Innovative New Ways To Measure Supplier Performance

Writen by Cam Forbes

Supplier development programs and supplier scorecards are an enormous asset in helping buyers rate the effectiveness of their supplier network

Industrial Metal Products Inc. prides itself on quality products, competitive prices, and on-time delivery. So when a European supplier missed a shipment by weeks and customers bought materials elsewhere, the metalworking manufacturer's procurement chief took action.

Jim Jackson, director of Industrial Metal Products's global purchasing and travel, negotiated a consigned inventory contract with the supplier, which, within four months, was able to stock enough products to deliver them on time again. Thanks to its supplier remedial efforts, Industrial Metal Products also recovered the business it had lost due to the provider's poor execution

"Since we're in a competitive market, it's very easy for our customers to call our competitor when we don't have inventory available," says Jackson, with $2 billion Industrial Metal Products in Latrobe, Pa. "Any time we don't have inventory, it has a direct impact on sales."

Industrial Metal Products's supplier produces high-quality products at competitive prices. But trying to manufacture small lots had instead caused "unplanned surprises" in its shipping process, which resulted in untimely deliveries, Jackson notes. "We're a make-to-stock business, so we have to anticipate our customers' demands. Delivery is critical to us."

Industrial Metal Products customers include automotive and aerospace manufacturers and construction equipment companies.

Costs of Supply Problems

Examples of suppliers wreaking havoc on manufacturers' operations are rampant. Poor supplier performance accounts for billions of dollars in product recalls and even consumer deaths. In an especially notorious example, Ford Motor Co. lost $3 billion after it recalled more than 13 million defective Bridgestone/Firestone tires running on its vehicles. Experts estimated the faulty tires may have caused as many as 250 deaths.

Such problems, combined with today's dynamic, global business environment, require buyers to evaluate and manage supply partners' efficiencies. Suppliers that fail to meet performance standards can cost manufacturers a bundle in actual expenditure, customer satisfaction, and lost business.

"A supplier could provide the lowest price, give you the right price, and ship on time," says Peter Gossens, senior vice president of supply chain research with Wright Group Inc., a market research firm in Boston, Mass. "But maybe they ship damaged goods, short ship you, or don't have access to automation, so you're processing paper purchase orders and invoices, which adds cost and time to the system."

If suppliers don't meet delivery schedules, manufacturers might have to shut down or reschedule lines, notes Sandy Sanders, sourcing and supply management director with The Toro Co., a $1.7 billion, outdoor maintenance products maker in Bloomington, Minn. "That results in sending employees home or having to expedite other parts to build other products. If they're far enough away, you might have to air freight product in and either the supplier or we incur air freight costs."

The costs to recover from supply chain disruptions can run into "several hundreds of thousands of dollars," adds Sanders.

Global Supply Chain

Purchasers can't afford to buy from suppliers that ship substandard products, miss delivery dates, or charge too much because their businesses rely on sourced materials. External suppliers deliver about half of all goods and services to companies, according to an Wright report.

In addition, many large corporations find low-cost supply sources offshore, particularly in Southeast Asia, says Joyce Abrahms, marketing vice president with Open Ratings Inc., a supply-management software vendor in Waltham, Mass. Purchasing officers increasingly seek to squeeze as many costs of materials out of their budgets as they can, Abrahms notes.

To Robert Gillian, manager of operational excellence, energy, and materials with $7.4 billion Baxter Chemical Inc., increased global sourcing poses risks he must mitigate.

"As we advance into the Far East, our supply chain has become longer, the criticality of materials becomes greater," Gillian says. "Choosing the right suppliers is critical to our overall supply chain security."

Essential to Operations

With manufacturers increasingly relying on external suppliers, it's hardly surprising that some 70% of the companies responding to an Wright survey view measuring supplier performance as critical to their operations. Many manufacturers have established strict supplier performance measurement processes and procedures to ensure external suppliers meet stringent operational requirements.

Allentown, Pa.-based , Baxter which provides gases and chemical products to a variety of industries in 30 countries, spends some 65% of total corporate revenues to purchase raw materials such as energy, natural gas, and chemicals.

With the costs of hydrocarbons increasing, Gillian works actively with some 200 strategic suppliers to drive continuous improvements in delivery, quality, price, and overall performance.

"Two of our measurements in the delivery area—on-time delivery and fill rates—have a direct impact on inventory and planning downstream," Gillian notes. "If you're not getting your material and what you ordered, that sets up a huge buffering in inventory that will impact your business."

Baxter Chemical suppliers undergo monthly measurement reports, while some 35 corporate buyers conduct annual reviews with them. Baxter Chemical evaluates suppliers on the level of communications between supplier and manufacturer, progress in continuous improvements, level of account penetration, responsiveness, and overall risk the suppliers pose to the supply chain. Employing the supplier evaluation module in SAP AG's R/3 enterprise business software and a customized continuous improvement tool, Baxter Chemical helps failing suppliers determine reasons for falling short and often implements corrective actions. In one such instance, after a supplier missed several delivery dates, Baxter Chemical discovered that an internal order receipt and processing process caused the problems. The company helped the vendor fix the problem in less than two months, says Gillian.

Key Competitive Advantage

As companies move beyond trying to squeeze costs out of their supply chains, the performances of their suppliers become critical. "As firms manage their supply chains for integration and competitive advantage," says CAPS Research, a Tempe, Ariz.-based research firm, "supplier development becomes a key tool in driving superior supply chain performance."

Industrial Metal Products, which established formal supplier performance assessment procedures in 2001, recognizes the need for quality providers. "We add value to the product we buy so [our customers know] we have a value-added process," says Jackson. "But without the relationships we have with our suppliers, we would not be able to service our customers."

The company, which spends 35% of revenues to purchase metallurgical raw materials, steel products, and indirect goods, distributes some 400 supplier report cards monthly to strategic suppliers. The scorecards measure such factors as product quality, which represents 35% of total score; on-time delivery 30%; total cost management 25%; and payment terms 10%. Suppliers that fall below target scores for two consecutive months must submit corrective action plans, which Jackson reviews. Those that improve continue to work with Industrial Metal Products, which starts looking for alternative sourcing for vendors that keep failing. Like most companies, Industrial Metal Products and Baxter Chemical don't expend the same resources on indirect and second-tier providers. "They're not very strategic, so we don't go through the rigor of monthly measurements for those," Jackson notes.

Gillian agrees. "We don't want to spend time on low-level suppliers [that have little] impact on the organization," he says. But Open Rating's Abrahms questions that lack of scrutiny of lower-tier suppliers. For 10 years, Abrahms managed procurement efforts for a large electronics company for a commodity that required 1,000 sourced parts and components. Concentrating on only those parts that were critical to the unit's performance, Abrahms one day ran out of nonstrategic materials. "You can focus your attention on what's most important, but if you don't have screws, you can't ship the product," says Abrahms. "The last thing someone running a materials organization needs is not being able to ship a product because they don't have screws." Abrahms's group expended "a lot of human capital" seeking alternate sources. After much scrambling, "fire fighting," and additional costs, they shipped on time.

Afterward, his group immediately established short-term and long-term supplier performance measurement strategies—which included a focus on its lower-level suppliers. "If you don't have a part from a supplier…you're not paying attention to," Abrahms says, "you're just as unable to ship that product as if it's from a strategic supplier."

Manufacturers and Suppliers Benefit

Manufacturers can attain multiple benefits by measuring supplier performance. Companies that fail to measure most of their suppliers risk "large-scale quality mishaps, service deficiencies, and cost overruns that can eat into bottom-line profits and damage competitive positioning in the market," notes Wright in its research report.

Cam Forbes, founder and Managing Partner of Opus One Ventures has been speaking, training and coaching business owners, entrepreneurs, and sales people around the world. For more information about Forbes' "Consulting Solution Toolkit" and how to get started in Consulting, visit Consulting Startup Kit or get his his free report about getting started in consulting.

Hospital in Tennessee Thailand Hotels

National And Cultural Negotiation Style

Writen by Scott Fish

Cultural and national negotiation styles reflect communication behaviors and the priorities of that culture. Priorities such as trust, teamwork, non-confrontational situations, and openness are all along a sliding scale with each culture. The communication behaviors of each culture reflect these priorities and can dictate how a culture will engage in negotiations. Often, Japanese and other Asian negotiators will plan a social event and dinner before any real negotiations occur. Likewise, Americans place an emphasis on taking clients out to dinner and a round of golf. Engaging in this type of activity builds trust and opens the line of communication between the two parties. Using persuasive techniques to "connect" with another person can lead to trust and the sense of a relationship being built. The negotiation styles of these two cultures mesh well, thus allowing them to understand the priorities of each other's culture.

Once a relationship has been built on trust, the negotiators can begin sharing information. This level of openness is highly dependant on the level of openness for that country. This stage in negotiations require each party to fulfill their end of reciprocation – which can sometimes make one party feel like they are being confronted - but if done correctly can develop "quick trust" (Brett, 207). Quick Trust develops when two groups share information and allow the other party to see their weak side. Obviously developing trust is important, however some cultures simply may not be comfortable with divulging information quickly.

