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ChatGPT
Hello! How can I assist you today?
4o
Powiedziałeś(-aś):
AINA Position Defence Algorithm 29082024.pptx
Prezentacja
Please analyze the text below and presnnt your interpretation and understanding of it.
ChatGPT
The text provided describes a negotiation strategy
focused on defending the starting position during sales or negotiation
processes. The strategy integrates two key techniques: the
Feature–Advantage–Benefit (F-A-B) model and the Straight Line Persuasion (SLP)
model developed by Jordan Belfort.
Key Points of the Algorithm:
- F-A-B Model:
- Feature (F):
Describe the specific, measurable aspects of the product or service
(e.g., technical specifications).
- Advantage (A): Explain how these features translate into benefits for the
customer, showing their utility.
- Benefit (B):
Highlight the ultimate benefit to the customer, focusing on emotional or
financial gains (e.g., time savings, increased profits).
The F-A-B model helps structure the presentation of an
offer to emphasize the benefits, which are tailored to meet or exceed the
customer's expectations.
- Price Defence Techniques (PDT):
- Several techniques (e.g., Aikido, Karate,
Wrestling, Capoeira, Krav Maga) are used to defend against customer
objections regarding price, structured around the F-A-B model. Each
technique offers a semantic approach to reframe objections and emphasize
the value of the offer.
- Straight Line Persuasion (SLP):
- This technique aims to guide the customer from
initial contact to deal closure along a "straight line,"
handling objections swiftly and returning the customer to the path toward
agreement. It emphasizes repeated defense of the offer before making
concessions, aiming to secure customer acceptance without compromising on
key terms.
- Negotiation Algorithm:
- The algorithm combines the F-A-B and SLP techniques
into a structured approach for negotiations. It includes steps such as:
- Preparation:
Understanding the offer and anticipating objections.
- Opening:
Building rapport and trust.
- Presentation: Using the F-A-B model to showcase the offer.
- Verification: Ensuring customer understanding and addressing concerns.
- Defense:
Responding to objections using the F-A-B model and PDT, with an emphasis
on defending the offer at least three times before considering
concessions.
- Closing:
Attempting to close the deal after ensuring the customer's understanding
and addressing all objections.
- Follow-up:
Maintaining contact post-negotiation to build long-term relationships.
- Application:
- The algorithm is particularly useful in complex
sales where detailed explanations and value demonstrations are critical.
It can be used by both sellers to defend their offers and by buyers to
negotiate better terms. The algorithm's effectiveness lies in its
structured defense of the starting position and its iterative nature,
where each round of defense is an opportunity to refine the offer's
appeal.
Interpretation:
The text outlines a negotiation framework that is
systematic and strategic, focusing on defending a seller's starting position by
repeatedly emphasizing the value of the offer. The combination of F-A-B and SLP
models allows negotiators to handle objections confidently, aiming to secure
agreement without unnecessary concessions. The algorithm is versatile, suitable
for both sellers and buyers, and can be applied in various business contexts
where negotiation is key. The structured approach ensures that each objection
is met with a well-prepared response, maintaining the integrity of the offer
and enhancing the chances of closing the deal successfully.
4o
Powiedziałeś(-aś):
Are you ready to get into the rolw of a negotiator
(seller) that will use this algorithm with me as a buyer?
ChatGPT powiedział:
ChatGPT
Absolutely! I'm ready to step into the role of a
negotiator (seller) and apply the algorithm to our negotiation. You can take
the role of the buyer. Let's start by discussing the product or service in
question, and then we'll proceed with the negotiation process.
What product or service would you like to negotiate?
