Thursday, July 31, 2008

Tips For Getting The Raise You Deserve

Writen by Brad Karsh

Your parents and friends always tell you that you're priceless, but how much does your company think you are worth?

With the improving economy and job market, people have more options in 2006. Companies are offering bigger salaries and better packages to gain and maintain the best employees. In light of this, it may be the perfect time to ask your company for the raise you deserve.

Most companies aren't going to throw more money at you "just because," so it's your job to state your case if you think you deserve more money. Of course, asking for a raise from your boss can be an intimidating task. Here are five tips to help you approach the situation with the proper insight and confidence.

1. Know What You're Worth
The first step is to get the facts and figures to justify your request for more pay. If you do your homework, it's much easier to build a compelling case. Look at websites like Monster.com and Salary.com and research industry journals and professional associations to see what people in your position typically make. Speak with your colleagues and check our recruitment ads in local newspapers and the classifieds. If you realize that a systems analyst in Chicago typically makes between $45,000 and $55,000, and you're only at $40,000 - it's much easier to make your case.

2. Prove You Deserve the Money
You need to walk into a meeting with your boss with documented reasons as to why you deserve a raise. Never try to make a case for a raise on the basis of need. Prove that you deserve the money based on your high performance and your contributions to your employer's goals. The best way to do this is to bring in your accomplishments AND what you plan to do to earn your new salary. If you can say, "I sold 850 contracts last year, and that netted the company and extra $60,000 in profit. I think it only makes sense for me to get a $6,000 raise," it makes your case even stronger. Remember one thing though; your salary is not the only expense that a company has for you. What you make is typically only about 50% of what you cost the company. Things like health costs, office space, and phone lines all add up to tremendous overhead. If you make $50,000 a year, you probably cost your company $100,000 a year! Prove that your value exceeds costs, and you'll be hard to refuse.

3. Talk to the Right Person at the Right Time
Your boss might not be the one who determines whether or not you get a raise. You want to do whatever you can to state your case directly to the decision maker. You can make a great, compelling case to your boss as to why you deserve a raise, but if she's not the decision maker, she may not represent your story the same way you would. A good boss with a good heart can be more effective at getting to the decision maker, but if you don't get along with your boss, you may want to go above or around her. Similarly, you want to talk about a raise at the right time. You want a private meeting - with no other distractions or business to talk about. Ideally, you can do it over lunch or in someone's office.

4. Be Direct, Concise, and Assertive
Too many people beat around the bush or sound too wishy-washy when it comes time to actually ask for the money. One of the biggest mistakes you can make is failing to prepare yourself.

Bad: "Well, I know times are tough, and you probably have a lot of deserving people around here, so I was hoping, if it's possible, that I might be able to get a raise?"

Good: "Phil, as you know I've been a valuable and critical member of our team. Over the past year alone, I've elevated the quality of our news program, eliminated on-air glitches, and even filled in for two employees on maternity leave. I have not received a raise in two years, and based on salary surveys, I'm at the low end of the scale for my position. I think you would agree that I deserve a raise."

As you can see, assertive speech presents a more powerful case.

5. Know your Company
If the goal is to get more money, requesting a raise isn't always the only or even best way to get it done. Some companies have very defined pools of money. Some money is for raises, some for promotions, and even some for "counter offers." Since promotions usually come with more money, requesting a promotion may be even easier than requesting a raise. Sometimes even the thought that you're interviewing can spur a company to give you a raise. A strategically "misplaced" resume or wearing an interview suit to work can do wonders! You need to be cautious with this technique as some companies may see this as a reason to give you a raise, but others may see this as grounds for firin! That's why you need to know your company.

Before having the "money talk," it's also important to evaluate your level of job satisfaction. Consider creative options and other benefits to improve your situation if your salary is non-negotiable. You may want to consider back-up career plans as well. Money isn't always the key to job happiness, so you need to identify the point at which you are willing to walk before you have the conversation with your boss.

Securing a good raise seems tricky, but if you put these five tips into practice, you can handle the negotiation with candor and confidence.

Brad Karsh is president of JobBound, a company specializing in resume writing, interviews, and job preparation to help students and professionals get a great job. Author of Confessions of a Recruiting Director: The Insider's Guide to Landing Your Fist Job (Prentice Hall Press), Brad Karsh is considered the nation's leading job expert. He's been featured on CNN's Paula Zahn Now, CNBC, CNNfn, and quoted in The Wall Street Journal, Washington Post, Fortune, and many others. For even more job search advice, check out http://www.jobbound.com

Wednesday, July 30, 2008

Overcome Overwhelm 10 Ways To Slow Down And Win

Writen by Laurie Weiss

It's easy to break agreements. It is especially easy to blow off agreements when you feel overwhelmed and overworked.

After all:

You have way more work to do than time to do it in.

You keep putting off important tasks in order to put out fires.

You don't have the information you need to complete the task at hand.

You have a large stack of business cards you collected while networking.

You have no idea how to prioritize the multiple tasks you face every day.

One form of self-discipline to solve this common dilemma is to commit to ONLY MAKE AGREEMENTS THAT YOU ARE WILLING AND INTEND TO KEEP!

Just doing this can keep you out of lots of trouble.

1. It means you must stop automatically agreeing to do things.

2. Instead, you must take time to think through any agreement you make.

3. Don't say "yes," say "MAYBE." Then say, "I will let you know in (15 minutes, 24 hours, or ??) after I check (the availability, my schedule, etc.) This time agreement is one you must keep.

4. Think about your priorities and resources, including time, energy and money before you decide whether to make the agreement.

5. Make your decision. It should be yes, no or an alternate proposition that takes what you need into account.

6. Communicate your decision within the agreed time period.

7. Now, make an agreement you are definitely willing to keep.

8. Keep whatever agreement you make.

9. If you encounter something that makes it impossible to keep your agreement, don't wait. Communicate about the need to change your agreement at the earliest possible opportunity.

10. Renegotiate a new agreement, repeating your original decision making process.

When you think through your agreements BEFORE you make them, it becomes much easier to stay on target, follow through and achieve success.

Copyright 2004-2006 Laurie Weiss Ph.D.

Laurie Weiss, Ph.D., author of "Dare To Say It!," is an internationally known executive coach, psychotherapist, and author. For more simple secrets for turning difficult conversations into opportunities for cooperation and success, visit http://www.DareToSayIt.com or email: feedback@laurieweiss.com

Persuade With Power

Writen by Laurie Sheppard

Mick Jagger said, "You can't always get what you want." But it doesn't stop us from trying…and it shouldn't. Yet what about those times when we're less effective at communicating our wants and getting our reward. That can be frustrating when we try to put ideas across and wonder why others don't seem to share our enthusiasm or interest. For personal to business communications here are a few simple concepts important to maximize your power of persuasion.

First, keep in mind the two fundamental human desires: to make a contribution or difference and to be received or "gotten" by others. Communication is a two-way street. We have to assist others to hear us when the time is best, digest our proposals and respond positively. When we don't get a definite, "Now's not a good time," then it's also knowing how to let go and move on.

1. Research is the first step in persuading others. You can't even interest someone in going to see a movie with you if you don't know the name of the movie, where it's playing or the time. Do your homework before you approach your invitee.

2. Timing Always check if the timing for the conversation is right and you have their attention. Never assume you can walk in a room and start talking. Offer short friendly comments first, whether by email, phone or in-person. No one wants to feel disrespected by jumping into business topics without a few relationship-centered words exchanged first.

3. Clarity is the important third step in how you maximize the opportunity and explain the idea or plan. Practice your invitation beforehand to yourself, or with someone else. Know the most important parts to be communicated.

4. Encouragement creates interest or acceptance of your view and empowers others to action. It is not meant to persuade through convincing, cajoling or dominating. It is not meant to cause someone to undertake an action or embrace your point of view by means of argument, reasoning or entreaty. Encouragement stimulates support and inspires action.

5. Listening is a component of encouragement. Stop to hear the feedback from the person you're talking with. Reflect on their comments, without judgment, before any additional response. Perhaps they have an aspect to the proposal you hadn't considered. In true listening, you weigh their responses as much as you expect them to weigh yours. Sometimes literally repeat their comments back to them so they know they've been heard. Use comfortable body language to demonstrate your listening, without making them feel rushed.

6. Unattachment Of all the tools, this is your biggest power source. Have a clear intention and commitment to your idea or project, but be ready to let go, so you can change course if needed.

7. Alternation If your initial offer is declined, then you can counteroffer. If that fails, you can be prepared with a new idea in the wings. For example, you pitch a program that your prospective client isn't interested in, you then offer an alternative program idea and get a similar "no" response. Since you've prepared ahead, you can now shift your attention to another project and possibly revisit the first idea at a later date.

Follow these winning strategies in persuading others and you'll notice the results will be more frequent, more rewarding and repeatable.

