Inline Plastics Playbook v2 JUL-21

- Assess your own goals&aspirations as well as the buyer’s - Consider your BATNA when setting your goals

x Ensure there are multi- ple issues on the table x Develop script/issue matrix x Analyze goal, BATNA & reservation point for both sides

Negotiation – Top 10 Strategies NEGOTIATION – TOP 10 STRATEGIES

Constantly evaluate and improve your BATNA – BATNA changes with time of negotiation

The Bargaining Zone is the range between the buyer’s and the seller’s reservation points – that is the zone of possible agreement (ZOPA).

10 Key Components of Building a Strong Deal:

1. Prepare

x People do not like to make unilateral concessions & make more concessions than the other side x People like to watch you concede – they perceive that this means they are “winning” x Present a rationale for every concession x Concessions prior to discussion do not count x Highlight your concessions x KEEP SCORING SYSTEM DYNAMIC x Use scoring system to determine reservation price x Quantify issues in terms of dollars x Define, prioritize, fragment and weigh issues x Remember – scoring will evolve with time

2. Set an aggressive GOAL

A MUST!!! Develop and understand their BATNA. Your goal needs to be based on weaknesses of their BATNA! Look across all issues - Do not skip this step! Your and Their BATNA will change/evolve over time.

3. Improve your BATNA

S A L E S P L AY B O O K 4. Establish a RESERVATION POINT Z ^ Zs d/KE WK/Ed ;т LJŽƵƌ ĂƐƉŝƌĂƚŝŽŶͿ defined by your BATNA 5. Carefully analyze the OTHER side’s BATNA

Avoid negotiating issue by issue – you will lose leverage, time – and leave money on the table!

Frame your OFFER correctly: People are risk averse in domain of gains and risk seeking in domain of losses – Highlight LOSSES not gains!

Those who SPEAK FIRST WIN! Make the first offer to: - Anchor the negotiation - Define the fair territory - Maintain relationship enhancing position

6. Create a SCORING SYSTEM

CONFIDENTIAL INFORMATION – For Internal Use Only 7. Negotiate at the package level

Your RATIONALE must be focused on: - the other side, their interests, - Future, not past

8. Make the FIRST OFFER and build a RATIONALE

9. Leave yourself ROOM TO CONCEDE

Advantages of simultaneous multiple offers: x Anchor the negotiation x Collect information from the other side x Allows you to be aggressive – signal cooperation through the fact that you are offering multiple options x Gather information about the other side’s relative priorities x Test what the other side is telling you x Allows you to be more persistent x Make “concessions” that do not cost you anything x Communicate a compelling message to the other side

10. Make MULTIPLE EQUIVALENT OFFERS simultaneously