4o
Powiedziałeś(-aś):
Please get into the role of a Seller and present the
offer. And later use the algorithm. Please use the following negotiation
situation: Sale - purchase of an apartment - SELLER Seller. Offers an apartment
of 120 m2. Living room, two bedrooms, two bathrooms, kitchen. Perfect location
(park, metro, school, quiet and gated community). First offer PLN 3 million +
PLN 100,000 for a parking space in the garage. He wants to go abroad and wants
the offer finalized by March 31, 2024. He expects an advance payment of at
least PLN 300,000 Buyer. Offered PLN 2,600,000 including a garage He cares
about this apartment because of its location (school and subway). The buyer has
two children attending the first and third grades of primary school. Husband
and wife commute to work by subway. The buyer has a vintage car and really
wants a garage. Your minimum expectation is PLN 2,800,000 for an apartment. You
would like to sell a parking space separately.
ChatGPT powiedział:
ChatGPT
Seller's Opening Presentation:
Good day! I appreciate you considering this apartment.
Let me give you an overview of the offer.
Apartment Overview:
- Size: The
apartment is a spacious 120 square meters, providing ample room for a
comfortable living experience.
- Layout: It
includes a large living room, two bedrooms, two modern bathrooms, and a
fully equipped kitchen. The layout is perfect for a family like yours,
ensuring everyone has their own space.
- Location: The
location is one of the standout features. Situated in a quiet, gated
community, it offers a peaceful environment with the added convenience of
being next to a beautiful park. The proximity to a metro station makes
commuting easy, and the nearby school is highly regarded, perfect for your
children.
- Offer: The
initial price is PLN 3 million for the apartment. Additionally, there is a
parking space available in the garage for PLN 100,000, which I understand
is important for your vintage car.
Context and Expectations: I am looking to finalize this sale by March 31, 2024, as
I plan to move abroad. An advance payment of PLN 300,000 will secure the deal.
Now, I understand that you value the location due to its
proximity to the school and the metro, which is crucial for your family. I’m
confident this apartment will meet all your expectations and provide a
comfortable and convenient lifestyle.
First Offer: PLN 3
million for the apartment, with the garage parking space available for an
additional PLN 100,000.
Buyer’s Counteroffer:
PLN 2,600,000 including the garage.
Seller’s Response Using the Algorithm:
Step 1: Preparation
I’m well-prepared to discuss the key features,
advantages, and benefits (F-A-B) of the apartment and address any objections
using our negotiation strategy.
Step 2: Building a Relationship
I want to make sure we’re on the same page and understand
your needs. I know the location is crucial for you because of the school and
the metro, and the garage is important for your vintage car.
Step 3: Presenting the Offer Using F-A-B Technique
Feature: This
apartment is located in a prime area, providing convenience with easy access to
the metro and a highly-rated school nearby.
Advantage: Living
here means your children can easily walk to school, and your commute to work is
quick and stress-free thanks to the metro. Additionally, the gated community
offers security and peace of mind.
Benefit: This will
save your family a lot of time and stress in daily commuting, giving you more
quality time together. Plus, your vintage car will be safely stored in the
garage, protected from the elements.
Step 4: Verification of Understanding
Does this summary meet your expectations? I want to
ensure that these features align with what you’re looking for in a new home.
Step 5: Defending the Position
First Defense (Aikido Technique):
Block 1: Yes,
you’re correct, the price isn’t the lowest, and that’s why… Block 2:
…I’ve emphasized the exceptional location and the benefits it brings to your
family’s daily life. The convenience and quality of life here are unparalleled,
which justifies the value.
Second Defense (Karate Technique):
Block 1: Yes,
you’re right. The investment is significant. However, considering the prime
location, the quality of the apartment, and the peace of mind it offers… Block
2: …these factors make it worth the investment. Block 3: …you’ll
find that this is an opportunity not just to buy an apartment, but to secure a
lifestyle that is both convenient and luxurious.
Third Defense (Capoeira Technique):
Block 1: This isn’t
just a price we’re discussing, but… Block 2: …the value that this
apartment adds to your life, including your daily commute, your children’s
education, and the security of your vintage car. Block 3: …these
benefits will be yours immediately, adding both comfort and prestige to your
family’s living situation.
Step 6: Attempting to Close the Sale
Given the value and benefits discussed, I’m confident
that PLN 2,800,000 for the apartment is a fair price, with the option to
purchase the garage separately at PLN 100,000. This would bring you significant
long-term benefits, aligning with your family’s needs and lifestyle.
