WinWin Negotiations

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Win-Win Negotiations

• Presented by J. Grant Caplan
• Wednesday, 15 June 2005

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Who Can Negotiate?

• Buyers
• Travel Manager
• Purchasing/Procurement Manager
• HR Manager
• SME
• NOT Consumers

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Who Can Negotiate?

• Suppliers
• Sales Manager
• Director of Sales
• Operations Manager

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What Kind of Leverage Do I Have?

• Large Market
• Multiple Vendors
• Multiple Products
• Multiple Pricing Methods

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What Kind of Leverage Do I Have?

• Middle Market
• Multiple Vendors
• Multiple or Singular Products
• Multiple or Singular Pricing Methods
• Flexibility

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Where is My Leverage?

• Air Dependent on patterns
• Car Dependent on preferences/locations
• Hotel Most choice, diversity, value, competition

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Points of Negotiation Hotel

• Seasonality vs. company patterns
• Internet vs. negotiated vs. agency rates
• Commissionable/Non-commissionable
• Value-added (health club, internet, parking,
  etc.)
• LRA/Blocks
• Offer incremental share/different seasonality

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Points of Negotiation Airline

• Share
• Internet vs. negotiated rates
• Commissionable/Non-commissionable
• Value of soft dollars based on usage
• Offer incremental share if mandated policy

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Points of Negotiation Agency

• Overrides
• Hotel Payments
• Transparency of account-based P/L
• Value of soft dollars based on usage
• Offer share if multiple agency

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1. Get Started

• Build a Plan (Strategy)
• Current/Future Needs
• Report Data
• Current/Future Share
• Defined Terms
• Current/Future Pricing
• Wanted vs. Needed
• Team of Stakeholders

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Know When NOT to Negotiate

• No Authority
• Too Much Interference
• Past Record with Supplier/Client
• Insufficient Data
• Inflexible Policy

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2. Select Negotiation Format

• Face-to-face
• By Videoconference
• Over Email
• By Phone
• Combination

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• Become More Persuasive Through Facts, Values

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3. Agree on Definitions

• Data for decision matrices
• Reporting to measure success
• Availability (LRA specs, etc.)
• Decision-makers

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4. Learn Priorities

• Ours
• Priority 1
• Priority 2
• Priority 3

• Theirs
• Priority 1
• Priority 2
• Priority 3

• Your Companys
• The other partys

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5. Handle Conflict Professionally

• Dont invite conflict Be aligned as a team
• Use each team members best skill set
• Allow sidebar meetings to resolve conflict and
  solidify positions

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6. Read Body Language and Style

• In Communications
• At negotiation meeting
• In sidebar meetings
• Of individual team members
• Of companies represented at the table

7. Comprehend Issues
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Tips to Remember

• Stay away from manipulative behavior
• Use SME (subject matter experts) where needed
• Avoid deadlocks (your team and theirs)
• Use one point of contact for each team
• Be ready for multiple negotiations
• Good planning achieves goals

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After Negotiating

• Sort and select hotels
• Notify properties of acceptance
• Communicate selected hotels to travelers
• Or similar process for air or car rental

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THANK YOU!

• Resources
• Canadian Management Centre
• Baker Communications, Inc.
• www.consultingstrategies.com
• Call Grant Caplan on 281-831-4650