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A. Trading Concessions
1. If I agreed to stagger the payments, would you find that more acceptable?
2. Would it help if we offered to install the equipment for free?
3. Give us a better discount, and we will make a larger order.
4. We can toss in free delivery if you are willing to accept a later shipment.
B. Turning on the Pressure
Sentences 1 to 3 are signaling for movement; sentences 4 to 5 are turning on
the pressure – positive; and 6 to 8 are turning on the pressure – strong.
1. That seems rather high.
2. Don’t you think that’s a little low?
3. Can you go a little lower?
4. To reach agreement, we’re going to have to see a little movement on price.
5. Your lowering the price by just 2% would enable us to seriously consider the
offer.
6. We can’t really accept these conditions.
7. Honestly, we were hoping for better terms.
8. I’m really doubtful whether I can get the other members of my team to
agree to this.
Online Activities
(click above to open)
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Online Activities:
M
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3
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d cast:
BEP 408 – Restarting Talks
In this part of our ongoing series on negotiation
skills, we will discuss how to overcome
blockage in a negotiation.
Usually we think of blockage in terms of
stumbling blocks, or obstacles, to agreement.
But blockage can also be any impediment to
creating maximum value. In other words, we’re
not only interested in removing obstacles to a
deal but also in removing obstacles to a better
deal. Doing this successfully often requires
thinking outside the box, that is, thinking
creatively.
So in this episode, we’ll study overcoming barriers. In particular, we’ll focus on
identifying stumbling blocks, exploring alternatives, and moving towards
agreement.
Recall that Peter, owner of Textacular, has been trying to buy Maxine’s
company, Gamester, as part of his strategy to roll up other small businesses. His
ultimate goal is to increase the value of his own operation so he can sell it to a
larger company for a handsome profit. In previous episodes, Peter had tried to
acquire Maxine’s company, but talks reached an impasse when Maxine wouldn’t
climb down from or reduce her price of 15 million.
In today’s listening, Peter calls Maxine back to restart talks. As you listen, focus
on the language they use to remove obstacles to agreement.
Listening Questions
1. How does Peter suggest restarting talks with Maxine?
2. What does Peter identifying as the main stumbling block to a deal?
3. What does Peter mean when he says, “It’s not a question of growth for us,
it’s a question of survival.”
4. What is Peter’s key insight that enables Maxine and him to overcome their
blockage?
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Successful Negotiations
Vocabulary
To be open to an idea: To be willing to try or consider something. “He is open to
the idea of trying something different.”
To be a stumbling block to sth.: To be an obstacle to sth. “Delivery time was a
stumbling block to agreement.”
To have/to be a great fit (with sth. or s/o): To have/be a good match with sth.
or s/o. “I think our two companies are a really good fit with each other.”
Overall strategy: The larger plan; the general approach. “Our overall strategy is
to get customer’s to buy more products.”
Consolidation: Merging of smaller units to form a larger entity. “The trend in
many markets is consolidation of smaller companies into larger corporations.”
To be a question of survival: To be a critical issue; to be a question of life or
death. “At this point, how we react to this crisis is a question of survival.”
Big players: Companies, people, etc. that play a large role in a situation. “Their
company is a big player in the global steel market.”
To drive at sth.: To imply sth. “I’m not exactly sure what you are driving at.”
Just for argument’s sake: Used to put something up for consideration without
necessarily meaning it completely seriously; this is often a non-threatening way
of making a comment or a statement. “Just for argument’s sake, what would you
do if I quit my job?”
To flip sth. around: To reverse the contents of sth.; to look at sth. from a
different point of view. “Let’s just flip this around for a second.”
To be something like: To be approximately. “He owes me something like
$10,000."
To be on to sth.: To be close to finding a solution or to reaching a goal. “I like
this new approach – I think we really may be on to something here.”
To do footwork (for sth.): To do the hard, detailed work of preparation for
something. “Before you propose a business plan to an investor, you need to do
all the footwork first.”
To be convinced of the value of sth.: To be persuaded by the worth of sth. “He is
totally convinced of the value of our proposal.”
To run sth. by s/o: To mention sth. to s/o for their review or reaction. “Can you
run my idea by your boss – I’d be very curious to hear what he thinks about it.”
To come up with a different angle on sth.: To look at sth. from a different point
of view. “I don’t really see any way forward, so I think it’s important we start
coming up with a different angle on this.”
To see/put things in a new/different light.: To look at something from a different
point of view. “Why don’t we try to put things in a different light.”
To beat around the bush: To avoid talking about the main issue. “Please stop
beating around the bush. What are you driving at?”
Upshot: The main details or main point. “What was the upshot of the
discussion.”
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Dialog
On the telephone…
Maxine: Hello, Maxine speaking.
Peter: Hi Maxine, it’s Peter.
Maxine: Peter – How are you doing?
