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  • This is part five of our negotiation

  • book, Distributive Tactics, and we're

  • going to look at the vocabulary. So let's

  • jump right into the vocab for this

  • chapter. Afford-- afford, afford of course

  • is related to money. Can you afford ten

  • dollars? It's how much you're willing to

  • accept or that you can accept. How much

  • can you afford? So you often use this in

  • your negotiation, by telling the other

  • side we cannot afford that much or we

  • can only afford ten dollars and fifty

  • cents. That's all we can afford. So this

  • word is very key in your negotiation to

  • help the other side understand what

  • you're ... trying to convey as

  • far as... (not your true target

  • because your true target is secret.

  • Remember always keep your secret secret)...

  • but what you want them to think. Approve--

  • approve, of course, is something you agree

  • with and something you're going to go

  • along with. Approve, so you use this in

  • your negotiation to tell the other side

  • that you approve or you don't approve.

  • And it's very normal to use this to say

  • we cannot approve or often you'll say my

  • manager cannot approve this or my

  • company cannot approve this, so that it's

  • not personal doesn't sound like a

  • personal issue. So approve can be

  • positive or with a not not approve, it

  • can be negative.

  • Authorised-- so authorised, meaning someone

  • in your company or some manager above

  • you is going to say this is okay. This is

  • a great word to use in your negotiation,

  • because basically you're telling the

  • other side, "It's not up to me. You're

  • talking to me, but I cannot decide. We can

  • talk now. We can negotiate now, and I need

  • to take this information, and someone

  • else must authorize it." This is a great

  • way for me to put off or to blame

  • someone else. "My manager cannot authorize

  • this. My manager will not authorize this."

  • That's a great word where you can use and

  • is often used in negotiation to try to

  • convey that message of don't blame me,

  • and I cannot do it. Commit-- of course

  • meaning to say something you agree with

  • or that is true and that you're willing

  • to go along with. You can ask the other

  • side can you commit to that price? or

  • vice versa. You could say we can commit

  • to this price. We can commit to the

  • shipping terms, that is we guarantee it.

  • We assure it. We're sure it's ok. We agree

  • with it, everything can move forward, very

  • positive. Commitment-- of course, the same

  • idea. That's the noun of it. The

  • commitment, what commitments can you make?

  • What commitments have you made? Are you

  • going to stick to your commitments?

  • "Concession" is giving something up, and

  • remember a negotiation cannot exist

  • without two sides having some things

  • they agree on, some things they don't

  • agree on. If they don't agree on anything,

  • you cannot have a negotiation, so the key

  • is the things you don't agree on. Those

  • few things that are left, you can make a

  • concession. I can make a concession to

  • you, meaning I give something up where

  • you can make a concession to me, meaning

  • you give something up to me, concession.

  • You can use this in your negotiation by

  • simply asking the other side, "Can you

  • give us a concession on price? Can you

  • give us a concession on shipping? Can you

  • give us a concession

  • so that we can have a longer

  • relationship?" Of course, in your

  • negotiation, the more specific you are in

  • asking for something, the more likely you

  • are to get something. Contact--- contact

  • communication, having communication

  • contacting another side. So we would use

  • this just to get ready for our

  • negotiation, asking the other side when

  • can we have contact? when can I contact

  • you? Exploit-- exploit, take advantage of. We

  • often think of this as a negative word.