Laurie Sheppard makes it easy to communicate personal or professional wants and get rewards. Learn 7 simple steps that will maximize your power of persuasion. For complimentary coaching and free coaching tools: http://www.creatingatwill.com

Tuesday, July 29, 2008

Bidding And Winning Projects As A Freelancer

Writen by Marsha Maung

When you're a freelancer, you cannot escape the task of bidding for projects and hoping to win the projects. Losing out more times than you'd actually care to admit, understand that it's part and parcel of being a freelancer. You're pitched against many other people who are cheaper (not necessarily better) and who are willing to go really low to do McDonald's rate work for reasonable quality stuff. Most of the freelancers bidding for projects are either fresh graduates who are trying to make a quick buck or students earning some pocket money or building their portfolio.

As a professional freelancer, it's unfair to be pitched against these people because they don't really MAKE A LIVING out of freelancing. There are millions and millions of other freelance graphic designers and copywriters I am pitching against every single day and sometimes I find myself cursing at them for offering such low prices! Unbelievable. They're really spoiling the market.

Should you lower your price and integrity just to win the bid for the project?
Some freelancers succumb to the need to win projects after they bid on it. Hawking over a less than worthwhile project is a complete waste of time. What freelancers should do is to simply keep their integrity. If you've established yourself in the market, have a relatively large (and impressive portfolio) and think you deserve to be paid whatever you think you should be paid, why lower yourself?

Keep your head up high and dictate the price. Lowering it means that you're somewhat desperate for business – and that's not the kind of message you want to convey to your potential customers. Being desperate mean that you're not doing business and one of the many reasons why you're looking for business is because….perhaps…you're not as good as you think you are?

No way! If you think you're good enough to charge whatever you want to charge, don't bend lower that you're willing to.

But of course, even after winning a bid or not bidding at all, you should still keep the door open for reasonable haggling of price
In business, there's always some haggling involved. Therefore, make it a point to quote a price right about 5% higher than what you would normally charge others. If the client/customer negotiates for a lower price, bring it down by 5% and you'll get whatever you thought you deserved to start with.

What if the client wants you to bring the price even lower?

It depends on the client and your relationship with the client. As a freelancer, we are dependant on a virtual relationship we have built with our clients. They are merely faceless people you're working for and trust is very, very, very important. If you feel that you can trust the client and knows that he/she will be giving you business many years down the road, by way of showing your appreciation for their business, lower down your price. But if this is what you're doing, make sure you point out the fact that the price is exclusive and you don't charge everyone else the same price.

Not only will this make the client feel special but he/she will recommend other people your freelancing services. And if they do, they will also make a special note not to mention the pricing.

Happy freelancing!

Marsha Maung is a freelance graphic designer and copy writer who works from home. She designs apparel and premium items at http://www.allmomstuff.com and is the author of "Raising little magicians", and the popular "The Lance in freelancing". More information can be found at http://www.marshamaung.com

Monday, July 28, 2008

When Youre Negotiating Money Isnt As Important As You Think

Writen by Roger Dawson

Let me tell you about my pet subject: When you're selling your product or service, money is way down the list of things that are important to the other side.

First, we'll talk about something that you may find hard to believe but it's something of which I've become convinced-that people want to spend more, not less, and that the price concerns salespeople more than the people to whom they sell.

Then I'll teach you all the things that are more important to people than money.

Finally, I'll teach you some techniques to find out how much they'll pay.

People Want To Pay More, Not Less

After almost two decades of training salespeople, I have become convinced that price concerns salespeople more than it does the people to whom they sell. I'll go even further than that-I think that customers who may be asking you to cut your price are secretly wishing that they could pay more for your product. Hear me out before you dismiss this as being imbecilic. I was the merchandise manager at the Montgomery Ward store in Bakersfield, California back in 1971. Although Bakersfield was not a large town, the store ranked 13th in volume in a chain of more than 600 stores. Why did it do so well? In my opinion, it was because head office left us alone and allowed us to sell to the needs of the local population. For example, we did a huge business in home air conditioners because of the outrageously hot summers. In Bakersfield, it's common for it to be 100 degrees at midnight. In those days an average blue-collar home in that city cost around $30,000. The air conditioners that we would install in these homes might cost $10,000 to 12,000. It was very hard for me to get new salespeople started selling in that department because they had a real resistance to selling something that cost more money than they had ever made in a year. They simply didn't believe that anybody would spend $12,000 to put an air conditioner in a $30,000 home. The customers were willing to pay it, as was illustrated by our huge sales volume, but the salespeople weren't willing to support these decisions because they thought it was outrageously expensive.

However, if I could get salespeople started to where they began to make big money and they installed air conditioner son their own homes, suddenly they didn't think it was so outrageous any more, and they would dismiss the price objection as if it didn't exist.

Beginning stockbrokers have the same problem. It's very hard for them to ask a client to invest $100,000 when they don't know where lunch money is coming from. Once they become affluent, their sales snowball.

So I believe that price concerns salespeople more than it concerns any customer. This is demonstrated by the experience of one of my clients who is a designer and supplier of point-of-purchase sales aids and displays. He tells me that if three products are on a shelf in a store-let's say three toasters-and the features of each are described on the carton, the customers will most frequently select the highest price item-unless a salesperson comes along to assist them with the selection. When that happens, the salesperson, who is probably working for minimum wage, is unable to justify spending money on the best and manages to talk the customer down to the low-end or middle-of-the-line toaster.

The important element here is the description on the carton. You must give customers a reason for spending more money, but if you can do that, they want to spend more money, not less. I think that spending money is what Americans do best. We love to spend money. We spend six trillion dollars a year in this country, and if we could walk into a store and find a salesclerk who knew anything about the merchandise, we'd spend seven trillion dollars a year. And that's when we're spending our own hard-earned after-tax dollars. What if you're asking someone who works at a corporation to spend the company's money? There's only one thing better than spending your own money, and that's spending someone else's money. If that weren't enough, remember that corporate expenditures are tax deductible, so Uncle Sam is going to pick up 40 percent of the bill.

So, I believe that we've had it all wrong for all these years. When we're trying to sell something to somebody, she doesn't want to spend less money; she wants to spend more. However, you do have to do two things:

1. You must give her a reason for spending more.

2. You must convince her that she could not have gotten a better deal than the one you're offering her.

That second point is where Power Negotiating comes in because everything I teach is designed to convince the other people that they won the negotiation and that they couldn't have done better. Let's face it, does what you pay for something really matter? If you're going to buy a new automobile, does it matter if you spend $20,000 or $21,000? Not really, because you'll soon forget what you paid for it, and the slight increase in payments is not going to affect your lifestyle. What really matters is the feeling that you got the best possible deal. You don't want to go to work the next morning and have everybody crowded around to admire your new car when somebody says, "How much did you get it for?"

You say, "I worked out a terrific deal. I got them down to $21,000." "You paid what?" he replies. "My friend bought one of those, and he paid only $20,000. You should have gone to Main Street Auto Mall." That's what hurts-the feeling that you didn't get the best deal.

The objection that every salesperson hears most is the price objection. "We'd love to do business with you, but your price is too high." Let me tell you something about that. It has nothing to do with your price. You could cut your prices 20 percent across the board and you'd still hear that objection. I trained the salespeople at the largest lawn mower factory in the world. You probably own one of their products because they manufacture most of the low-end private label lawn mowers that discount and chain stores sell. Nobody can undercut their production cost on lawn mowers. They have it down to such a science that if you bought one of their mowers at Home Depot and you tipped the kid who carries it to your car a dollar; the kid made more on the lawn mower than the factory did. That's how slim their profit margins are. However, when I asked them to tell me the number one complaint they hear from the buyers at stores, guess what they told me? You got it. "Your prices are too high."

You hear that complaint all the time because the people you're selling to study negotiating skills too. They meet in groups at their conventions and sit around in the bars saying things like, "Do you want to have fun with salespeople? Just let them go through their entire presentation. Let them take all the time they want. Then when they finally tell you how much it costs, lean back in your chair, put your feet up on the desk and say, 'I'd love to do business with you, but your prices are too high.' Then try not to laugh as they stammer and stutter and don't know what to say next." Instead of letting this kind of thing work you up into a sweat, adopt the attitude that negotiating is a game. You learn the rules of the game, you practice, practice, practice until you get good at it, and then you go out there and play the game with all the gusto you can muster. Negotiating is a game that is fun to play when you know what you're doing and have the confidence to play it with vigor.

The next time you're trying to get somebody to spend money remember that they really want to spend more money with you, not less. All you have to do is give them a reason and convince them that there's no way they could get a better deal.

Things That Are More Important Than Money

A reporter at a press conference once asked Astronaut Neil Armstrong to relate his thoughts as Apollo 11 approached the moon. He said, "All I could think of was that I was up there in a spaceship built by the lowest bidder." A cute line, but he was falling prey to a popular misconception that the government must do business with anybody who bids the lowest price. Of course, that's not true, but it's amazing how many people believe it. I hear it all the time at my Secrets of Power Negotiating seminars: "What can we do when we have to deal with the government? They have to accept the lowest bid."

I once found myself sitting next to a Pentagon procurement officer on a flight to the East Coast, and I raised this point with him. "All the time I hear that the government has to buy from the lowest bidder. Is that really true?"

