HOW TO

INFLUENCE YOUR
SUPPLIER & WIN THE
NEGOTIATION

Secret Tips for Purchaser

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I. NEGOTIATION - OVERVIEW

DEFINITION OF NEGOTIATION

A basic mean of getting what you want from others. Specially, the act, art and process for the
exchange of assets, services or need satisfiers held by one party for those held by another
party. The outcome is mutual satisfaction, a win for both parties.

There are some alternative definitions:

 An interpersonal consultative process with a view to agreement, meeting real needs, and
achieving joint satisfaction.
 A relationship between two parties where the need to supply is largely in balance with the
need to purchase.

DEFINING SUCCESS IN NEGOTIATION

A clear definition of success is especially important when we are engaged in complex

interactions that may involve multiple parties, numerous issues, long-term relationships, and
many other factors both tangible and intangible. In these kinds of negotiations, we define (and
measure) a good outcome as one where we have either appropriately resorted to our
agreement:
 is better (meets our interests better) than our best alternative
 satisfies our interests very well, and theirs at least acceptably
 is value-maximizing, made up of the best of many options invented
 is legitimate, defensible in reference to objective criteria
 consists of a commitment that is clear, operational and durable
 arose out of a process where communication was clear and efficient
 arose out a process that helped to build a good long-term working relationship

The negotiating process begins with the Company Strategy & Goals :

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 Process starts company strategies.
 Cascades down to departments (marketing, sales, purchasing, etc).
 The Department Head defines operating parameters for team members: -Defines roles,
power and any limitations.
 Sets goals aligned with broad business Strategy
 The team agrees to the strategy elements as outlined by the Manager
 The team agrees on the desired strategic relationship being sought with the customer /
supplier

WHAT IS NEGOTIABLE

The boundaries within which we negotiate are contained in Company Core Values and
Principles. The Company Statement of Purpose clearly provides direction with respect to how
we negotiate. The examples are as follows:
 We always try to do the right thing; We operate within the law. (Core Values)
 We develop close, mutually productive relationships with our customers and our suppliers;
We build, superior- relationships with all parties who contribute to fulfilling our Corporate
purpose, including our customers, suppliers, universities, and governments. (Principles)

Relationships play a big part in what is negotiable. Two aspects of "Relationships":

1. Corporate: What atmosphere do we want in our customer or supplier relationship? Do we
desire to improve it? Maintain status quo? At what level of openness do we need to
communicate?
2. Personal: This is our view of the buyer or supplier, in terms both of attitude toward
negotiation, and in terms of their preferred behavioral style.

There is obviously an interrelationship between these two factors. The key to building an
effective relationship is to understand the entire atmosphere (both corporate and personal) in
which negotiations are conducted, since it affects what information will be shared when, what
concessions will be considered, etc.

Trust is another is critical factor in establishing a relationship and it is accomplished by:

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Another important factor in establishing trust is separating the people from the problem. Trust
is...
 Understanding the individual
 Attending, to the details
 Keeping commitments
 Clarifying expectations Showing personal integrity
 Apologizing sincerely when a mistake is made

Another important factor in establishing trust is separating the people from the problem. Trust
is…..
 The basis for all relationships, personal and business
 The foundation for successful principled negotiations
 The result of the attitudes and behaviors of each party to a negotiation
 The way that people become separated from the problem in negotiations.

NEGOTIATING STYLES

The value of learning about negotiating style is to identify gaps between how we see ourselves
and how others see us. There are five basic negotiating styles:

1. Competing ...win at any cost

Emphasis on outcome, not relationship I Win/You lose experience
Inflexible about options to achieve goals
Behaviors
 Intimidation, loud voice, gestures -Pressure tactics
 Misrepresenting truth -Browbeating, personal attacks

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2. Accommodating...friendly relationships
 Emphasis on relationship, other's wants - "You Win" experience
 Issues never completely addressed
 De-emphasizes differences or conflicts

Behaviors Feelings
• Passive • Confusion
• Avoids difficult issues • Lack of trust
• Ends before resolution • May bargain harder
• Responsive, smiles often • Perceive other as weak

