商务英语谈判技巧

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商务英语谈判技巧

Phases of Negotiation

According to Robert Maddux, author of Successful Negotiation, negotiation is the process we use to satisfy our needs when someone else controls what we want. In business negotiations, the two parties endeavor to obtain their business goals through bargaining with their counterparts. Business negotiations are conducted in the following four phases: the preparation phase, opening phase, bargaining phase and closing phase.

Preparation phase

1. Choosing your team

The negotiation team should include members in the following areas:

Commercial: responsible for the negotiation on price, delivery terms, and commercial policy of risk taking.

Technical: responsible for specifications, programs, and methods of work.

Financial: terms of payment, credit insurance and financial guarantees.

Legal: contract documents, terms and conditions of contract, insurance and legal interpretation.

Interpreter: familiar with the foreign language needed as well as the negotiation-related knowledge, and having certain communication skills.

The most important role in the team is the chief negotiator (CN), who is supposed to possess the following qualities: sociability, shrewdness, adaptability, patience, endurance. Other than that, extensive knowledge, clear oral expression as well as strong leadership are also important for a CN.

2. Gathering and analyzing information

Valuable information covers the areas in political, legal as well as business system, market research, financial policies, infrastructure and logistics. The knowledge on the counterpart is also necessary. With the information at hand, it is time do a feasibility study to adjust our goals to be achieved.

3. The negotiation plan

The plan defines the negotiating objectives, sets the minimum acceptable level for each term, and states the time control, initial strategy, the tactics and others including the location, personnel and facilities needed. A well-designed plan allows more flexibility in different situations and guides the negotiators through the negotiation process without getting off track.

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The opening phase

It is common that the seller submits proposals. Then the buyer confronts with three options: outright acceptance, outright rejection, and qualified rejection, the last of which is usually the most choice. Once the positions and objectives of both parties are revealed, the negotiators begin to reflect both on the loss they will suffer if they would concede and on the loss they will receive 1

if they would refuse to concede.

The bargaining phase

At this stage, concessions are made and advantages are gained, thus an agreement is to be achieved. Necessarily the team should make a reappraisal of the other partys concession factor. If the other party concedes more/faster than expected, their real concession factor is greater. Adversely, if the other party concedes less/slower than expected, they are perhaps correct in estimation, or they are simply bluffing. As the negotiation moves to the stage of identifying particular concession exchanges, the negotiators will expect to receive signals which indicate the genuine positions.

The closing phase

Once the seller and the buyer reach an agreement, it is time to draw up the contract. Typically one party prepares the contract listing the agreed upon clauses. The other party makes amendments to the wording to make them more closely reflect the agreement.

Negotiation Strategies and Tactics

Negotiation strategies and tactics are crucial to business negotiation. Generally speaking, strategy may be defined as the overall plan used to gain advantage over the opponent or achieve some end. Tactics may be defined as the means by which the strategic objective is achieved. Once a strategy has been chosen, tactics must be devised to assure that the goals are achieved.

Strategies

There are two basic strategies: offensive and defensive. Offensive strategies are used to take initiative while the defensive ones are to observe and wait until opportunities come and necessary measures be taken. Usually the party with the greatest sense of need will make the initial contact. However, a suitable strategy will only emerge only after the following guidelines are considered:

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What is our main goal in the target market? What are the issues to be negotiated? What level of agenda control can I or we expect? Have we analyzed the personal information of our counterparts or their negotiation history? Have we analyzed the strengths and weaknesses of both sides? What is our opening offer and what is the bottom line? Have we collected enough evidence? Have we worked out the alternatives for the solution? Can we afford to say “No”? What are the alternatives to a completed negotiation?

Tactics

There are two types of tactics commonly used in the negotiation process: offensive and defensive.

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Offensive Tactics:

Probe for Insight. Ask value-free, informational questions to find out what the other partys underlying needs are. Avoid judgmental styles of questioning-even though your first instinct is to use them. How you word these questions will help or hinder you in obtaining responses. For example, if you say, “How did you ever think you could get that objective?” you will simply put the other party on the defensive. But if you say, “Im not sure I understand why that objective is so important to you. Can you explain your concerns?” You are far more likely to obtain useful information about the other partys underlying concerns.