"Heavens no," he told me. "We'd really be in trouble if that were true. Cost is far from the top of the list of what's important to us. We're far more concerned with a company's experience, the experience of the workers and the management team assigned to the product, and their ability to get the job done on time. The rules say that we should buy from the lowest bidder who we feel is capable of meeting our specifications. If we know that a particular supplier is the best one for us, we simply write the specifications to favor that supplier."

Of course, that is the key to selling to government agencies, whether it is the city, county, state, or federal government. If you want to do business with any level of government, you should become known as the most knowledgeable person in your industry, so that when the agency starts to prepare bid specifications, they welcome your advice on what they should specify. Fortunately, the trend is away from this type of direct bidding and toward the government agency hiring a private sector project manager to supervise the work. By inserting this middle person, they avoid the obligation to let bids and instead let the middle person negotiate the best deal.

So even with the federal government, price is far from the most important thing. When you're dealing with a company that doesn't have legal requirements to put out a request for bids, it's far from the top of the list. Just for the fun of it, review the following list of things that are probably more important than price to buyers.

  • The conviction that they are getting the best deal you're willing to offer.

  • The quality of the product or service. This is an interesting one because I frequently hear from salespeople that they sell an item that has become a commodity, and it doesn't matter which source the buyer uses and that the buyer wants only the lowest price. Baloney. If that were true 90 percent of companies supplying such products or services would be out of business. If that were true, the only company that could exist in the market place would be the one offering the lowest price, and that's a nonsensical proposition.

  • The terms that you offer. Many large companies make more on the financing of their product than they do the sale of the product. I recently leased a top-of-the-line luxury automobile and became convinced that making the car was only a small part of what this company did. The real money was in financing the lease or the purchase.

  • The delivery schedule that you offer. Can you get it to them when they need it and be counted upon to keep on doing that? Do you offer a just-in-time delivery system? Are you willing to let them warehouse the product and bill them as they use it?

  • The experience you have in delivering the product or service. Are you familiar with their type of company and the way they do business? Are you comfortable with that kind of relationship?

  • The guarantees that you offer and, in general, how well you stand behind what you do. I once paid several hundred dollars to buy a product from a Sharper Image store. After a few months, a part on it broke, and I called their 800 number to see if they would take care of the problem. After listening to me only long enough to understand what the problem was, the operator said, "If you'll give me your address I'll FedEx a replacement part to you."

    I said, "Don't you need to know when and where I bought it? I'm not sure that I can find my receipt."

    "I don't need to know any of that," he told me. "I just want to be sure that you're happy with what you bought." When a company stands behind what they do to that extent, am I really going to worry about whether they have the lowest price or not? Of course not.

  • Return privileges. Will you take it back if it doesn't sell? Will you inventory their stock and do that automatically for them?

  • Building a working partnership with you and your company. The old adversarial relationship between vendor and customers is disappearing as astute companies realize the value of developing a mutually beneficial partnership with their suppliers.

  • Credit. A line of credit with your company may be more important than price, especially to a start-up company or in an industry where cash flow is cyclical, and you could take up the slack during the lean months.

  • Your staff. When the contract calls for something to be made (aerospace, construction) or a service to be performed (legal, audit or accounting work, computer services) other factors may be more important than price:

    The quality of the workers that you will assign to the job.
    The level of management that you will assign to oversee the work.

  • The ability and willingness to tailor your product and packaging to their needs.

  • The respect that you will give them. Many times a company will move from a large vendor to a smaller one because they want to be a substantial part of the vendor's business to have more leverage.

  • Peace of mind. AT&T keeps my telephone business although they are more expensive than Sprint and MCI and have never pretended that they aren't. I stay with them because the service has been trouble free and simple to use for many years, and I have more important things concerning me than switching long distance companies to save a few pennies a call.

  • Reliability. Can they trust that the quality of your product and service will stay high?

    Finding Out How Much a Seller Will Take

    Now let's look at some techniques to find out the seller's lowest price. When you are buying, the negotiating range of the seller ranges from the wish price (what they're hoping you'll pay) all the way down to the walk-away price (at anything less that this they will not sell at all). The same is true in reverse with the buyer. How do we uncover the seller's walk-away price? Let's say that your neighbor is asking $15,000 for his pick-up truck. Here are some techniques you can use to uncover his lowest price.

  • Ask. That may seem incredibly naive, but if he's not a good negotiator, he may just tell you what's on his mind. Of course, a Power Negotiator won't fall for that, but many people will. If he's a Power Negotiator, he will automatically turn the tables on you by saying, "I think $15,000 is a very fair price, but if you want to make me an offer somewhere close to that, I'll talk it over with my wife (Higher Authority-see Chapter 7). What is the best price you would offer me?"

    Of course, the way that you ask for his lowest price makes a big difference. Try these approaches:

    "I'm really interested only in a pick up truck for occasional use, not one as fine as yours. I'm looking at one that the owner's asking only $5,000 for. However, I thought I'd be fair to you and ask you what the least you'd take would be."

    Or the Reluctant Buyer approach (see Chapter 5): After spending a lot of time looking it over and asking questions you say, "I really appreciate all the time you've taken with me on this, but unfortunately its not what I was looking for. But I wish you the best of luck with it." Then, when you're halfway into your car to leave you say, "Look, I really want to be fair to you because you spent so much time with me, so just to be fair to you, what is the very lowest price you would let it go for?"

  • Drop out of contention but tell him you have a friend who might be interested. You might say, "Thanks for showing it to me but it's really not what I'm looking for. However, I do have a friend who's looking for something like this, but he doesn't have much money. What's the very least you'd take?"

  • Nibble for a finder's fee. "If my friend did buy it from you, would you give me a $500 finder's fee?"

  • Offer something in return to see if it will cause them to lower the price. "Would you take less if I let you borrow it once in a while?"

  • Have other people make super-low offers to lower the expectation of the seller. This is unethical of course, but I'll tell you about it so that you will recognize it when it's used against you. If the seller has high hopes of getting $15,000 for his truck, your offer of $10,000 may sound like an insult. However if he's had only two offers so far, one for $7,000 and the other for $8,000, when you come along and offer him $10,000, he may jump at it.

  • Make a low offer subject to the approval of a higher authority. "My buddy and I are going in on this so I'll have to run this by him, but would you take $10,000?"

    Now let's look at some techniques that a seller could use to find out how much a buyer is willing to pay. Let's say that you sell switches to computer manufacturers. Here are some techniques you could use:

  • Raise their top offer by hypothesizing what your higher authority might be willing to do. Perhaps they buy similar switches now for $1.50 and you're asking $2.00. You might say, "We both agree we have a better quality product. If I could get my boss down to $1.75, would that work for you?" Protected by Higher Authority, it doesn't mean that you have to sell them to him for $1.75. However, if he acknowledges that $1.75 might be workable, you have raised his negotiating range to $1.75 so that you're only 25" apart instead of 50".

  • Determine their quality standards by offering a stripped down version. "We may be able to get down below $1.50 if you don't care about copper contacts. Would that work for you?" In this way you probably get them to acknowledge that price isn't their only concern. They do care about quality.

  • Establish the most they can afford by offering a higher quality version. "We can add an exciting new feature to the switch, but it would put the cost in the $2.50 range." If the buyer shows some interest in the feature, you know that they could pay more. If he or she says, "I don't care if it's diamond plated. We can't go over $1.75," you know that fitting the product to a price bracket is a critical issue.

  • Remove yourself as a possible vendor. This disarms the buyer and may cause him to reveal some information that he wouldn't if they thought you were still in the game. You say, "Joe, we love doing business with you, but this item is just not for us. Let's get together on something else later." Having disarmed Joe in this way, a little later, you can say, "I'm sorry we couldn't work with on the switches, but just between you and me what do you realistically think you can buy them for?" He may well say, "I realize that $1.50 is a lowball figure, but I think I'll get somebody to come down to around $1.80."

    As you can see from all we've talked about here, there's a lot to be said about the subject of price. Power Negotiators know not to exacerbate the price problem by assuming that price is uppermost in the other person's mind. Also it is ludicrous to say that what you sell is a commodity, and you have to sell for less than your competitor's price for you to get the sale.

    Roger Dawson
    Founder of the Power Negotiating Institute
    800-932-9766
    RogDawson@aol.com
    http://www.rdawson.com

    Roger Dawson is the author of two of Nightingale-Conant's best selling audiocassette programs, Secrets of Power Negotiating and Secrets of Power Negotiating for Salespeople. This article is excerpted in part from Roger Dawson's new book - "Secrets of Power Negotiating", published by Career Press and on sale in bookstores everywhere for $24.99.

  • Sunday, July 27, 2008

    How To Get People To Give You What You Want

    Writen by Anna Johnson

    Intrigued?

    Suspicious?

    Don't worry, I'm not about to suggest any mind control techniques!

    In fact, I'm going to suggest something quite the opposite. But first, let me explain why this article is about "getting people to give you what you want."

    Well, the truth is, no matter what you do for a living - whether you're self-employed, run a business, manage people or work for someone else -- you need OTHER PEOPLE'S HELP to get ahead.

    Whether it's getting customers to buy, managers to promote you or give you a pay rise, colleagues to help you... much of your success -- however you define it -- depends on persuading people to give you what you want.