Why this style is often used

 Power differences are significant; one person dependent on the other
 Manager/subordinate, when subordinate is intimidated
 Outcome unimportant to the accommodator
3. Collaborating ...problem solving to win
 Balances concerns of outcomes & relationship
 "I Win/ You Win" Experience
 Considers needs/interests of all parties -Flexible and Creative

Behaviors Feelings
• Verifies wants/ needs • Ownership in results
• Listens, resolves issues • Satisfied with results
• Agrees on standards • Willing to implement
• Brainstorms • Willing to re-negotiate if
• Soft on people; hard on problems necessary

Why this style is often used

 When partnerships are desired
 When negotiators trust and are skillful

4. Compromising ...split the difference

 Focus on both parties getting a little bit
 Concern for structure-I give, and you give
 Half win-half lose experience]

Behaviors
• Bargain with trade-off
• Close fast, avoid conflict
Feelings
• Frustrating; left wondering if
you could have gotten more
• Left wondering if other trusts
you

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Why this style is often used
 Short of time
 Parties trying to balance outcome and relationship and are unskilled in generating options.
 People new to principled negotiation
 Trust level is not high enough for both to feel comfortable beginning principled negotiation

5. Avoiding ...sidestep any tough issues -Fails to Negotiate

 I Lose/You Lose Experience
 Goal or Objective seems unclear
 Suppress or control emotions
Behaviors Feelings
• Urges ending early • Frustration
• Postpones meetings • Confusion
• Unresponsive during dialogue

Why this style is often used

 Outcome is unclear
 Fearful of repeating past negative experience
 Risk-averse
 Need to stall, gain time

There are four key elements that make principled negotiations unique. These components consist
of
 Separate People from the Problem: The issues of trust and solid professional
relationships; if trust exists, the people issues will not hinder efforts to reach "win-win"
agreements.

 Focus on Interests behind the positions: The "why" for a position.

 Create Options for Mutual Gain: The basis for true "win-win"
 Identify Objective Criteria: Agree on objective criteria for evaluating options to enable the
measurement of mutual fairness

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POSITIONS VS. INTERESTS

POSITION
- What people say hey want
- Tangible, concrete
- Usually closes other option
INTERESTS
- What people really want
- Intangible concerns, things cared
about or wanted

The basic problem in a negotiation lies not in conflicting positions, but in the conflict between
each side's needs, desires, concerns, and fears. These represent the interests which motivate
people and move them to action. Position is what the other party says they want. Positions can
be like stakes in the ground, once they are established they are not readily moved. They can be
even more challenging to remove even if there is no willingness to move.

Uncovering interests can be accomplished by using the probing and questioning techniques you
have already learned from your communication skills training. There a-e three types of interests:

1. Shared-mutually compatible, aligned, no conflict/difference

 Interests that are compatible for both parties
 Interests that do not conflict of differ
2. Opposed-different, but complimentary, value varies for each party
Interests that are in direct conflict
3. Differing -direct conflict
 Interests that are different, but complimentary; can range from small differences to wide,
deep differences

CREATING OPTIONS
Creating options is unique to Principled Negotiations. The thinking that accompanies positional
bargaining is that all available answers appear to lie on a line between the party's position and
yours.

Obstacles to creating multiple options include:

 Premature judgment-ruling possible options out before they have been explored and
discussed as being mutually beneficial.

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 Searching for the single answer-sales people, because of their focus on closing the sale,
tend to jump on the first option that seems to hold promise.
 Thinking that solving the problem is their problem- short sightedness causes people to worry
only about their own issue thinking that it is inappropriate to help the other person satisfy
theirs.

The five steps to follow as a reference in creating options are as follows:

Step 1: Clarify Interests
Step 2: Identify Initial Options
Step 3: Generate Additional Options
Step 4: Select the best possible Option
Step 5: Develop an Action Plan

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II. PREPARING TO NEGOTIATE
Much like when we take a journey, if we know where we want to go, we are better able to prepare,
deal effectively with the terrain, and know when we have reached our destination. Similarly, a clear
definition of the elements of successful negotiation allows us to better prepare, diagnose, conduct,
and review our negotiations. Study found that the following elements are present, in one form or
another, in any successful negotiation.