Getting Down to business: Using Culture to Persuade Arguably one of the most important factors in negotiation is an understating of the culture in which you are engaging in negotiations. Cultures vary in their openness and in the time that business in conducted. Terms of agreements should be taken into consideration; for example, Italy has a 90-day billing cycle versus the "normal" USA 30-billing cycle. These cultural norms are very important for understanding how to succeed in negotiating on a global scale. Building relationships is the key for building trust among partners or potential clients. Trust can become an all encompassing factor when it comes time to make a final decision, the understanding of what is expected and following through will allow negotiations to flow smoothly.

Scott Fish President, http://www.TopSatelliteRadio.com President, http://www.lovestarbucks.com

Personal Blog: http://scottfish.blogspot.com

Hospital in Tennessee Thailand Hotels

The Negotiation Coach

Writen by Neil P Gordon

All roads in business eventually lead to the bottom line. Everything we have done to this point has been to create value for our clients. This value will in turn give us the opportunity to charge more then would be normally possible. How do we charge for our products and services? The cost-plus method is the typical, trusted formula, however, this is leaving money on the table. Of course, we should have a very accurate method to measure all costs, and there are great accounting tools that are available to measure profitability. However, when we successfully exceed expectations, we can charge more because the client will happily pay more. Value based pricing needs to be an integrated philosophy, considering every aspect of the client experience with your company. Only then can you ask for a higher price, and your clients will be thrilled to pay. When you price with the consideration of perceived value, you focus on the results, not the process. Everyone on the team must be committed to staging this concept, so that nothing that the client sees will sacrifice the margins.

If you want to establish your business as "value based", then you need to target the proper consumer for your offering. Not every consumer is a potential client. The effort to communicate your "value message" needs to be directed to a receptive ear. You must make the value you create very apparent and understood. For example, just because you are efficient in running your business, doesn't mean the client will care about that, and therefore it may not create any value that you can charge for.

With this is mind, you must focus on serving the segments in your marketplace that will respond to the value you create. Who wants to buy a great experience, as opposed to those who only care about price.

Once you have zeroed in on your target market, you can begin your work on delivering value, but to do this just like anything else in business you must create value that your competitors do not offer. Remember, when all things are equal, it is up to the entrepreneur to make things unequal. This will separate you from everyone else in the mind of the consumer, as long as she understands what the value is, that you are offering.

Your team needs to understand this mission in order to pull it off successfully. All employees must see how their responsibilities contribute to creating and delivering the value message. Any lapse in staging a great performance for your client will potentially hurt the bottom line.

This all sounds great, but no one will buy without at least considering the price. This is where most of us get frustrated. Price is important, but it is not the number one reason why consumers make buying decisions. Still there are plenty of times when we hear this infamous question, "can you do any better?"

Negotiation, the dreaded word. How can you successfully negotiate a price when everything you have done to this point has been to demonstrate the amazing value you offer? The first and most fatal mistake is to offer a lower price without the client giving up something in return. Why should you give a lower price simply because your client demands it? You do this because you leave price as the only negotiated option. You should negotiate the offer not the price.

If you are asked for a better price, you need to be prepared with a proper defense. You could say: "The price I have offered you is based on providing you with making your interior beautiful, but if you want to spend less, perhaps we can reselect other choices of fabrics that are in a lower price range." This way the client has to make a decision that there is a trade-off in order to get a lower price. When you negotiate the offer, the client must deal with the choice of deciding whether the value you initially presented is worth giving up for a lower price.

Pricing, however, is rarely the issue. Clients who want to negotiate usually do so because you have not effectively communicated your value message. It is up to your team to fully understand, that the success of the organization depends on each and everyone performing. Nothing can be left to chance if you want to charge based on the perceived value.

If after all is said and done, and you loose an order, one of two things have happened: Either they went to the competition or they decided to wait and do nothing. In over 80% of the time it is the latter. Why, because usually there is not a competitor that is a perfect alternative. This happens when you have positioned your offer in the mind of the consumer as unique and they can't shop value. Therefore, a lost opportunity may not be lost forever.

Neil Gordon, The Designer's Coach is a coach and consultant for Interior Designers. His website, http://www.thedesignerscoach.com offers seminars, articles, newsletters as well as valuable advise for designers willing to improve their business. Please visit the site to sign up for the free newsletter.

Hospital in Tennessee Thailand Hotels

Consultant Suggests This Negotiating Question Quotwhat Can We Agree Onquot

Writen by Dr. Gary S. Goodman

Offended by a prospective purchaser of her home in an upscale town in Southern California, the seller rejected his offer outright, communicating through her broker that she didn't want to see another offer from that "So and so."

Too bad, because the property is truly something unique and special, with attributes you just don't see everyday, or for that matter, everywhere.

But what killed the deal?

The buyer wanted to get a concession when it came to closing costs, which constitute a mere fraction of the overall cost of obtaining the property.

It reminds one of the Shakespearean reference in Richard III: For want of a nail, the horse was lost, and for want of a horse, the warrior was lost, and for want of a warrior the battle and then the war were also lost.

Piddling things account for so many undone deals, so many dashed hopes, and so many ruffled feathers and bruised egos.

How can we avoid such unpleasantness and seal more deals?

Try this line, before you break off your negotiations:

"What can we AGREE on?'

This serves three purposes:

(1) It focuses the parties on consensus, reminding them of what is not in question;

(2) It shows minor concerns to be just that, minor;

(3) And it enables both parties to sound positive, which is hard to do in a defensive atmosphere.

So, before storming away or feeling insulted, try just once to find areas of agreement.

It could be all you need to get back on track!

Best-selling author of 12 books and more than 900 articles, Dr. Gary S. Goodman is considered "The Gold Standard"--the foremost expert in sales development, customer service, and telephone effectiveness. Top-rated as a speaker, seminar leader, and consultant, his clients extend across the globe and the organizational spectrum, from the Fortune 1000 to small businesses. He can be reached at: gary@customersatisfaction.com.

Hospital in Tennessee Thailand Hotels

Negotiate Like A Pro

Writen by Michael Neill

Whether you're negotiating a peace settlement in a war-torn country or a peace settlement in an argument-ravaged relationship, strong preparation is the key to success.

The following three steps will help you establish the three keys to your preparation - why you are involved in the negotiation, how you intend to conduct the negotiation, and what are the specific outcomes you are hoping to agree upon.

1. Purpose

Knowing why you are engaged in a negotiation may seem obvious in some situations (to buy a lamp, to stop a fight, etc.), but more complex negotiations generally have more complex purposes.

Ask yourself:

-Why am I negotiating?

-What are the potential benefits?

-What do I ultimately hope to achieve?

2. Result/Relationship Balance

A "transaction" is high result/low relationship - we get what we want, and the other person is incidental to the exchange. Buying a used car is generally a "transaction".

"Relationship-builders" are meetings, calls, and exchanges of value where developing the relationship between the two parties is far more important than the actual tangible "result" outcome. Early meetings in any project are usually "relationship-builders" - what gets done is far less important than connections being made.

A true "Deal" is where there is a high emphasis on both getting what you want and enhancing your relationship for the future - this "win/win" thinking takes more time and effort, but is essential in any sort of long-term agreement. Successful political (and marital!) negotiations are always predicated on achieving this balance.

Give yourself the following test:

If you had 20 points to distribute between creating the Result you want and enhancing the Relationship, how would you do it?

Example (Result/Relationship):

15/5 - Transaction

5/15 - Relationship builder

10/10 - Deal

3. Outcomes and Options

When it comes to negotiation, having a clear outcome, goal, or target in mind has been shown to be one of the primary determinants in how things come out.

Ask yourself the following questions:

-What specifically do I want?

-What specifically do I think they want?

-What are some plausible options that will get us both what we want?

Bonus Tip: If you're using this to prepare for an important negotiation, take some extra time to answer the questions AS IF you were the other person in the negotiation. You will be pleasantly surprised at the insights you gain from this process.

Have fun, learn heaps, and the next time you negotiate, do it like a P.R.O.!

Michael Neill is a licensed Master Trainer of NLP and has written over 450 articles on in the areas of business success, money, relationships, health, happiness, well-being, and spirituality. His weekly coaching column is reprinted in newspapers and magazines throughout the world, and can be found online at http://www.geniuscatalyst.com

Hospital in Alabama Thailand Hotels Booking

Feed Em Back Their Arguments

Writen by Joseph Plazo

Does this symphony sound familiar?

You are too!

Am not!!

You are TOO!

AM NOT!

YOU ARE ALSO!!

AM NOT!!

Familiar? It's how kids argue. I'm sure you've tried this mode of arguing decades back.

Children, when pointed out that they are "xxx", tend to retaliate that their accuser is also "xxx" The accuser then balks, because people hate having their arguments thrown back at them. It's human nature.

The Reflexivity Principle applies this known fact. By applying a belief statement back to the person asserting it, we test the applicability of that belief within an equitable context. By equitable context, I mean that what's good for the Gander should also be good for the Goose. This determines the universality of the statement. If, by throwing an argument back to its issuer, we observe a resistance, then this could indicate a presence double standards. This surely makes the argument IRRATIONAL, and NON-UNIVERSAL.

