Fred and Jane, they're having a disagreement that's normally what we

friend Jane they're having a disagreement that's normally what we

call it, maybe you'd even call it a fight if they start yelling at each other, get

call it maybe you'd even call it a fight if they start yelling at each other get

angry, I think it's easy to get frustrated. But, in reality they're just

angry I think it's easy to get frustrated but in reality they're just

negotiating

negotiating

so, this is a kind of negotiation. Negotiation have some key parts we want

so this is a kind of negotiation negotiation have some key parts we want

to remember, let's look at what those key parts are. They include: goals strategies,

to remember let's look at what those key parts are they include goals strategies

issues and planning so, when you have a negotiation it's important to remember

issues and planning so when you have a negotiation it's important to remember

that you have some goals, you have some strategies, you have some issues, you have

that you have some goals you have some strategies you have some issues you have

some planning. Now, we just saw Fred and Jane, did they have goals? Mmmh!! kind of, Fred

some planning that we just saw friend Jane did they have goals kind of friend

wanted to go overseas, Jane wanted to go to Disneyland, so it's kind of their goal

wanted to go overseas Jane wanted to go to Disneyland so it's kind of their goal

and remember there another goal was, they want to have a vacation together with

and remember there another goal was they want to have a vacation together with

the family, so again that's kind of a goal. But then, did they have a plan?

the family so so again that's kind of a goal but then did they have a plan to

Did they have a strategy? Then, have those things in fact, they were a little bit just

have a strategy then have those things in fact they were a little bit just

making things up as they went along.

making things up as they went along

Did they have an issue that was very clear? Hmm, not really no, so what happens

did they have an issue that was very clear hmm not really no so what happens

is they're just kind of talking and that's not a good way to negotiate,

is they're just kind of talking and that's not a good way to negotiate

because it means, how are you going to win? This is a key point in negotiation

because it means how are you going to win this is a key point of negotiation

that we're going to learn about in a minute, how do you know if you win or lose?

that we're going to learn about a minute how do you know if you win or lose

Well, you begin with having goals, strategies, issues and planning.

well you begin with having goals strategies issues and planning

Okay, let's take a look at the parts of a negotiation that we just mentioned, but

ok let's take a look at the parts of a negotiation that we just mentioned

let's look a little bit deeper into how they fit together into a kind of a chain

let's look a little bit deeper into how they fit together into a kind of a chain

of negotiation.

of negotiation

Okay, what we can look at here is the very first part of the negotiation which are

ok what we can look at here is the very first part of the negotiation which are

the goals and then after the goals, you need to work on the strategy, after

the the goals and then after the goals you need to work on the strategy after

the strategy, you need to work on the issues, and after the issues you need to

the strategy you need to work on the issues and after the issues you need to

work on the planning. So, these four parts kind of fit together

work on the planning so these four parts kind of fit together

before your negotiation begins, not doing your negotiation,

before your negotiation begins not doing your negotiation

this is not, this is not like steps to a negotiation.

this is not this is not like steps to a negotiation

These are actually all inside every negotiation at any time, these are all

these are actually all inside every negotiation at any time these are all

inside so, you've got your goals, your strategy, your issues, your planning, this

inside so you've got your goals your strategy or issues you're planning this

is all inside of a negotiation. Before your negotiation begins however, if you

is all inside of a negotiation before your negotiation begins however if you

want to increase your chance to win, to do better, before the negotiation you

want to increase your chance to win to do better before the negotiation you

think: what are my goals? What are my strategies?