SEVEN ELEMENTS OF NEGOTIATION

Interests are those needs, aims, hopes, and concerns that one seeks to address in the negotiation.
Interests are not positions-the stated demands, or pre-conceived answers that people often bring
into a negotiation. Instead, interests are those things that underlie or shape a position (i.e., one's
underlying needs, aims, hopes, and concerns).

Options are the range of possibilities on which the parties might conceivably reach agreement.
They are the possible solutions that meet at least the main interests of the negotiators. Unlike an
alternative (see below), something is an option if and only if making it possible would require 'the
agreement of both negotiators.

Legitimacy consists of those objective criteria or standards that can be used to determine the
fairness of a possible option. External standards of fairness might include laws and regulations,
industry standards, past or current practice, some general principle such as reciprocity or
precedent, or some kind of objective process such as appealing to the judgment of an impartial third
party.

Commitment is the option, or package of options, upon which the negotiator: ultimately agree.
They are the oral or written statements about what each party will or will not do, how, by when, etc..
Note that there are times when a commitment should not be reached, since there are times that' the
negotiators cannot develop a mutually agreeable solution that is better than what one or both could
do "away from the table," without each other.

Alternatives are those things that each negotiator can do, without the other party, to meet his or
her interests. Alternatives are not arbitrarily established bottom-lines, but real walk-away
possibilities. They may be things the negotiator can do on their own or things they can do by
negotiating with a party other than the one currently "at the table." Each negotiator will have a range
of alternatives (including doing nothing, waiting, negotiating with someone else); some may be
more realistic than others, and some may better meet one's interests than others. Nonetheless, one
of the alternatives will meet the negotiator's interest better than the rest - this one is the negotiator's
best. Note that a negotiator should not commit to an agreement that does not satisfy his or her
interests better than their best.

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Communication relates to how the two negotiators talk with one another. This element, and the
next, relate to the process (rather than the substance) of how the negotiation is conducted.
Communication in a negotiation involves the effectiveness of inquiry, advocacy, testing
assumptions, building understanding, structuring the flow of conversations, etc.

Relationship relates to how the negotiators work and deal with one another. A good working
relationship involves, and is built by, developing trust, engaging in joint problem-solving, dealing
well with differences, etc.

PREPARATION

Each element and each for the above statements of success will bear a different amount of weight
(have a different degree of importance) in each negotiation. Nonetheless, each should be
considered. If we choose to use these elements to measure success, they lead us to some natural
conclusions about how to prepare.

For example, if we want to satisfy our and the other party's interests, we would be wise to consider
what those interests might be, before we go into negotiations. If we want to create an agreement
that is made up of the best of many options, it would be useful, prior to the negotiation, to
brainstorm many possible options. If we want to ensure than our final agreement is legitimate, we
should..., and so on.

With this in mind, the "Quick Preparation" tool on the following ' lays out a set of questions you
might run through to effectively prepare for negotiations. Even if you just have a few minutes,
considering the answers to these questions will help you.

QUICK PREPARATION TOOL

Interests
 What are my needs, aims, and concerns? Why?
 How do I prioritize my needs, aims, and concerns?
 What do I think are their needs, aims, and concerns? Why?
 What do I think are any key third parties' needs, aims, and concerns? Why?

Options
What possible solutions, or pieces of a solution, might address my and their interests?
Are there other solutions'? Are there ways I can make the ones I have invented even better?
Going back to the "list" of my, their, and third-party interests, are there any others (even if they are
just small pieces of an overall solution)?

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Legitimacy
 What standards or criteria might I use with them to determine which options are most
defensible?
 Are there any fair processes we might use to judge the appropriateness of certain options?
 Are there any standards, criteria, processes, etc. that would be particularly useful to apply to
particular options I have just brainstormed? To particularly controversial issues in the
negotiation?

