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Tactics to Move Negotiation into ZOPA - YouTube
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In this video I want to talk to you
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about some of the tactics
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that you can use in a negotiation to
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help you
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move the negotiation into the zone of
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potential agreement
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that is if you're not familiar with a
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zona potential agreement
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it is the area
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that is capable of
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arriving at a negotiated agreement with
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the other party.
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The best way to explain it is I have my
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reservation point the point at which
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I will walk away from the negotiation
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and that may be
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I need more value
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but then that point in order for me to
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accept the other person's what position
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in the negotiation
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or I require offering less value
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whichever that is and the other party
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will have a
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reservation point as well at which they
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require more value or
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um are only going to offer that amount
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or less
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right and the distance between there is
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known as your zone of potential agreement
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because
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anywhere within that range you have the
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ability
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to arrive at an agreement with the other
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party
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that is they will not walk away as long
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as you are within that range
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right. Now within that range, parties
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still seek to grab
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value right so one party may uh
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grab all of the value which means they
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reach
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an agreement with the other party very
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close to the other party's reservation
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point their walk away point
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so they got more value than their
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reservation point
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and the other party got very little
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value or no value more than their
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reservation point
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so between the zone of potential
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agreement one party grab more of that
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value
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okay. But it's often the case that the
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parties do not have a zone of potential
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agreement
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that is the lowest that one party is
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willing to take or the highest that
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they're willing to give
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does not intersect with the lowest that
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another party is going to give or the
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highest they're going to give depending
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on what side of the negotiation they're
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on
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there is no point of agreement best
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example would be
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I will only pay five dollars for this
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you will not accept less than seven
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dollars for this
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we have no zone of potential agreement if I
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were willing to pay
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up to seven dollars right um
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and you were willing to take as little
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as five dollars
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we have a zone of potential agreement of
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two dollars between i'm willing to pay
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more than five
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so up and you are willing to uh
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accept anything more than five right so
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there's a zone of potential agreement i'm
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not willing to pay more than seven
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so our zone is set by my reservation
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point and your reservation point the
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five and the seven
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okay. So what happens when you don't have
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a or you are stuck
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you have a zone of potential agreement so
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you have the ability to arrive at a
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negotiated agreement
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but it is very difficult for you to get
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the other party to move you believe that
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the negotiation is going to stall
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or fail because you're not able to bring
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the other side within the zone of potential
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agreement
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okay that's what we're talking about now
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now we've talked about a negotiation
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strategy a strategy is made up
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of your orientation that is your
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disposition towards the negotiation
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how you're going to act whether you're
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competing yielding accommodating that
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type of thing
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or and your objectives the things you
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hope to achieve
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that generally affect the other person
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or the context of the negotiation right
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they move you towards your overall goal
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or
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the outcome you desire in the
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negotiation but it could be things like
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um
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adding pressure to the other side making
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them feel rushed or hurried
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convincing them right creating an open
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line of communication all of these are
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objectives
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and you use tactics to do that right I
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use the example over and over in these
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videos
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if I want you to feel like we're short
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on time I may tell you I have to go in
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five minutes
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right and look at my watch doing that
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signals to you it is a tactic signaling
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to you
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that we are short of time okay make you
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feel rushed
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so my tactic I choose the objectives. So
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what tactics
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are available right what things can I do
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to help move a negotiation that is
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stalled
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into an existing zone of potential
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agreement right
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because you don't want the negotiation
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to fail when
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there is potential for a negotiated
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agreement right in that case
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all parties lose. So with that being said
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first example is provide alternatives.
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Okay
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usually a stalled negotiation in that
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way is based upon one party's focus on a
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single
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interest or um just you know
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pursuing a bullwork tactic of i'm not
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moving on this
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right but if you combine interest
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together
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right bundle them as a package so you
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don't focus on
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on interest individually that oftentimes
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can break that cycle
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and the party is willing to move past
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that
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that that blockade that they've thrown
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up
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okay. Another one is simply confidence
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demonstrating that in the negotiation
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and the best way is to simply
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throughout the entire negotiation assume
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that there will be a negotiated deal
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express that to the other party
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well we have to get to a deal we're
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going to get to a deal there's no
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we're not leaving the table we're going
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to get to a deal we're going to work
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through this
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right demonstrating the confidence that
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there will be a negotiated agreement
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you're assuming
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the close okay. Oftentimes once again you
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run into the issue
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it's a single interest at stake it's a
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distributive negotiation that's
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a finite uh interest right a fixed asset
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that you can't create more of there's no
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way to bundle in
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other interest or package interests
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together there's no way to split up
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attributes of that interest
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so oftentimes you'll simply split the
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difference with the other party
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to try to bring them into the zone and
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potential agreement now i'll say this
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splitting the difference is
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usually not the best tactic in terms of
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grabbing value for yourself
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okay but it may be necessary to move and
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move
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both parties into the zone potential
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agreement particularly when there's a
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very narrow zone
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okay. Exploding offers right
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that is a very competitive tactic right
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it says you know I can do this right now
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but if not
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uh if not accept it right now or we
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don't do this now
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then it's gone i'm not even going to
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entertain this anymore right
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that type of thing salesmen use this as
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a sales tactic all the time
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and it's made to make somebody who's
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emotionally called up they're thinking
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through things they
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they take a long time to make a decision
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it creates an emotional aspect there
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where the party might be okay okay I'll
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do it I don't want to miss this
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opportunity
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right so the exploding office offer
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right take it now or leave it
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okay and then sweeteners um sweeteners
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are things you throw in and say
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well if you do this now i'll give you
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this too and this and this
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right lots of times you see this on
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infomercials where it says
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buy now get a second one free and free
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shipping or whatever they do
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in that way if you buy now that type of
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thing
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so they're using you know an exploding
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offer plus a sweetener together to
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really create an emotional reaction to
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make you
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go for it same way works in a
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negotiation where you're
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haggling back and forth and you throw
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out well what if
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what if I give you this in addition to
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it
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it looks like you're going to close the
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deal well just to speed things along so
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there's no more thought okay what if I
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give you this as well
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right that type of thing. These are
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common tactics that are
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known for assisting with bringing the
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parties
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into the potential zone of agreement
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they can be used outside of that
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scenario in other scenarios
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but they're normally not the most
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appropriate
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in situations where you were trying to
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grab
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more value right that type of thing
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bundling packaging that is certainly a
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tactic that you'll use in
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integrative negotiations to lift all
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parties
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right exploding office offers are very
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competitive type offers that can
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certainly be used in certain situations
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sweeteners as well type scenarios split
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the difference
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there there are rare occasions when you
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want to use that but anyway that being
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said that just
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keep these in mind as examples you can
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probably think of some yourself that
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could be useful
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in unhinging a party so that you can
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bring them into the zone of potential
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agreement.
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