You've successfully countered his argument.

Let's see this in play.

She says, " You're always with your officemates. Obviously you don't like me anymore"

To counter this, you apply her argument back to her by saying, "My dear, you spend at least 3 hours a day with your friends after work. Does this imply that you love me less now as well?"

She will then see the irrationality of her argument.

Let's try another.

Mark says, "The Bush Administration wastes so much time bickering, debating and arguing. Obviously this country is going nowhere. Such a waste of time!"

So you come to the good ole US of A's defense by saying, "I see.... so shall I assume that your business will never prosper either? Your Board spends a lot of time deliberating and debating. I observed that you, as Chairman, even seem to enjoy this and you goad them on! Now despite all that bickering, your company grows 10% per annum. Mark, I'm sure you're already aware of the value of debate. Healthy deliberation illuminates multiple avenues of action. That's what your Board does. That's what the Bush administration accomplishes."

Okay, let's put this to practice. Someone brave, come to the front; volunteer 10 arguments.

Then let's have someone else come up with ten counter arguments using this principle.

Have fun!

About the Author:

Joseph R. Plazo is a busy man. He had been directing multiple enterprises since he achieved financial independence at 22. While juggling corporate endeavors, he writes books and relaxes with active sports. Airsoft is his passion.

Today, he connects with men and women all over the world to spread the revolutionary gospel of savvy semantics and behavioral change technologies. His rallying cry is Make Life Magic!

Unleash your full potential
The ultimate careers
Superb coaching

Hospital in Alabama Thailand Hotels Booking

Never Make A Concession When Youre Negotiating Unless You Ask For Something In Return

Writen by Roger Dawson

Power Negotiators know that anytime the other side asks you for a concession in the negotiations, you should automatically ask for something in return. Let's look at a couple of ways of using the Trade-Off Gambit:

o Let's say that you have sold your house, and the buyers ask you if they could move some of their furniture into the garage three days before closing. Although you wouldn't want to let them move into the house before closing, you see an advantage in letting them use the garage. It will get them emotionally involved and far less likely to create problems for you at closing. So you're almost eager to make the concession, but I want you to remember the rule: However small the concession they're asking you for, always ask for something in return. Say to them, "Let me check with my family and see how they feel about that, but let me ask you this: If we do that for you, what will you do for us?"

o Perhaps you sell forklifts and you've sold a large order to a warehouse style hardware store. They've requested delivery on August 15-30 days ahead of their grand opening. Then the operations manager for the chain calls you and says, "We're running ahead of schedule on the store construction. We're thinking of moving up the store opening to take in the Labor Day weekend. Is there any way you could move up delivery of those fork lifts to next Wednesday?" You may be thinking, "That's great. They're sitting in our local warehouse ready to go, so I'd much rather move up the shipment and be paid sooner. We'll deliver them tomorrow if you want them." Although your initial inclination is to say, "That's fine," I still want you to use the Trade-Off Gambit. I want you to say, "Quite frankly I don't know whether we can get them there that soon. I'll have to check with my scheduling people, and see what they say about it. But let me ask you this, if we can do that for you, what can you do for us?"

One of three things is going to happen when you ask for something in return:

1. You might just get something. The buyers of your house may be willing to increase the deposit, buy your patio furniture, or give your dog a good home. The hardware storeowners may just have been thinking, "Boy, have we got a problem here. What can we give them as an incentive to get them to move this shipment up?" So, they may just concede something to you. They may just say, "I'll tell accounting to cut the check for you today." Or "Take care of this for me, and I'll use you again for the store that we're opening in Chicago in December."

2) By asking for something in return, you elevate the value of the concession. When you're negotiating, why give anything away? Always make the big deal out of it. You may need that later. Later you may be doing the walk through with the buyers of the house, and they've found a light switch that doesn't work. You're able to say, "Do know how it inconvenienced us to let you move your furniture into the garage? We did that for you, and now I want you to overlook this small problem." Later you may need to be able to go to the people at the hardware store and say, "Do you remember last August when you needed me to move that shipment up for you? You know how hard I had to talk to my people to get them to re-schedule all our shipments? We did that for you, so don't make me wait for our money. Cut me the check today, won't you?" When you elevate the value of the concession, you set it up for a trade-off later.

3) It stops the grinding away process. This is the key reason why you should always use the Trade-Off Gambit. If they know that every time they ask you for something, you're going to ask for something in return, then it stops them constantly coming back for more. I can't tell you how many times a student of mine has come up to me at seminar or called my office and said to me, "Roger, can you help me with this? I thought I had a sweetheart of a deal put together. I didn't think that I would have any problems at all with this one. But in the very early stages, they asked me for a small concession. I was so happy to have their business that I told them, 'Sure, we can do that.' A week later they called me for another small concession, and I said: 'All right, I guess I can do that too.' Ever since then, it's been one darn thing after another. Now it looks as though the whole thing is going to fall apart on me." He should have known up front that when the other person asked him for that first small concession, he should have asked for something in return. "If we can do that for you, what can you do for us?"

I trained the top 50 salespeople at a Fortune 50 company that manufactures office equipment. They have what they call a Key Account Division that negotiates their largest accounts with their biggest customers. These people are heavy hitters. A salesperson at the seminar had just made a $43 million sale to an aircraft manufacturer. (That's not a record. When I trained people at a huge computer manufacturer's training headquarters, a salesperson in the audience had just closed a $3 billion dollar sale-and he was in my seminar taking notes!) This Key Account Division had its own vice-president, and he came up to me afterward to tell me, "Roger, that thing you told us about trading-off was the most valuable lesson I've ever learned in any seminar. I've been coming to seminars like this for years and thought that I'd heard it all, but I'd never been taught what a mistake it is to make a concession without asking for something in return. That's going to save us hundreds of thousands of dollars in the future."

Jack Wilson, who produced my video training tapes, told me that soon after I taught him this Gambit, he used it to save several thousand dollars. A television studio called him and told him that one of their camera operators was sick. Would Jack mind if they called one of the camera operators that Jack had under contract and ask him if he could fill in? It was just a courtesy call. Something that Jack would have said, "No problem," to in the past. However, this time he said, "If I do that for you, what will you do for me?" To his surprise, they said, "Tell you what. The next time you use our studio, if you run overtime, we'll waive the overtime charge." They had just conceded several thousand dollars to Jack, on something that he never would have asked for in the past.

Please use this Gambit word for word the way that I'm teaching them to you. If you change even a word, it can dramatically change the effect. If, for example, you change this from, "If we can do that for you what can you do for us?" to "If we do that for you, you will have to do this for us," you have become confrontational. You've become confrontational at a very sensitive point in the negotiations-when the other side is under pressure and is asking you for a favor. Of course, you're tempted to take advantage of this situation and ask for something specific in return. Don't do it. It could cause the negotiation to blow up in your face.

When you ask what they will give you in return, they may say, "Not a darn thing," or "You get to keep our business, that's what you get." That's fine, because you had everything to gain by asking and you haven't lost anything. If necessary, you can always revert to a position of insisting on a trade-off by saying, "I don't think I can get my people to agree to that unless you're prepared to accept a charge for expedited shipping" or "unless you're willing to move up the payment date."

Key points to remember:

o When asked for a small concession by the other side, always ask for something in return.

o Use this expression: "If we can do that for you, what can you do for me?"

o You may just get something in return.

o It elevates the value of the concession so that you can use it as a trade-off later.

o Most important, it stops the grinding away process.

o Don't change the wording and ask for something specific in return because it's too confrontational.

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.

Hospital in Alabama Thailand Hotels Booking

Effective Negotiation Skills A Practical Application

Writen by Dori Kelsey

Negotiations are often associated with labor union contract, with strongly held positions, or with conflicting situations. However, looking at negotiating from a better perspective, we are surprised to find that it is much a part of our daily life. Daily, we bring negotiations into our relationships, our businesses, and our employment practices.

In recalling the different negotiations in which I have been involved, one stands clearly in my mind. It was a performance appraisal meeting at a former place of employment. I can recall how the meeting took place and its unproductive results. Later I learned effective negotiation skills that would have produced a winning outcome for all parties involved.

Performance appraisals were conducted once a year in my former organization. I dreaded that review because a new manager that had not observed the employees' job performance would conduct it. Rumor had it that she would evaluate every one as merely competent employees, and contrary to my expectations, the rumor turned out to be true.

My performance appraisal meeting became no more than a full review of all the dimensions in my job description. To each dimension she attached an equal sign to signify that I had performed as expected. There were no instances in which she thought that I had performed above expectations, and with that, I firmly disagreed. Not only did I disagree, but also I sensed I was becoming angry and resentful.

In that meeting, I took the position approach described in Fisher and Ury (1991) in their book Getting to Yes . I let my supervisor know that I was not in agreement with her and began to explain my view of my own performance, which I carefully backed with facts and figures. I made sure she understood that I deserved a much better rating. She took the position approach as well. She reinstated that all of my facts showed that my performance was as expected, and no more. I tried with examples to convince her, but she had taken a stand and would not back down. I did likewise. We were locked in our positions and did not reach a satisfactory agreement.

