Directly from the Program of Negotiations of Harvard University - Part 3/3

In ths podcast, Ricardo Vargas presents the third podcast from a series of three podcasts recorded directly from the Program of Negotiations of Harvard University in Cambridge - MA, where he attended the courses of Negotiations for Senior Executives and Dealing with Difficult People.

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Episode transcript

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Hello everybody welcome to the five minutes PM podcast. This week, I will close the series of three podcasts about the program of negotiation at Harvard law school. I will discuss a little bit about the Batman concept and how you can make a better deal that while negotiating the BATNA is the best alternative to negotiate agreement, you must be prepared to go out or to leave the Negotiations. You must see an understand your worst scenario.

So with disinformation. You are to more prepared about how deep you can go into a negotiation. And one thing that it's very important, how I can improve the zone of possible agreements. What we call Zopa the zone of well agreement is the area of where you can make a negotiation. If you have a very Zen the mall, Zopa, it will be very, very hard to reach an agreement in that and this area and how we can do that first understand very well.

The other park, the other part that is negotiate in, in dealing with me, understand what this whole time yes. Or her interest and understand how I can improve the Zopa. And if I don't know if there is a Zopa, it's very important. Don't do the first offer. Try to force trying to convince the other Part to start putting numbers. Let's suppose that you are not aware about the order part to set a deadline.

So try out to understand, ask questions and prepare them to save first. Because if you say yes or no number first than you put the name, anchor an anchor like on a boat. And from that point, you cannot go above or below let's suppose I, if I'm a supplier in, you ask me for that a bad line, and then I will tell you, okay, 30 days, it's impossible for me to go back to you tomorrow and tell you, Oh, its not 30 days.

It's a study to study for. It's impossible it to be from 30 to below. And this is the entry. And if you do this and the order, Part say, Oh it's 20 to, you will need to work out the 22 and the 32 find one number that is reasonable for you and for the order side. And if you find that this does number, then you reach it, the agreement. But if you start in, it's very important.

Credibility is everything. So when it's very common, when are not prepared to negotiate that, to start with the, we are extremely high first offer the strangling hard. So you don't say 30 days, you say twig a hundred days and sometimes you will lose the credibility because if you make very large and very big concessions, it will show that you are not, you don't have too much credibility to do to do that.

So we say, OK, it's like, for me, if it's the same example, when I go to a story and I see 70% off and I say, my Godness, what is that? It means for me, okay. Solely or making a huge profit. And now they can cut 70% and is still set up for me. So is a credibility is everything because we want to do Negotiations to build relationships. And when, when people that they gave to me and I like it very much in a want to share with you is what is the first offer?

That if you're a lot of Part asked you, okay, you must do the first offer. So Trey, the highest, if you are sailing or the lowest, if you're buying number that can justify, if you need to say, okay, I want to charge this amount. Or I want to tell, does that line or does duration? How can justify this hollow? It can take a piece of paper, sheet of paper and write, right?

And prove to the older part that this number is reasonable. If you can not do that, you are wrong and you will have trouble because you will lose credibility. Because a lot of Part we'll say this, guy's crazy. This guy's raising the price and he is completely crazy because he can't do it, justified the numbers and don't make large concessions because we lose credibility. And one final tip that I want to give to you. When you are talking about numbers, sometimes try to use the midpoint role.

It's a very fair role. Okay. You are charging me today and I want to pay 22 or, or you are asking me for 30 days and I want to spend 22. So lets try to find something between these two numbers and lets try to work. And 26 or 25 or 27. So the midpoint role is a key role for us. Okay? I hope this trip CAS can help you a lot. And I wish all of you a very good week, Andy, with a lot of good Negotiations and see you next week with another five minutes PM.

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