Last week we introduced the concept of LIM – a framework for analyzing and prioritizing your negotiating goals. Closely related to LIM is the notion of BATNA – Best Alternative To No Agreement.
BATNA is what happens if the negotiation doesn’t result in a deal. You are back where you started from – and have lost [...]
Author Archives: Andrew
China negotiating basics: What’s a BATNA?
October 20, 2008 – 1:04 am
China purchasing departments need key relationships with their key suppliers
October 17, 2008 – 2:03 am
I remember sitting with a group of purchasing consultants talking about the problem their clients were facing. One purchasing manager told that his standing instructions to were to negotiate a 10% price decrease for the same parts and materials EVERY year. There are only 2 ways to sustain that trend:
1) Find new suppliers each year [...]
China Negotiating Basics: What’s a LIM?
October 15, 2008 – 5:14 am
Negotiations are always structured – either you give them structure or your counter-party will. If you are not particularly interested in the deal offered, then you have the luxury of waiting for the other side to offer you terms. But if you are serious about getting the best deal then you have to be proactive [...]
China Sales & Negotiation: The DMU
October 14, 2008 – 2:13 am
The Chinese Decision Making Unit
If you are selling to a large company, there is a good chance that the buying decision is being made more than one person. We call this the “DMU” or Decision Making Unit. If you are selling to traditional Chinese companies, there is a very good chance you will not be [...]
Chinese negotiatiors need to know what your business is — and what it isn’t.
October 13, 2008 – 4:55 am
I was recently attending a Young Entrepreneurs networking event in Shanghai. Now, it’s a while since I could accurately be described as a Young Entrepreneur – I’m really more like a middle-aged business owner. But I like to drop by these things every once in a while to stay in touch with what’s happening in [...]
Connections and Guangxi — Do foreign investors understand the value?
October 13, 2008 – 4:54 am
Dear Smart Shanghai Team -
I am the owner of a company in the Shanghai area, and am looking for a foreign JV partner to help me expand my factory. During my negotiations with one US investor, I told him that my company had a tremendous advantage – NO COMPETITION. I have personal connections with the [...]
China negotiation requires Smart Teams
October 1, 2008 – 9:04 am
China negotiatiors are coming under more and more pressure to ‘deliver the goods’ and negotiate good deals that improve profit margins or lower costs. But as the global economy slows down, managers involved in negotiations in China are find it harder and harder to get the terms their bosses want to see. Business is getting [...]