Commitment
 What level of authority do I have to reach a commitment?
 What level of authority do I think they have?
 What level of commitment do I think we should strive for in the upcoming meeting (i.e., reach
a final commitment, a joint recommendation, a list of options we will each consider more fully
before our next meeting, etc.)?

Alternatives
 What are my alternatives? Of these, which is my best ?
 What do I think their alternatives are? Of these, which do I think is their best ?
 How might I be able to improve mine (i.e. make it more attractive to me and/or more possible
for me to resort to)?
 How might I be able to weaken theirs (i.e. make it less attractive to them and/'or harder for
them to resort to)?

Communication
 What do I want to learn from them? What questions should I ask? r What messages do I
want to convey to them?
 When and how should I "send" the messages to ensure they are understood in the way I
intend them?
 What might be a useful "agenda" for the upcoming meeting?
 Have we had communication breakdowns in the past? If so, why? Based on this, what might
I do in the upcoming meeting to (begin to) fix and/or avoid past communication problems?

Relationship
 What kind of working relationship would I like to (continue) to build with them (i.e., what
would be the attributes of such a relationship - for example, mutual respect, well founded
trust, consistent joint problem-solving)?
 Based on my goal, what kind of things should I do, and what kinds of things should I make
sure to not do, in the upcoming meeting?
 To the extent we have had relationship problems in the past, what has caused them? Based
on these causes, what might I do in the upcoming meeting to (begin to) fix and/or avoid these
past problems?

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Other
 Based on my answers to the above, where do I need to do more thinking or "homework"?
 Is there any internal negotiating , investigating clarifying 1 need to do before going to
negotiate?
 Are :here any pre-discussions I want to have with the other party before we ` begin"
negotiations (e.g., about how we should conduct the negotiations, how and/or what we might
each prepare ahead of time, etc.)?

GETTING READY

Whether you have five minutes or a couple of hours, we find that it always helps to prepare by
running through the "Quick Preparation" list of questions. If you only have time to go through
them in your mind, that is tine. 4f course, it is even better if you can write your answers down, so
that you can refer to them as you move from question to question (e.g., look at the listed
interests as you invent possible options).

As you answer the questions, try to brainstorm - invent without assessing your answers. You can
later decide, after inventing as many possibilities as you can, which you think actually make
sense, and which you might share within the negotiation. Also keep in mind that while it is
crucial that you think about their interests and possible alternatives, you are only going to be
able to make your best guess at what those interests and alternatives actually are. These
hypotheses, at least about their interests, will need to be tested in the negotiation.
,
Any amount of time you spend considering these preparation questions will-increase your
chances of conducting a successful negotiation. However, when you find yourself faced with a
more difficult or complicated negotiation, and you have more time to prepare, consider using the
attached preparation sheet, alone or with a small group, in advance of the negotiation. The
attached "Seven Element Preparation Tool" is a simple and straightforward way to structure and
capture your thoughts, and guide you through a systematic and effective preparation session. As
you consider the elements and these preparation tools, please note that they are applicable to
preparing for more than just formal negotiations over such things as terms and conditions,
scopes and schedules, and the like. They are, in fact, just as applicable to preparing for
situations where you must persuade or influence another person to do such things as consider a
new idea, a different focus, or an alternative way of doing something. Furthermore, they are just
as applicable to internal situations with peers, managers, and reports, as they are to external
ones with customers, suppliers, and partners. The purpose of this memo has been to offer you
some advice about, and guidance on, more effectively preparing for negotiations. Of course,
nothing can guarantee success in every negotiation. Nor should any guideline be applied blindly
in every context. Nonetheless, we believe, every negotiator, no matter what style or strategy he
or she might choose for conducting any given negotiation, can strongly benefit from preparation
that covers the ground of the Seven Elements.

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 Seven Element Preparation Tool
Parties And Issues
The Parties
(You may want to draw a diagram)

Important Issues
(Subjects that need to be dealt with)
1.

2.

3.