That performance review caused me to feel as if I had been in a battlefield and lost. I began to see my supervisor as my adversary and our work relationship suffered. I learned that the position approach does not produce a wise or beneficial outcome for either party. If the situation were to occur again, I could handle that negotiation in a much better way.

The circumstances would be the same. My new supervisor would have little knowledge of the employees' performance for the previous months and would opt for a competent evaluation across the board. I would be rated as a competent employee also. But here is where I would differ from my real experience. My new negotiation approach would be principle negotiation, negotiation on the merits.

I would begin by separating the people from the problem, as outlined by Fisher & Ury (1991) in the book Influence. In this case, separating the people from the problem meant to understand why she felt compelled to evaluate me in such way. Perhaps she was told to do so by her own supervisor, or may be she understood this to be a fair way of evaluating a performance that she had not observed. Regardless of the reasons, my new approach would be not to take it as a personal criticism, and I would remind myself that the ongoing relationship is more important than the outcome of that review.

My next step would be to focus on our common interests. I have learned that the aim of an appraisal system is to improve the employee´s performance. It should be goal oriented and it should point out an employee's specific needs for training and development. So rather than taking positions over my work in the previous twelve months, the content of the new meeting would be to identify a specific performance goal and to develop a plan of action to achieve the goal during the next performance period.

If I were given a chance to go through that performance evaluation meeting again, this is what I would say: "I really appreciate that you consider me a competent employee. That is what I strive for, and yet I would like to be more than competent. If you would agree with me, I would like for the two of us to focus on the future and on how I can improve my performance. It has been our organization's practice to measure performance by the objective set the previous performance period. I would like to work with you and to set goals for my development for the next twelve months."

Tow principles should work in the proposal made above, reciprocity and precedence. The principle of reciprocity says that we should repay what another person has provided for us. One of the consequences of this principle according to Cialdini (1993) is that we would feel obligated to make a concession to someone who has made a concession to us. In ignoring an average evaluation, I would have made a concession. By referring to our organization's past practice regarding performance, I would be establishing precedence. I would expect that my supervisor would have agreed to focus on a common goal if I had taken this approach.

Developing options for a plan of action for the next performance period would not be a difficult task at that point. A number of options would be listed that would satisfy my supervisor as well as myself. Ownership of the ideas would belong to both, and surely a plan for improved performance would bring about mutual gain.

Once my supervisor has agreed to develop a plan of action for the next performance period and has worked with me on a list of options, a third principle of persuasion should come into play, the principle of commitment and consistency. Commitment according to Cialdini (1993) means that there is a natural tendency to behave in ways that are consistent with the stand that we have taken. At this point, I would expect to see the old way of rating employees near the average or middle of the scale should be gone forever. The proposed type of appraisal meeting is based on an objective criteria and it focuses on solving problems rather than finding faults. It looks to the future and it yields to principles, not pressures.

In a real life situation, a performance appraisal meeting, effective negotiation skills can be used for mutual gain. In examining the positions that can be taken, it is clear that a position stand does not produce a satisfactory outcome for either party. Utilizing effective negotiation skills that bring about a winning outcome for all, includes separating the people from the problem, focusing on mutual interest, inventing options for mutual gain, and using objective criteria. Principles of persuasion, reciprocity, precedence, ownership, commitment and consistency are additional valuable tools in negotiations.

REFERENCES

Fisher, R. & Ury, W. (1991). Getting to Yes . New York: Penguin Books.
Cialdini, R. (1993). Influence . New York: William Morrow

Dori Kelsey is owner operator of SpainExchange. She holds a Bachelor of Arts degree from Spring Arbor College (Michigan) in Management and Organizational Development, and a Master of Liberal Studies from The University of Toledo (Ohio). Through her 25-year career in the United States she acquired professional experience in the fields of international education, employment and training, and human resources development along with effective skills in the development and coordination of programs and the provision of services to foreign nationals.

As owner operator of SpainExchange, she has developed educational tours of Spain, school exchanges, and customized training programs for various schools, universities and educational services. All programs have successfully met the clients' objectives as they provided relevant learning as well as enjoyable activities for the participants.

Hospital in Alabama Thailand Hotels Booking

Decisions And Negotiating When To Ask The Question

Writen by Bill Scarpino

For a negotiation to end, decisions have to be made. Large decisions, small decisions, important decisions and mundane decisions. The process of making decisions is what advances a negotiation to its final outcome.

People naturally resist making decisions. This is especially true when they feel they are being pressured to commit. An effective negotiator needs to prepare others to make decisions and commit. The timing of when to seek a decision is a function of many things.

Signals Indicating the Other Person is Ready to Commit:

- If the other person acknowledges your argument has merit, it indicates that he or she is starting to appreciate your position and may be inclined to agree or concede to some degree.

- If you have made a series of points that appear to have been well received, it can be a natural moment to continue and make a well-reasoned proposal or seek agreement on the point or points.

- After reviewing the terms of your proposal, if the other person has indicated a clear understanding of each point and not given any negative, non-verbal signal that he disagrees with them, proceed to seek approval of the proposal. If he has shown discomfort on some of the issues, go back and revisit those point. Ask him what he thinks of the individual point. It is not good a strategy to ask for a global commitment until you have sensed the smaller issues are pretty well resolved.

- Before asking for a decision or commitment, review the reasons the other person is agreeing to the terms and reinforce why their decision is a good one. If you have built up a climate of mutual respect, knowing that you understand their position and have tried to meet their needs will help to cement the deal.

- If the other person keeps looking at his or her watch or otherwise seems pressured by time, you may want to press for a decision. If their next appointment is more important, personally or professionally, you may gain a last minute concession just to wrap things up.

Decisions are pivotal moments in negotiations. Treat each decision, even the small ones, with respect. Once a decision is made, reinforce why it was a good decision. It does not hurt to intimate that you may have conceded more than expected to build up the other's ego a bit. You want each decision to become easier as you build toward the really important decisions.

Bill Scarpino is a professional negotiator and restructuring consultant. He writes about decision making techniques in both business and personal negotiations.

medical health hospital Thailand Hotels Booking

Negotiate Show Your Cards Not Your Emotions

Writen by Hans Bool

Have you already fallen in love before buying that house? It doesn't favor your position in the negotiation.

Negotiating is sometimes (by adherents of economic game theory) compared with playing poker. When playing poker you do not show your cards. You look at your cards, and you follow the eyes of your opponents. Can you notice something?

But if you are to negotiate you could show your cards.

Think of buying a house. You can be open about what you favor about the house; the location, the amount of space, the classical or rather modern style, the fact that it has a fire-place, the kitchen, the fact that it is near your work, etc...

The real estate agent or the owner of the house doesn't know you. Buying a house from a friend is a different game with different rules. So let's focus on the normal circumstances;

the house owner -- and you.

The house owner should want to know what your preferences really are. Also the owner will normally not show his or her cards; how many more people are there "waiting" -- although this can be analyzed by the period the house is already for sale –- is he or she in a hurry to sell the house? Etc...

You can be open about your cards. You have mentioned to positive aspects, and you can also present the issues you are not too happy about; the overdue in maintenance (windows and the roof), the missing garage, etc.

When negotiating, you can be open about all these cards. What you shouldn't show is how much you value each of them. And leave emotions out if you can.

© 2006 Hans Bool

Hans Bool is the founder of Astor White a traditional management consulting company that offers online management advice. Astor Online solves issues in hours what normally would take days. You can apply for a free demo account

medical health hospital

Determine Your Rate And Negotiate Carefully With Unreasonable Clients

Writen by Elisa Shostak

Consultants who offer executive assistant or computer services on a virtual basis must know their value and be prepared to gauge their billable rate to meet the circumstances.

At some point everyone encounters potential clients who expect professional work at rates that are less than appropriate. For example, a posting advertises an opportunity that matches your highly polished skill set. After making contact with the client you find they don't want to pay a reasonable fee for the services they expect.

While these types of engagements might help to build a newcomer's portfolio or pay some bills when money is tight, a successful virtual service provider knows their value and refuses to be exploited. Make sure clients understands your training, background and areas of expertise. Then, set expectations for services by pricing in accordance with your qualifications and skills.

Be prepared to be flexible, yet firm in your compensation requirements.

• Determine your base rate in advance of client discussions. Scratch it out on paper or create a spreadsheet. Take into account the fixed overhead and variable costs to legally operate your business

• Determine your flex-rates for times you might be willing to work for slightly less or feel the need to demand more pay.

• Calculate the value added for meeting tight time constraints, the demanding nature of the client or the complexity of the project

• Take the time to project costs not otherwise considered in your base rate (long distance, printing, etc.)

A pre-determined rate scale helps you respond calmly and logically to stressful situations, so you can advert potential disasters.

Last year I turned down what seemed on paper to be an ideal "personal assistant" opportunity. The ad described duties such as checking email and preparing responses on the client's behalf. Work assignments would be completed by phone and fax for a client who did not want to use a computer.

The job matched my skill set, but I chose to pass because:

1. The offered rate was 50% less than the low end of my base rate range.

2. The client expected me to own and pay for the operation of a fax machine, but was unwilling to pay for its purchase or operation.