think what are my goals what are my strategies

What are my issues that are important to me? And what is my plan to win this

what are my issues that are important to me and what is my plan to win this

negotiation, or at least to get what I want? Which is really the key point to

negotiation or at least to get what I want which is really the key point to

every negotiation, to get what your goals are. So, every negotiation has these parts,

every negotiation to get what your goals are so every negotiation has these parts

every, every negotiation has goal strategies, issues and planning, but some

every every negotiation has gold strategies issues and planning but some

people don't do them well, some people try to ignore them, they don't make a

people don't do them well some people try to ignore them they don't make a

plan, they just start talking maybe that's kind of their plan to make people

plan they just start talking maybe that's kind of the plan to make people

confused by just talking a lot. But, you win your negotiation by doing these

confused by just talking a lot but you win your negotiation by doing these

better so, in this unit were going to focus on how do we do these better? And

better so in this unit were going to focus on how do we do these better and

in later units, we're going to focus on each one in detail to show you how to do

in later units we're going to focus on each one in detail to show you how to do

that.

that

00:03:38,430 --> 00:03:42,780 Okay, you have some exercises in the book and I'd like you to go ahead, and look at

yeah

those exercises, give them a try. These exercises aren't really hard and I

ok you have some exercises in the book and I'd like you to go ahead and look at

didn't make the exercises to make it hard for you,

those exercises give them a try these exercises aren't really hard and I

the goal is not to be hard, the goal in fact it's not to take a test or to

didn't make the exercise to make it hard for you

get the right answer, the goal is to help you think about these ideas for a

the goal is not to be hard to go Lynn factors it's not to take a test or to

negotiation.

get the right answer the goal is to help you think about these ideas for a

Why is this important? Because when you negotiate, it's really key to get your

negotiation

mind in the right perspective, to get your mind in the right situation so that

why is this important because when you negotiate it's really key to get your

you can win. That's a key point, so you can win, so these exercises are made to

mind in the right perspective to get your mind in the right situation so that

help you get ready to get your head in the right space, to get thinking in the

you can win that's a key point so you can win so these exercises are made to

right direction, and to remember some of the words. It's not hard, it's easy but I want

help you get ready to get your head in the right space to get thinking in the

you to start thinking this way, so do some of these filling the gap exercises

right direction and to remember some of the words it's not hard easy but I want

which include these gap exercises, go ahead and write up a short answer to

you to start thinking this way so do some of these filling the gap exercises

some of these topics on the next page, like 123 and four down there 123 actually,

which include these gap exercises go ahead and write up a short answer to

right? And I want you to begin to think about negotiation, now before I let you go then,

some of these topics on the next page like 123 and four down there 23 actually

let me go ahead and introduce a little bit more about why we should begin to

right and i want to begin to think about negotiation now before I let you go then

think this way. Why for example, pull up my slide here

let me go ahead and introduce a little bit more about why we should begin to

00:05:20,840 --> 00:05:22,289 Okay,

think this way why for example of my slide here

why should we focus on

yeah

this part here? Why are there parts of negotiation so important? Why do we

ok

need to pay attention to these parts?

why should we focus on

Well, let me begin by maybe just reminding you of some negotiations

this part here why why are there parts of negotiation so important why do we

you've seen before, maybe you've gone to the night market with your mother or

need to pay attention to these parts

father or aunt, maybe you've gone to night market with some friends, maybe you've

well let me begin by maybe just reminding you of some negotiations

bought something, or you were with somebody who bought something. You saw them

you've seen before maybe you've gone to the night market with your mother or

negotiate really hard, they really focus they really argue, what you thought maybe was

father or and maybe you've gone and I market with some friends maybe you've

arguing, but actually it was negotiation for a long time. Now, the question is: if you

bought something or you with somebody who bought something you saw them

do go negotiate, how do you know that you're getting something you want ?How do

negotiate really hard they really focus their really argue thought maybe it was

you know that you win?