    So how do you do it?

    You know what I'm about to say, right?

    Yes, that's right: to get others to give you what you want, you must first give them what THEY want.

    But within that simple statement are some critical distinctions.

    Firstly, you need to find out what that someone else REALLY wants. This may or may not be obvious... and it may not be what they say they want!

    Here's a clue: focus on the BENEFIT they're seeking, rather than the MEANS by which they think they'll get that benefit. In many cases, a different means is just as (if not more) effective to delivering the benefit they want.

    Which is just as well, because you may only be able to deliver the benefit through an alternative means.

    Your next "task" is to identify whether you can -- and are willing -- to provide what this person wants. Will the "cost" of you providing it be too much (greater than the benefit you'll gain)?

    Or is it no sweat at all?

    Finally, you need to be able to COMMUNICATE to the other person that if they give you what you want, you'll give them what they want.

    This "persuasive communication" (otherwise known as good, old-fashioned SELLING) firstly requires you to communicate in a way that the person UNDERSTANDS. (NOT how you "think" they'll understand.)

    So you need to use the language they understand best -- not just in terms of "speaking language", but also in terms of using sensory cues (e.g. diagrams, sounds, etc), and explanatory "techniques" (e.g. stories, examples, etc) that appeal to them.

    Secondly, you need to be PERSUASIVE. This involves appealing to the person's emotional triggers, motivations, beliefs, attitudes, values and sense of logic.

    A lot of selling and negotiation training programs focus on "persuasion." And rightly so. But you can probably see that YOU'LL ONLY BE PERSUASIVE if:

    -- You know what the person really wants;
    -- You can (and are willing to) give it to them; and
    -- You communicate clearly (so they understand).

    So that's all there is to getting people to give you what you want!

    Okay, okay, I never said it was easy ;-) But it is effective -- you just need to patiently and diligently discover what your "prospect" truly wants; decide that you can and will provide this to them; and communicate that you will give them what they want if they give you what you want through clear and persuasive communication.

    Anna Johnson is the author of the How To Manage People System, including her book, How To Manage People (Even If You're A Control Freak!). Get Anna's FREE 12-page report How To Be An Outstanding Manager -- The 8 Vital Keys To Managing People Effectively

    Saturday, July 26, 2008

    Secrets Of Successful Negotiators

    Writen by Kurt Mortensen

    Persuasion occurs when your ideas are so convincing that the other party ends up adopting your point of view. With persuasion, there is no compromising as there is in negotiation. Rather, the other party willfully and enthusiastically abandons their position to embrace yours.

    This abandonment is not brought about by manipulation because the other party clearly sees the gains and advantages of doing business with you. Negotiation, on the other hand, is a process of give and take. It's being able to overcome objections on both sides of an issue and ultimately reaching some common ground. While persuasion is the ultimate ideal, anytime any one of us is presenting our ideas, the other party is often equally committed to their own convictions, thus making negotiation the next best path. Often when we hear the word "negotiation," we think of a complex deal going on in the business world.

    In reality, however, all of us are involved in multiple negotiation processes every day. For example, when you want steak but your spouse wants lasagna, you may banter back and forth about why one is better than the other. In the end, however, you end up going to a place that offers a bit of both. In that instance, you may not have thought of yourself as negotiating, but that's really what it was. Negotiation is so common in day-to-day life that you must master the skills of great negotiators to become a Master Persuader.

    Negative Associations with Negotiation

    While persuasion is what most of us are striving for, cooperative negotiation can yield win-win situations and should not be overlooked. In the previous example in which the spouses were trying to agree on dinner, both parties win because they end up going to a place that offers both of their dining preferences. Neither party has to compromise; both parties get what they want. When discussing negotiation in training seminars, I ask the audience what their perceptions of negotiation are. I commonly hear things like "two parties ready to fight," "frustration," "manipulation," "long hours," "deceit" and the list goes on and on. Despite what my audience members might suggest, there are only four true outcomes to negotiation: win-win, no deal, lose-lose or win-lose. The problem is that too often we get stuck in the mindset that negotiation is a game like football. That is, we think there has to be a clear-cut winner and loser. That mentality, however, does not reflect real negotiation. The truth is, everyone can win in a negotiation setting. If we want to use a sports analogy, a better one would be tandem parachuting. Tandem parachuting is where two people jump together, sharing the same parachute. In this sport, like in negotiation, you are in it together, you work together, and when you land safely, everybody wins. If you don't, everyone loses!

    Learning how to persuade and influence will make the difference between hoping for a better income and having a better income. Beware of the common mistakes presenters and persuaders commit that cause them to lose the deal. Get your free report 10 Mistakes That Continue Costing You Thousands and explode your income today.

    Stephen Covey, author of the best-selling book The 7 Habits of Highly Effective People, is a big advocate of either going for the win-win situation or not going for it at all. If you think about it, if it turned out any other way in your own negotiations, would your prospects ever want to do business with you again? Would they recommend you to their friends? Aside from that, it would simply be wrong and any possible short-term gains would not be worth the damage to your reputation and future business.

    Conclusion

    Persuasion is the missing puzzle piece that will crack the code to dramatically increase your income, improve your relationships, and help you get what you want, when you want, and win friends for life. Ask yourself how much money and income you have lost because of your inability to persuade and influence. Think about it. Sure you've seen some success, but think of the times you couldn't get it done. Has there ever been a time when you did not get your point across? Were you unable to convince someone to do something? Have you reached your full potential? Are you able to motivate yourself and others to achieve more and accomplish their goals? What about your relationships? Imagine being able to overcome objections before they happen, know what your prospect is thinking and feeling, feel more confident in your ability to persuade. Professional success, personal happiness, leadership potential, and income depend on the ability to persuade, influence, and motivate others.

    Kurt Mortensen's trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.

    If you are ready to claim your success and learn what only the ultra-prosperous know, begin by going to http://www.PreWealth.com and getting my free report "10 Mistakes That Continue Costing You Thousands." After reading my free report, go to http://www.PreWealth.com/IQ and take the free Persuasion IQ analysis to determine where you rank and what area of the sales cycle you need to improve in order to close every sale!

    Friday, July 25, 2008

    Better Internal Proposals

    Writen by Robert Abbott

    A colleague of mine has a problem. We belong to the same association and he's been trying for quite some time, without success, to get support for one of his proposals.

    His lack of results came to mind when a reader asked for ideas about making internal proposals more effective. As she noted in her message, it's necessary to make a business case for proposals, including costs and returns.

    She's right, and I agree wholeheartedly. In fact I just finished a proposal to an organization I work with and had it accepted on that sort of basis.

    But, I think all good proposals start where my colleague has trouble. They start with a clear and concise statement about the project: "This is what I recommend, this is the issue (problem or opportunity) it addresses, and these are the consequences (benefits) of doing what I recommend."

    I frequently come across situations where ideas don't fly because the person making the proposal hasn't prepared that kind of analysis and statement. While the virtue of the ideas seems apparent to him or to her, it's not at all apparent to others. I've referred to it elsewhere as the 'Everybody knows' syndrome.

    To do the analysis, and later write the statement, start with a description of the action that you want taken. In just a few words, write down the what you want to see happen, and how it changes the status quo. For example, I recently went to a meeting with a proposal that went like this: Change the duration of our event to four weeks from the current duration of six weeks, to reduce our costs during a slow period.

    Next, name or list the people or functions involved. Who will take the action? Do you want just one person to act, or several, or many? And, if it involves a multi-stage action, set out the stages. For example, "I would like this committee to formulate a recommendation we can put to a vote at the annual meeting."

    Follow that with a list of people and organizations affected by the action. Be thorough in this consideration; it's all to easy to forget the peripheral players. And very often peripheral players make a critical difference to our plans.

    Now, is there a timeline or sequence of events that needs consideration before a decision can be made or implemented? Almost everything we do in large modern organizations is interconnected to other people and resources. And, what about contingencies? Does your proposal depend on something else happening?

    Having thoroughly explored the proposal and its implications, we now turn to costs and benefits, the business case. What are the tangible and intangible costs? In the intangibles column, make at least a mental note of the emotional costs that key stakeholders will pay. The same is generally true of benefits, or the returns if we're talking about financial components. Remember the important role emotions often play in decisions.

    In summary, then, take a strategic approach to internal proposals, an approach that identifies the issues, the players, and the consequences. This exercise allows you to be clear and concise because you have thought your way through the proposal carefully, and you know the key issues.

    Robert F. Abbott writes and publishes Abbott's Communication Letter. Learn how you can use communication to help achieve your goals, by reading articles or subscribing to this ad-supported newsletter. An excellent resource for leaders and managers, at: http://www.communication-newsletter.com

    Negotiate To Your Advantage

    Writen by John Di Frances

    The hardest and most important part of any negotiation is knowing when to walk away.

    Few things are sweeter than a successful negotiation session where both parties leave the table with a winning solution. That's because the stakes are high: Negotiate too hard and you lose the deal; be too timid and you may not get what you want.

