effective tool to urge a counterpart to make concessions.(e.g. It was this tactic that BMW used to create an opportunity for SAG and NAG to compete Rover ownership of the Rover brand.Then, BMW negotiated with them separately and waited for the highest bid.)To create competition, you may proceed like this:--invite many companies to take part in a bid and choose the highest bidder; 编辑ppt--or invite many buyers to take part in a collective negotiation at the same time and negotiate with one of them at minimum terms and conditions, forcing him to yield under the pressure of competition.F. Red face and white face routine (Good guy and bad guy routine)Also known as “ the hardball and softball tactic”, “ the stick and carrot tactic “, “ the eagle and pigeon routine “.At the beginning of the negotiation, the tough, elegant “white face” or “bad guy” negotiator fires the first shot or speaks first, giving offense to or threatening the counterpart.编辑pptAs the deadlock approaches, the “red face” or “good guy” appears on the stage.He adopts a reasonable attitude and takes notice of the counterpart’s emotions and makes concessions to certain extent.The result may be that the counterpart makes even greater concessions in response.When using this tactic, the “bad guy” must be tough enough to be convincing, And the “ good guy” should show up at exactly the right moment.’If the other part uses this routine, you should not be taken in.编辑pptYou should slow your negotiation pace, be unyielding in the face of the “eagle” and prompt the “pigeon” to make a quick concession when he appears.G. Reaching for a yard after getting an inchThis method suggests that --you try to escalate your demands on the basis of concessions the other party has already made so that “many a little makes a mickle”, and finally you will be able to achieve your goals.When the other side uses this strategy, you must 编辑ppt--stick to your established guidelines and plans to the letter, and--frequently review the margins of the concessions you have made.Do not become confused and allow your counterpart to maneuver you below your bottom line before you are aware of it.H. Feint to the east and attack in the westIn a negotiation, one side may intentionally change topics and address issues that are not very important to the other side to distract their attention from their major issues.编辑pptI.Taking advantage of another’s faultII.The tactic of finding holes or faults, also called finding loopholes, means thatIII.--one part has found some errors made by the other in the previous stage of negotiation.IV.One may even try to V.--maneuver the other party into making mistakes, and VI.--then hold these faults or mistakes against them and VII.--demand that they make additional concessions.VIII.However, this is certainly a mean ploy and should be used with caution, especially in dealing with regular clients.编辑pptIn the meantime, one should be alert enough to avoid committing an error or providing a loophole that the other party may use against one.If an error is made, try to prevent the other party from taking advantage of it.J. The ultimatumThe “take it or leave it” strategy may be used in negotiation to save time.If the other party refuses to accept your party’s terms and conditions, your side can issue an ultimatum.编辑pptWhen neither side is willing to make more concessions and the negotiation is deadlocked, one may issue an ultimatum.That means:--when the other side fails to say “yes” to your proposal, you may declare that negotiations are finished.Usually, you can use this tactic successfully if your side is more powerful.What is more, it should be used with decisive and firm wording at the last critical moment.编辑ppt4. Strategies used to prevent the counterpart’s attack1)Limited authority2)A negotiator with a limited authority: to be in a more advantageous position 3)one who arrogates all authority to himself: less advantageousThe former : --be able to ask the other side to make more concessions one after another--when he is asked to make concessions, he can say he has only limited authority and thus he may excuse himself from making any commitments.编辑ppt2) No precedentsWhen the other side raises an excessive demand, you may respond that there are “No precedents”.This serves as a tactful excuse or reason to refuse their demand.It focuses on the problem rather than people.It will be effective unless your counter party requires contradictory information with which to refute you.In this case, it may run counter to your aims.3) Fatiguing tactics编辑pptWhen you meet a counterpart who is very aggressive and maintains pressure on you at every stage, you can adopt the tactics of a seesaw battle（拉锯战）（拉锯战）, stretching the negotiation to more rounds.In this way, you may prolong the negotiations, -- making the other party weary both in body and mind, and --taking the edge off （挫（挫…的锐气）的锐气）the other side’s spirit.You may then be able to turn defense into offense.编辑ppt4) AdjournmentAnother tactic to protect your side being taken advantage of is-- to ask for an adjournment.When the negotiation proceeds to a good “break point”, or encounters some obstacles, either or both sides can adjourn the talk to have a break so that everyone has a chance to relax and recover their strength and energy.Meanwhile, they can adjust their strategies and ease tensions in an attempt to carry through the negotiation.编辑pptMost of the time, this tactic enables you to --have more private discussions and--change an unfavorable atmosphere.It is appropriate for situations like the following:--the negotiation is approaching the end of a phase;--or cooperation ebbs（衰落，衰退）（衰落，衰退）;--or you seem to have reached a stalemate;--or difficult and confusing problems have cropped up--or one side is particularly dissatisfied with the present state of the negotiation.编辑ppt5) Retreating in order to advanceCase 8: Parts: an American art dealer an art gallery keeperBackground：：In an art gallery in Belgium，，three paintings brought there by an Indian were offered at a total price of US$250,000.They, took the fancy of an American art dealer.He asked the gallery keeper and the Indian if they could sell him the paintings at a lower price.编辑pptAs he bargained and bargained, the Indian flew into a rage and burnt one of the pictures.The American was shocked and saddened, and asked the Indian how much the remaining two pictures were.The Indian said that they were still US$250,000.The American refused this more expensive demand.The Indian hardened his heart and burned another picture.The American became anxious and immediately asked him not to burn the last one.When the American asked the price of the remaining picture, the Indian surprised him by quoting a price of US$600,000.编辑pptCan you guess the result?Result：： The deal was done on the spot.The Indian burned the two paintings in a retreat in order to advance and gain more advantage or a greater concession.In this case, this tactic proved to be very effective.6) Seeking commiseration（怜悯，同情）（怜悯，同情）Known as a compassion tactic, seeking commiseration involves one party’s sympathy or compassion, and work toward cooperation with the other party.It will be effective when the user is really weaker than or equal to the counterpart,And sometimes it will influence inexperienced counterparts.编辑ppt7) Showing one’s handIf your side is in a weak position or two sides have a very friendly relationship, you may immediately make your concession once and for all with the transfer of all the possible interests to the other party.This will certainly produce a highly efficient negotiation.However, it has obvious shortcomings:--making concessions far too earlier seems to indicate that your side is too eager to obtain an outcome;编辑ppt--and may encourage a greedy counterpart to demand even greater concessions.This could easily lead the negotiation into a deadlock.编辑ppt此课件下载可自行编辑修改，供参考！感谢您的支持，我们努力做得更好！。