Peter: Fine, thanks. Look, I’ve been thinking about our companies, and if you’re
still open to the idea I was wondering if we could get together to talk briefly
about some other possibilities.
Maxine: Uh… sure. How about next Wednesday?
Peter: That’d be fine. What time would be convenient for you?
In person…
Peter: So, I’ve been thinking a lot, and it seems to me that price is really the
only stumbling block to a deal.
Maxine: How do you mean?
Peter: The potential for a merger looks great – we’ve got a great fit here. And
looking at the market, the overall strategy it demands is consolidation. In
my opinion, it’s not a question of growth for us, it’s a question of survival.
Maxine: The big players are certainly moving in fast. But we’ve been through
this before. What are you driving at?
Peter: So just for argument’s sake, why don’t we flip it around for a
second?
Maxine: All right. I’m listening.
Peter: If your company is worth €15 million… I was wondering… what do you
think your board might be willing to pay for ours…?
Maxine: Hmmm… Yours is a little smaller than ours. Probably something like
12.5.
Peter: I think we might be on to something here.
Maxine: You could be right. We’ve certainly done all the footwork, and I’m
convinced of the value of a merger.
Peter: Why don’t you run it by your partners?
Maxine: I’ll do that, and get back to you next week.
© 2009 All rights reserved: www.business english pod.com 81
Successful Negotiations
Debrief
Peter and Maxine have successfully explored an alternative that appears to
remove the main stumbling block to their agreement. Let’s go through their
whole discussion in detail to examine the language they use.
In the first section of the dialog, Peter calls Maxine to start talks back up.
Maxine: Peter – How are you doing?
Peter: Fine. Look, I’ve been thinking about our companies, and if you’re still
open to the idea I was wondering if we could get together to talk briefly about
some other possibilities.
After making a little small talk, Peter suggests restarting talks. At this stage, he
is quite vague or indefinite about what he has in mind – he says he just wants to
“talk about some other possibilities.” This vagueness keeps a casual tone in the
conversation that may also help to arouse Maxine’s curiosity. At the same time,
Peter uses a lot of very indirect request forms, which has the effect of making
his language very polite: He says, “If you’re still open to the idea…” – that is, if
you are still willing – “I was wondering if we could get together briefly.” When
restarting talks after an earlier failure, using such causal but polite language is a
good strategy for getting a positive response.
Let’s review some more useful expressions when can use for starting the
discussion back up.
I’ve been thinking, and I’ve come up with a different angle on everything.
I think I see things in a new light, and I’d love to talk it over.
You are going to be very interested in the new developments, I think.
I think you’ll be excited about this new approach.
I’ve got a new idea I’d like to run by you.
To come up with or see a different angle on something and to see things in a
new light both mean to look at things from a different point of view. To run an
idea by someone means to discuss it briefly. Using these types of idiomatic
expressions helps create a casual, informal tone.
Maxine agrees to talk on Wednesday. As the dialog fades back in, they are
meeting in person. What is the first thing that Peter brings up?
Peter: So, I’ve been thinking a lot, and it seems to me that the price is really
the only stumbling block to a deal.
First, Peter identifies the main stumbling block or obstacle to agreement. Before
we can remove a barrier, we must mutually recognize it.
What are some more useful expressions for identifying obstacles?
The delivery date really seems to be what’s holding us back.
The main issue is payment terms, from what I can tell.
At this point the credit period seems to be the main bone of contention.
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To be a bone of contention means to be a source of conflict.
After Peter has identified the price as the main stumbling block, Maxine asks for
further clarification. How does Peter respond?
Maxine: How do you mean?
Peter: The potential for a merger looks great – we’ve got a great fit here. And
looking at the market, the overall strategy it demands is consolidation. In
my opinion, it’s not a question of growth for us; it’s a question of survival.
Here, Peter lays out his argument for a merger. He has several points: First,
there’s a great fit or match between his and Maxine’s companies. Second, the
market is trending towards consolidation, that is, smaller companies are merging
or being bought up to form larger companies. Third, this market demands or
requires smaller businesses to follow the trend in order to survive. As he puts it,
“It’s not a question of growth for us; it’s a question of survival.” In other words,
the issue is not merely how to grow quickly, but how to keep the businesses
alive.
But Maxine has heard this all before hasn’t she?
Maxine: The big players are certainly moving in fast. But we’ve been through
this before. What are you driving at?
Maxine agrees with Peter – she sums up his statement by saying, “The big
players” – or larger companies – “are moving in fast,” that is, they are
developing rapidly, and the competition is getting stronger and stronger. But, as
Maxine puts it, she and Peter have “been through all this before,” in other
words, they have already talked about these issues before. She wants to know
“what he is driving at,” in other words, what is the point he’s trying to make?
“What are you driving at?” is a way of drawing someone out, that is, getting
someone to be more specific and more direct. Peter has been telling Maxine
about his new idea one step at a time to warm her up to the idea, but Maxine
wants him to get straight to the point.
