Show:
Case Study & Tactical Decision Application
Closing Factor 1: Injecting Urgency by Using the Scarcity Effect
Closing Factor 2: Overcommitment
Soft Closing Tactics: Splitting the Difference
Four Degrees of Commitment
100

In a competitive transaction, Should you open? 

When in doubt, don't. But OK if you have good information and are well prepared. 

100

Define the Scarcity effect 

Human tendency to want things more urgently when we think the supply is running out

100

Way to combat a "nibbler" 

Hold something back to give away at the end

100
Key question to ask as a test of the strength of commitments

Does the other side have anything to lose if it reneges on its promise?

100

Describe a social ritual 

A generally accepted social sign that demonstrates respect and trustworthiness
200
Concession Strategy for a Cooperative Relationship? 

Accommodation or fair compromise 

200

Goal of a deadline

to create the sense that time is running out on an opportunity

200
What does overcommitment derive from?

human desire to avoid admitting failure or accepting a loss when we have invested heavily in a prior course of action or decision 

200
Two reasons why splitting the difference is so popular
1. It appeals to our sense of fairness and reciprocity 

2. It is simple and easy to understand

200

A common way to enhance commitment to improve accountability 

memorialize an agreement in writing 

300

How did Barshefsky accelerate the decision of deal with the Chinese officials in the second round of negotiation in China 

Barshefsky had the U.S.'s negotiation teams luggage sent to the Beijing airport and called her Chinese counterpart at 3:00 am to say that the Americans were leaving the following day. To leave the door open, she requested they meet in the early morning, to try to come to a consensus one last time. 

300

How to respond when you hear the party has "other offers"

"I would love a chance to respond to the competition" or "Can you show me your other offer"

300

What to do when you sense you are becoming overly invested in a deal 

take a step back and make sure it still adds up 
300

Golden rule of negotiation

The goal of all negotiations is to secure a commitment, not merely an agreement 

300

Name the four degrees of commitment 

1. social ritual 

2. public announcement

3. Accountability

4. Simultaneous exchange

400
What type of Situation was the US & China decision 

Balanced Concerns

400

Name the three tactics to trigger scarcity 

Competition, Deadlines, Walkouts

400

What is a nibble?

Modestly requesting small concessions after everyone thinks the deal is done but before it formally closes
400

Two important situations where splitting is a bad idea

1. when the midpoint being suggested is genuinely fair to your side

2. When a lot money or an important principle is on the line and relationships matter 

400

What degree of a commitment would a car or home sale be? 

Simultaneous exchange