    The three most important concerns in any negotiation are the relationship, the risk, and the value--the real decision criteria underlying any future business transactions. So whether you're negotiating a salary increase with your board or a contract with a vendor, before beginning the process it's critical for you to cross three essential mental bridges:

    1. Clarify the relationship. "What is the current real and perceived business and personal relationship, and what is its true value to my credit union's future?" Far too often people hold on to the past not realizing that they need to let go to be free to reach out for something better.

    Carefully consider what could be lost in this negotiation, but also what new doors may open should there be successful negotiation. Too many business leaders continue with existing relationships beyond their prime simply because it's easier and more comfortable than striking out to develop a new relationship that better suits their organization's future.

    2. Clearly structure the outcome both parties desire. Very often, people enter a negotiation with the drive to win, but they never commit to paper beforehand precisely what that means. Yes, they have a general idea (to place the contract at the best price or cost); however, they haven't defined the optimal combination of price/cost and all other terms that reflect both parties' best long-term interests.

    Identify what it will take for all parties to believe they've been treated fairly. Outlining what each party should view as a "great deal" often leads to the optimum win-win agreement. After all, negotiating is merely a more formalized variation of common marketplace bartering. It's all about give and take and each party's perceptions of value. You offer. They counter. You respond. And so it goes.

    3. Determine your walk-away point. The hardest and most important part of any negotiation is knowing when to walk away. Decide when you'll walk away from the deal before the negotiation process, because it's difficult to identify it in the heat of the negotiation.

    It's important to approach your walk away point calmly, as negotiators truly need to understand what each side requires to make it a "great win-win" agreement. Then, if the other side becomes unreasonable and prevents your desired outcome from happening, weigh the predetermined value you placed on the relationship as well as ask the question, "Do we really have a mutual relationship or merely one party taking undue advantage of the other?"

    Once you've laid out the previous three steps you can begin negotiation, realizing that at times the process requires the patience and confidence to be still. For example, if the other party precipitates a long silence then wait, say nothing, and let the other party break the silence.

    While it's important to hold out firmly for your high priority/risk issues, holding out for a lost cause isn't in your best interest. Know when to give in on a point. If it's not a walk away issue, then concede and negotiate onward. Most important, realize when you're approaching the walk away point. That will help you try and steer the negotiations away from falling unnecessarily into a downward spiral, where relationships deteriorate and from which it's often impossible to recover.

    Copyright 2005 by John Di Frances.

    John Di Frances is an internationally recognized organizational legacy expert and motivational speaker. http://www.difrances.com

    Thursday, July 24, 2008

    Negotiating Skills Will Get You Ahead

    Writen by Garrett Coan

    Negotiating skills can help you manage lots of different kinds of life situations, both at work and in your personal relationships. Here are a few examples of where these skills can help you build an even better life for yourself:

    1. Many family situations require negotiating with others. Deciding which movie to see, planning how to spend money, choosing a vacation spot, and many other decisions work best when you have these skills.

    2. Being a good negotiator enables you to get what you want more often without resorting to becoming aggressive or pushy. Negotiating with others is more effective than simply demanding what you want or just caving in.

    3. You will be more successful in the workplace if you know how to negotiate. These skills enable you to stand up for yourself and get what you want more often without harming relationships with bosses and coworkers.

    4. Negotiation skills increase your personal effectiveness in any group situation, such as volunteer groups, the PTO, and church or synagogue groups.

    5. Knowing how to negotiate lessens the chances that others will take advantage of you.

    6. Negotiating a fair solution makes you feel good about yourself and increases others' respect for you.

    What Successful Negotiators Do

    What exactly is negotiation? It is a set of skills that anyone can learn. When researchers have observed the behavior of negotiators, they learned that the most successful negotiators do the following things:

    1. They plan ahead. Successful negotiations are rarely spontaneous. Taking the time to analyze the situation and think through your strategy is perhaps the most important element of negotiating success. This is true whether you are negotiating an important contract for your employer or negotiating your vacation plans with your family. Example: Anthony wants to begin running again to get into better physical shape. He became a new father 18 months ago and has had no time to exercise. He anticipates that Belinda, his wife, will resist any discussion of his wanting to take time for himself, since the responsibilities of parenthood are so time-consuming. For a while, he avoids the subject, fearing that it will turn into an argument. Then he starts to feel angry and resentful. He decides to negotiate with Belinda and begins by making a list of his needs and wants, as well as her needs and wants.

    2. They are willing to consider a wide range of outcomes and options rather than rigidly insisting on a specific result. Negotiators who are most successful are open-minded and avoid being locked in to one outcome. They are willing to consider many possibilities and combinations of options.

    Example: Lisa is feeling very stressed by the long commute to her job. She was thinking of resigning until she decided to make a list of other options. She came up with several alternatives: working from home two days a week, working part-time rather than full-time, working flexible hours to avoid rush hour traffic, and working from home every fourth week.

    3. They look for common ground rather than areas of conflict. Pointing out areas where you and the other person are already in agreement conveys an attitude of cooperation and lessens any feeling of opposition.

    Example: Sandy wants her next car to be a Volvo because of their reputation for safety. George wants a sports car. She says, "Let's talk about what we agree on. First, we both agree that the car has to have a strong safety record. Second, we want to buy a new car, not a used one like last time. And third, we've set our price range as $40,000 or less."

    4. They discuss the key issues in order of priority. Have a clear idea of what the two or three key issues are and which is the most important. Start with the most important issues and proceed to those that matter less. If you can reach agreement on the most important things, the lesser issues will most likely be easier to resolve. Example: Carol wants her next family vacation to be something really special—either a Caribbean cruise or a trip to San Francisco. She and her family have visited relatives or stayed at home for the past few years. She wants the family to have an experience they will always remember before Todd, their adolescent son, grow ups and moves away. She sees the key issues as follows: (1) There are only three years left before Todd leaves. He is not likely to join us for a vacation after he finishes school; (2) It is important to have an exceptional vacation at least once in your life; (3) If we plan ahead and save the money, we will be able to afford the cost of such a trip.

    5. Skillful negotiators avoid behavior that the other person is likely to consider annoying. This includes any of the following kinds of behavior: having an aggressive or intimidating manner, using sarcasm, using negative body language, or talking loudly. Not only do skilled negotiators avoid such behavior, they work hard at conveying an attitude of cooperation, reasonableness, openness, and friendliness. Example: Jed is negotiating the details of his new job with his new employer in the Chicago area. When Jed moves from Memphis to Chicago to begin work, he wants Sarah, his new boss, to give him three paid days off to get settled in his new apartment. Sarah is resisting the idea. Jed says, "I thought you would be more understanding about what it takes to get settled. A reasonable person would see that this is a small request." This sarcastic remark is likely to create some doubts in Sarah's mind rather than convince her to give Jed what he wants.

    6. Good negotiators avoid participating in a defend/attack spiral. You know what this sounds like:

    A attacks B

    B defends herself and attacks A

    A defends herself and attacks B

    B defends herself and attacks A

    We've all experienced being caught in one of these spirals and know how nonproductive they are. Rather than perpetuating such a process, the successful negotiator puts a stop to it by choosing not to say anything that would be perceived as aggressive or defensive.

    Example A

    Jim: "I can't believe you are being so rigid."

    Anne: "Rigid! You should talk! You are completely bull-headed."

    Jim: "Right! You should try listening to yourself. You are impossible."

    Example B

    Jim: "I can't believe you are being so rigid." Anne: "You're not happy with what I've asked for." Jim: "You're damn right! You have to consider what I want." Anne: "Tell me more about it, then. I'll be happy to listen."

    In example A, Jim and Anne dig themselves in deeper with each statement. In example B, Anne blocks the defend/attack spiral and makes it possible for communication to resume.

    With practice, you can learn to use these simple skills to get more of what you want in life—without coming across like a bully. In fact, these skills help you reach agreements that are more likely to satisfy both parties while maintaining a positive relationship. Try them in your work life or at home—they work equally well in either setting.

    Garrett Coan is a professional therapist,coach and psychotherapist. His two Northern New Jersey office locations are accessible to individuals who reside in Bergen County, Essex County, Passaic County, Rockland County, and Manhattan. He offers online and telephone coaching and counseling services for those who live at a distance. He can be accessed through http://www.creativecounselors.com or 201-303-4303.

    Negotiating In A Crisis Situation The Time Factor

    Writen by Lance Winslow

    When negotiating in a crisis situation time is always a major consideration. Time can be your best friend and how you use it will determine your outcome many times. Ask any hostage negotiator about time, it is always the key. The key to Negotiating in a Crisis Situation is time; The Time Factor must be considered.

    Juries often swing from one side to the other due to time factors, other responsibilities, family issues, it is often as much about time as it is about the actual circumstances. It is amazing how time affects the human brain and those caught up in a larger game.

    Sometimes time will allow things to mend themselves and often the problems will go away. Sometimes there is no time left, no more time out and the ball is in play and negotiation time is well, out the window, so watch it fly.

    Take the current situation with the Iranian enrichment of Chinese Uranium stock to make Atomic Bombs or nuclear tipped warheads to shoot into Israel or to Blow Israel off the Map, as stated by the Iranian President? Well time is of the essence and therefore we are now Negotiating in a Crisis Situation. Why you ask? It is all about; The Time Factor.

