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Digg It - Negotiation - Tactics, Tricks And Threats
Most successful negotiators recognise that the way people involved in negotiations behave does not always reflect their true feelings or intentions. We are going to look at negotiating tactics that may be used by you or on you. Whether or not you choose to use these tactics, it is vital to understand:
• Tactics work
• They can be being used on you, and can be used by you
• Once they are recognised as tactics, their effects are reduced, or eliminated
You may feel that there is no need in your particular case to negotiat
• Tactics work
• They can be being used on you, and can be used by you
• Once they are recognised as tactics, their effects are reduced, or eliminated
You may feel that there is no need in your particular case to negotiat
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
e or resort to tactics. in negotiation. This is a matter of personal choice.
In general, tactics are used to gain a short-term advantage during the negotiation and are designed to lower your expectations of reaching a successful conclusion.
There are many tactics available to negotiators. Here are some you may recognise.
Pre-Conditioning:
This can begin before you even get together, or start your negotiations with the other party. Let us take a sales example:
You telephone for the appointment and the other
In general, tactics are used to gain a short-term advantage during the negotiation and are designed to lower your expectations of reaching a successful conclusion.
There are many tactics available to negotiators. Here are some you may recognise.
Pre-Conditioning:
This can begin before you even get together, or start your negotiations with the other party. Let us take a sales example:
You telephone for the appointment and the other
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
side says, aggressively:
“Don’t bother coming if you are going to tell me about price increases. You’ll be wasting your time and I will be forced to speak to your competitors”.
When you do arrive you are kept waiting in reception for half an hour, without being told why. As you walk through the door into the other person’s office they indicate for you to sit down, but they don’t look up. Instead, they sit leafing through your competitor’s brochure, in silence, ignoring your efforts to make conversation.
You are g
“Don’t bother coming if you are going to tell me about price increases. You’ll be wasting your time and I will be forced to speak to your competitors”.
When you do arrive you are kept waiting in reception for half an hour, without being told why. As you walk through the door into the other person’s office they indicate for you to sit down, but they don’t look up. Instead, they sit leafing through your competitor’s brochure, in silence, ignoring your efforts to make conversation.
You are g
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
iven an uncomfortable low chair to sit in that happens to be directly in line with the sun shining into the office. At this stage, how confident do you feel?
The Monkey On The Back:
Some negotiators have the irritating habit of handing their problems to you so that they become your problems. This is the “monkey on their back” that they want you to carry around for them.
A classic example is the person who says, “I have only got ?10,000 in my budget”.
This is often used tactically to force a price reductio
The Monkey On The Back:
Some negotiators have the irritating habit of handing their problems to you so that they become your problems. This is the “monkey on their back” that they want you to carry around for them.
A classic example is the person who says, “I have only got ?10,000 in my budget”.
This is often used tactically to force a price reductio
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
n. Here is what you can do.
When one side says “I have only ?10,000 in budget”, look concerned and say something like:
“That is a problem. As you are no doubt aware, the cost of our systems can be anything up to ?20,000 and I really want to help you choose the best system that meets your needs. Does that mean that if one of our systems has everything you are looking for, but costs ?20,000, you would rather I didn’t show it to you?”
The “monkey” has been returned and they have to make a choice. If the obje
When one side says “I have only ?10,000 in budget”, look concerned and say something like:
“That is a problem. As you are no doubt aware, the cost of our systems can be anything up to ?20,000 and I really want to help you choose the best system that meets your needs. Does that mean that if one of our systems has everything you are looking for, but costs ?20,000, you would rather I didn’t show it to you?”
The “monkey” has been returned and they have to make a choice. If the obje
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ction is genuine and the budget figure is correct, you must try to look for an alternative that meets your needs as well as theirs.
If they genuinely can only spend ?10,000 that is not a tactic but the truth. In dealing with tactics the first decision you must make is whether it is a tactic or a genuine situation. If it is genuine, you have a problem to solve, rather than a tactic to overcome.
The Use Of Higher Authority:
This can be a most effective way to reduce pressure in the negotiation by introducing an uns
If they genuinely can only spend ?10,000 that is not a tactic but the truth. In dealing with tactics the first decision you must make is whether it is a tactic or a genuine situation. If it is genuine, you have a problem to solve, rather than a tactic to overcome.
The Use Of Higher Authority:
This can be a most effective way to reduce pressure in the negotiation by introducing an uns
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
een third party and can also be effective in bringing the negotiation to a close.
“I need to have this agreed by my Board of Directors.” “If they agree to the terms we have discussed, do we have a deal?”
However, be careful to use this device sparingly so that the other side does not begin to feel you have no decision making authority yourself.
One way of countering this tactic is to say before the bargaining begins: “If this proposal meets your needs, is there any reason you would not give me your decision t
“I need to have this agreed by my Board of Directors.” “If they agree to the terms we have discussed, do we have a deal?”