Interests
(List both individual and organizational interests, needs,
concerns, hopes and fears)
Ours

Theirs

Others

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Seven Element Preparation Tool
Options
(List possible options for each issue or major interest)
Issue #1

Issue #2

Issue #3

Legitimacy
(Identify objective standards relevant to any issues or options
you have identified)
Issue #1

Issue #2

Issue #3

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Seven Element Preparation Tool

Alternatives
Your Alternatives
(circle your BEST)

Ways to improve

Their Alternatives
(circle your estimate of their BEST)

Ways to test or, if appropriate, worsen

What authority do you have?

What authority does the other party have?

What level of commitment do you want?

This Next End Meeting(s)
n Expressing Views?
n Generating Options?
n Joint Recommendations? n Tentative Agreement?
n Firm, Signed Deal?

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Seven Element Preparation Tool

Relationships
If gap exists, diagnose possible causes.
In light of these causes, what specific steps might you take to change the current relationship to the
preferred one?

Communication
Currently Preferred Plan the Meeting
 Meeting purpose :
 Products or outputs:
 People :
 Process :
- Opening :
- Agenda :
- Roles-of team members :
- Ground rules :

Plan the Dialogue

 Listen _for/ Questions _to ask :
 Talk about / Information to disclose :
 Possible communication Problems / Possible steps to avoid problems or improve
communication
 Assumptions to test :

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 I. FACE TO FACE COMMUNICATION

OVERVIEW
The purpose of' this section is to explain the communication process and to outline how to build
openness in face-to-face communication with customers. We introduce this first because the
simplest way to think about selling is that it is a fundamental communication process.

Customers have certain needs and wants, and sellers have brands and services.

Customers have certain conditions, needs, and limitations they deal with on a day-by-day, week-
by-week and month-by-month basis. These things change over time and are impacted by
competition, marketplace changes, and overall economic changes.

Highly effective salespeople are those who are aware of these changing conditions and are able
to match up how their ideas concerning their brands and services can help the customer be
successful short term and long term.

Highly effective salespeople are those who are constantly developing on and honing their face-
to-face communication skills. They seek first to understand, then to be understood.

As you read on, keep these two basic concepts in mind:

1. Listening and responding make up the key elements of the communication process. Listening
means gathering enough information so we know both what is important to the customer, and
what it is important. Responding means addressing the key needs, wants, and desires
through our sales ideas.
2. Feelings play a key role in why customers take certain positions. If we can better
understand why they feel a certain way about an issue or idea, we can respond
appropriately. Effective face-to-face communication leads to better understanding of the
customer'§ feelings.

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OBTAIN-VERIFY-TRANSMIT
On a day-to-day basis, we often find ourselves in situations requiring face-to face
communication skills. Typical situations would include presentations, conversations with
customers, discussions of business plans, business reviews, and meetings with customer
personnel.

In any successful discussion there must be an information exchange. This information exchange
is vital if we are to:

- Understand our customer so that we can identity real needs and concerns.
- Match benefits to specific account needs.
- Identify, and handle objections as they come up.
- Build the business--theirs and ours.

The communication process provides for that exchange because it consists of

- Obtaining information.
- Verifying, our understanding of information.
- Transmitting our own information.

In the information exchange, we are concerned with both facts and feelings. During a discussion
with a customer on an important subject, we need information. For example, what are the
customer's objectives or main concern regarding that subject?
We also need "to get a reading" on how the customer feels about the subject. Are those feelings
generally positive? Are they neutral? Are they negative? Understanding the subject and how the
customer feels about the subject are both critical parts of the information exchange.

During the information exchange, we decide what to say next based on what we know. And, we
must be sure that what we think we know is, in fact, correct. To be certain of our information, we
need to verify our understanding of the information obtained.
After we have obtained information and verified our understanding of it, the third part of the
communication process comes into play. We are then ready to transmit our own information.
Obviously, a major purpose of the communication process is to create information flow. To make
good decisions and solve difficult problems, information must flow- to us. And the same is true

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for the customer. He/she cannot, or w i l l not, say "yes" to our ideas and plans unless there is a
good information flow between us.