    When negotiating use time wisely, watch the clock, use time as gift or a hatchet. Show the other party you are serious thru action and never lie to time, because it is a free flowing tool and once it is spent your negotiation could reach an impasse and then all bets are off. Consider this in 2006.

    "Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/

    Wednesday, July 23, 2008

    How To Make An Inflexible Bureaucrat See You As A Person

    Writen by Tristan Loo

    Inflexible Bureaucrats Are Characterized by:

    1. Cares little about your happiness in life
    2. Sees people as numbers rather than faces
    3. Pushed for time
    4. Handles each person the same i.e. scripted procedure
    5. Hides behind policies and rules
    6. Cannot look outside of the box
    7. May have trouble remembering who you are due to a large volume of contacts
    8. May not want to reveal anything about their interests

    Description

    The bureaucrat is the grunt of an organization, originally meant for government institutions, but has been broadened to encompass any large organization or company. Bureaucrats include customer service representatives, insurance claims filers, civil servants, social workers, airport employees etc. The bureaucrat typically views his clients as numbers rather than faces and is usually overworked and underpaid and underappreciated. Because of the large volume of contacts that the bureaucrat handles on any given day, they often forget who they are dealing with and you become just another number.

    How To Deal With The Bureaucrat

    1. Be polite and respectful of their position. Too often, the first things out of a customer's mouth is some type of accusatory complain such as, "You people screwed up again." While your anger might be justified, remember that the bureaucrat might not know who you are and will be less inclined to help you if you are verbally abusive towards them.

    2. Make sure that they have the authority to negotiate. Make sure you don't waste your time dealing with someone who does not have the authority to negotiate with you. For example, if I was at a restaurant and wanted to order a dessert from the menu, then I would ask for a waiter or a waitress to help me rather than going to the chef or dishwasher. On the same note, make sure you don't automatically demand to speak to their superior because the subordinate will perceive that as a threat and react defensively against your favor. Also, their boss does not usually have the sufficient background information necessary to make a decision on your particular situation and many supervisors do not like overruling the decisions of their subordinates. They are more interested in the level of service that the subordinate provided you with because their expertise is in management.

    3. Make sure that they fully understand your situation. Explain your situation in detail and make sure that they understand the problem you are facing before moving on to solutions. The bureaucrat needs to have a firm understanding of your problem in order for them to feel comfortable helping you with anything, so ask them rhetorical questions like, "Do you understand?" "Do you see where I'm coming from?" "Do you have any questions?"

    4. Acknowledge their expertise and ask for help. Treat the bureaucrat as an expert in their subject and ask them for advice. Bureaucrats constantly get verbally attacked everyday about being ignorant or not knowing enough, so make yourself stand out and treat them like they had a PhD in their subject. This type of ego-stroking will persuade them to come up with options that you might not have thought of before.

    5. Discuss the spirit versus the letter of the law or policy. Often to prove their point, bureaucrats will open up a 900 page company bible or law book and quote to you section, chapter, paragraph, and line of the company policy on why they can't help you. As with any law or policy, there is some leeway for interpretation. There is the letter of the law—the specific words in that policy or law that dictate enforcement, and there is the spirit of the law—the specific intent of the authors who wrote that law or policy. You might want to point out that the policy is good and purposeful, but it does not apply in your case because of your situation does not conform to the original spirit of that law or policy.

    6. Determine a fair standard. Discuss with them what is a fair standard for your particular situation. If you are calling them because of a product defect, then what is the fair standard of getting that replaced or refunded? Agree on what is an objective criteria to filter your options through.

    7. Have your plan B ready. There is no formula for a 100% successful negotiation, but there is a formula for moving forward regardless of the outcome—and that is your plan B. Have your plan B fully developed and ready to go before dealing with a bureaucrat and you will not only have more confidence negotiating with them, but you will also be able to move forward regardless of the negotiating outcome.

    About The Author

    Tristan Loo is an experienced negotiator and an expert in conflict resolution. He uses his law enforcement experience to train others in the prinicples of defusing conflict and reaching agreements. Visit his website at http://www.streetnegotiation.com or e-mail him directly at tristan@streetnegotiation.com

    Tuesday, July 22, 2008

    What Is A Procurement Service Provider

    Writen by William Dorn

    The State of Massachusetts has defined Procurement as "the process to obtain materials, supplies, contracts at the best price reasonably available through open and fair competition."

    The use of Procurement Service Providers is rapidly increasing due to global market conditions and the need for businesses to maintain and reduce costs without eliminating resources. Many world-class organizations have already contracted with PSP's and estimates show that nearly half of U.S. companies are considering using PSP's in the next five years. Please read the information below to learn more abut Procurement Services Providers.

    Defining a Procurement Service Provider?

    A Procurement Service Provider, or PSP, is a third party organization or consultant which is used to supplement internal procurement departments. PSP's have their own staffing which assist in a variety of tasks for their clients. These tasks include: strategic planning, implementing best practices, supplier rationalization, supplier collaboration, strategic sourcing and negotiation.

    "Enterprises utilizing PSP's have been able to improve spending coverage, reduce costs for goods and services, employ industry best practices, leverage the latest procurement technologies, and streamline source-to-pay processes - all without taking on the risks and assets required to achieve such results."

    Aberdeen Group Research Abstract You Will Outsource Procurement: Here's Why and How - October 16, 2002

    Why use a Procurement Service Provider?

    At most organizations, it is very expensive and difficult to maintain domain expertise in every category of spend. Using a PSP avoids the burdens of procurement infrastructure for non-strategic categories. A Procurement Service Provider can provide a rapid analysis of an organizations spend and implement changes, negotiate with suppliers, and use proven industry best practices. A good PSP will become an extension of the organization's existing procurement resources, in a non-obtrusive fashion.

    In a recent article titled "Strategic Sourcing in the Mid-Market Benchmark: The Echo Boom in Supply Management", the Aberdeen Research Group wrote about potential new approachs of Mid-Market company's sourcing initiatives due to findings showing that they currently have mostly fragmented or limited sourcing efforts. Specifically, to remain competitve, Mid-Market companies should have "Increased reliance on third-party consultants to help define strategic sourcing process and train internal employees on commodity costing models, sourcing automation tactics, and category and supply market assessments."

    Additional research shows:

    "...research of enterprises that have outsourced management of specific procurement processes and/or specific categories of spending have been able to achieve material cost reductions that average between 10% and 25%. In some cases, material cost reductions topped 30%."

    Aberdeen Group Research Abstract You Will Outsource Procurement: Here's Why and How - October, 16 2002

    How do I use a Procurement Service Provider?

    The answer is: It is up to you. Some organization choose to completely outsource their procurement departments to a dedicated procurement company. However, this is not possible for most customers due to the complexity of their business and the goods/services that are purchased to support it.

    Every organization is unique, and there is no single answer that works for any organization. Procurement Service Providers can be used in any of the following scenarios: replace your current procurement department, supplement your current resources in strategic or non-strategic product areas, provide electronic tools to make your procurement department more efficient, or simply as consultants for implementing best practices.

    Keep in mind that you do not have to outsource your entire procurement network, it is usually best to select a target area, and gain top-level support within your organization before contracting with a Procurement Service Provider.

    How do I decide who to use?

    There are a large variety of Procurement Service Providers in the market, and new companies are moving into the market every day.

    Many Procurement Service Providers only offer a "piece" of a solution, such as electronic tools or commerce, or they take over your process, produce some results, and never transfer the knowledge back to your team.

    When selecting a Procurement Service Provider, it is recommended you follow these steps:

    Select an Organization that has a variety of product offerings. (try to select an organization that offers a combination of tools, consulting, or implementation skills. This will provide your oganization with the best possible result, as each piece individually does not provide the results that an entire solution can offer)

    Select an Organization that has been established longer than 5 years. (this may help to eliminate the new consultants that have moved into the market recently and are simply looking to make a profit off of your organization, often at the expense of your vendor relationships)

    Select a Procurement Service Provider that covers a variety of Procurement Product & Service Areas (instead of contracting multiple procurement service providers, find a single provider that has had experience or qualifications to handle all of your target procurement areas. It is not advisable to hire multiple consulting firms that each specialize in 1 or 2 target areas. It will be draining on your resources to manage the multiple contacts and projects, and most single product area service providers do not respect your relationship with your vendors) .

    Check Reference (Any established Procurement Service Provider should be able to provide you with references that are in some way related to your organization)

    William Dorn is the Director of Operations for Source One Management Services. William Dorn has experience in areas such as quality assurance, business analysis, mechanical and manufacturing engineering, infrastructure design, business process reengineering (BPR), project risk analysis, best practice consulting, and extensive experience in large scale (COTS) systems implementations.

    Monday, July 21, 2008

    If I Knew Being Brave Was So Scary I Never Would Have Tried It

    Writen by Suzanne Freiberg

    I'm feeling really scared right now, not because I'm in a scary situation, but because I was brave and it was scary.