Feign a blow to the east and attack in the west. One party will over emphasize the apparent importance to securing a particular point when their real objective is the exact opposite. Some negotiators are usually suspicious of any proposal made by their counterparts.

Take Tit for tat. Its an effective tactic to make your counterpart give up. By saying “No” clearly and firmly, you can make an impression that you have made enough concession and will withdraw no longer. Usually the hard-shell approach pushes the deal forward and fools the opponent into ma-ki-ng concessions and closing the deal.

Control the written record. Seize the opportunity to get the word in by volunteering to prepare the minutes of the meeting, the draft of the report, or the summary of the discussion.

Even when a written report isnt required, you can still take it upon yourself to play this role by simply writing a follow-up letter or e-mail to the other party.

For example, if youve just had a telephone discussion with a supplier, follow it up with a quick e-mail stating, “Nice to speak with you today. Heres a quick note to help me remember what we decided in our phone conversation.” Unless they refuse the written version, theyve tacitly accepted it.

By the way, this is a great tactic for dealing with difficult bosses. So long as the written follow-up is polite and respectful, your boss will probably let you get away with documenting things like your job assignments and performance feedback that you have an interest in securing. Then you dont have to say later on, “But I thought you said…” You – and your boss – will know what was said.

Develop alternatives. Its so easy to develop alternatives, but most negotiators never do, which means you can gain a significant advantage by specializing in this si-mp-le tactic.

For example, suppose you call a resort hotel to make a reservation for a conference that requires you to stay for two nights over a weekend – only to find that the hotels policy requires a three – night stay. You could grin and bear it, paying for the extra night you dont need. Many guests do – thats why the resort persists in the policy. But why not develop alternatives? First, ask to speak to a supervisor (who presumably would have the authority to negotiate), and then ask her/him politely to give you the names and numbers of other hotels nearby in case you cant get the reservation you want.

This innocent question, followed by a momentary pause in which you write down the numbers, puts you in a better opening position by letting the point sink in that you can very well 3

take your business elsewhere. And it takes only a moment and no additional calls since the information about alternatives is solicited from the other party. When the dust settles you should get what you want – an exception to the policy – because you have invoked the threat of exercising your alternatives.

Nibbling. Nibbling is among the most popular of negotiation tactics. The actual strategy is to continue the negotiations after the deal is supposedly done. This tactic is most effective when a great deal of time has been spend finalizing the negotiation and the other party has invested a great deal of time into it. For instance, if you are buying a piece of property, after the deal is finalized you may ask for other accommodations that were not originally part of the plan for the property that you purchased. This can be a fairly risky tactic although a large majority of individuals will not renege on the deal after so much time has been put into it. If you choose to try the nibbling technique, you may not want to ask for too much as this can break down the entire process. Defensive tactics:

Silence is golden. You cant give anything away if you dont talk. In fact, how much you give away is generally proportional to how much you talk. That means the one who talks the most, loses.

So why is it so hard to shut and listen in a negotiation? It isnt hard for everybody. Many Japanese negotiators are comfortable with long periods of silence – a cultural difference that gives them a natural edge over more talkative Americans.

Lets think quietly about that for a minute. (Wait one minute before moving on).

Okay. Were back. Did you squirm a little while we were sitting here silently? Were you tempted to fill the void? Most people are. Leave a thoughtful gap in the conversation and you might simply hear some useful information about their concerns. Whatever you hear, it is likely to help you understand the other party and design your next move. And even if you hear nothing of value, you can still have the satisfaction of knowing that by being quiet you gave away nothing of value.

Help the other party save face. If the other party made a commitment that it now needs to abandon, it is usually an astute move on your part to help them save face. This is where you will need to be less competitive than you might expect. If you keep the pressure on them, they are likely to either lock in to their unreasonable position and refuse to budge, or they will feel so embarrassed that they may plot to get even with you later.

Instead, we recommend that you help them save face. You might allow them to change their offer, find a way for them to be flexible without looking foolish, say that this is being done for the greater good, or make some other generous and supportive statement. If constituencies are

involved, you might actively compliment the other party so that their constituency can overhear.