3. The client expected a commitment to work for him part-time, even though hours were going to be determined by him each week

4. The client's refusal to even consider using a computer was destined to create confusion and conflict over what I prepared on his behalf

Regrettably, I realized this potential client was a fussy, technology laggard who wanted a very experienced, highly reliable personal assistant who was agreeable to an entry level rate.

Know when to "pass" on a client so you can continue to market to more viable prospects. Try to negotiate a better rate with clients by matching their expectations with your level of service. Keep an eye out for performance bonuses or other types of perks to balance out discounted rates for good clients.

Elisa Shostak is the founder of Compass Rose Strategic Consulting LLC, an advisory service and secondary research firm based in Seattle, Washington.

This is the first in a series of articles about negotiating with clients and managing a management consulting practice.

Elisa can be contacted through her website: http://www.compassrosellc.com or blog http://www.compassrosestrategic.com

medical health hospital

Guidelines For Ambassador Appointments

Writen by Scott Fish

Ambassadors to other countries are a vital part of international relations. It is not uncommon for an ambassador to be the face or image of one country to another. Ambassadors act as a window into the importance of education, security, financial situations, business, and other societal issues. An ambassador has the power and authority to create opportunities through negotiation. Just like a negotiator, an ambassador must be equipped with specific qualities to ensure success. The distinction between the two should be that in the same.

Curry's book, "International Negotiating," outlines several qualities for picking a negotiation team, or in this case, what I believe to be a good ambassador. The first and most relevant piece of advice is to not assign negotiators to a task based on a reward. This idea is simple but probably the most ignored idea in negotiation. Often, executives view an assignment that takes them or their employees overseas on a "two week vacation" – the negotiation – as a reward for being a top sales manager or some other reward. While sending your top sales manager to negotiate may not be the worst idea in the world, there are specific qualities that you want to look for when sending someone to be an ambassador for your company or country overseas. A balance in that person's skills should be apparent. If technical skills are needed versus social skills, then someone with those skills should be appointed for the task. Where as a specialist can be important, many cultures engage in trust building activities long before any real negotiations are held. Ambassadorship Strategy should involve a technically adept person with strong communication skills. This person should understand the overall implications of their relationship with the members of the other country. The "big picture" should already be developed for an ambassador so that they can blend into the culture while accomplishing the goals at hand.

For an ambassador from the U.S, several different issues would be discussed with other countries. National security, peace agreements, educational opportunities, social and health issues, and general societal issues all can go beyond the knowledge of an ambassador and far past his/her own technical knowledge. Knowing how and where to locate a specialist in each field of discussion is an important skill. Management of technical staff and administration staff is a key component to any ambassador. A streamlined approach to ambassadorship should be employed while keeping negative qualities at bay. Curry has observed several qualities as negative qualities (Curry, 10-13). Whiners can drag down and drain the emotional and physical strength of a negotiation or ambassadorship team. An effective way to deal with whiners would be to help them move towards solving the problem rather than just propagating it and not suggesting a solution. Connivers and "one-uppers" can really take cohesion away from a goal achieving team. Competition is great; if a conniving person is part of an ambassadorship team, encourage them to strive to meet the problems at hand. A manager of business would know the proper ways to motivate this type of person so that their negative quality won't hurt the team. Conditions change, and therefore flexible people would be perfect for an ambassadorship. Putting your best foot forward, while being able to succeed in all types of conditions can often prove vital in an ever-changing world. Cultural sensitivity, regarding sex, race, and creed is important. An appreciation for the culture at hand would help, while and understanding of that culture is vital.

Being an ambassador for the United States is important. The partnership as seen by other countries with the US can have lasting impressions, good and bad. A successful ambassador must possess the qualities as explained while having a deep appreciation and understanding of that culture. Only then, will the ambassador be able to achieve the task of representing the interests of the United States in a positive and progressive way.

Scott Fish President, http://www.TopSatelliteRadio.com You can find other SEO strategies at: http://seo-strategies.blogspot.com Personal Blog: http://scottfish.blogspot.com

medical health hospital

7 Tips For Bartering Products And Services

Writen by Kara Kelso

What better way to gain a new customer than by getting something you need in return? The following are tips to help you use bartering correctly, and make it a good experience for both you and who you are bartering with.

1. Make It Fair
Be sure you are both trading a fair value including shipping. It may be neccessary to trade more than one product/service or issue a gift certificate for the remaining amount.

2. Needs Only
Only barter if they (or you) need the product or service

3. Keep Records
Keep a good record of your barters. Treat it just as you would an actual sale.

4. Communicate
Keep in good contact with the person you are bartering with, both durring and after the trade.

5. Be Specific
Be specific on what you have to offer and what you want. You don't want to be wasting your time (or other's) answer requests to products/services you don't need.

6. Look for Barters in Appropriate Places
There are several different ways you can seek out what you need. Visiting message boards/groups making announcements in appropriate catagories is one way. Many sites also have a special section just for bartering. A few of these sites are:

http://www.momsmarketonline.com
http://www.dotcomwomen.com
http://www.wahmnetwork.com
http://www.bizzymommyswah.com

Be sure to look at the current barters listed to see you have a match.

7. Most importantly, have fun!

About the author: Kara Kelso is a work at home mom of two, and the co-owner of Direct Sales Helpers, which is dedicated to helping mothers succeed in direct sales. For more information, visit: http://www.DirectSalesHelpers.com

medical health hospital

Janitorial Bids What Business Owners Need To Know

Writen by D. Brownlee

As a business owner, you may be asked to receive a 'free, no obligation' quote for cleaning your facility. You may or may not be in the market, but, for whatever reason, you agree.

What should you expect?

What questions will you be asked?

How much information should you reveal?

Below are the basic questions any reputable janitorial company will need to know in order to give you a competitive bid:

1. How many days a week do you require cleaning? Most companies have service 1, 2, 3 or 5 nights a week. However, the frequency of cleaning is totally up to the customer. Don't be afraid to tell the cleaning company what you want. If they baulk, or try to get you to fit into their schedule, tell them 'no thanks' and stand your ground. If they want your business, they'll be flexible enough to meet your needs.

2. What day(s) and time of day will the cleaning be done? The day(s) that you want service should be decided up front. Don't tell the cleaning company, 'It doesn't matter', because they'll treat you like it doesn't matter. One week you'll get cleaning on Monday and Thursday, the next week it might be Monday and Tuesday. Can you see how in both cases they serviced your building twice a week? However, how much good did it do you, your employees and your customers for them to come two nights in a row? Be prepared to pay more for day cleaning, since most cleaning companies have fewer day janitors at their disposal. Also, they have to pay more per hour to retain good day janitors.

3. What is the 'cleanable' square footage of your facility? This is not the total square footage of your facility. That number includes closets, storage rooms and other areas that will not need to be cleaned. The 'cleanable' square footage is the amount of space that the janitor will be responsible for servicing. To learn how to calculate the cleanable square footage of your facility, go to http://www.breakthecycleokc.com/Figure_Square_Footage.html

4. How many restrooms will be cleaned? Restrooms typically account for less than 5% of the total cleanable square footage, and 95% of the cleaning complaints. This is especially true in facilities that have a larger number of female employees and customers, since a) women use the restroom more often than men, and b) women are usually neater than men. (Remember this is coming from a man!)

5. Who buys the restroom and break room paper supplies, as well as trashcan liners? This is the single biggest pain in the neck for cleaning companies, next to labor issues. Paper cost change so much and so often that in order to be profitable, cleaning companies try to avoid buying paper, at all cost! What cost $20/case today, could cost $25-30/case next week. Now, multiply that out by 30-40 cases per month, and you'll see why companies never want to include the cost of paper in their monthly bid. They would rather for you, the business owner, to incur that expense. However, you can have the cleaning company bill you for the actual cost (plus their predetermined markup) for the paper that they use in your building. But be careful, once they know YOU are buying it, don't be surprised when YOUR paper ends up in one of their other buildings, where THEY are suppose to be buying it. Inventory the usage, and always ask about 'spikes' in consumption. If you have the same employees as last month, then the cost should be relatively the same.

6. How many employees and customers are in the building? This needs to be discussed so that the cleaning company can project the average 'wear and tear' your building faces between cleans. For example, if you have two buildings that are exactly the same square footage, and have the same number of restrooms and are cleaned the same number of days per week, a novice might think that they should be paying the same amount of money for janitorial service. However, if Building A is a law offices with 10 employees and limited outside traffic, and Building B is a telemarketing center, with dozens of job hunters coming and going every day, believe me, Building B should pay more!

7. What are the problems areas you're facing now? It needs to be said that too many cleaning companies bid on accounts when they don't know what they're up against. If a company does not ask you what cleaning issues you're facing, then they probably haven't been 'seasoned' long enough, and you should reject their bid. Why? Let me give you an example. Company A is a business office. They're in a building that is adjacent to an open field. Every day, tons of dust blows into their office, covering their floors, desk, other areas leaving a thin layer of dirt. Their current company based their quote on the square footage of the building, not taking into account the open field. Now, they can't adequately clean the building in the amount of time it was quoted for. So, instead of spending more time in the building, and getting it clean, they just stay busy for the amount of time that the salesman said it should take to clean it, and then leave.

