book, Distributive Tactics, and we're

going to look at the vocabulary. So let's

jump right into the vocab for this

chapter. Afford-- afford, afford of course

is related to money. Can you afford ten

dollars? It's how much you're willing to

accept or that you can accept. How much

can you afford? So you often use this in

your negotiation, by telling the other

side we cannot afford that much or we

can only afford ten dollars and fifty

cents. That's all we can afford. So this

word is very key in your negotiation to

help the other side understand what

you're ... trying to convey as

far as... (not your true target

because your true target is secret.

Remember always keep your secret secret)...

but what you want them to think. Approve--

approve, of course, is something you agree

with and something you're going to go

along with. Approve, so you use this in

your negotiation to tell the other side

that you approve or you don't approve.

And it's very normal to use this to say

we cannot approve or often you'll say my

manager cannot approve this or my

company cannot approve this, so that it's

not personal doesn't sound like a

personal issue. So approve can be

positive or with a not not approve, it

can be negative.

Authorised-- so authorised, meaning someone

in your company or some manager above

you is going to say this is okay. This is

a great word to use in your negotiation,

because basically you're telling the

other side, "It's not up to me. You're

talking to me, but I cannot decide. We can

talk now. We can negotiate now, and I need

to take this information, and someone

else must authorize it." This is a great

way for me to put off or to blame

someone else. "My manager cannot authorize

this. My manager will not authorize this."

That's a great word where you can use and

is often used in negotiation to try to

convey that message of don't blame me,

and I cannot do it. Commit-- of course

meaning to say something you agree with

or that is true and that you're willing

to go along with. You can ask the other

side can you commit to that price? or

vice versa. You could say we can commit

to this price. We can commit to the

shipping terms, that is we guarantee it.

We assure it. We're sure it's ok. We agree

with it, everything can move forward, very

positive. Commitment-- of course, the same

idea. That's the noun of it. The

commitment, what commitments can you make?

What commitments have you made? Are you

going to stick to your commitments?

"Concession" is giving something up, and

remember a negotiation cannot exist

without two sides having some things

they agree on, some things they don't

agree on. If they don't agree on anything,

you cannot have a negotiation, so the key

is the things you don't agree on. Those

few things that are left, you can make a

concession. I can make a concession to

you, meaning I give something up where

you can make a concession to me, meaning

you give something up to me, concession.

You can use this in your negotiation by

simply asking the other side, "Can you

give us a concession on price? Can you

give us a concession on shipping? Can you

give us a concession

so that we can have a longer

relationship?" Of course, in your

negotiation, the more specific you are in

asking for something, the more likely you

are to get something. Contact--- contact

communication, having communication

contacting another side. So we would use

this just to get ready for our

negotiation, asking the other side when

can we have contact? when can I contact

you? Exploit-- exploit, take advantage of. We

often think of this as a negative word.