    In reality it was a little incident that brought me to this scary place; I had to assert my rights in a business dispute and request that someone else fulfill their obligations. Sounds reasonable enough. Even sounds like a daily occurrence for some business people. Hmmm…then why is it that facing a reasonable, somewhat daily occurrence makes me so very scared? I'm guessing that it has nothing to do with this specific incident, and everything to do with my amygdala. Yes, I said amygdala, not armadillo!! However, if I had an armadillo it would scare me too!

    The amygdala is the part of our brain that holds emotional memories; those two words emotional memories are the key. Whenever we are faced with a stressful event or crisis, which awakens our emotional memories, our amygdala "hijacks" our working memory. We then experience the classic "fight or flight" reaction, with a flood of adrenalin and cortisol. When cortisol levels are high, we make more mistakes, are more distracted, and can't remember as well; even if we are only trying to recall something we just read. In other words, when we are hijacked by our amygdala we all become very, very scared.

    The trick to dealing with hijacks in the work place is to become more self-aware and make different choices. First recognize what you are feeling, second realize which one of your emotional memories caused the hijack and finally choose to respond in a new way. Of course all of this requires being brave, but you can't be brave until you have first been scared. Think of it this way, being scared is the first step in being brave.

    In my case, my amygdala hijacked my emotions (meaning simply that I was really, really scared without a really, really good reason) when I had to assert my rights and request someone fulfill their obligation. Although this might cause some of us to be intimidated there is a smaller select group of us that would feel more scared than intimidated. I was not so much scared of requesting someone do their job, as I was scared that they would think I had no right to tell them what to do, even though they were working for me. My rights seem to always be trumped by someone else's right to act however they want, even if they are treating me unfairly. When my rights are involved – I recognize that the first thing I feel is "scared"; a classic hijack!

    Second, I had to realize the root cause of that feeling. Trust me on this one, once you know your root cause it is easier to see that all the emotion you are pouring into a hijacked situation is really coming from another place, a place in your emotional memory. This is a little like once you have been traumatized by a rabid, foaming at the mouth dog, in the future, the mere sight of any dog can cause you to run for the hills. A classic "fight or flight" amygdala hijack moment!

    Finally, we can all choose to respond to hijack attempts in a new way. Just because you have tried to be brave in the past and ended up over-the-top scared in the process doesn't mean that is how you will always react. Once you have recognized you are in the midst of a hijack moment, and realized the root cause, then remind yourself that because you are now more self-aware, you have the power to choose a new, healthier response. Oh yeah, you will still be scared the first few times you try this, but each time you should be just a little less scared and a little more brave.

    There you have it; why being brave is so scary. In reflection, if I had known becoming brave would have required so much of being scared first, I would have done it anyway. I prefer to be more self-aware by recognizing my feelings, realizing why I feel them, and responding to them in a healthier manner. Well, at least most of the time.

    If you would like more information about developing your own self-awareness in the work place and finding new ways to make different choices, then visit our web site @ www.smartworkcareercoaching.com, or contact one of our SmartWork Career coaches @ 805.376-1906 or e-mail suzanne@smartworkcareercoaching.com. Our coaches will help you to become more self-aware, develop clarity, and create an action plan to get from where you are to where you want to be in your career and in your life.

    1.Daniel Goleman, "Emotional Intelligence" (Bantam Books 1997)

    Sunday, July 20, 2008

    10 Keys To Guaranteed Success In Negotiations

    Writen by Paul W Wilson

    Negotiating is a skill that like warfare tactics must be honed. It is important to be mentally prepared to win. Do the ground work well before your reach the negotiating table and decide on the "path" you are going to take. Positivity will help as also a sense of confidence and self esteem. Set aside any doubts you may have and stride forward prepared to win at all costs.

    The five cornerstones of successful negotiation skills are placing emphasis on common points; presenting clear arguments; being innovative and open to several options; focusing on the problem being dealt with; looking for a clear solution. The key is to be clear about your preferred outcome. However in the back of your mind you must be willing to compromise to some extent.

    A good negotiator is an excellent communicator and understands how human beings think, feel, and function. You must be able to befriend the people seated on the other side of the negotiating table. You must know when to push hard, when to accept a compromise, and when to walk away. A negotiator is in many ways an artist he needs a great amount of creativity to steer the negotiations to a successful completion. A negotiator must keep in mind the 3Fs: fair, fast, and firm.

    According to the gurus there are tactics to be used for negotiating:

    1. Be focused on the problem or issue. Logical arguments are the key to smooth negotiations.

    2. It is important to be firm yet polite when making a stand or presenting a point.

    3. Clearly emphasize the advantages and disadvantages.

    4. Be patient and let the process of negotiation take its course.

    5. Put ego aside and concentrate on the matter at hand. It is finding an amiable solution that's important not self worth or position.

    6. Never threaten or manipulate the opposite party—it is completely unethical and unfair.

    7. Aim for solutions that are interest based and not what individual desires or aims are. It is best to consider any situation as a whole rather than from a personal view point.

    8. Avoid psychological traps and have the magnanimity to admit when you are wrong. Be open minded.

    9. Don't accept weak solutions and try and negotiate a plausible settlement. Temporary measures are not what you need. A permanent solution must be sought.

    10. Value time, schedules, and deadlines. A good negotiator will not beat around the bush or adopt delay tactics or waste time talking about mundane matters. It is professional to immediately get down to the business at hand.

    Most human beings are born negotiators. From the first breath a baby takes it makes all around him dance to his tunes. Most of us consciously or unconsciously do what we have to do to get our own way in life. And, if we look closely it is just mastering the art of negotiation.

    Paul Wilson is a freelance writer for http://www.Submit-Article-Services.com, the premier Article Submission website including services to submit article, write articles, ghost write articles, plus a guranteed inclusion on 125 sites per article, and more. He also freelances for the premier Domain Site http://www.1866Domains.com

    Saturday, July 19, 2008

    3 Ways To Talk So Clients Listen

    Writen by Robert Moment

    People talk to you everyday—sometimes effectively, often times not. But when it comes to business, you can't afford to not have people listen. It you want your clients to really hear what you have to say, you have to know how to say it in the most effective manner possible. In any given situation—business or otherwise—a person's main motivation is, "What's in it for me?" That means whatever you say has to be geared towards answering that very question for your listener.

    If you're ready to get your point across and be heard, read on to find out how to use a client's self-interest to your advantage and talk so they really listen.

    1. Preparation

    A great sales pitch or presentation always starts long before the client arrives. No matter what you're selling, no one's going to buy it if you don't know your stuff. Preparation is key: you have to know what you're talking about if you want anyone to really listen. Of course, just what kind of preparation will depend on the nature of the material you're presenting, but remember that going the extra mile here will make clients take notice later.

    When preparing for any kind of meeting or presentation, take time in advance to go over all the material you're talking about. You should know the topic well, and have plenty of specifics to use for examples. It can also help to consider beforehand some of the questions that clients might ask. Anticipating their needs will help you be able to answer queries quickly and effectively.

    2. Presentation

    Next, no matter what you're talking about, how you present it has everything to do with how well clients will listen. Anyone adequately prepared can talk for hours—but part of your planning should be how best to present the given material. Decide before you begin just what kind of examples to use, or if there are any ways you can enhance your presentation with audio-visual material, pictures, or illustrations.

    For big presentations, you'll want to practice in the mirror or for friends to make sure you're getting the key points across. To be more effective on a daily basis with all your clients, think of what you say as "mini" presentations. Start by examining your speech for little words like "um" and "ah" that weaken the effect of what you're trying to say—you'll be amazed at how much more attentively people listen.

    As well, take the time to make sure you're well presented: tidily dressed, on time, and polite. Remember that your presentation isn't just what you say—you're a whole package, and how you present yourself needs to reflect that.

    3. Passion

    Finally, the key to talking so clients listen is conveying to them your passion. If you're passionate about something, it comes through in the way you speak, in the way you hold your self, it even shows on your face. There's no amount of preparation or presentation skill that can make up for a lack of passion for the topic or proposal at hand. The most effective speakers are the ones who combine all three in a way that makes people sit up and listen. The trick is to find your own personal balance and make your passion come through above all else.

    So what if you're not passionate about the material? We've all done jobs we didn't like at one point or another, but you find a way to be enthusiastic and energetic about what you're doing by appreciating other sides of it. Getting passionate about something may only mean shifting your point of view. Always try to see things from the client's side, in order to understand just how what you're doing would benefit them. They'll really hear what you have to say when you make it vital and important to them—that's where your passion should lie.

    Remember always that a good talker is also a good listener, and take the time to listen carefully when your clients talk. Take care to keep the client's interests in mind and you're on your way to always talking in a way that makes people listen.

    Preparation, presentation and passion—three simple concepts that when used correctly can make you a great speaker. In private and public life these principles apply, and if you look closely at any of the successful people in your life, you're certain to find them in action. If you prepare in advance and take the time to present yourself and the material well, your passion will come through, and that's when people really listen.

    Robert Moment is an innovative business strategist and author of ,"It Only Takes a Moment to Score" and upcoming book "Invisible Profits: The Power of Exceptional Customer Service". Robert show entrepreneurs how to successfully build and grow profitable service-based small businesses. Visit http://www.howtostartyoursmallbusiness.com and download the FREE Special Report " 17 Profitable Ways to Turn Your Ideas into Wealth."