Use common sense, and the business savvy that's gotten you this far in life, and you'll be fine when it comes to receiving a bid from the next janitorial company.

D. Brownlee http://www.BreakTheCycleOKC.com

D. Brownlee currently works as a Territorial Area Developer for a large janitorial company. He manages in excess of $1.5 million dollars of volume, overseeing hundreds of janitors. For more information on his company, you may contact him at http://www.BreakTheCycleOKC.com

medical health hospital

To Be A Better Bargainer Bracket Your Objective

Writen by Roger Dawson

Whether you're bargaining in your favorite antique store, negotiating for an increase in pay, or trying to get the rock-bottom price for a new car, you'll do better if you use a technique that negotiators call Bracketing. This means that your initial proposal should be an equal distance on the other side of your objective as their proposal.

Let me give you some simple examples:

The antique dealer is asking $1200 for that antique desk that would be perfect in the corner of your living room. You are willing to pay $1000. You should offer him $800.

You hope that your boss will give you a 10 percent increase in pay. You should ask him for 20 percent.

The car dealer is asking $25,000 for the car. You want to buy it for $22,000. You should make an opening offer of $19,000.

Of course it's not always true that you'll end up in the middle, but that is a good assumption to make if you don't have anything else on which to base your opening position. Assume that you'll end up in the middle, mid-way between the two opening negotiating positions. If you track that, I think that how often it happens will amaze you. In little things and in big things.

In little things. Your son comes to you and says he needs $20 for a fishing trip he's going to take this weekend. You say, "No way. I'm not going to give you $20. Do you realize that when I was your age I got 50 cents a week allowance and I had to work for that? I'll give you $10 and not a penny more."

Your son says, "I can't do it for $10, dad."

Now you have established the negotiating range. He's asking for $20. You're willing to pay $10. See how often you end up at $15. In our culture, splitting the difference seems fair.

In big things. In 1982, we were negotiating the pay-off of a huge international loan with the government of Mexico. They were about to default on an $82 billion dollar loan. Their chief negotiator was Jesus Herzog, their finance minister. Treasury Secretary Donald Regan and Federal Reserve Board Chairman Paul Volcker represented our side. In a creative solution, we asked Mexico to contribute huge amounts of petroleum to our strategic petroleum reserve, which Herzog agreed to do. That didn't settle it all, however. We proposed to the Mexicans that they pay us a $100 million dollar negotiating fee, which was a politically acceptable way for them to pay us accrued interest. When President Lopez Portillo heard what we were asking for, he went ballistic. He said the equivalent of: You tell Ronald Reagan to drop dead. We're not paying the United States a negotiating fee. Not one peso.

So now we had the negotiating range established. We asked for $100 million dollars. They're offering zero. Guess what they ended up paying us? That's right. $50 million dollars.

So often, in little things and in big things, we end up splitting the difference. With bracketing, Power Negotiators are assured that if that happens, they still get what they want.

To bracket, you must get the other person to state his position first. If the other person can get you to state your position first, then he can bracket you so that, if you end up splitting the difference as so often happens, he ends up getting what he wanted. That's an underlying principle of negotiating: Get the other person to state his position first. It may not be as bad as you fear, and it's the only way you can bracket his proposal.

Conversely, don't let the other person trick you into committing first. If the status quo is fine with you, and there is no pressure on you to make a move, be bold enough to say to the other person, "You're the one who approached me. The way things are satisfies me. If you want to do this, you'll have to make a proposal to me."

Another benefit of bracketing is that it tells you how big your concessions can be as the negotiation progresses. Let's take a look at how this would work with the three situations I described earlier:

The antique dealer who is asking $1200 for that antique. You are willing to pay $1000. You offer him $800. He comes down to $1150, which means that you can raise your offer to $850, and still have your objective mid-way between the two proposals that are on the table.

You hope that your boss will give you a 10 percent increase in pay, so you asked him for 20 percent. He offers you 5 percent, so you can now lower your demand to 15 percent.

The car dealer who is asking $25,000 for the car. You want to buy it for $22,000. You made an opening offer of $19,000. Then if the dealer comes down to $24,500, you can go up to $19,500 and you will still have your objective bracketed. If the dealer's next move is to $24,200, you can also shift your position by $300 and go to $19,800.

There's a danger here, however. You should not become so predictable with your responses that the other side cannot detect your pattern of concessions. I illustrated this with mathematically computed concessions to make my point clear, but you should vary your moves slightly so that your reason for making a move cannot easily be determined.

About five years ago, I bought one hundred acres of land in Eatonville, Washington, a beautiful little town located just west of Mount Rainier. The seller of the land was asking $185,000. I decided that it would be a super buy if I could get it for $150,000, so I Bracketed my objective and offered $115,000. To my astonishment, the seller accepted my offer, but had we have ended up negotiating further and ended up in the middle between our two opening negotiating positions, I still would have made my objective of $150,000. Inexperienced negotiators get into trouble because they don't have the courage to start that low. Someone who didn't understand Bracketing might offer $140,000 for the land, hoping that the seller will come down from his asking price of $185,000 to the buyer's objective of $150,000. That's hard to do. It's hard to get the other side to come down $35,000, when you're only willing to go up $10,000. Or worse yet, the buyer is so uncomfortable with negotiating that he offers the seller $150,000 with a take-it-or-leave-it attitude. That's almost impossible to do. It's virtually impossible to get the seller to keep on making concessions to you, when you are not willing to make any reciprocal concessions-even if selling for $150,000 would be the right thing for the seller to do. If you want to be a better bargainer, take a tip from the professional negotiators. Get the other side committed to a position first, and then bracket your objective. You're far more likely to end up with what you want.

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.

medical health hospital

The Deal Is Not Made Until The Money Is Paid

Writen by Dr. Gary S. Goodman

In business, when can you say you have made a deal with a prospect?

When he or she hears your proposal and says okay?

When pen meets paper, and someone, or both parties sign a proposal?

When you have started performing the duties you agreed to?

In contractual terms, all of the above can constitute or signify the creation of a binding agreement. So, technically, you do have a deal.

But if you've been in business for any period of time, you realize you could be fooled, or you could be fooling yourself if you take these signs as being conclusive.

Dun & Bradstreet, the famous financial company, offers a different, and many might say, a more practical definition. It says:

"The deal isn't made until the money is paid!"

Well, they would say something like this, being in the credit and collections business.

Of course, what they're pointing out, with this memorable phrase, is we're all in the credit and collections business, unless we devise a way to get our money, up front.

The new client you put on the books with smiles all around, is really a debtor the moment you begin performance, until he has paid. Before you see his check you're his creditor.

I don't have to tell you there are risks and problems in this arrangement.

(1) He can stiff you, entirely. You've performed, you're out of pocket, and if you're in the service business, your time and effort can't be repossessed.

(2) He can be a "slow-pay." Yes, he's doing his part, but reluctantly; and you have to constantly hound him for your dough.

(3) If a number of your accounts are in arrears, you could get yourself into a real cash flow crunch.

(4) There are financial costs, because you're floating clients with credit, and generally not receiving interest or late fees.

(5) On the one hand, you want business, but on the other, you're constantly second guessing the wisdom of having accepted theirs.

(6) There are emotional costs to you; the uncertainty is a pain in the neck.

There is no perfect answer, because sooner or later most of us have to trust our customers to do the right thing, if only to appreciate that what goes around, comes around, and their flakiness is making it tougher for all of us to prosper.

One more thing: stereotypes don't work. You can't predict who will be a stand-up client or a flake. Big companies can string you along, seemingly forever, until they release checks, using your float as a profit-making tool. And the smallest companies can be the most diligent in meeting their obligations.

But do keep the Dun & Bradstreet definition of a deal in the back of your mind, and act, accordingly. At the first sign of lateness, note it and communicate promptly.

And stay with it, until you get back on track. Also, communicate the idea that you expect promptness, and if they don't comply, you'll have to suspend your further performance, until they do.

Dr. Gary S. Goodman, President of www.Customersatisfaction.com, is a popular keynote speaker, management consultant, and seminar leader and the best-selling author of 12 books, including Reach Out & Sell Someone® and Monitoring, Measuring & Managing Customer Service, and the audio program, "The Law of Large Numbers: How To Make Success Inevitable," published by Nightingale-Conant. He is a frequent guest on radio and television, worldwide. A Ph.D. from USC's Annenberg School, a Loyola lawyer, and an MBA from the Peter F. Drucker School at Claremont Graduate University, Gary offers programs through UCLA Extension and numerous universities, trade associations, and other organizations in the United States and abroad. He holds the rank of Shodan, 1st Degree Black Belt in Kenpo Karate. He is headquartered in Glendale, California, and he can be reached at (818) 243-7338 or at: gary@customersatisfaction.com

medical health hospital

Just Ask

Writen by Leo Quinn

Ask and you shall receive & knock and it shall be opened &send an email and see what happens.

As a student of personal finance you are probably familiar with the advice to negotiate with your credit card companies to get a lower interest rate. Why stop there?