arguing but actually was negotiation for a long time now the question is if you

Let's say, I go to the night market and I want to buy this cup here and I like

do go negotiate how do you know that you're getting something you want how do

this cup then, so I ask the person in the market and you know, what does this

you know that you win

cup doing? He says well, this cup is great, he tells me the features you can

let's say I go to the night market i want to buy this cup here and I like

keep the hot tea hot, you can keep the cold water cold, and has a top, and has a

this cup and and so I ask the person in the market and you know what does this

really good handle on, it can last a long time. I say: "how much is this cup sir?" And

couple doing he says well this cup is great he tells me the features you can

he says: "this cup is maybe 100 NT dollars" and so now, I need to think, do I want

keep the hot tea hot you can keep the cold water cold and has a top and had a

to pay 100? Or do I want to negotiate different price? Of course, if I can

really good handle on it can last a long time I say how much is this cup sir and

negotiate a different price

he says this cup is maybe 100 ng dollars and so now i need to think how do i want

what does that mean? If I negotiate a price of 80 then I save 20, and that

to pay 100 we do I want to negotiate different price of course if I can

person was selling to me, does he lose 20?

negotiate a different price

Well, he certainly makes 20 less than he would have made if I paid 100, right? If I

what does that mean if I negotiate a price of 80 then I save 20 and that

paid 100 for this cup, the seller makes 100, the buyer spends 100. By paying 80, the

person was selling to me does he lose 20

buyer spends 80, and the seller makes 80, 80 is 20 less but does he lose 20?

well he certainly makes 20 less than he would have made if i paid 100 right if I

right?

paid 100 for this cup the seller makes 100 the buyer spend 100 by pay 80 the

You see, I don't know because I'm not the seller, I don't know, we don't know the

buyer spends 80 and the seller makes 8080 is 20 less what does he lose 20

price, we don't know the cost, right? So, what happens when you negotiate in a

right

night market like that, if you say something like I'll give you 80 very

you see I don't know because I'm not the seller i don't know we don't know the

often what does the salesperson says? He says: "huh

price we don't know the cost right so what happens when you negotiate in a

It costs me 100, you'd make me lose,

night market like that if you say something like i'll give you 80 very

lose 20, I would lose 20". This is a very normal thing to say, right? and

often what does the salesperson say he says huh

then you say: "oh! I am sorry, I don't want you to lose money ", right?

it cost me 100 you'd make me lose

Do they really lose money? Well, we don't know this is a key part negotiation, the

lose twenty i would lose 20 that this is a very normal thing to say right and

secret information is secret, we really don't know. I guess we can check, we could

then you say on so I don't want you to lose money right

go call up the supplier and ask how much one buys? If one wants to buy this

do they really lose money well we don't know this is a key part negotiation the

from the supplier, how much is it? Then we would know, but we usually don't do that,

secret information is secret we really don't know I guess we can check we could

we don't know. So, I have no way to know if the seller is going to really lose

go call up the supplier and ask how much one buys one if one wants to buy this

money but I do know me, the buyer if I pay 80 or I pay 100, the difference is 20 for

from the supplier how much is it then we would know what we usually don't do that

sure.

we don't know so i have no way to know if the seller is going to really lose

Now, the next question becomes what's the value of this cup to me? What do I think

money but i do know me the buyer if i pay 80 or I pay 100 the difference is 24

I get from this cup? Is it worth keeping my tea hot? Is that worth 100? Was it

sure

worth 80? Was it worth 50? Now, here's what we begin to look at these ideas of the

now the next question becomes what's the value of this cup to me what do I think

goals, the strategies, the issues and the planning, because if I think about it and

I get from this cup is it worth keeping my tea hot is that worth 100 was it

I say: "well, you know, I don't know, I don't care, I just want to pay less, less is

worth 80 is it worth 15 now here's what we begin to look at these ideas of the

better, right? Of course, if you could give me this cup for free, that would be best.

goals and strategies the issues and the planning because if I think about it and

I don't think, he's going to give me the cup for free, but that would be best,

I say well you know i don't know i don't care i just want to pay less less is

and so what do I do, I begin to negotiate or in Taiwan we say ..... , right? Cut

better right of course if you could give me this cup for free that would be best

down the price, argue with the price, right? And then, sometimes people give you a