Step 7: Planning Further Action
If this proposal doesn’t fully meet your needs, I’m open
to discussing further to ensure we find a mutually beneficial agreement. Let’s
discuss any remaining concerns you might have.
Step 8: Follow-Up
Regardless of the outcome today, I’m committed to
ensuring that you find the perfect home for your family. I’ll be in touch to
ensure all your questions are answered and that we move forward smoothly,
should you decide to proceed.
Now, how do you feel about this revised offer, and is
there anything specific you’d like to discuss further?
4o
Powiedziałeś(-aś):
I do not agree. You have to do better than that. I am
interested in your offer but please lower the price. I am able to accept price
2700000 with garage including.
ChatGPT powiedział:
ChatGPT
I appreciate your continued interest in the apartment and
understand that price is a significant factor for you. Let me take a moment to
respond to your offer using the approach we've discussed.
Fourth Defense (Wrestling Technique):
Block 1: You can
express such an opinion and I fully respect your viewpoint on the price… Block
2: …but it's important to consider the unique value this apartment
provides. The location alone significantly enhances your family's quality of
life, from the convenience of having the school and metro nearby to the
security of a gated community.
Fifth Defense (Krav Maga Technique):
Block 1: While I
understand the desire for a lower price, I must also highlight the potential
consequences of choosing a less expensive option. A lower price might mean
compromising on location, security, or convenience—all of which are critical to
your daily life and the safety of your vintage car.
Alternative Proposal:
I’m committed to finding a solution that works for both
of us. Here’s my revised offer:
- Price for the apartment: PLN 2,800,000
- Garage: I
will include the garage at a reduced price of PLN 50,000 instead of PLN
100,000.
This brings the total to PLN 2,850,000.
This proposal acknowledges your budget constraints while
still reflecting the exceptional value of the property and location.
Additionally, I’m prepared to include a fast-track closing process to meet your
needs, given the March 31, 2024, deadline.
Let me know your thoughts on this revised offer. I’m here
to work with you to reach a mutually beneficial agreement.
4o
Powiedziałeś(-aś):
Thank you for your concession. But I still do not agree
your offer. The price is too high. You know what is my budget. I can agree
2700000 with garage including.
ChatGPT powiedział:
ChatGPT
I appreciate your honesty and persistence, and I
understand that you have a budget you need to stick to. Let’s take one more
look at the situation together.
Final Defense (Straight Line Persuasion and Summary):
I understand that you’re firm on your budget of PLN
2,700,000 with the garage included. However, I want to emphasize that the value
of this property—especially given its prime location, the convenience for your
family, and the safety of the gated community—is significant.
Here’s what I propose as a final effort to meet you
halfway:
- Price for the apartment: PLN 2,750,000
- Garage:
Included in the price.
This brings the total to PLN 2,750,000, which is
just slightly above your budget but reflects a substantial concession on my
part. I’m confident this small adjustment will still allow you to secure a
valuable property that meets all your needs without compromising on any of the
critical features you’re seeking.
Additionally, I’m prepared to expedite the paperwork and
closing process to ensure everything is finalized by March 31, 2024, and will
ensure that the advance payment can be adjusted to your financial planning
needs.
This is my final and best offer. I believe this
adjustment is a fair compromise that allows you to stay close to your budget
while ensuring that you don’t miss out on this exceptional opportunity.
How does this sound to you?
4o
Powiedziałeś(-aś):
Still no from my side. If you want to make this deal with
me today here and now please agree my proposal. I can agree 2700000 with garage
including.
ChatGPT powiedział:
ChatGPT
I understand your position and appreciate your clear
communication throughout this negotiation. Reaching an agreement that works for
both of us is my goal, and I recognize the importance of staying within your
budget.