There is hardly anything that can't be gotten for less than what is being asked if you are smart and creative about asking.

Since you are reading this on a computer, let's start there. Got AOL?

I called AOL and they gave me two months of free service. Here is how it went...

AOL: How can I make your online experience more enjoyable? (I should have said give me 6 free months!)

ME: Well first, I was wondering how long I have been a member of AOL.

AOL: April 1995

ME: That's a long time. What would happen if I got a new computer and they offered me a free year of AOL.

AOL: Your account would be credited for that year.

ME: Well, since I've been a valued customer for such a long time could you give me 3 or 4 free months?

AOL: I'd like to ...can you hold?

ME: Sure

AOL: My supervisor has authorized me to give you 2 free months. Is that OK?

ME: Sure.

AOL: Leo, let me ask you... is the reason you called today to get some free months?

ME: Well, I really wanted to find out how long I'd been a member but YES, since I've been a loyal customer. Thanks!

You'll notice that FIRST, I established how long I had been a member. Even if I knew the answer to the question I would still have had him look it up so HE knew. Seven years as an AOL member established that I was a VALUED (valuable) customer. This is when I asked for the free months. If he had said "no" I would have asked to speak to his supervisor but he did that for me.

I'm not sure who said it but I like the lesson "never accept a NO from someone not empowered to give you a YES!"

Got Road Runner? I got this idea from one of my subscribers. Locally, Time Warner is offering new subscribers a special six month rate of $29.95 instead of the normal $49.95.

She was already a Road Runner subscriber but she called and asked for the $29.95 rate since she was a "valued customer". They said yes and she saved $120 for a five-minute phone call.

Have you been with your Internet Service Provider for a while? Call up and ask them for a few free months. If they are reluctant, you might drop hints about trying another service.

In one of my seminars a student commented that she would be afraid "they" would laugh at her if she called and asked for a discount. 1) They probably won't and 2) So what if they did? If they are laughing, ask them if that was a yes or no and then ask to speak with their supervisor say you are upset about the laughing and as a valued customer you'll get your discount! That or have one of your teenage kids make the call they don't take no for an answer do they?

If possible, before you are in a position to negotiate, review your assets and what, if anything, can you offer to them?

Being a long time customer is an asset and they don't want to lose you. Have a friend who wants to buy the same thing? Bringing a company two sales at one time is an asset. Having influence over a large group who might want to buy what they are selling is a big asset. Paying cash can be an asset.

At this writing I have 7700 subscribers to my e-zine. If I see a product on the Internet that I think might be helpful to them I'll contact the seller. I introduce myself and invite them to visit my website to establish some credibility.

I'm writing to propose a joint venture that could benefit the merchant, my subscribers and sometimes me. I explain that I would consider endorsing their product or service to my list if it is as good as advertised. If they believe in their product they usually will offer me a FREE review copy of it.

In the last month I've gotten $1532 in value (products and services) using the assets I've developed.

Can't come up with any assets right now? A former auto salesperson told me his simple 8-word sentence for getting discounts "Is that price the best you can do?" Again, if you get a "no" from anyone other than the owner or manager in the case of a mega-retailer ask, in the nicest way possible, if they could check with the owner/manager to make sure that is the best price.

In this live scenario it never hurts to be prepared to leave if they won't deal. Mention you saw the same product somewhere else imply you are going to buy one today from someone.

My students have given me many examples of negotiating discounts at places as big as Wal-Mart simply by asking the manager. The worst they can say is no.

In my live seminars I recommend never buying a NordicTrac from NordicTrac. You'll find lots of them in next to new condition in the classified section of the newspaper. Make your calls and be sure to mention that there are a lot of them for sale. This raises strong doubt in their mind that they will be able to sell at the price they want and makes them more receptive to a lower price.

Negotiating can be fun. It doesn't have to be nerve-wracking. Merchants are used to it and you should get used to it too! Good luck and let me know how it goes for you.

Leo J. Quinn, Jr. owner of http://www.LeoQuinn.com is a financial educator from the Albany, NY area. For over eight years he has been helping thousands of people get control of their finances and get out of debt in a fraction of the normal time. He has a special offer for readers of this newsletter at http://www.1shoppingcart.com/app/adtrack.asp?AdID=132551

medical health hospital

Managing The Sales Negotiation Process

Writen by Michael Schatzki

How many times have you heard:

• "You've got to drop your price by 10% or we will have no choice but to go with your competition."

• "You will have to make an exception to your policy if you want our business."

• "I know that you have good quality and service, but so do your competitors. What we need to focus on here is your pricing."

• "I agree that those special services you keep bringing up would be nice, but we simply don't have the funds to purchase them. Could you include them at no additional cost?"

Every time you hear statements like these, you're in the middle of a difficult sales negotiation. How you handle that negotiation will determine whether or not you close the sale and how profitable that sale will be. In order to give you a real edge every time, I have listed below some key points taken from my sales negotiation training seminar.

Don't Believe Everything You See and Hear

Part of a good salesperson's skill is to learn to read people and situations very quickly. However, when it gets down to negotiating, you have to take everything you see and hear with a grain of salt. Buyers are good negotiators, and thus they are good actors. You may be the only person who has what she needs, but everything she does and says, from body language to the words she uses, will be designed to lead you to believe that unless she gets an extra 10% off, she's going with the competition. Be skeptical. Be suspicious. Test, probe, and see what happens.

Don't Offer Your Bottom Line Early in the Negotiation

How many times have you been asked to "give me your best price"? Have you ever given your best price only to discover that the buyer still wanted more? You have to play the game. It's expected. If you could drop your price by 10%, start out with 0%, or 2%, or 4%. Leave yourself room to negotiate some more. Who knows - you may get it for a 2% reduction. You might have to go all the way to 10%, but often you won't. A little stubbornness pays big dividends.

Get Something in Return for Your Added Value

What if you discover that the buyer wants to be able to track his expenditures for your products or services in a way that is far more detailed and complex than is standard for your industry? What if your account tracking system is set up in a way that you can provide that information at essentially no cost to you? Often the salesperson's overwhelming temptation is to jump in and say, "Oh, we can do that. That's no problem." Before you do, however, think about your options. You could throw it in as part of the package and try to build good will. Or you could take a deep breath and try something like, "That's a difficult problem that will require some effort on our part, but it's doable."

In the second case, without committing, you've told the buyer it is possible. You may not be able to get him to pay extra for it but you may be able to use it as a bargaining chip in resisting price concessions. Which way you choose to go will depend on who your customer is and on the situation. However, you do have options.

Sell and Negotiate Simultaneously

Think of selling and negotiating as two sides of the same coin. Sometimes one side is face up, and sometimes the other side, but they are always both there. This is particularly true in your earliest contacts with the buyer. The face the buyer sees is that of a salesperson demonstrating features and benefits. The hidden face is that of a negotiator probing and seeking out information that may be invaluable later should issues like price, terms, quality, delivery, etc. have to be negotiated.

Be Patient

Finally, and most important, be patient. Sales is a high energy, fast moving business. Patience is one commodity that is in relatively short supply, but if you're impatient in a negotiation, you'll lose your shirt. If I'm negotiating with you and I know that you're impatient, I will hold out just a little longer, no matter how desperate I am to make a deal with you. As long as I know you're in a hurry, I'll wait.

So be patient. Take the time that you need, don't rush to give in, don't show your anxiety, stay cool and don't panic. Negotiation is a process and a game. Use the process and play the game. You'll be astonished at the difference that it makes!

(c) Michael Schatzki - 2004. All rights reserved.

About The Author

Michael Schatzki is a master negotiator who, for over 20 years, has provided sales negotiation training seminars and coaching for thousands of people in the U.S. and globally. More than 75% of Mike's programs are for satisfied, repeat customers. The Negotiation Dynamics(r) system really works. Check out all of Mike's articles at http://www.NegotiationDynamics.com. Mike can be reached at (888) 766-3530.

Mike@NegotiationDynamics.com

medical health hospital

Negotiation Tactic Take It Or Leave It

Writen by Tristan Loo

How many times have we heard this commonly used negotiation tactic? The "take it or leave it" tactic is basically an ultimatum designed to prevent further negotiations from taking place. It is almost always a bluff and a challenge to the other side to see who has the stronger nerves. The problem with this tactic is that it causes too much resistance and conflict to facilitate an agreement. This tactic is aggressive and demanding, two things that don't sit well with your counterpart. What you are basically saying with this tactic is, "Its going to be my way, or no way." Now the other side is going to have to reassert their own dominance over the situation by choosing to "leave it" rather than to "take it" to save face and show you who really is in charge. Where is the negotiation now?

How To Counter This Tactic

There are three main ways you can counter the "take it or leave it" tactic. The first way is by simply ignoring it. Let it fall on deaf ears and just continue negotiating like you never heard it. This lets you test the seriousness of their threat. The second way is by asking them, "What do you think might happen if we don't reach an agreement." This will get the other side to realize the consequences of not reaching a negotiated settlement. The third way is by probing more into their interests and needs on the issue rather than focusing in on their demands.

