Psychological Tools and Traps
Psychological Tools and Traps
Psychological Tools and Traps
Seller
Company
170K
house
Seller
Company
Senior Apartment worth 200K (but costs Company 150K)
Tracy
Company
100K (company financed)
• Seller’s interests met, plus additional 30K
• Tracy's interests met (obtained house)
• Company's interests met (parking lot),
plus additional shareholder value (200K)
and community reputation maintained
• Pat (hopefully) gets job with company
http://www.youtube.com/watch?v=IGQmdoK_ZfY
$250,000
$400,000
Seller
Buyer
170,000
$80,000
Seller
Buyer
200,000
200,000
Game Plan
Course Overview
Introduction to the University of Michigan
The Four-Stage Negotiation Process:
1.0 Prepare: Plan Your Negotiation Strategy
2.0 Negotiate: Use Key Tactics for Success
3.0 Close: Create a Contract
4.0 Perform and Evaluate: Finish the End Game
Apply Your Negotiation Skills: “The House on Elm Street” Negotiation
Negotiation Performance Review
Self-assessment:
• What did you do well?
• How can you improve?
Assessment of the other side:
• What did they do well?
• How can they improve?
Personal Negotiation Assessment Questions
• Established a relationship?
• Searched for underlying interests?
• Asked questions and listened to the answers?
• Found out whether the other side had authority?
• Used an effective “first price” strategy?
• Looked at negotiation from the other side?
• Used reciprocity when trading interests?
• Kept a big picture perspective?
Game Plan
Course Overview
Introduction to the University of Michigan
The Four-Stage Negotiation Process:
1.0 Prepare: Plan Your Negotiation Strategy
2.0 Negotiate: Use Key Tactics for Success
3.0 Close: Create a Contract
4.0 Perform and Evaluate: Finish the End Game
Apply Your Negotiation Skills: “The House on Elm Street” Negotiation