I don't think he's going to give me the cup for free but that would be best

rule of thumb, like people save you travel to China and you negotiate, always

and so what do i do I begin to negotiate or it in taiwan way Sarge ah right cut

cut the price in half, begin at half.

down the price argue with the price right and sometimes people give you a

Well, what I'm saying is: how much is this cup worth to me? Now, if i say 100

rule of thumb like people save you travel to China and you negotiate always

you know, Mmmh

cut the price in half begin at half

I have another cup, it's okay, it's not as good as this cup maybe, it doesn't really

well what what I'm saying is how much is this cup worth to me now if i say 100

keep my tea warm. So, maybe 100 is a little bit too much, if it's 100 I just keep my

you know

other cup, I don't need it. Now, if I want 80 and I say 80 is worth it, I'm

I have another cup it's okay it's not as good as this cup maybe it doesn't really

willing to pay 80, because I think keeping my tea warm is worth the 80 and

keep mighty warm so maybe 100 102 little bit too much if it's 100 I just keep my

my other cup doesn't work that good so 80 is my goal. Now, if my goal is 80 and

other cuff I don't need it now if i want 80 and I say 80 SATs worth it i'm

then I say: "Okay sir, you say 100 I'll give you 80" and then the salesperson

willing to pay 80 because I think keeping my tea warm is worth the 80 and

says:" 80, okay".

my other cup doesn't work that good so 80 is my goal now if my goal is 80 and

Sold, what's your first reaction? Your first reaction is huh,

then I say okay sir you say 100 i'll give you 80 and then the salesperson

I should have said 60, I said 80 but he gave it to me right away,

says 80 ok

obviously I paid too much.

sold what's your first reaction your first reaction is huh

So, here we run into the key point of negotiation. Of course, you can always

I should have said 60 sure that 60 s and 80 but he gave it to me right away i

feel better, if you get a lower price and of course, you will feel better if you

obviously paid too much

get something for less and this seller makes less money. Of course, and when the

so here we run into the key point of negotiation of course you can always

seller agrees very quickly ,you say: huh,

feel better if you get a lower price and of course you will feel better if you

I should not have done that, why? Because the seller made more than he

get something for less and this seller makes less money of course and when the

expected, he was happy to make that, I could have, I could have made the price

seller agrees very quickly used up

lower and he would have not been so happy, and I would be more happy. So that

I should not have done that why because the the seller made more than he

always happens, that's always true.

expected he was happy to make that I could have I could have made the price

That's the problem in negotiation is: how do you know if you win or lose?

lower and he would have not been so happy and I would be more happy so that

How do you know if you did a good job or a bad job? If you're just waiting for the

always happens that's always true

seller to say: "OhI okay, I'll give it to you and that's a bad job, then you'll feel

thus the problem and negotiation is how do you know if you win or lose

bad. But, what about the cup? Does the cup do what you want? Does the cup do what you

how do you know if you did a good job or a bad job if you're just waiting for the

need?

seller to say okay i'll give it to you and that's a bad job then you'll feel

Does this cup keep my tea hot? And is that worth eighty dollars to me? If

bad but what about the cup does the cup do what you want is the cup do what you

that's worth eighty dollars and the salesperson sold it to me for 80, what I

need

wanted was 80, then actually I should think

does this cup keep mighty hot and is that worth eighty dollars to me if

good I got what I wanted, it's worth 80 to me for this Cup.

that's worth eighty dollars and the salesperson sold it to me for 80 what I

The thing I get keeping my tea warm, better than my old cup that is worth 80

wanted was 80 then actually I should think

to me, if that's worth 80 to me then I should feel I've won, I've been victorious,

good i got what I wanted it's worth 80 to me for this Cup

I've done a good job, my negotiation is successful.

the thing I get keeping mighty warm better than my old cup that is worth 80

Okay well, if I don't think 80 I just think cut the price, cut the price, cut

to me if that's what 80 to me then I should feel I've 1 i've been victorious

the price.