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.acrsonline.com or e-mail him directly at CEO@acrsonline.com

medical health hospital

A One Stop Financial Solution

Writen by Sakina Walsh

Amy Wright, 34, was extatic when her realtor showed her the three bedroom townhome overlooking the lushious golf course. It was exactly the home she was looking for. The interior was sunny and bright, with a newly remodeled kitchen, spacious bedrooms, and the perfect little study area to set up her new home office. It had a spectacular pool and a lovingly tended flower garden. Best of all—the seller had to move immediately, so the home was a steal and miraculously within her budget! Amy was already making moving preparations when suddenly, a devastating blow paralyzed her plans. Her credit application for a mortgage had been denied. She couldn't understand how this had happened—just a year ago, her credit had been almost perfect! The last year had been a little tight, and sure she had a few late payments here and there…but she had no idea it was so bad that now she couldn't even get the home of her dreams.

Ms. Wright found herself in the predicament that hundreds of thousands of Americans are suddenly finding themselves stuck in: more debt than they can handle, a sinking credit score, and all of their financial dreams slipping away. With no chance of getting approved for a loan, more bills than a paycheck can manage, and collection agencies hounding delinquent borrowers with phone calls, it is no wonder that financial problems are a top cause for anxiety, stress-related insomnia, and even divorce. Many American consumers don't know where to turn when their financial problems get out of hand, and don't know how to battle such corporate giants as major credit card companies or credit bureaus to start making their credit wrongs right. To make matters worse, all kinds of internet scams, fraudulent credit repair companies, and money-hungry "debt relief" programs have made consumers wary of turning anywhere for help.

Amidst all of these truly leery companies, however, there are a select few that can genuinely assist their customers in climbing out of debt, and directing them towards the financial solutions they desperately need. One such company is Credit MD, a company that has earned its reputation by handling its customers with honesty, sincerity, and expertise. You can immediately distinguish Credit MD from the many illegitimate credit repair companies out there because they never make false promises that hey cannot keep. The credit specialists at Credit MD have been trained to be clear and distinct about exactly what options are available to their clients, and what kind of success they can expect.

Credit MD, a credit specialist will assist customers in selecting an appropriate financial option, even if the customer has no idea where to start. After a thorough consultation, the credit specialist works with the customer to come up with a uniquely tailored financial solution that will help restore the customer's credit. As an affiliate company with many other lenders and credit services, Credit MD, offers a full array of credit options for customers that are in desperate need of financial relief. Among these options are sub-prime personal and business loans, credit cards, credit repair services, and debt consolidation and settlement plans.

The loans and credit cards Credit MD offers are specifically designed for customers with less than perfect credit. Getting approved through these lenders presents customers with the opportunity to start rebuilding good credit. Many customers can get approvals through Credit MD's affiliate lenders even if they were denied by other companies on the internet.

A recent study found that more than 3 in 5 consumers have negative information in their credit report, and nearly half of the studied reports contained errors. Many of the errors were serious enough to prevent the individual from qualifying for credit! To further entrap customers suffering from such erroneous credit reporting, dozens of highly dishonest "credit repair" agencies have reared their heads across the country. Dan Walsh was one their victims. "They told me they would make my credit perfect, and take all of the negative items off", he said. Instead, he got charged almost $5,000 with very little change to his report. Many of these credit agencies employ inexperienced associates and charge exorbitant fees to desperate customers. Credit MD has a fully experienced attorney that works on their credit repair cases. All of this is done at an astonishingly low cost, and absolutely free in some cases. There is never an up front cost to the customer, a feature that few, if any other credit repair companies can match. In fact, Credit MD refuses to even take cases unless they genuinely feel that they can significantly help the customer. Now that's credibility.

For customers sinking in debt, bankruptcy often seems like the only resort. But sometimes a last minute debt consolidation or debt settlement can save the deep impact the damages from a bankruptcy can cause. Credit MD assists customer in exploring these options, as well as several others, such as home improvement loans and home equity lines. Although there are many other companies on the web offering similar services, beware of internet scams and companies that ask for upfront payments or credit card information.

Even if you just want to know what your credit report has to say about you, Credit MD is an excellent financial resource for any customer seeking to explore their financial options or seek debt relief. Credit MD outshines its competition with premier customer service. They don't have annoying automated telephone systems, or lengthy hold times. It is easy to get in touch with an enthusiastic credit specialist promptly—a huge relief in today's busy world. With so many online scams, it's important to know a company that has qualifications and a reputation you can trust. For more information, call Credit MD at 1-877-512-7334 or visit their website at www.creditmd.com

Sakina Walsh is a current Credit Analyst that has been working in the financial sector for several years. Her experience includes banking, investments, mortgages, and sub prime lending, and is finally combining this knowledge in the credit counseling industry.

medical health hospital

Cross Cultural Negotiations

Writen by Neil Payne

Cross cultural negotiation is one of many specialized areas within the wider field of cross cultural communications. By taking cross cultural negotiation training, negotiators and sales personnel give themselves an advantage over competitors.

There is an argument that proposes that culture is inconsequential to cross cultural negotiation. It maintains that as long as a proposal is financially attractive it will succeed. However, this is a naïve way of approaching international business.

Let us look at a brief example of how cross cultural negotiation training can benefit the international business person:

There are two negotiators dealing with the same potential client in the Middle East. Both have identical proposals and packages. One ignores the importance of cross cultural negotiation training believing the proposal will speak for itself. The other undertakes some cross cultural training. He/she learns about the culture, values, beliefs, etiquette and approaches to business, meetings and negotiations. Nine times out of ten the latter will succeed over the rival.

This is because 1) it is likely they would have endeared themselves more to the host negotiation team and 2) they would be able to tailor their approach to the negotiations in a way that maximises the potential of a positive outcome.

Cross cultural negotiations is about more than just how foreigners close deals. It involves looking at all factors that can influence the proceedings. By way of highlighting this, a few brief examples of topics covered in cross cultural negotiation training shall be offered.

Eye Contact : In the US, UK and much of northern Europe, strong, direct eye contact conveys confidence and sincerity. In South America it is a sign of trustworthiness. However, in some cultures such as the Japanese, prolonged eye contact is considered rude and is generally avoided.

Personal Space & Touch: In Europe and North America, business people will usually leave a certain amount of distance between themselves when interacting. Touching only takes place between friends. In South America or the Middle East, business people are tactile and like to get up close. In Japan or China, it is not uncommon for people to leave a gap of four feet when conversing. Touching only takes place between close friends and family members.

Time: Western societies are very 'clock conscious'. Time is money and punctuality is crucial. This is also the case in countries such as Japan or China where being late would be taken as an insult. However, in South America, southern Europe and the Middle East, being on time for a meeting does not carry the same sense of urgency.

Meeting & Greeting: most international business people meet with a handshake. In some countries this is not appropriate between genders. Some may view a weak handshake as sign of weakness whereas others would perceive a firm handshake as aggressive. How should people be addressed? Is it by first name, surname or title? Is small talk part of the proceedings or not?

Gift-Giving: In Japan and China gift-giving is an integral part of business protocol however in the US or UK, it has negative connotations. Where gifts are exchanged should one give lavish gifts? Are they always reciprocated? Should they be wrapped? Are there numbers or colours that should be avoided?

All the above in one way or another will impact cross cultural negotiation and can only be learnt through cross cultural training. Doing or saying the wrong thing at the wrong time, poor communication and cross cultural misunderstandings can all have harmful consequences.

Cross cultural negotiation training builds its foundations upon understanding etiquettes and approaches to business abroad before focusing on cross cultural differences in negotiation styles and techniques.

There are three interconnected aspects that need to be considered before entering into cross cultural negotiation.

The Basis of the Relationship: in much of Europe and North America, business is contractual in nature. Personal relationships are seen as unhealthy as they can cloud objectivity and lead to complications. In South America and much of Asia, business is personal. Partnerships will only be made with those they know, trust and feel comfortable with. It is therefore necessary to invest in relationship building before conducting business.

Information at Negotiations: Western business culture places emphasis on clearly presented and rationally argued business proposals using statistics and facts. Other business cultures rely on similar information but with differences. For example, visual and oral communicators such as the South Americans may prefer information presented through speech or using maps, graphs and charts.

Negotiation Styles: the way in which we approach negotiation differs across cultures. For example, in the Middle East rather than approaching topics sequentially negotiators may discuss issues simultaneously.

South Americans can become quite vocal and animated. The Japanese will negotiate in teams and decisions will be based upon consensual agreement. In Asia, decisions are usually made by the most senior figure or head of a family. In China, negotiators are highly trained in the art of gaining concessions. In Germany, decisions can take a long time due to the need to analyse information and statistics in great depth. In the UK, pressure tactics and imposing deadlines are ways of closing deals whilst in Greece this would backfire.

Clearly there are many factors that need to be considered when approaching cross cultural negotiation. Through cross cultural negotiation training, business personnel are given the appropriate knowledge that can help them prepare their presentations and sales pitches effectively. By tailoring your behaviour and the way you approach the negotiation you will succeed in maximising your potential.

Neil Payne is Managing Director of Kwintessential. Visit their site at: http://www.kwintessential.co.uk/cross-cultural/cross-cultural-awareness.html

medical health hospital