    Business Keys To Negotiating Well

    Writen by Kim Beardsmore

    Whether it's buying a car, asking for a pay rise, saying 'no' to a friend or renting an apartment - at some stage in our lives we all are going to need to know how to negotiate. Yet, so few of us know the basic skills before embarking on life changing purchases or decisions! These 8 keys will assist you negotiate well.

    1. Know the outcome you want.
    Do you want a win-win outcome where both parties benefit? Or a win-lose outcome where someone (presumably the other party) is not happy with the result?

    It is important you know what type of outcome you want because that will affect the long term relationship you have with the other party. Win-win outcomes are beneficial where you have an ongoing relationship. For example, when you negotiate a pay rise, you don't want your boss to feel he/she is the 'loser'. However, if you are buying a car from a car lot, you may not be so concerned about whether the car salesperson feels as though they 'won' in the negotiation!

    2. Know your 'position'.
    How important is this deal to you? How much do you need it? Could you walk away from the deal? What alternatives do you have? What is your "bottom line" and what (if anything) are you prepared to concede? You should not start negotiating until you have thought through and considered all of the consequences for all of the different outcomes that may eventuate.

    3. Know your counterpart's 'position'.
    Try to work out what is important to them in the deal. When you know that you have an advantage. Try not to reveal what is important to you! Keep a poker face and play your cards close to your chest.

    4. Work out different scenarios ahead of time.
    Being caught by surprise will NOT strengthen your position! Think through all the different possibilities which may eventuate and plan for each and every one of them. It is useful to brainstorm and write down on a piece of paper what could possibly happen. For example, if they said, "XYZ" - I would respond with, "ABC". This way you can be prepared for just about anything that may happen.

    5. Know yourself.
    Know your own weaknesses. If you are a more gentle personality your natural aversion to conflict may toss you into concessions that aren't necessary! If this is you, learn about yourself and take counter action. If you are overly stubborn and never give way to minor points, know this about yourself. Your stubbornness, holding out for 100% your own way, may cause you to lose a really great deal!

    6. Back up your position with logic.
    If you negotiate from a purely emotional position, emotion will sway you from your position. Fear of loss, sense of failure, conflict, pressure, sentiment! All can be applied to sway you from sticking to what you really want. When negotiating for a pay rise know what similar companies are paying for similar work. When placing an offer on a house substantiate your lower offer with the costs of repaving the driveway, renovating the bathroom, retiling the entrance….or whatever you see needs doing. This is a much stronger position than plucking a number out of thin air!

    7. Work out what you can concede.
    Find something in the deal that for you will not be important but for your counterpart may be of significance. This will be like gold to you! A 'sweetener' can be what clinches the bargain in your favour. You will need to be poker faced and pretend this is a big deal to concede! Save this item for the final offer you make.

    8. Have an exit strategy.
    If everything goes against you, you will be saved by your contingency planning! If you don't feel in control, stop talking. Immediately!!! Make sure you are listening to the other person. If you are doing most of the talking the chances are you are doing most of the conceding. Offer to break the meeting and reconvene at another time when you have been able to consider what has already been put forward.

    Skillful negotiation takes time and practice. Armed with these basic skills it doesn't matter how reticent you may feel towards negotiating an outcome you want! By applying these keys you will be well positioned to improve your negotiation skills and feel more empowered when approaching tricky situations.

    © Kim Beardsmore

    Kim is part of an international network of home business owners operating across 60 countries. We urgently require people to join our expanding international team. If you are interested in earning extra income around your current schedule, we would like to hear from you. We provide full training and ongoing support to ensure your success. Visit now: http://free2liv.com/?refid=neg-567887384

    Friday, July 18, 2008

    Getting Every Penny On The Table

    Writen by Don Doman

    In my younger days I was a member of the Jaycees (Junior Chamber of Commerce). Membership at the time was limited to young men 21-35. In Tacoma, our largest fundraiser was the yearly fireworks stand.

    Near the end of June we would sign a contract for an order of fireworks based on the previous year's sales. The fireworks company would deliver the modular panels of the fireworks stand to its location (the same street corner each year), and we would screw and wire it together.

    The fireworks chairman would schedule husbands and wives for their shifts and we would all do our duty. It wasn't hard work. Actually, it was fun. We talked and joked with each other as we waited for customers, just like most businesses. We cleaned up our messes and sometimes like little children we would set off a few fireworks from time to time to alleviate boredom. The last crew would generally close up and then cross the street to the Mountain Tavern for a beer or two and a game of pool.

    In selling fireworks we would see single adult males, parents, grandparents and children . . . lots of children. The fireworks were labeled "safe and sane" so we could legally sell fireworks to any age. Most of us had grown up playing with fireworks both legal and illegal.

    It didn't take me long to develop my sales attitude. Having worked at my parents' motel from the seventh grade up to college, I knew about selling to the public. And as the son of small business owners I knew how important each sale was. For the Jaycees this was the fundraiser that allowed us to run many of our projects during the year, and we had a whole bunch of community projects.

    When kids came up to the stand they would usually take all of their money out of their pockets. With money in hand they would make their purchasing decisions. Since I could easily see what they had to work with, I could put together special packages for them that magically took every single penny from their eager little paws. They were thrilled. I was thrilled.

    When the parents and grandparents came I would listen and watch the interaction of the adults to the children and judge my packages accordingly. I would fine-tune my pitch when it was time to give them their change. My goal was always to take every penny . . . sometimes that meant selling a single punk. I always tried.

    This is the same mentality it takes in negotiation. I hate to leave money on the table, unless I figure it's seed-money that I can get later. Now, don't get the idea that I take unfair advantage of people. I give value for value. It's just that I want those pennies and if I know they're there, I try to get them. Isn't that what sales and negotiation is about? Getting every penny should always be our goal.

    Author Don Doman: Don is a published author of books for small business, corporate video producer, and owner of Ideas and Training (http://www.ideasandtraining.com), which provides business training products. Don also owns Human Resources Radio (http://www.humanresourcesradio.com), which provides business training programs and previews 24-hours a day.

    How To Change Somebodys Mind

    Writen by Rix Quinn

    Believe me, it's not easy! And sometimes, it doesn't work at all.

    But while researching my book on how to produce more memorable writing, I stumbled upon these "mind changing" ideas from multiple sources.

    Remember, I'm a writer, not a psychologist. So the methods shown here come mostly from writers and speakers who've successfully altered perceptions through presentations and persuasive reports.

    1. Wear the other person's shoes – Ask questions to find out why someone holds a completely different view from yours.

    2. Ask that person to amplify his/her position – Are your opponent's views based on actual data, or on disputed or second-hand information that might be challenged?

    3. If that person's views are based on data, is the source of that data credible?

    4. What common positions do you hold? Politicians can often win a hostile audience by first discussing values everyone shares. If we can agree on common goals, perhaps readers/listeners will follow us when we lead them down new pathways.

    5. Can some position be compromised? In negotiations, I often give away a small point in order to show willingness to arrive at an agreement.

    6. Point out your side's best points. Remember the fence-painting episode from "Tom Sawyer"? Tom makes his task seem so appealing his friends offer him all sorts of prizes if he'll let them participate.

    7. Speaking of "good points" – Sometimes negotiation can become a "listing" contest. Can you reinforce your position by listing a number of positive things about your proposal? Example: "Ten reasons you should vote for Proposition A."

    Rix Quinn offers lots of writing and persuasive ideas in his book "Words That Stick." It's available from your local bookstore, or http://www.amazon.com/exec/obidos/ASIN/1580085768/qid/

    Thursday, July 17, 2008

    Negotiating For Fruit In The Baghdad Open Market

    Writen by Lance Winslow

    For those who are not use to the Islamic way of life and their free market way of trading and negotiation, perhaps you might like to walk with me in the open market for produce and such in Baghdad Iraq. You see here everything is for sale and the price is simply a negotiation starting point. But do not get discouraged because a savvy negotiator can make some great bargains here and in doing eat very well for not so much money.

    What is available at the Baghdad Iraq open market, well just about anything you can think of and even fruit from as far away and the United States and Brazil. Some quality merchandise too. You can get Bananas from India, Peaches from Georgia, Oranges from Brazil and pomegranates from, well I really cannot tell you who knows where they are from? I know lets ask this gentleman shall we?

    Dear Sir what is your name; Abdul. Okay Abdul can you please tell us were these Pomegranates are from; Oh they are from the finest gardens in all of Spain my friend, I make you a deal. Indeed so Abdul how much? Well these fine specimens are from the royal gardens of Spain and shipped here fresh each day, there are no finer pomegranates in all the land, what is you bid?

    How about $2.00 each Abdul? $2.00 these are $10.00 but for you maybe I come down to eight this one time, if you no tell nobody of this great offer? No way Abdul I pay you $4.00 for 1 or $9.00 for 3? Oh I cannot lose money on these fine fruits, but I will sell them at you my cost for $6.50 each. It goes on and on like that and we settle at $4.90 each and that is a bargain here in Iraq. So consider all this in 2006.

    "Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/