However, be careful to use this device sparingly so that the other side does not begin to feel you have no decision making authority yourself.
One way of countering this tactic is to say before the bargaining begins: “If this proposal meets your needs, is there any reason you would not give me your decision t
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
oday?”
If the other side still wishes to resort to higher authority, appeal to their ego by saying: “Of course, they will go along with your recommendations, won’t they? Will you be recommending this proposal?”
Nibbling:
Negotiations can be a tiring process. As the point draws near when an agreement is likely, both sides exhibit a psychological need to reach agreement and get on with something else.
You are very vulnerable as the other side reaches for their pen to sign the order form or contract,
If the other side still wishes to resort to higher authority, appeal to their ego by saying: “Of course, they will go along with your recommendations, won’t they? Will you be recommending this proposal?”
Nibbling:
Negotiations can be a tiring process. As the point draws near when an agreement is likely, both sides exhibit a psychological need to reach agreement and get on with something else.
You are very vulnerable as the other side reaches for their pen to sign the order form or contract,
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
to concede items that don’t significantly affect the final outcome. “Oh, by the way, this does include free delivery, doesn’t it?” or “Oh, by the way, the price of the car does include a full tank of petrol?”
Nibbles work best when they are small and asked for at the right psychological moment. Like peanuts, eat enough of them and they get fattening.
Good negotiators will often keep back certain items on their want list until the very last minute when the other party is vulnerable. Watch out for this.
Nibbles work best when they are small and asked for at the right psychological moment. Like peanuts, eat enough of them and they get fattening.
Good negotiators will often keep back certain items on their want list until the very last minute when the other party is vulnerable. Watch out for this.
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
The Good Guy And The Bad Guy:
You may have come across this tactic before or else seen it used in films or on television. This is a tactic designed to soften you up in the negotiation.
For example, you are negotiating the renewal of your service contract with the Buying Director and his Finance Director. You present your proposal and the Buying Director suddenly gets angry and walks out in disgust muttering to himself about how unfair you have been and how the relationship is well and truly over.
You pick up your br
You may have come across this tactic before or else seen it used in films or on television. This is a tactic designed to soften you up in the negotiation.
For example, you are negotiating the renewal of your service contract with the Buying Director and his Finance Director. You present your proposal and the Buying Director suddenly gets angry and walks out in disgust muttering to himself about how unfair you have been and how the relationship is well and truly over.
You pick up your br
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
iefcase and are being shown the door when the Finance Director smiles at you sympathetically and says:
“I’m terribly sorry about that. He is under a lot of pressure. I would like to help you renew your contract, but he really will not consider the price you have suggested. Why don’t I go and talk to him for you and see if we can agree a compromise? What is the bottom line on the contract? If you give me your very best price, I will see what I can do”.
The best way of dealing with this tactic is to recognise the ga
“I’m terribly sorry about that. He is under a lot of pressure. I would like to help you renew your contract, but he really will not consider the price you have suggested. Why don’t I go and talk to him for you and see if we can agree a compromise? What is the bottom line on the contract? If you give me your very best price, I will see what I can do”.
The best way of dealing with this tactic is to recognise the ga
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
me that is being played and assess exactly what the quality of the relationship is. You may be able to say something like:
“Come off it, you are using good guy, bad guy. You are a superb negotiator, but let’s sit down and discuss the proposal realistically”.
If you don’t have this kind of relationship, stand firm and insist on dealing with the bad guy, or else bluff yourself and give a figure that is within your acceptable range of alternatives.
One way of combining good guy, bad guy. with higher authority is by
“Come off it, you are using good guy, bad guy. You are a superb negotiator, but let’s sit down and discuss the proposal realistically”.
If you don’t have this kind of relationship, stand firm and insist on dealing with the bad guy, or else bluff yourself and give a figure that is within your acceptable range of alternatives.
One way of combining good guy, bad guy. with higher authority is by
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
saying things like:
“Well, I’d love to do a deal with you on that basis, but my manager refuses to let me agree terms of this nature without referring back and he refuses to talk to salespeople. Give me your best price and I will see what I can do”
Body Language:
It is important in negotiation to react verbally and visually when offers are made. You may have seen the more theatrical negotiators hang their heads in despair or accuse you of being unfair and souring a perfectly good relationship when you pres
“Well, I’d love to do a deal with you on that basis, but my manager refuses to let me agree terms of this nature without referring back and he refuses to talk to salespeople. Give me your best price and I will see what I can do”
Body Language:
It is important in negotiation to react verbally and visually when offers are made. You may have seen the more theatrical negotiators hang their heads in despair or accuse you of being unfair and souring a perfectly good relationship when you pres
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ent your proposal. Human nature is such that we can believe and accept these outbursts against us and our negotiating position becomes weaker as a result.