How else can we draw someone out?
I’m not quite sure where this is going…
Where are you headed with this?
Stop beating around the bush – what are you saying?
What’s the upshot?
To beat around the bush means to avoid talking about the main issue. Upshot
refers to the main details or main point.
After, Maxine asks Peter to be more specific, he comes to his main new proposal
– the reason he has asked her to meet with him today.
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Successful Negotiations
Peter: So just for argument’s sake, why don’t we flip it around for a second?
Maxine: All right. I’m listening.
Peter: If your company is worth €15 million… I was wondering… what do you
think your board might be willing to pay for ours…?
Peter is thinking outside the box to explore alternatives. He says, “why don’t we
flip it around for a second?” This means, why don’t we look at it from a
completely different point of view. What is Peter’s suggestion? He quite literally
wants to flip around the role of buyer and seller – if Maxine wants 15 million for
her company, how much would she be willing to pay for his?
Exploring alternatives is really the heart of handling blockage. This often means
trying to see things in a new light or from a different point of view. Let’s go over
some more phrases we can use.
How about we look at this from another angle?
Let’s try something different.
What about putting this in a different light?
There might be another way to approach this.
Let’s come at this from a different direction.
How much does Maxine say she would be willing to pay for Peter’s company?
Maxine: Hmmm… Yours is a little smaller than ours, probably something like
12.5.
Peter: I think we might be on to something here.
Here Maxine makes a first tentative or careful offer, and Peter responds
positively: To be on to something means to be close to finding a solution or
reaching a goal.
After we have successfully overcome blockage, the next step is to give a positive
reaction to the new proposal. Let’s look at some other language we can use to
move towards agreement.
You’re right.
You have a point.
I think I can accept that.
I think we’ve made some progress.
I think I can a way to solving our differences.
What is Maxine’s point of view on Peter’s new proposal? She is cautious, but
optimistic…
Maxine: You could be right. We’ve certainly done all the footwork, and I’m
convinced of the value of a merger.
Peter: Why don’t you run it by your partners?
Maxine: I’ll do that, and get back to you next week.
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Maxine is positive but careful not to commit – she says, “You could be right.”
She points out that they’ve already “done all the footwork.” “Footwork” refers to
preparation work. Maxine is referring to the fact that she and Peter have already
researched a merger carefully, so they are prepared to move quickly to a deal.
The dialog ends with Peter asking Maxine to take action. He suggests she should
run the proposal by her partners, that is, she should ask them what they think
about it.
Taking action is a critical step in removing obstacles. After we see a potential
way forward, we need to make a concrete, or specific, plan for the next step to
take. To finish off, let’s review some more useful phrases we can use to take
action.
What’s the next move?
Let’s draft up a contract.
I suggest the next step is to get everything in writing.
Can you fax me a letter of agreement?
Please send me a detailed proposal by email.
Now it’s your turn to practice the language we have studied in this episode.
First, let’s review identifying obstacles. Imagine you are in a discussion that has
reached an impasse. Based on the cues, identify the main stumbling block to
agreement.
For example, if you hear…
Example cue: main issue – payment terms <beep>
You might say something like…
Example answer: The main issue is payment terms, from what I can tell.
Other useful language use can use to identify obstacles includes “ What seems to
be holding us back is…” and “ what seems to be the main bone of contention is…”
After each exercise, we’ll play an example answer. Are you ready? Let’s give it a
try.
Cue 1: holding us back – delivery date
Learner 1:
Cue 2: credit period – bone of contention
Learner 2:
Cue 3: price – stumbling block.
Learner 3:
© 2009 All rights reserved: www.business english pod.com 85
Successful Negotiations
Answer 1: Delivery date really seems to be what’s holding us back.
Answer 2: At this point the credit period seems to be the main bone of
contention.
Answer 3: As far as I can tell, the only stumbling block to agreement is price.
Now, let’s go over some language for exploring alternatives. You’ll hear a series
of cues that consist of jumbled or out of order phrases. Repeat the sentence in
the correct order.
For example, if you hear…
Example cue: Flip this around for a second why don’t we
You should say…
Example answer: Why don’t we flip this around for a second?
We’ll play example answers after each exercise. Are you ready?
Cue 1: Something different let’s try.
Learner 1:
Cue 2: from another angle we look at how about this?
Learner 2:
Cue 3: this from a different direction let’s come at
Learner 3:
Cue 4: approach this another way to there might be.
Learner 4:
Answer 1: Let’s try something different.
Answer 2: How about we look at this from another angle?
Answer 3: Let’s come at this from a different direction.
Answer 4: There might be another way to approach this.
That’s all for this episode on overcoming blockage, which is part of our ongoing
series on negotiation skills. We’ve studied restarting talks, identifying obstacles,
drawing someone out, exploring alternatives, moving towards agreement, and
taking action.
Thanks for listening, and see you back soon.
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Language Review
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