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ScriptUnit2ContractNegotiationPre-listeningActivitiesBusinessContractBasicsImportantPointstoRememberWhenPuttingTogetheraContractIfyouspendenoughtimedealingwithcustomers,youwillatsomepointhavetodealwiththecontractsrelatedtotheserviceyouprovidetothosecustomers.Atfirst,contractscanbeintimidating,butlikemostthingsinlifewanttogetabetterpractice,youwillbebetteratdealingwiththeseagreements.Thefollowingslideswon'tteachyoutobealawyer,buttheywillprovideyousomerealworldinsightsthatwillhelpyouwhenitcomestimetodealwiththecontract.Youwon'tbelievehowmanycontractsIhaveseencomeacrossmydesk,butdidnothavethepropersignatures.WhatImeanbythepropersignaturesisthattheclientwhoisgettingtheproductortheservicehassignedthecontract,andthepersonthatissupplyingthatproductorservicehasalsosignthesamecontract.Youhavetohavebothsignaturesonthesamedocumentinorderforittobeacontract.Alotofsmartcontractsnowhavethiswordingbelowthesignatureline:authoritytobindthecompany.Thiswordingservesasaremindertothepersonwhowasactuallysigningthecontractthattheymusthavetheauthoritytocommittothetermsofthecontractthattheywereabouttosign.Basicallytheclientbysigningitsays,yes,“IcanpayforthisproductorservicethatI'mabouttoreceive”,andthensubsequentlythecompanyrepresentativeisalsosaying,“Yes,Icandelivertheproductortheserviceasit’soutlined”inthecontract.Allcontractsshouldhavethesebasicelements:Numberone:AstartdateWhenareyougoingtodelivertheproductortheservice?Numbertwo:ContractlengthThiscanbeanydurationoftimefromaday,aweek,amonth,sevenmonthsorevenfouryears.Numberthree:DetailsoftheproductorserviceThisitemcanneverhaveenoughdetail.Thegoalhereistomakesurebothpartiesknowexactlywhatistobedoneinthecontractrightdowntothefinestdetails.Itisimportanttomakesureeveryone'sexpectationsareabsolutelycrystalclear.Numberfour:PricesYes,itisimportanttolistoutthepriceyouarechargingfortheserviceforthepartthatyouareselling.Makingsurethatcontractdetailswhatisincludedisjustasimportantastowhatisnotincludedintheprice.Whenyouthinkprice,thinknumberofunits,value,frequencyandanyandalldiscounts,andforhowlongthatpricewillbeineffectyoumaywanttoofferdiscountsareincreasesinyourpriceifcertainconditionsapplysuchasacustomerwhobuysmorethanexpectedorlessthanagreedto.Keeptheseoptionsopenbecauseyouneverknowwhatwillhappeninthefuture.Numberfive:PaymenttermsIntheolddayswhenbusinesswasalocalexchangeofgoodsandservices,paymenttermsarepaidmuchcashwhenyouboughtorreceivedtheproductorservice.Asbusinessbecamemoreinternational,itbecameinconvenienttopaycash,forsay,shiploadofironore,sopaymenttermsbecamepartofthecontract.Paymenttermsandsurethereisatimelybalancebetweenthedeliveryoftheservicetothepaymentforsuchservice.Somecompaniescanaffordtoextendpaymenttermsforbiggerdealsbutsomeneedtobepaidimmediately.Whenyouarenegotiatingpaymentterms,ensureyoucanaffordtotermsyouagreeto,otherwiseyoumayfindyourselfoverextendedcreditwiseandnotbeabletoaffordtopayyouremployeesorotherkeyproviders.Numbersix:Mailingaddresses.Inyourcontractmakesureyouhavethemailingaddressesofthatpersonwhosignedthecontractandthemailingaddressandnameofthepersonordepartmentyouweretosendtheinvoicesto.Sameappliesifyou