I've done a good job my negotiation is successful

How do I know I win? Well, I probably never know I win, unless I get the cup for 0

okay well if I don't think 80 I just think cut the price cut the price cut

which is impossible, I'm always going to think I should have negotiated more. and

the price

If I get the price down to 80, and I keep pushing, no 70, I keep pushing no 60,

how do i know i win well I probably never know I win unless i get the cup 40

and maybe sell it to me for 60, I'm still going to say: Oh! I should have held out

which is impossible i'm always going to think I should have negotiated more and

longer,

i get the price down to 80 and I keep pushing no.17 I keep pushing those 60

I should have cut that price more, I should have gone for 40, right? So, in

and maybe sell it to me for 60 i'm still going to say all I should have held out

negotiation, the very beginning of a negotiation we don't really know what we

longer

want,

I should have cut that price more I should have gone for 40 right so in

that's not good and at the end of a negotiation we don't know

negotiation the very beginning of a negotiation we don't really know what we

did we win? Or did we lose?

want

did I do good? Or did I do bad? Do I need to improve or should I just keep doing it

that's not good and at the end of a negotiation we don't know

this way? On the other hand, at the beginning of a negotiation if you set

did we win or did we lose did I could do

your goal clearly, what is the value to me? How much do I want to pay to get what

did I do good or did i do bad do I need to improve work so just keep doing it

I get from this? Then you negotiate and then you get it, if you get it you can

this way on the other hand at the beginning of a negotiation if you set

say I did a good job or I did a bad job. If my value is 80, and I negotiate and the

your goal clearly what is the value to me how much do I want to pay to get what

salesperson only goes down to 90 then I say, that's it I don't want it, because if

i get from this then you negotiate and then you get it if you get it you can

I pay 90 that is more than my value, if he goes down to 80 then I got what I

say i did a good job why did a bad job if my value is 80 and negotiate and the

wanted.

salesperson only goes down the 90 then I say that's it I don't want it because if

If the next person comes and they negotiate behind me, and they get it for 70,

i pay 90 that is more than my value if he goes down to 80 then I got what I

I should still think my goal was 80, I got it for 80 now maybe in the future, maybe in the

wanted

future when I negotiate another time, I need to consider the value again

if the next person comes and they negotiate behind me and they get 470

carefully maybe I thought the value was more than its worth to me.

should still think my goal was 80 I got 480 now maybe in the future maybe in the

But for now, if I thought it was 80 and I get 80 then that's my goal.

future when I negotiate another time I need to consider the value again

So, in negotiation it's important to think beforehand, what are your goals,

carefully maybe I thought the value was more than its worth to me

strategies, issues? And then, that will help you come up with your planning to

but for now if I thought it was 80 and I get 80 then that's my goal

make a plan. If you have all of these together, well thought out cause you

so in negotiation it's important to think beforehand what are your goals

always have these in a negotiation maybe you don't think about it ,maybe you don't

strategies issues and then that will help you come up with your planning to

do it well, maybe you try to ignore it, maybe you're just always trying to go for 0 which

make a plan if you have all of these together well thought out because you

is impossible.

always have these in a negotiation maybe you don't think about it maybe you don't

Lower, lower is better, better I guess so but what about your time? What about your

do it well maybe you try to ignore it maybe he's always trying to go 40 which

energy? And what about the thing you want to get? So, maybe I argue and I just keep

is impossible

saying lower, lower, 70, 70 and the man says: "no, I won't give it to you for 70

lower lower is better better i guess so but what about your time what about your

and then what happens? I have to go home and I have to use my old cup and then I

energy and what about the thing you want to get so maybe I argue and I just keep

have to suffer another week or two weeks, or three weeks using my old cup,

saying lower lower 70 70 and the man says no i won't give it to you for 70

it doesn't keep my tea warm and I say : "Oh" ,that really make me angry, I went there, I