OPENNESS INCOMMUNICATION
For a free expression of facts and feelings which might disclose confidential or sensitive
information, customers must feel reasonably comfortable and unthreatened in the discussion
situation. They must be willing to take a risk. Individuals are more likely to do, this if there is a
certain amount of openness among the persons involved.

So, the communication process has as one major purpose the creation of openness between us
and the individual. Let's look at what "openness" means.

Open communication exists when each person in a communication situation feels reasonably
free to make statements and expressions. We do not mean that everyone should be totally open
at all times. We do mean, however, that sufficient openness must be achieved so that decisions
can be made and problems solved. We can think of open communication, or openness, by
visualizing a window and a window shade. We want to establish open communication, visualized
as an open window shade.
But, there are four barriers to open communication. And, these barriers create the kind of
communication situation illustrated below ...the shade comes down.

BARRIERS TO OPENNESS
The four common barriers are:
Value Statements
Unchangeable Positions
Lack of Purpose
Time Pressure

Value Statement
One barrier to open communication is a value statement. A value statement is an expression of
a personal opinion (positive or negative) which often results in impeding the free flow of
information. We must be careful not to make value statements.

For example, we may say, "Your shelving is not set up to maximize a high return on your
investment." Although this statement might be true, we probably will not be given the opportunity
to offer a solution to the problem if the customer has just gone through a major shelf reset. It is
likely that the customer will respond to such a statement by defending the current shelf set and
be reluctant a discuss any remedy you might offer.

In some cases even a positive value statement can block open communication. In another
example, we may say, "Your back room is really well organized." When in reality the back room
is not organized to the manager's satisfaction.

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It is certainly essential in many of our day-to-day contacts to make value statements. Each of us
has to use our own experience and knowledge to determine whether a specific decision is
positive or negative, or whether a particular situation was handled poorly or well.

But we have to recognize that in dealing with people, value statements (particularly negative
statements and even occasionally positive ones) aren’t to stand in the way of a free flow of
information. Value statements made in the early stages of a discussion may become obstacles
to a free flow of information. This is true whether it's the first or the 100 th discussion with that
person.

Therefore, in the early stages of discussion, we should refrain from making value statements.
This shows the person we won't make snap judgments--that we are trying to understand the
situation.

We can show interest and concern for the individual without making value statements. Suppose
the customer says, "I can't change my shortening and ceil section right now. “ We easily
can respond, "Tell me a little more about what you mean”

Have we made a value statement? No! Is. the person more likely to offer more information? Yes!
And the discussion is heading in the direction of openness.

Unchangeable Position
An unchangeable position is an inflexible state of mind which limits our ability to receive
information. Listening and responding from one's own unchangeable position puts the other
person on the defensive.

Here's an example of how we might take an unchangeable position without fully realizing it,
unintentionally causing a blockage to open communication. We are introducing a new item with
a fully developed program of test market data, heavy TV advertising, etc. And we say, "This has
been very carefully tested and has captured a leadership position in every test market. We know
consumers see real value and will buy it. They especially go for the larger sizes because of the
economy. With that thought in mind, I recommend this assortment for you to i4et you started.”

And the customer responds, "This is the seventh new item this week. Everyone's test market
data shows everyone buys it. We don't need to carry four sizes of everyone's new items. It's just
not good for my business."

Then, suppose you Say "But that's just the point. It is good for your business. This product
has captured n_ number one position in every test market!"

Next, the customer responds that he/she does not feel his/her point has been made. "We're sick
and tired of all this rat race--trading off one product for another. There are too many
duplications!"

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Now, here comes the response, "Wait a minute! What do you mean--my product won't sell? My
other customers see the value in this!"

And, on and on it goes The customer has an unchangeable position: new products can't really
all sell and are a continual "headache." We have taken an unchangeable position: Company has
developed another great product that will build the business. Everyone should buy it!

Lack of Purpose
Conducting a discussion with no clearly stated purpose is unproductive--doing this is another
barrier. If we have no clearly stated purpose for a discussion with a customer, he/she is not sure
whether the purpose is to solve a problem, determine the buyer's thinking process, get the buyer
to do something, or whatever else. If the person is confused, he/she will not be open.

