Mr. Arun Rao,
It is an excellent presentation, and the quality of the footnotes adds to the value of the presentation. The anecdote about Theodore Roosevelt and George Perkins is remarkable. Considering that it all happened a hundred years ago makes us salute George Perkins for his ingenious way of looking at the problem. In modern management parlance, he converted the CHALLENGE into an OPPORTUNITY. A unique case of a buyer becoming a successful seller! Simply astounding.
Emotions do play a part in negotiations, and it is handled well. The LAS and MSP are seen from both parties' perspectives initially. Thinking from the other side makes a lot of sense and does not limit us to taking a position. The virtues of not taking a position are well explained.
I would like to add my thoughts as under.
PREPARATION - OWN WORKING
In an actual negotiation process, many things are involved. Let us take the example of an industrial purchase. In an industrial purchase, from the point of view of the buyer, he has to freeze his technical and commercial aspects before the talk on final price negotiation takes place. If it is not dealt with in three distinct phases of Technical, Commercial, and Price, there would be chaos. Looking at the same scenario from the point of view of the seller, he should have done a thorough analysis of his costing, his margins, his sales target for the quarter/year, etc.
PREPARATION - KNOW THE OTHER PARTY
The buyer should find out by his own estimations whether the seller has sold a similar item, at what price, a guesswork of his costing, his current sales order level, whether his purchase will be a forerunner for many other companies in his group, etc. The seller, on his part, should find out whether the buyer has options from other suppliers, time/deadline compulsion, potential future sales with the same buyer, etc. Similar preparation can be extended to other examples as well.
Tactics mentioned constitute a good revision. In your future presentations, you may like to touch upon the PREPARATION aspect also.
Thanks for your lovely presentation.
Regards,
V. Raghunathan
Navi Mumbai