Ensure the next time you are in a negotiation that you react to the other party’s offer. If you show no reaction, they may be tempted to ask for more and more and you will lose the initiative in the negotiation. Also, it is almost certain that their opening offer is higher than the figure for which they are prepared to settle, so it is important that you clearly signal
Ensure the next time you are in a negotiation that you react to the other party’s offer. If you show no reaction, they may be tempted to ask for more and more and you will lose the initiative in the negotiation. Also, it is almost certain that their opening offer is higher than the figure for which they are prepared to settle, so it is important that you clearly signal
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
your unwillingness to accept the opening position.
If you reach the point below which you will not go, it is important that you show this with your body language. News readers, when they have finished reading the news, have a habit of picking up their script and tidying up their papers. This tells the world that they have finished their task and are preparing to leave.
Similarly, when you make your final offer, it can be very powerful to collect your papers together and indicate with your body that it really is your fina
If you reach the point below which you will not go, it is important that you show this with your body language. News readers, when they have finished reading the news, have a habit of picking up their script and tidying up their papers. This tells the world that they have finished their task and are preparing to leave.
Similarly, when you make your final offer, it can be very powerful to collect your papers together and indicate with your body that it really is your fina
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
l offer. Put your pen away, sit back in your chair and remain silent. Look concerned and keep quiet.
If your voice says final offer but your body is saying let’s keep talking, the other party will disregard what you say and keep negotiating.
The Use Of Silence:
During the negotiation, you may make a proposal and find the other party remains silent. This can be very difficult to handle and often signals disapproval to the inexperienced negotiator. Just as nature abhors a vacuum, so silence induces the need in peop
If your voice says final offer but your body is saying let’s keep talking, the other party will disregard what you say and keep negotiating.
The Use Of Silence:
During the negotiation, you may make a proposal and find the other party remains silent. This can be very difficult to handle and often signals disapproval to the inexperienced negotiator. Just as nature abhors a vacuum, so silence induces the need in peop
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
le to talk.
If you have a proposal to make, make it and ask the other side how he or she feels about it. Having asked the question, sit back and wait for the answer. Whatever you do; don’t change your offer as this could seriously weaken your position.
The Vice:
A common technique used by negotiators when presented with a proposal is to say:
“You’ll have to do better than that.”
The most powerful way of dealing with this is to ask them to be more specific. Whatever you do, don’t weaken your negotiating p
If you have a proposal to make, make it and ask the other side how he or she feels about it. Having asked the question, sit back and wait for the answer. Whatever you do; don’t change your offer as this could seriously weaken your position.
The Vice:
A common technique used by negotiators when presented with a proposal is to say:
“You’ll have to do better than that.”
The most powerful way of dealing with this is to ask them to be more specific. Whatever you do, don’t weaken your negotiating p
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
osition in response to the vice by giving anything away, too easily. This will only encourage repeat behaviour.
The Power Of Legitimacy:
People believe what they see in writing. We all assume that if a thing is printed or written down, it is non-negotiable. This is what can make price lists so powerful. If you have to present a customer with a price increase or you wish to encourage an early order to beat a price increase, show something in writing such as an office memo from your boss announcing the increase. Thi
The Power Of Legitimacy:
People believe what they see in writing. We all assume that if a thing is printed or written down, it is non-negotiable. This is what can make price lists so powerful. If you have to present a customer with a price increase or you wish to encourage an early order to beat a price increase, show something in writing such as an office memo from your boss announcing the increase. Thi
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
s will have a far greater impact than just saying your prices are about to go up.
When presented with a price tag in a shop, ask to speak to the manager and make him an offer. You could be surprised at the results.
And Finally -The Low Key Approach:
Don’t appear too enthusiastic during negotiations. Over-enthusiasm can encourage skilled negotiators to review their strategy and demand more.
If you are in a negotiation and the other side is not responding to your proposal, recognise this could be a tactic and av
When presented with a price tag in a shop, ask to speak to the manager and make him an offer. You could be surprised at the results.
And Finally -The Low Key Approach:
Don’t appear too enthusiastic during negotiations. Over-enthusiasm can encourage skilled negotiators to review their strategy and demand more.
If you are in a negotiation and the other side is not responding to your proposal, recognise this could be a tactic and av
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
oid giving concessions just to cheer them up. Salespeople like to be liked and will often give money away in a negotiation, if the other side appears unhappy.
For example, if you are buying a car avoid saying to the seller things like:
“This is exactly what I’m looking for. I really like the alloy wheels”.
Develop a low-key approach. Say things like:
“Well, it may not be exactly what I’m looking for but I might be interested if the price is right”.
Copyright © 2007 Jonathan Farrington. All rights reserve
For example, if you are buying a car avoid saying to the seller things like:
“This is exactly what I’m looking for. I really like the alloy wheels”.
Develop a low-key approach. Say things like:
“Well, it may not be exactly what I’m looking for but I might be interested if the price is right”.
Copyright © 2007 Jonathan Farrington. All rights reserve
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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