Time Pressure
All of us must continually prevent undue time pressure. It is true that ours is a fast-paced
existence, but important issues require time.

For example, one issue important to both our customers and to us is a new product or a new
promotion. To present these kinds of things, we need more time than usual with the customer. In
these cases, it is wise to tell the person that extra time will be needed to cover an important
matter of vital interest to the customer's business.

Value statements, unchangeable positions, lack of purpose, and time pressure are all common
communication barriers. To be effective with our customers, we should take action to avoid
these barriers. That is, we should plan our customer contacts carefully; we should make a
conscious effort not to reach conclusions in advance, but to remain flexible; we should set and
state clear objectives for all discussions. Finally, we should include in our preparation
arrangements for adequate time so that we do not give the impression of rushing the customer.

OPENNESS WITH COMMUNICATIONS RESPONSES

The communication process of obtaining, verifying, and transmitting information can best
operate where there is openness between people. There are several responses that help to
build that openness.

Positive Statement of Purpose

Start the discussion by making a general statement of purpose that is positive or neutral. For
example, "I'd like to find out your main concerns regarding your coffee category so that I can
better discuss the things that are important to you." Never begin with a negative statement.

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As a discussion progresses, there are six types of responses to use to gain understanding while
maintaining open communication. These responses are:

General Leads
Pause
Restatements
Comfortable Probes
Sensitive Probes
Interpretations

While any single response can be used at any time, most often open communication develops
and can be maintained best when they are used more or less in order. The first three responses
would be used earlier in the discussion or relationship, while the latter three typically come later.

General Leads
As the customer begins to respond in the discussion, use general leads to give him/her "lots of
room" in answering. A general lead allows the person to discuss any aspect of the situation;
e.g.:

Customer: "Look, I've tried other ideas like this; and they don't work. I like the set-up I
have now."

General Lead Response: "Can you expand on that?" or "Can you tell me more about
that?"

Pause
When the buyer seems to have finished discussing a point, use the pause to encourage him/her
to offer more information on that point. A pause does not direct the person to any specific topic.

Restatements

Another response is the restatement. Use restatements to summarize, clarify and show your
interest and understanding of what the customer has said.

The restatement is an important response we use to develop openness. Here's an example of

how the restatement can be used.

Customer: "I already have another store-wide promotion scheduled for that week."

Restatement: "You have another store-wide promotion scheduled for that week?" Or
simply, "Another store-wide promotion?"

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Notice that the restatement did not add anything new to the discussion. The restatement shows
understanding. It is not a value statement. The restatement does not suggest an unchangeable
position.

By using the restatement, the customer might be encouraged to say what the promotion item is,
suggest an alternative date, or even change his/her position.

By getting him/her to talk, we learn more about the situation. We also get some additional time
to think about solutions and alternatives. Note, however, that some restatements may be
answered by a simple "yes" or "no." We should be prepared to respond with a general lead or
comfortable probe.

Customers often make negative statements. We also can use the restatement to help in these
cases. Here's an example:

Customer: "I don't have time to even think about changing promotion timing,"
Account Manager-, "You're concerned about your time."

This restatement shows that we recognize what the person is saying and are trying to
understand their point of view. We are inviting the person to give us more information about the
time concern. In other words, we are trying to keep the conversation open.

Comfortable Probes

Often a comfortable probe is the type response that will help develop openness. Probes are
directed to a particular area or topic and are more specific than general leads.

The probe of comfortable areas, naturally, brings out comfortable information. Probing
comfortable areas is best used during the beginning parts of a discussion when we want to
move the customer toward openness. These probes are directed toward topics the person is
comfortable with--topics the person wants to talk about One way we know an area is
"comfortable" is when the customer has previously introduced or openly discussed the subject.

For example, if during; a discussion the manager initiates discussion on out-of-stock conditions
of cleaning products, discussion on that subject probably is comfortable

Sensitive Probes

When we feel that openness is developing and that the individual will take some risks, we can
use another response to create even more openness--sensitive probes. These are questions
which are more specific than general leads. They also are directed to a particular area or topic.