But in business, I think, we often or in

economics, at least, it's not really a

negative word. It just means to use some

kind of resource to get something, to get

some kind of benefit. In negotiation,

however, exploiting the other side's

weakness or something that you know

about the other side means that you take

advantage of that. It's not necessarily a

bad thing. Now, of course, if you have some

secret information or you know something

about the other side, well, maybe you've

guessed something correctly about the

other side, and then you exploit it. That

is you use that information to get more,

to win in essence, then that's fine. But

if you use it and you make the other

side upset or angry, then, of course,

they're not going to be happy to work

with you in the future. So exploit does

not necessarily mean something negative,

although, it can easily be negative if

it's misused. It is our goal to exploit

...the knowledge we know. It is

our goal to exploit the information we

have, to make the maximum outcome. You

would not use this in a negotiation, and

if you did, it sounds kind of negative. So

I guess you could say something like are

you exploiting the situation? Are you

exploiting me? Are you exploiting our

situation? making the other side sound

like they're doing something wrong, but

mostly you would use this inside your

group for planning purposes. Final push--

final push is the part of the

negotiation where we're almost finished,

but there's still something, maybe one

thing left or two things left, and the

final push is we're going to take, we're

going to make a final push. We're going

to try to get this over with by this one

time, this one more attempt. Usually, it's

normal that in a negotiation, you have

many things you need to talk about, but

at the very end, there's one thing you're

stuck on. I mean if there wasn't one

thing you're stuck on, negotiation would

be over very quickly. But it's not that

simple because each side is trying to

maximize, so usually comes down to one

thing or a couple issues that can be

bundled together. The final push means

we're going to try one more time to get

it over with and complete the

negotiation. It's very positive. In a way,

you don't want to have the final push to

soon. You don't want to at the very

beginning say, "Now, let's have the final

push." No, this is really after a certain

amount of time has passed, and you're kind

of tired out. Now, "hold out" means that you

make the negotiation go on longer, maybe

longer than it needs to because you're

trying to get something, so you hold out.

You hold out for a higher price or

you hold out for a lower price. You hold

out for better terms. So holding out is

quite normal. it is... a tactic you

can use to make the other side get tired

or get worn out, and they kind of give up,

sovyou keep holding out. The problem

with holding out is if you hold out too

long, the other side may withdraw or find

somebody else, so hold out. Now, you can

say this in your negotiation. You come

right out and say to the other side, "Are

you holding out for a lower price?

because I'm not going to give you a

lower price. If you're holding out for a

lower price, then, we should just end this

negotiation because we cannot give you a

lower price." You can accuse the other

side of holding out on purpose without

really trying to cooperate in the

negotiation.

Influence--influence means that you say

something or you do something that makes

the other side change their position,

change their opinion. Of course, very

simple, example, the most simple is when

you go to buy something and you ask for

a lower price, and the manager says

something like, "I can't give you a lower

price. ...I'll lose money. That's

already below my cost. I cannot sell you

this cup because it would be lower than

my price that I paid to buy it." And that

will make you think, "Hmm. That must be

true." That's influencing you. Of course,

all of the negotiation is about influence,

so i really emphasize to you to keep

this in mind. Now, you do not use this

word in negotiating. You use this word in

your planning. So when you're planning,

one thing you want to pay attention to

is how can you influence the other side.

Informal--- informal, meaning not formal.

Now, specifically, in negotiation this

would mean not written down or not in a

contract or informal means we just

talked about the price a little bit. We

talked about the product a little bit. We

didn't really negotiate formally. So

nothing we said is going to be you know

something we have to stick to. It's

something that we just discussed, so

informal. You can ask the other side, "Can

I speak with you informally or can we

have an informal negotiation?" meaning

just check things out. In view of-- in view

of, meaning that something.. I want to talk

about something, but related to other

things. So I want to talk about, maybe,

let's say this product and the price.

Maybe I want to talk about the price, but

I also want to talk about our

relationship. So i want to tell you that

if you can give me a lower price, in view

of our long-term relationship. We've been

working together for 10 years. I've been

buying from you for 10 years. So in view

of 10 years of buying from you, can you

give me a lower price? so in

view is a great word, a great phrase to

use in your negotiation because you can

tell the other side: Remember I gave you

something in view of that, or you can

tell the other side, "Give me something

now, and I'll give you something more

later..." usually based on relationship in

view of that. "Inventory" of course is how

many products you have that

are not sold yet, but they're already

produced, so they're waiting. "Inventory",

not a good thing, of course, in business

because too much inventory costs money.

You're not selling it. The best thing is

you produce and sell as soon as possible,

right away, so you don't have any

inventory costs. Now why is inventory

useful in our negotiation? Because the

word inventory, you can use to tell the

other side about your situation, so you

may say that this price, this product's

price needs to go up. Why does this

product price need to go up? Because the

inventory is all sold out. There's no

inventory. We need to wait for more to be

produced. That means the supply is lower