What are the bargaining chips in the negotiation?

By justchinait
December 30, 2020

The essence of negotiation is the exchange of bargaining chips. That is to say, you have what your negotiating opponent wants, and others have what you want, and the two sides exchange”things”(bargaining chips)during the negotiation process. Before negotiating, you need to check the chips on both sides and classify these chips. Those are Must, which you must do; those are Want, but if you want, we use them to exchange other people’s things; those are Give, yes. Send it out as a favor. After sorting, go to the negotiating table to exchange chips with the negotiating opponent.

Therefore, before negotiating, you must examine your bargaining chips.

First: money

For everyone,money may be the more,the better.In negotiations,money is of different importance to the negotiating opponent.Is money Must,Want,or Give?It is possible that in a negotiation,money is Must.For example,cash is Must for him,but if it is to buy things for relatives,money is It’s Want,and family affection is Must.

Second: Information

Now is the era of information explosion.Whoever has the information has more bargaining chips in his hands.In the author’s company,the headquarters staff has a lot of information,such as information on special product promotions,information on company support policies,and information on personnel arrangements.Therefore,every time the branch manager returns to the headquarters for a meeting,he must invite the headquarters staff to eat and sing.The most important purpose is to get relevant information in advance and prepare.

However, information is time-sensitive, and it must be exchanged in a timely manner to be valuable.If it is not exchanged,there will be no way to create value.

Third: professional knowledgeability

In some high-tech developments, there are often such doctors and professors who use technology to buy shares,occupy 10%of the shares,etc.This is the exchange of technology for equity.The company needs technology, and the doctor needs equity. The exchange of these technologies,How much are these patents worth and how much equity they are worth depends on negotiating.

For another example,if you ask the boss of the company to give you processing capital and raise your salary,you have to weigh how high your professional knowledge is?How strong is the professional ability?How big is the bargaining chip in your hand?The boss will also assess whether your professional knowledge and abilities are worth the salary you require.If you give up,can you find another person to replace you with your current salary?

Fourth: Human Capital

Human capital is not only physical labor but also mental labor,as well as social capital.For example,a housekeeping company sells manual labor;an accounting or law firm sells mental labor,such as project bidding,selling products,and social capital,personal connections,and so on.

The company carried out the real estate bidding work this year.The engineering department manager said bluntly:To do engineering is to do relationships,that is,to do contacts.This is the reason.Real estate purchase requires price,face image,or something else.This can only be known after trial,and this trial is a test of personal connections.For example,suppose a certain real estate project purchase is familiar with our company’s engineering department manager and has a better relationship.In that case,our company will have an advantageous position in the purchase.

Fifth: Space

Space refers to the geographic location owned,such as the location of a store,the location of a building,and the location of a company.

The company’s channel strategy goal for this year is:specialty stores are blooming everywhere,so you must find a location to open a specialty store.This location is what you need to open a store,that is,space resources.

In addition,the company often organizes employees to play sports,and it is necessary to rent stadiums,which are also space resources.

Sixth: reputation

When I was in charge of company promotion,I was often surprised when purchasing promotional materials,why some suppliers do business even near the edge of the cost,logistics and delivery,and still losing money.

In fact,it is incomprehensible that the author’s company is a large company.These suppliers often promote the company when bidding with other companies.For example,the**company also chose us as the supplier.In this way,those SMEs are easy to accept,and this supplier has a lot of confidence to speak.

Seventh: Channel

Home appliance stores such as Gome Suning are so intense when facing suppliers that they master the channels and directly face consumers.When consumers choose to buy home appliances,they think of Gome Suning.Therefore,many suppliers swallow their anger when faced with high entry fees,seat selection fees,and barcode fees.

Eighth: Behavior

Behavior”is also an important bargaining chip in negotiations.For example,when we resolve it privately,you withdraw the prosecution against our company;for example,Iran and the United Kingdom’s diplomatic turmoil stems from Iran’s nuclear weapons program.This behavior is for British national security.It poses a huge threat to the international community and requires Iran to stop this behavior.The consequence is that both sides impose sanctions or even break diplomatic relations.

The above chips are all owned by you or your negotiating opponent.In the negotiation,you must make the other party believe that you have such chips and are willing to exchange them with you for these chips to be valuable. Therefore,it is necessary to give the other party confidence,arouse the other’s needs,and finally,cater to the other’s needs and exchange chips.

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