Using probes of sensitive areas requires a lot of judgment. But, if we have begun the
discussion with a positive or neutral statement, used general leads, pauses, restatements, and

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probes of comfortable areas, the chances are good that the level of openness will be sufficient
to use a probe in a sensitive area.

For example, if a Store Supervisor is concerned about being behind on sales forecast, probing
this area is necessary when the level of openness permits it.

Interpretations
Finally, Interpretation response help us move more deeply into the subject

Here's an example of an interpretation:

"If I follow what you have said, you are concerned about the quarterly sales forecast. You
would be open to ideas that would increase each customer transaction."

Interpretations can be risky. In many cases, openness can be maintained or improved. In other
cases_ the "window shade" can be lowered because we have created a defensiveness in the
buyer.

Notice the point that has been made throughout-that as we build openness, we can explore
areas that are sensitive or uncomfortable. However, just because openness has been developed
does not mean that it stays developed. Openness can vary from topic to topic within a single
discussion. It depends upon the sensitivity of the topic area to the person and our approach in
discussing that particular subject We may find that if we probe a little too far or a little too
fast, the other person becomes defensive. When that happens, we must revert to responses
which are less threatening. Thus, if we probe for negative information and the person becomes
defensive, we may revert to restatements or general leads. The choice of which response to use
depends on the level of openness which now exists between the parties.

How can we judge the level of openness?

THE LEVEL OF OPENNESS

When people feel defensive, there are some typical kinds of behavior which occur. These
behavior patterns alert us that our questions or approach are blocking open communication.
Here are the four most common signs of closed communication:
1. Rationalizing - A person consciously gives reasons or excuses to explain instances in which
he/she has not performed as agreed to. "I know I said this would be a good week to reset the
cake mix aisle, but the Supervisor said he wasn't concerned about that." Thus, rather than
facing up to the problem and beginning to solve it, the individual begins to justify and
rationalize.

2. Blaming others - Another sign of the "shade being down" is when ` an individual places
blame on people or situations beyond his/her control. He/She may blame sloppiness or poor

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 report forms on time pressure. He/She blames poor handling of a given problem on lack of
help or support of others who are involved. Thus, he/she avoids the discomfort and
embarrassment of facing up to the problem.

3. Being Hostile - One way of dealing with a threat is to become angry. A recovery manager
being asked about ordering in advance of a key promotion may respond, "We ordered plenty
of merchandise, but the warehouse cut it. You guys must have short shipped." (When in
reality, he didn't order sufficient quantity.) He tries to turn the attack back on the person who
is approaching him.

4. Withdrawing Sometimes when people feel defensive, they stay uninvolved or very passive
%\'hen discussing a major sales effort such as PCH with a customer, the person may find
ways to pass off the situation without really becoming; involved. So, if the results are
questioned, she might say, "Well, I'll certainly do better in the future," which may be her way
of saying, "I don't want to discuss it." I don't want to become involved. Leave us alone and I'll
do what I can." This may be appropriate in some instances, but very often this defensive
withdrawal from the problem precludes the possibility of developing a solution.

To develop openness we must avoid creating highly defensive feelings. The real skill needed
is the capacity to deal with information that may be uncomfortable or sensitive--the ability to
develop and maintain openness even when discussing unpleasant information.
Throughout this discussion four important points have been made.
First, there are responses we can use to build openness--responses such as general leads,
restatements, etc.

Second, as we build openness in a discussion, we can explore areas that are sensitive or
uncomfortable for the customer.

Third, developing openness does not mean that the discussion automatically will stay open.
Within a single discussion, openness can vary. This depends on the_ sensitivity of the topic
to the person and our approach to discussing that topic. We may find that if we probe a little
too far or a little too fast, the person's "shade" may come down. When that happens, we have
to revert to responses which are less threatening and to topics of greater comfort for the
customer.

Fourth, each of us should develop the ability to judge the level of openness between us and the
customer at all times. Being able to do this and then using the right responses are very important
aspects of persuasive selling.

THE END
(For Now)

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Please find our E-book list:
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be release at the end of July 2007
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November 2007

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