  • But in business, I think, we often or in

  • economics, at least, it's not really a

  • negative word. It just means to use some

  • kind of resource to get something, to get

  • some kind of benefit. In negotiation,

  • however, exploiting the other side's

  • weakness or something that you know

  • about the other side means that you take

  • advantage of that. It's not necessarily a

  • bad thing. Now, of course, if you have some

  • secret information or you know something

  • about the other side, well, maybe you've

  • guessed something correctly about the

  • other side, and then you exploit it. That

  • is you use that information to get more,

  • to win in essence, then that's fine. But

  • if you use it and you make the other

  • side upset or angry, then, of course,

  • they're not going to be happy to work

  • with you in the future. So exploit does

  • not necessarily mean something negative,

  • although, it can easily be negative if

  • it's misused. It is our goal to exploit

  • ...the knowledge we know. It is

  • our goal to exploit the information we

  • have, to make the maximum outcome. You

  • would not use this in a negotiation, and

  • if you did, it sounds kind of negative. So

  • I guess you could say something like are

  • you exploiting the situation? Are you

  • exploiting me? Are you exploiting our

  • situation? making the other side sound

  • like they're doing something wrong, but

  • mostly you would use this inside your

  • group for planning purposes. Final push--

  • final push is the part of the

  • negotiation where we're almost finished,

  • but there's still something, maybe one

  • thing left or two things left, and the

  • final push is we're going to take, we're

  • going to make a final push. We're going

  • to try to get this over with by this one

  • time, this one more attempt. Usually, it's

  • normal that in a negotiation, you have

  • many things you need to talk about, but

  • at the very end, there's one thing you're

  • stuck on. I mean if there wasn't one

  • thing you're stuck on, negotiation would

  • be over very quickly. But it's not that

  • simple because each side is trying to

  • maximize, so usually comes down to one

  • thing or a couple issues that can be

  • bundled together. The final push means

  • we're going to try one more time to get

  • it over with and complete the

  • negotiation. It's very positive. In a way,

  • you don't want to have the final push to

  • soon. You don't want to at the very

  • beginning say, "Now, let's have the final

  • push." No, this is really after a certain

  • amount of time has passed, and you're kind

  • of tired out. Now, "hold out" means that you

  • make the negotiation go on longer, maybe

  • longer than it needs to because you're

  • trying to get something, so you hold out.

  • You hold out for a higher price or

  • you hold out for a lower price. You hold

  • out for better terms. So holding out is

  • quite normal. it is... a tactic you

  • can use to make the other side get tired

  • or get worn out, and they kind of give up,

  • sovyou keep holding out. The problem

  • with holding out is if you hold out too

  • long, the other side may withdraw or find

  • somebody else, so hold out. Now, you can

  • say this in your negotiation. You come

  • right out and say to the other side, "Are

  • you holding out for a lower price?

  • because I'm not going to give you a

  • lower price. If you're holding out for a

  • lower price, then, we should just end this

  • negotiation because we cannot give you a

  • lower price." You can accuse the other

  • side of holding out on purpose without

  • really trying to cooperate in the

  • negotiation.

  • Influence--influence means that you say

  • something or you do something that makes

  • the other side change their position,

  • change their opinion. Of course, very

  • simple, example, the most simple is when

  • you go to buy something and you ask for

  • a lower price, and the manager says

  • something like, "I can't give you a lower

  • price. ...I'll lose money. That's

  • already below my cost. I cannot sell you

  • this cup because it would be lower than

  • my price that I paid to buy it." And that

  • will make you think, "Hmm. That must be

  • true." That's influencing you. Of course,

  • all of the negotiation is about influence,

  • so i really emphasize to you to keep

  • this in mind. Now, you do not use this

  • word in negotiating. You use this word in

  • your planning. So when you're planning,

  • one thing you want to pay attention to

  • is how can you influence the other side.

  • Informal--- informal, meaning not formal.

  • Now, specifically, in negotiation this

  • would mean not written down or not in a

  • contract or informal means we just

  • talked about the price a little bit. We

  • talked about the product a little bit. We

  • didn't really negotiate formally. So

  • nothing we said is going to be you know

  • something we have to stick to. It's

  • something that we just discussed, so

  • informal. You can ask the other side, "Can

  • I speak with you informally or can we

  • have an informal negotiation?" meaning

  • just check things out. In view of-- in view

  • of, meaning that something.. I want to talk

  • about something, but related to other

  • things. So I want to talk about, maybe,

  • let's say this product and the price.

  • Maybe I want to talk about the price, but

  • I also want to talk about our

  • relationship. So i want to tell you that

  • if you can give me a lower price, in view

  • of our long-term relationship. We've been

  • working together for 10 years. I've been

  • buying from you for 10 years. So in view

  • of 10 years of buying from you, can you

  • give me a lower price? so in

  • view is a great word, a great phrase to

  • use in your negotiation because you can

  • tell the other side: Remember I gave you

  • something in view of that, or you can

  • tell the other side, "Give me something

  • now, and I'll give you something more

  • later..." usually based on relationship in

  • view of that. "Inventory" of course is how

  • many products you have that

  • are not sold yet, but they're already

  • produced, so they're waiting. "Inventory",

  • not a good thing, of course, in business

  • because too much inventory costs money.

  • You're not selling it. The best thing is

  • you produce and sell as soon as possible,

  • right away, so you don't have any

  • inventory costs. Now why is inventory

  • useful in our negotiation? Because the

  • word inventory, you can use to tell the

  • other side about your situation, so you

  • may say that this price, this product's

  • price needs to go up. Why does this

  • product price need to go up? Because the

  • inventory is all sold out. There's no

  • inventory. We need to wait for more to be

  • produced. That means the supply is lower

  • than the demand. It's so much in demand,

  • we can't produce enough. So there's no

  • inventory on the other side. You could

  • tell your your negotiators to say