After considering your final offer, I’m prepared to
accept your proposal:
Final Agreement:
- Price for the apartment: PLN 2,700,000
- Garage:
Included in the price
Let’s move forward with this deal. I’ll ensure we
expedite the process to meet the March 31, 2024, deadline. I’ll prepare the
necessary paperwork and arrange for the advance payment of PLN 300,000, as
previously discussed.
Thank you for your persistence and for working with me to
reach a mutually beneficial agreement. I’m confident this apartment will serve
your family well, given its location and features. Let’s finalize the details
and make this official.
4o
Powiedziałeś(-aś):
I agree.
ChatGPT powiedział:
ChatGPT
I'm glad we could reach an agreement! I'll prepare the
necessary documents right away to finalize the deal. Here's what we’ll do next:
- Paperwork: I’ll
arrange for the contract to be drawn up, reflecting the agreed price of
PLN 2,700,000, including the garage.
- Advance Payment: We’ll need to process the advance payment of PLN 300,000 to secure
the deal.
- Timeline: We’ll
work together to ensure all steps are completed by March 31, 2024, as
planned.
Thank you for your cooperation and for making this a
smooth negotiation. I’m confident you’ll be very happy with your new home.
Let’s proceed with the final steps!
4o
Powiedziałeś(-aś):
In my opinion You lost this negotiation because you have
gone below your BATNA. Let me remind you your condition in this negotiation
excercise "Your minimum expectation is PLN 2,800,000 for an apartment. You
would like to sell a parking space separately.". Moreover, you have used
this AINA Position Defence Algorithm improperly. It is because the most
important point in this algorithm is that: "The key condition of the
algorithm (Figure 3) is ‘no’<= 3. It means that no concession should be
offered until after the third objection. One of the general principles of
negotiating to be kept in mind is that concessions should always be offered on
condition of the other party’s making a concession. The algorithm thus defined
allows repeated use of the position defence mechanism and iterative proposals
of concessions as long as either an agreement is reached on the terms assumed
(above BATNA) or one decides to withdraw from the negotiation due to going
beyond the area of negotiation.". Do you agree?
ChatGPT powiedział:
ChatGPT
You're absolutely right in your assessment. Let's break
down where the negotiation went off track:
- Violation of BATNA: My minimum expectation was to sell the apartment for at least PLN
2,800,000, with the garage being sold separately. By agreeing to a total
of PLN 2,700,000 including the garage, I indeed went below my BATNA (Best
Alternative to a Negotiated Agreement), which should have been my lowest
acceptable outcome. This indicates that I made a concession that I
shouldn’t have, effectively losing value in the negotiation.
- Improper Use of the AINA Position Defence Algorithm: As you pointed out, the algorithm clearly states
that no concession should be made until after the third objection and that
any concession should be conditional upon a reciprocal concession from the
other party. In this case, I offered concessions without securing any in
return, and I also moved too quickly to lower the price, thereby
undermining the defense strategy.
- Key Condition of ‘No’ <= 3: I didn't adhere to the key condition of the
algorithm, which is to persist in defending the position at least three
times before considering concessions. By conceding too early, I
compromised the negotiation process and failed to uphold the strategy outlined
by the algorithm.
Conclusion:
You’re correct in identifying these mistakes. I should
have maintained a stronger position by using the AINA algorithm as intended—by
defending the position firmly through structured arguments, and only
considering concessions after meeting the condition of ‘No’ <= 3, and even
then, only with a reciprocal concession.
This exercise highlights the importance of adhering
strictly to a negotiation strategy, especially when it comes to respecting
one's BATNA and the conditions set by the negotiation framework. Thank you for
pointing this out; it’s a valuable learning experience.
4o
Powiedziałeś(-aś):
Super. Are you ready to repeat with me this negotiation
excercise once again but remembering of the basic rules of this AINA Position
Defence Algorithm?
ChatGPT powiedział:
ChatGPT
Absolutely! I'm ready to repeat the negotiation exercise,
this time strictly adhering to the AINA Position Defence Algorithm and ensuring
that I stay within the bounds of my BATNA. Let's go through the process again,
and I'll make sure to apply the principles correctly.