After you! “Lets compromise.” How many times has someone said those famous words as an invitation to strike a quick, si-mp-le deal when a conflict bogs things down? By saying, “Lets compromise,” you immediately signal your willingness to expedite the resolution of the problem.

But dont stop there. In the “after you” tactic, you say, “Lets compromise. What do you think is fair? This invites the other party to make the first concession. And it sets the bottom

limit on what youll have to give up. It also gives you the opportunity to simply say so – if their offer is clearly more than twice as low as your target. If so, politely say something like “Maybe compromising isnt such a good idea after all.” Postpone the compromise, treating the first round as a trial balloon. Then try to initiate a compromise later on with a more favorable opening (using the same after you tactic).

But most likely, the other partys opening offer will be reasonable, and you can start bargaining from there. If they want a compromise, too, they will make a reasonable or even generous opening offer. By letting them go first, you often get a more favorable outcome than if you had made the first offer.

Buying time with accommodation. Will Rogers once said that “Diplomacy is the art of saying Nice doggie until you can find a rock.” Sometimes you feel very strongly about the outcome, but havent the strength to press for a satisfactory settlement through a Competitive, Compromising, or Collaborative negotiating style at the moment. Maybe you lack support because you havent been able to get in touch with your management or some other powerful constituency. Perhaps you are waiting for information, funding, or other resources to arrive. Whatever the problem, your hands are tied behind your back.

In which case, you can use an accommodating-for-now approach to delay the negotiation. The way to use this tactic is to make it clear that , while you dont agree, you will go along with the other party for now – and discuss it again later on. Use wording like “for now” and “until I have time to look into it” or “its okay for now, but Im not satisfied with it and we will have to go into it later.”

Such phrasing makes it clear that you are using the accommodating-for-now tactic, and have reserved the right to negotiate later on.

To conclude, different strategies and tactics are employed to serve different situations which are subject to change constantly, thus flexibility and adaptability in negotiation is advisable. Of course there are certainly other tactics involved, which can be drawn from the real negotiation practice.

Practice：

1. Read the following two simulated negotiation, and analyze what negotiation tactics are employed by the Party B.

A Negotiation on Price

A: Perhaps we could turn to the question of price today. As I said earlier in our discussions, we are willing to place a trial order of one shipload, say 25，000——30，000 tons. Could I have your lowest quotation, please?

B: Yes, Id be delighted, but before we discuss price, Id like to say a few words about the market situation.

A: Please do.

B: Soybeans in Europe enjoy an increasing demand. The prices have advanced over 10% during the last 12 months. The market is firm with an upward trend.

A: You could be right, but if you take a closer look at the international market situation, youll find that the supply of soybean is more than enough to meet the demand. The main producing countries, like the United States, have increased their production drastically. At the moment there are more

soybeans around than they can find the market for. It is estimated that the market will continue to be weak.

B: Well, you will appreciate that the European market is slightly different from that of the United States.

A: Yes, but we must also bear in mind the fact that all of us are operating in a highly competitive global market, in which we have been forced to cut our prices from time to time to win business. B: Well, thats true.

A: Now, Mr. B, if your price compares favorably with those of other suppliers, I have good reason to believe that we could place regular orders with you.

B: Thank you, Mr. A. as we are anxious to do business with you, we are prepared to give you a special first order price, which is U.S.$508 per ton FOB.

A: Thank you for the offer. Unfortunately, your price appears to be on the high side, Id like to suggest that you could perhaps make some reduction that would help to introduce your product into our market.

B: I m sorry to hear that you find our price to high. As a matter of fact, the quoted price leaves us with only a small profit margin. If it were not for the large orders we are anticipating, we could not have quoted even at that price.

A: I think I should be quite frank with you. The quotation we received this morning from a U.S. supplier is U.S. $500 per ton.

B: Ah, the Americans again. The problem with us is that we have to import some raw materials from abroad, which adds a great deal to our cost. By comparison, the Americans are in a more advantageous position. They dont have to import the raw materials. They have plenty of it in the States. Considering the high production cost, we dont fell that the price we quoted is all that expensive.

