How to Grow the Pie in Negotiations with Patrick Tinney
Jan 16, 2024
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Guest, Patrick Tinney, Sales and Negotiations Rainmaker, discusses tactical vs. strategic negotiations, filling the expectation gap, building trust, leveraging people like a Rubix cube, SWOT analysis in negotiations, and avoiding profitless deals.
Understanding the other party's needs and building trust are crucial in bridging the expectation gap in negotiations.
Leverage plays a significant role in negotiations, and conducting a SWOT analysis helps identify key leverage points.
Deep dives
The Power of Negotiation Strategy
In this podcast episode, Patrick and Kwame explore the importance of negotiation strategy. Patrick emphasizes the need to understand the other party's needs and establish trust in order to bridge the expectation gap. He suggests asking direct and qualifying questions to uncover the other side's priorities. By focusing on building trust and finding win-win solutions, it becomes possible to create positive outcomes and maintain strong relationships. Patrick also highlights the significance of creativity in negotiations, as it can provide a competitive advantage and make deals more valuable.
The Role of Leverage in Negotiations
Patrick shares his insights on the role of leverage in negotiations. He explains that leverage is scalable, ranging from having little to having a significant amount. Understanding leverage is crucial in negotiations, as lacking leverage often leads to being stuck. Patrick advises conducting a SWAT analysis on the seller, the buyer, and the predatory competitor involved in the deal. By identifying key leverage points, strategic negotiations that add value and minimize negative risk become possible.
Different Negotiation Styles and Their Impact
Patrick and Kwame discuss different negotiation styles and how they can affect outcomes. They highlight there are four key negotiator styles: A-type thinkers, conciliatory types, analytic types, and communicators. Additionally, Patrick explains that negotiators can encounter highly political individuals, those focused on currying influence, and those who are emotionally driven. Understanding these different styles helps negotiators adapt and build bridges of trust to achieve mutual goals.
Negotiation Tactics: From Splitting the Difference to The Bonus Round
Patrick dives into various negotiation tactics, starting with the myth of splitting the difference. He reveals that this tactic can be manipulative, as the other party often knows their desired price range and uses splitting the difference to their advantage. He also shares a theatrical strategy involving confusion and emphasizes the importance of controlling the contract. Patrick mentions the 'bonus round' tactic used by experienced negotiators who strategically pause to gain more in the negotiation after the primary deal is agreed upon.
In this episode, Patrick Tinney, Sales, and Negotiations Rainmaker, Trainer, Coach, and Author, discusses how to get the lion's share in difficult conversations in sales and negotiations.