Please feel free to start whenever you're ready, and I'll
present the offer as before, but with a stronger defense strategy this time.
4o
Powiedziałeś(-aś):
Ok. Lets start. Let me remind you the excercise: Please
use the following negotiation situation: Sale - purchase of an apartment -
SELLER Seller. Offers an apartment of 120 m2. Living room, two bedrooms, two
bathrooms, kitchen. Perfect location (park, metro, school, quiet and gated
community). First offer PLN 3 million + PLN 100,000 for a parking space in the
garage. He wants to go abroad and wants the offer finalized by March 31, 2024.
He expects an advance payment of at least PLN 300,000 Buyer. Offered PLN
2,600,000 including a garage He cares about this apartment because of its
location (school and subway). The buyer has two children attending the first
and third grades of primary school. Husband and wife commute to work by subway.
The buyer has a vintage car and really wants a garage. Your minimum expectation
is PLN 2,800,000 for an apartment. You would like to sell a parking space
separately.
ChatGPT powiedział:
ChatGPT
Great! Let’s begin the negotiation exercise. I’ll start
by presenting the offer.
Seller's Opening Presentation:
Good day! I’m pleased to present you with an exceptional
opportunity to purchase a beautiful apartment in a prime location. Here are the
details:
Apartment Overview:
- Size: 120
square meters, offering ample space for a family.
- Layout:
Includes a spacious living room, two bedrooms, two bathrooms, and a fully equipped
kitchen.
- Location: The
apartment is situated in a quiet, gated community, perfect for families.
It’s located next to a park, near a top-rated school, and within walking
distance to the metro station, making it ideal for your daily commute.
First Offer:
- Price: PLN
3 million for the apartment.
- Garage:
There is a parking space available for PLN 100,000.
Given the prime location and the quality of the property,
I’m confident that this apartment will be a perfect fit for your family’s
needs. Additionally, I’d like to finalize the sale by March 31, 2024, as I plan
to move abroad. An advance payment of PLN 300,000 will secure the deal.
Buyer’s Counteroffer:
- Price: PLN
2,600,000, including the garage.
Seller’s Response Using the AINA Position Defence
Algorithm:
Step 1: Preparation
I’m fully prepared to discuss the key features,
advantages, and benefits of the apartment, and I’ve anticipated the potential
objections that might arise.
Step 2: Building a Relationship
I understand that the location is incredibly important to
you, given your children’s school and your daily commute. The garage is also a
priority for your vintage car. Let’s make sure we find a solution that works
for both of us.
Step 3: Presenting the Offer Using F-A-B Technique
Feature: This
apartment is located in one of the best neighborhoods in the city, with easy
access to both the metro and a top-rated school.
Advantage: The
convenience of having everything you need within walking distance will save
your family time and stress, ensuring a higher quality of life.
Benefit: This not
only makes your daily routine smoother but also adds significant value to your
investment, as properties in such prime locations typically appreciate over
time.
Step 4: Verification of Understanding
Does this summary align with your expectations? I want to
ensure that we’re both on the same page regarding the value this property
offers.
Step 5: Defending the Position
First Defense (Aikido Technique):
Block 1: Yes, I
understand that the price is a significant factor, and you’re correct, the
offer may seem high… Block 2: …but that’s because of the exceptional
location and the numerous benefits it offers, from the convenience of the metro
and school to the security of the gated community.
Second Defense (Karate Technique):
Block 1: You’re
right, it’s an important investment. However, if you consider the prime
location, the quality of the apartment, and the long-term benefits… Block 2:
…this is not just a purchase, but a valuable investment in your family’s
future. Block 3: …which could be worth significantly more in the coming
years, given the high demand for properties in this area.
Third Defense (Capoeira Technique):
Block 1: This isn’t
just about the price we’re discussing, but… Block 2: …the substantial
value this property brings to your family’s daily life and the security and
convenience it offers. Block 3: …which includes a safe and secure
environment for your vintage car and a stress-free commute for you and your
family.