'regettingpaidmakesureyourcustomerknowswheretosendthechecked,eitherwayyouwillsavealotoftimeinminimizingconfusion,ifyou’reatthistothecontract.Numberseven:Approvedsignatures.Nowwe'regoingoverthisagainbutthisissimple.Makesurethepeoplewhosignedthecontracthavetheauthoritytocommittothetermsofthecontractwhenindoubt,askforproof.Don’twristdisappointmentorextracostbecauseyoudidn'tdothisstep.Whenitcomestocontractsandpromises,theonlyvalidpromiseisapromisethatiswrittenintothecontract.While-listeningActivitiesVideoOneBusinessContractBasics:ImportantPointstoRememberWhenPuttingTogetheraContractEverythingelseissimplewords,unspokenwordsarenotbinding,whichtheywere,butthatisnotthecase.Sothecontractorssaywewillpickupanddisposeofallaccessmaterial,getitinwriting,iftheclientsayswewillgiveyoumorebusiness,andifyoudeliverontime,havethemputthatinwriting.Itiseasytobelieveorhavefaithintheotherpartywhenyou'renegotiatingacontract.Youwanttotaketheirwordforeveryonewhohasgoodintentions,butsituationschange,peoplechange.Toensureeveryonerememberswhattheypromisedbyputtingitinwritingandincorporatingitintothecontract.Itisnaturalthatacontractwillcallbackandforthbetweenyourcompanyandyourclient,iseachpartyfinetuneswhattheywillagreetoandwhattheywantchangeoradjustedinthecontract.Electronicallywrittencontractsfordocumentcanbeadjustedandoralteredwithouttheotherpartybeingtoldorbeingawareofit.Electronicallywrittencontractsordocumentscanbeadjustedandoralteredwithouttheotherpartybeingtold,orevenbeingaware,youcangetaroundredlineinWorddocuments,likeitornot,it'safact.Soyouhavetoguardagainstthispracticebyreviewingtheredlinecontractsthatcomebacktoyou.Mostpeoplewillconcentratetheirattentiononthesectionsthathavebeenredlined,butitisalwaysgoodpracticestoscantherestofadocumenttoensurenothingelsehaschanged.Onequickandeasywaytodothisistofirstensurethatyouhavethesamenumberofpagesinthecontract.Secondlyyoucanscanacontractbylookingforthesamewordsatthebeginningandendsofeachline,andcomparingthemtotheoriginalandthered-linedversion.Asyoucanseeinthisexamplethewordsanyandagainstappearonthe3rdineightlinesasintheoriginal,alsowehaveballpointAthroughDinbothcopies,shecanbeprettysurethatthissectiononthecontracthasnotbeenaltered.Ifthatsectionhadwordsaddedorremovedandthewordswerenotlineupthesameway,thiswouldbeRBSwithgaspressurefunchangesaswell.Everycontractwillhavesomechangesmadetoit,whenitdoes,bothpartiesmustagreetothosechanges.Thechangesneedtobeinitiatedbybothpartiesorthechangeisnotdeemedacceptedintothecontract.Thisprocedurealsostopsonepartyfrommakingchangesafterthecontracthasbeensignedandensurestheintegrityothercontractprocess.Itisagoodideatoactuallywritesuchaclauseintoyourcontracttoensurethatbothpartiesunderstandthatallchangeshavetobemutuallyagreedto.Onewouldthinkthisisanobviouslie,butrealityhastaughtmequitedifferently.Hereisascenariotoconsider.JohnworksforasoftwarecompanyandJohngetspaidacommissionforeachofhissoftwaresales.Johnknowsthefullpriceofthiscompanysoftware,butJohnalsoknowshecansellmoresoftwareifhediscountsthepriceJohnmightnotreallyknowwhatitcostactuallyrightcellandsupportthesoftwarehiscompanyisselling.Allheknowsishegetspaidifhesells.SoJohn’smotivationsmaynotalignwithhiscompany'sobjectives.Whenitcomestodiscountsomeproductsorservices,makesureeveryoneinyourcompanyknowswhatistheabsolutelowestpricethatisacceptable,yourunabusiness,notacharity.Don'tgiveawaythecompany'sprofitsbyaddingexcessivediscountsintoacontract.Whenyouarenegotiatingacontract,alwaystryingtokeepinopenmindnewapproachesandcharmstoacontract.Itisnaturaltoimmediatelydismissanychangestoyourcontract,buttryandlistentonewapproachesinnewwayslookingatthebusiness.Sometimesthesenewideaswillcomefromyourclient,andyourcustomers,yourbestreactionisnottoreact,buttolistenandaskquestions,lotsandlotsofquestionsTrytounderstandwherethey’recomingfrom,ifyoulettheotherpersonexplaintheirposition,theirlogicandtheirreasonswhytheyareaskingforwhattheyareasking,youmightseeanopportunityorapproachthatyouneverthoughtitbefore,alwaysrespondthisway,“oh,allthat’sinteresting”.“Whyisthatimportanttoyouandoryourcompany?Theworstcontractsaretheonesdoneinarush.Itiswellknownthatmostconcessionsandcontractsaredoneinthefinalhoursatthenegotiation.Dowhatyoucantoavoidhurriedtimeorsensitivesituationssuchassigningabunchofcontractsonthelastdayofthemonthorattheendofthequarter.Trytominimizethestrapsbynotsettingadeadlinetosignbyacertaindayoracertaintime.Ofcourseyouwillhavetoeventuallysignthecontract,butyoucannowpredictaheadoftimewhatissueswillcomeupinthenegotiationphase.Sodon’tbeatadisadvantageandleaveyourselfsomeextratimeandflexibility.Contractscanimpactbusinessesinmanyways,unlessyouonrunandmanageaone-personbusiness.Chancesareveryhighthatthecontractyou'reabouttosignwillaffectalotofpeopleinyourcompany.Peoplemaybehired,expensivemachinerypurchased,officespaceisrented,andbudgetschanged,andsoon.Sonowisthetimetohandoveryourabout-to-besignedcontracttoatrustedpartyinyourcompany,ororganizationforthemtohaveareviewofthedeal.Theymayhaveaperspectiveofourknowledgeaboutacertainsituationdoyouwerenotawareof.Thisinformationmayhaveamaterialimpactonthedealorsimplypointoutsomethingthatmightbecomeanirritantlateron.Thepointisthatyouwon’t(unlessyougetasecondorathirdopinionalso).Thisgivesotherfolksintheorganizationtheabilitytoknowandmanagetothecontracttermsandthatalonewillensureforsuccessfulcontract.Thankyouforwatchingthispresentationoncontractbasics.Ihopetheinformationhasbeenhelpfultoyou.VideoTwoHowtoNegotiateaContract:NegotiationTips&TacticsInthissegment,we’regoingtolookatanoverviewnegotiationinitsentarity,ifyouwanttothinkofnegotiatingasbeingaprocessofthecurvesbetweentwoormorepeopleacrossthetable.Infactit'sbettertothinkofnegotiatingasentiremembersoftheprocess.Nowlookatthismapasyouwillseetherearethreedistinctelementsintonegotiation.PrenegotiationWell,youneedtogetamandateandyouneedtoplan,sothatyouknowwhattodowhenyousitdownwiththeotherparty.Phasetwoisthenegotiationitself.Itcanlastfromhalfanhour,toanhourtoaday,toaweek,toamonth.IwasonceinvolvedinthegasnegotiationbetweentheBritishGasAuthorityandNorwaywhichlastfourteenyears,sothereisnoruleabouthowlonganegotiationtakes.Alright,let'sgobacktothefinalstages,whichisanimplementation.Howevergoodsettlementiswiththeotherparty,howeverclearthecontract,howevermanypeoplehavesignedit,itsvalueisonlytheextendtowhichit'simplemented.Sothatisacrucialarea.Sothisisthemanagementprocess.Let'shavealookatphaseoneagain,obtainingamandate.Nowyoumayhavetheauthoritytosetyourownmandate.Manymanagersanddirectorsdon’t,theyhavetogetpermissionfromtheboardorfromtheirboss.Somepeopleseemtobebetteratgettingamandatethanothers,whentheygoandtalktosomebodytheycomeawaywithwhattheywanted,whereasmostofus,wewinsomeandloosesome.NowIaminterestedinhowitisthatafewindividualsseemconstantlytogettheirownway.Second,planning.Itwouldberidiculousonamajornegotiationtogoandsitdownwiththeotherpartywithouthavingthoughtthroughsomeoftheissuesandhowtohandlewhatitinvolves.Finallythefacetoface,thisiswhatmostpeopleareinterestedin.Howdoyouactuallygetwhatyouwantwhensometimesitisinconflictwithwhattheotherpartywants?Weshouldbelookingatthatinsomedetail.Andfinally,implementations.Particularlyhowtoavoidmisunderstandingfromthecontractduringtheimplementationphase.Ithappens.IthappensalotIhavedetailwithitonmanyoccasions.Andhowtogetcommitmentfromtheothersidetoimplementationevenwhenunforeseenobstaclesarise.Sothosearethethreephasesandthey’reallinteractive.Theseauthorities,forexample,somewithanamazingtacticalinthefacetofacethatmaygivehimsufficientreputation,Isupposeyoucansay,withhisdirectorforthemtogivehimthemandatesheasksfor.Somebodywhoisverygoodatgettingamandatemaymakethetaskofthenegotiationeasier.ThatpersoncouldbewithsomeonewhodidnotgetaverygoodmandateandimplementationistheareathatveryfewpeoplefocusonobviouslyasIhavesaidbeforethat’skeytoensurethevalueofthecontractisrealizedbybothparties.VideoThreeHowtoNegotiateEffectively?Hi,thisisDeCima,andIambackwithanewlessononhowtonegotiateeffectively.Well,whatisittonegotiateorwhatdoesnegotiationreallymean?Negotiationbasicallymeansanexchangeofthingsbetweentwopeopleortwoparties.SoifIweretonegotiatewithyou,IwouldbeexchangingsomethingthatIhaveforsomethingthatyouhave,soforexample,say,Ihaveacar,IhaveacarbutIdon'thavealotofmoney.NowIaminneedofmoney,butyouareinneedofacar.SowhatamIgoingtodo?I'mgoingtoexchangemycarinreturnforthemoneythatyouarewillingtopaymeformycar.Sothetalksthatfollowdependingonwhetherweliketoexchangethecarforthemoneyiswhatnegotiatingisallabout.Sonegotiating,shouldIsay,ismakingadeal.SoifI'mdonewithnegotiatingIhavemadeadeal.Okay.Well,pleasenote:thattherearevariousstepstomakingadealornegotiatingeffectively.Thefirstoneis:decideonyourbreak-evenpoint.Whatisabreak-evenpoint?Abreak-evenpointisbasicallythelowestamount,orshallIsay,thecheapestpriceinnonfinancialtermsIwouldcallittheworstcasescenario.Sowhenyouaretryingtoexchangesomethingthatyouhaveforsomethingthatsomeoneelsehas,you'vegottodecideonwhatisthelowestamount,thecheapestprice,ortheworst-casescenarioyouarewillingtoacceptbeforemakingadeal,orbeforesayingyesI'mwillingtotakethatandgiveyouthis.Soforexample,youknow,Imayhavesay,100thousanddollarsinmybankaccountwhatIdon'thavethatmuchmoney,butsupposeIdoandIwanttogoandbuyahouse.NowI’veseenthisreallywonderfulhouse,youknow,withthereallylargelivingroom,twonicebathrooms,astudyineverything,andyouknow,thepersonwhoissellingmehishouseiswillingtogiveitaway,forsay,onehundredthousanddollars.Nowthat'stheexactamountIhaveinmybankaccount.Doyouthinkandthatismybreakevenpoint?Iwouldn'tsayso.Abreak-evenpointis,