A: I appreciate you position, but we really cant afford to accept like that. The South Korea soybean goes at U.S. $ 495.

B: I see what you mean. Can you give us a counter-offer?

A: Yes, of course. We are willing to pay U.S.$500 per ton FOB for delivery with 4 weeks of order. I hope you will be able to take advantage of this exceptional offer. Please understand that we cant leave it open for more than 48 hours. You may decide now or telephone your acceptance later. B: Did you say 500?

A: Precisely.

B: Well. I will have to consult my board. I cant give my final word until I speak to them. Can I use your telephone?

A: Yes, please do.

…

B: It gives me great pleasure to tell you that weve decided to accept your counter-offer.

A: Good. I am sure you have made the right decision. I am glad weve struck the first deal, and I look forward to many years of fruitful cooperation.

B: So do I

2. A Negotiation on Delivery

A: Now we have settled the terms of payment. Is it possible to effect shipment during September?

B: I dont think we can

A: then when is earliest we can expect shipment?

B: By the middle of October, I think.

A: Its too late you see. November is the season for this commodity in our market, and our customers formalities are rather complicated.

B: I understand.

A: well, the flow through the marketing channels and the red tape involved take at least a couple of weeks. Thus, after shipment it will be altogether four to five weeks before the goods can reach our retailers, the goods must therefore be shipped before October, or we wont be ready for the season.

B: but our factories are fully committed for the third quarter. In fact, many of our clients are placing orders for delivery in the fourth quarter.

A: Mr. Li, you certainly realize that time of delivery is a matter of great importance to us. If we place our goods on the market at a time when all other importers have already sold their goods at profitable prices, we shall lose out.

B: I see your point. However, we have done more business this year than any of the previous years. I am very sorry to say that we cannot advance the time of delivery.

This is too bad, but I sincerely hope you will give our request your special consideration.

B: You may take it from me that the last thing we want to do is to disappoint a customer, particularly an old customer like you. But the fact remains that our manufactures have a heavy hack log on hand.

A: But cant you find some way to get round your producers for an earlier delivery? Make a special effort, please. A timely delivery means a lot to us.

B: All right, Mr. B, well get in touch with our producers and see they have to say.

A: I am waiting for the good news.

B: Well give you a definite answer tomorrow.

2. Generate a simulated negotiation and present it in the class. Refer to the following list of words that are commonly used in negotiation.

Would anyone like something to drink before we begin？ 在我们正式开始前，大家喝点什么吧？

We are here to solve problems. 我们是来解决问题的。

We’ll come out from this meeting as winners. 这次会谈的.结果将是一个双赢。

I hope this meeting is productive. 我希望这是一次富有成效的会谈。

I need more information. 我需要更多的信息。

Not in the long run. 从长远来说并不是这样。

Let me explain to you why . 让我给你一个解释一下原因。很好的转折，又可磨炼自己的耐心。 That’s the basic problem. 这是最基本的问题。

Lets compromise. 让我们还是各退一步吧。

The longer we wait ，the less likely we will come up with anything. 时间拖得越久，我们成功的机会就越少。

Are you negotiable？ 你还有商量的余地吗？

Im sure there is some room for negotiation. 我肯定还有商量的余地。

We have another plan. 我们还有一个计划。

We could add it to the agenda. 我们可以把它也列入议程。

Our position on the issue is very si-mp-le. 我们的意见很简单。

We can work out the details next time. 我们可以下次再来解决细节问题。

Lets dismiss and return in an hour. 咱们休会，一个钟头后再回来。

I suggest that we take a break. 建议休息一下。

Works referred: 1. Improving Negotiation Skills: Rules for Master Negotiators By Thomas Noble of Law Offices of Thomas Noble, P.C.

2. The Fast Forward MBA in Negotiating and Deal Making (Fast Forward MBA Series) by Roy J. Lewicki, Alexander Hiam, Paperback - 288 pages, (October 1998) John Wiley & Sons; ISBN: 0471256986

3. Negotiation Strategy: Planning Is Critical By Cathy Cronin-Harris

4. Business Negotiation. Chief ed.: Yu Muhong and Zhang Ruwen. Foreign Language Teaching and Research Press, July, 2017.

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