asIsaid,thelowestamountorthecheapestpriceI'mwillingtoaccepttoexchangewhatIhaveforsomethingthatIwant.Soyougottabeverycarefulaboutknowingwhatisyourbreakevenpoint,otherwiseyoumightendupacceptingadealthatisnotinyourbestinterests.Thenextpointtonegotiatingormakingadealworkinyourfavoristoknowwhatyouareworth.WhatdoesitmeantoknowwhatIamworth?Okay,yougottatwoquestionstoyourself.DoIhavesomethingtheotherpersonneeds?Questionnumbertwo:doesthepersonneedmemorethenIneedhim?Sowhenyouknowwhatisyourworth,youareinapositiontonegotiatemoreeffectively,sosupposeIamajewelryvendor,soIamtryingtosellveryrarediamonds,youknow,sayforexample,orreallyrarepearlswhichyouknowarenotverycommoninthemarketthesedays.Nowdoesthatmeanputmeinapositiontobargainmoreeffectively?Tomakeadealworkinmyfavor?Yes,itdoes.BecausenowIhavesomethingthatthepersonneedsinfactthepersonwhoisbuyingsomethingfrommewantsitmorethanIwanttosellitandthatputsmeinabetterpositiontonegotiatemoreeffectively.Sowhenyouaretryingtonegotiateadealinyourfavoralways,always,trytoknowwhatyouareallabout,whatyouareworth.VideoFourChineseNegotiatingStyles(1)Hi,I’mAndrewHubert,forchinasolved.Todaywe'retakingalookatthefiveChinesenegotiatingstylesortypes.Allnegotiators,Chinese,Westerneroranyother,fallintooneoffivecategories,ortypesofnegotiators,andthatthosefivearecompetitive,compromising,accommodatingoryielding,avoidingorcollaborating.Ifyou’reinterestedinreadingmoreaboutthistopic,IreferyoutoG.RichardShell’sBargainingforAdvantage.WhatShelldidwasdividedeachnegotiator’sstyleintotwodimensions.uh...helookedathowimportantthegoalsofoutcomesweretoyouandhowimportantthecounterpartiesuh...nowcomesandgoesworktoyou.Soifyoulookattheleftsidethisishowyouviewthenegotiationifyoudoyouuh...theoutcomeofthisnegotiationasatopimportance,youreallywanttomaximizethevalueofthisindividualtransaction.Maybeyouhaveauniqueasset,maybeyouhaveaverystrongbargainingpositionormaybeitwasextremelyconfidentaboutyourabilities.Sometimesyoutakemoreofamoderateapproachespeciallyyou'reaprofessionalsalesmanorprofessionalpurchaserandthevalueofthistransactionisnotthathigh,it’snottoliveordie.Youjustwanttogetthedealdone,andsometimesyou'renotthatworriedaboutthebenefitorthegoalofthe...uh...negotiation,you'remoreworriedabouttheriskofnothavingtransaction,andusingexample,theguywhohasawarehousefulloficecreaminAugust,andyourfreezerjustbrokeandifyoudon'tsoundlikeyouhavetocleanitup,soyoudon'treallycarethatmuchaboutmakingahugeprofit,youaremoreconcernedaboutavoidingthelargeloss.Andthen,wearegoingtolookatyourviewtowardsyourcounterparties,benefitsforgoals,ifyouhavealowopinionofyourcounterparties,whereyoudon'tworrytoomuchabouthisfeelingsofhisreaction,thenmaybeyoufeelthattimeisinyourfavor,thecircumstancesareinyourfavororyouhavenon-economicconsiderations,youknowreallycarewhathethinks.Inmostnegotiations,youwillhavesomeregardforyourcounterpartiesuh...feelingsabouttheoutcome,officiallyprofessionalsalesmanornormalbusiness.It’llbenicetoseehimagain.Andsuchwillbeaveryhighregarduh...foryourcounterparties’opinionaboutthistransaction,youreallyneedthisclient,uh...youwannauh...seehimagainoryouwannahaveastrategicrelationshipwithaveryfewbuyersorsellersanduh...youreallyneedtotransactwiththispersonandyouneedhimtosaygoodthingsaboutyouandyouwanttoseehimagain.Andthereyouseethechartthatwillbefillingin.OntheleftontheYaxisisthebenefitstoyou,andacrossthebottom,theXaxisishowyouseethebenefitsgoingtohim.Soifyouaretopleft,allthatyoucare,thatis,thebenefitstoyou,youdon’treallycareatallaboutthebenefitsareoutcometoyourcounterparty,you’re,wecall,acompetitivenegotiator.It’stypicalwin-loseaggressivenegotiatoronninetynineuh...tooneinmyfavorisproperandaboutthatwouldbeafineoutcomeforme.Ontheotherend,thebottomrightisanaccommodativenegotiator.Allthecaresaboutismakingtheotherguyhappy.Who’sthat?Thisissomeonewhoreallyneedstomakethatsaleuh...thisistheuh...theicecreamvendorwiththebrokenrefrigeratorthatwetalkedaboutearlier.Onetoninety-nine(notinmyfavor),onetoninety-nineagainstmeisOk,aslongaswecanfinishthebusinessandtransact,aslongasyou’rehappy,I’mhappy.Nowwegototheothercorner,thetoprightcorneriscollaborative.ThisistheWin-Winnegotiator.Thisistheguywhowantstoworktogethertocooperatetoenlargethepieandcreatevalue,twoplustwoequalsfiveforthistypeofnegotiator,he'salwayslookingforawaytouh...makebothsideshappy.Andthebottomleftistheavoidingtype.Theavoiderwinsbynotplaying.Hedoesn’twanttotransact,hedoesn’twanttogetinvolveduh...hedoesn’tgainfromthistransactionbutmaybejustaworkharder,ormaybeastotakeariskandthisisatypicalbureaucratuh...whogetspaidwhetherheyouhappyornotuhIt’sareluctantbuyer.Someonewhoisafraidofspendingthemoneyyou'reafraidofmakingacommitmentandhewouldprefernottotransact,nottocompletethenegotiation.Andinthemiddleofallthese,wehavethecompromiser.Hetransactsoften,buthedoesn'treallymaximizehisvalue,andthisguyissortoftheexplodeddifferentmeetinthemiddletypeofnegotiator,butthiscompromiserdoesthedeal,thecompromiseralwaysleavesthetablewithasignedanagreementofsomekind.VideoFiveChineseNegotiatingStyles(2)Nowlet'stakealookattheChinesenegotiatingpersonalities.Thefirstwelookatiscompetitivetypesofit.Thecompetitorsinchinawilloftennotappearascompetitors.uh...theymayappeartobeveryaccommodative,they'retryingtobeyourfriendandtrytobuildarelationshipasitis,commonlyChinesenegotiatinganinternshipofferuh...tohelpyouanywaytheycan,andtheymaybeveryflexibleoncertainissues,sometimesitwouldbeprice,sometimesuh...acompetitivenegotiatorwillbeveryflexibleonissuesofhavingtodowithschedules,timetables,uh...yourabilitytohandlelargequantitiesofsalestargetsandotherthingsthatcan'tbeenforcedveryeasilylaterafteryoureturntoyourhomeorofficeinthestates.Don'petitivecounterparties.Thatmightnotbetherealinterestandtherealinterestuh...itmightbeintechnology,intellectualproperty,orifyou'petitorornegotiatoruh...inunitedstatesisusuallygoingtobeveryvisible,usuallyhe'safteryourmoney.Inchina,hemaynotbeafteryourmoney,soitmightbealothardertospot.Thenexttypeofnegotiatorwe’relookingforinChineseistheaccommodator,andaccommodatorinChinacomesintwovarieties:firstisthatguywehavediscussed,secretlycompetitivenegotiatorwho'sgonnacomeupacrossuh...asanaccommodatorwho'sgoingabendoverbackwardstohelpyou,buthe'sreallygatheringinformationonyourtalktopropertyoryourtechnologyandyourcustomerlist,butthisisnotnecessarilythemostdangeroustypeofnegotiators.Themostdangerousaccommodators:thewolfinsheep'sclothingisnotyouwerenecessarilyyourmainproblem.InChinakindnessreallycankill...becausepassivecolleaguesandpartnersandcounterpartieswon’ttellyouwhatyouneedtohear,theonlytellyouwhattheythinkyouwanttohear.Nowinallfairness,sometimes,Ifeelthataretellingyouwithgestureorwiththeraisedeyebrowuh...bylookingaway,byexpressiononthefaceandyouwon’tpickuponitbecauseofculturaldifferencesanddifferentcommunicationstyles,butstillthisissomethingbeyondthelookout.TheChineseuh...asageneralrulebecauseofrulesofetiquetteandculture,tendtolookmoreaccommodativethanwesternerseventhoughinrealitytheyarenot.AcompromisingandcompromiserareourinterestingaspectsofChinesenegotiatinguh...Chinaisaconsensus-orientedcultureandtheyhaveatraditionoftryingtosmoothoverdifficultiesandsmoothoverdifferencesandthismanifestitselfanduh...arecertaintypeofnegotiatingbehavior,theycomeintonegotiationexpectingtocompromise.It'sverycommonforaChinesesalesmantosetthepriceoutrageouslyhigh.Maybefourhundred-percentabovetheirrealtarget,becauseheexpectsyoutocompromisehimdowntouh...twohundred-percentabovewhatheexpectsuh...someoneelsetopay,thekeyhereistogatherinformationanduseyournegotiatingtimetogetusuallyshipbuildinguh...opportunitiestolearnasmuchasyoucanandtobuildyourownsourcesofinformation.Don'tstartnegotiatingassoonastheycallitemnumber,justbecausetheysayafivehundreddoesn'tmeanyouarerequiredtoshoutbackacounterofferrightaway.AvoidingplaysabigroleinthelargerChinesenegotiatingbehaviororfourpercentoftacticswhichisquitefranklypassive-aggressive.Chinesewilluseknowledgeuserinsiderinformationandusetheirconnectionstotheiradvantageandoneofthewaysistoavoidengagingwithyouuntilyoumakethefirstsecondforit,soyoumayhavetocomebacktonegotiationseveraltimesandcomebacktonegotiationcounterpartyseveraltimesbeforeyoumakeactualprogress.OneAmericastationsofavoidanceinChinesenegotiationisthatyoumayfinditverydifficulttomakeface-to-facecontactwiththeactualdecisionmaker,andyou'llspendalotoftimeworkingwithsubordinatesevenifyouspeakChinesebeganreceivingafewhavetranslatorswhosayit'salanguageissuebutitmightnotbe.Theygainalotofpowerbyhavingthekeydecisionmakeravoidtheface-to-facecontactwithyouandyourgroup,sowhatyou'vegottobewareofthisyesyoucanprobablydoadealthroughitshierarchyorthroughitssubordinatesandthepeoplehesendstomeetwithyou,butyou'vegottabecarefulbecauseifyoucan'tmeetwithhim,meetfacetofacewiththerealdecisionmaker,nowwhenthingsarestillrelativelyfriendly,itmayshowthatyoucanhaveaproblemlateronwhenthing'saren'tquitethatfriendly.Post-listeningActivitiesVideoOneBusinessNegotiations—BusinessEnglishforNegotiationsWelcometo.TeachingyouEnglishthroughtwo-minutelessons.InthislessonyouwilllearnhowtonegotiateinEnglish.1.NegotiationsonserviceMark:SoRichard,I'dliketohearmoreabouthowyouchargeforyourservice.Richard:Sure,Mr.Mark.Weofferone-yearunlimiteddatastoragefor$.Mark:Canyouclarifythedatarate?Exactlyhowmuchdatastoragecanbeused,whenyousayitisunlimited?Richard:Wehaveafairusepolicyof10TB.Mark:Canyoubringdowntherates?Wewon'tneedthatmuchstorageanyway.Richard:Wehave7TBstoragefor2yearsatthesameprice.I'msurethisisthebestpackageforyou.Mark:Idon'tknow,Mark.Let
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