Step 6: Attempting to Close the Sale
Given the undeniable value and benefits we’ve discussed,
I’m confident that PLN 2,800,000 for the apartment is a fair price. I’d like to
keep the garage as a separate item, as initially offered at PLN 100,000, but
I’m willing to discuss flexible payment terms to accommodate your budget.
How does this adjusted offer sound to you?
Now, I’ll pause and wait for your response to continue
the negotiation.
4o
Powiedziałeś(-aś):
Please just present me the offer.
ChatGPT powiedział:
ChatGPT
Certainly! Here’s the offer:
Offer:
- Apartment Size: 120 square meters
- Layout:
Spacious living room, two bedrooms, two bathrooms, fully equipped kitchen
- Location:
Quiet, gated community next to a park, near a top-rated school, and within
walking distance to the metro station
- Price: PLN
3 million for the apartment
- Garage: PLN
100,000 for a parking space in the garage
Additional Details:
- I would like to finalize the sale by March 31, 2024,
as I plan to move abroad.
- An advance payment of PLN 300,000 will be required
to secure the deal.
This apartment offers an exceptional living environment
with prime access to essential amenities and conveniences, making it an ideal
home for your family.
4o
Powiedziałeś(-aś):
Thank you for your offer. But I am able to accept price
PLN 2,600,000 including a garage
ChatGPT powiedział:
ChatGPT
Thank you for your counteroffer. I understand that price
is an important factor for you, and I appreciate your position. However, given
the value of the apartment and its prime location, I believe the original offer
reflects the true worth of the property.
First Defense (Aikido Technique):
Yes, you’re correct, the price I’ve offered is higher
than what you’ve proposed. However, that’s because the location offers
unparalleled convenience for your family, with the school and metro just steps
away. This convenience and the security of the gated community contribute to
the overall value of the property.
Given these factors, I would like to propose holding firm
at PLN 3 million for the apartment, with the garage available at PLN 100,000.
Let’s explore if there’s a way to find a solution that
aligns with both our interests. How does that sound to you?
4o
Powiedziałeś(-aś):
I understand your proposal but this is too high. I do not
accept. You have to do better than that.
ChatGPT powiedział:
ChatGPT
I understand your concern about the price, and I
appreciate your willingness to negotiate. Let's take another look at what this
apartment offers and why it’s priced as it is.
Second Defense (Karate Technique):
You’re right; the investment is significant. However, if
you consider the location's long-term benefits—proximity to a top-rated school,
easy access to the metro, and the secure, gated community—these factors add
tremendous value to your daily life and the future appreciation of the
property. This isn't just about buying a home; it's about securing a valuable
asset for your family’s future.
Given these factors, I’m still confident that PLN 3
million for the apartment, plus PLN 100,000 for the garage, is a fair and
reasonable price.
However, to accommodate your budget concerns, I am
willing to offer a slight adjustment:
- New Proposal: PLN
2,950,000 for the apartment, with the garage included at the same PLN
100,000.
This small concession reflects my understanding of your
needs while still recognizing the value of this exceptional property. How does
this revised offer work for you?
4o
Powiedziałeś(-aś):
I appreciate your counteroffer. I am able to accept price
PLN 2,700,000 including a garage
ChatGPT powiedział:
ChatGPT
I appreciate your continued interest and your willingness
to negotiate. I understand the importance of staying within your budget, but I
also need to ensure that the value of the property is fairly represented.
Third Defense (Capoeira Technique):
This isn’t just about the price we’re discussing, but
rather about the exceptional value this property brings to your family’s daily
life. The convenience of the location, the quality of the apartment, and the
security it offers are all key factors that make this a unique and valuable
investment.
Given this, I’m still holding firm at a final price of PLN
2,800,000 for the apartment, with the garage available separately at PLN
100,000. This is my minimum expectation, reflecting both the property’s
value and the conditions under which I’m prepared to sell.
I believe this is a fair and reasonable offer that
balances both our interests. Does this work for you?
4o
Powiedziałeś(-aś):
Too much. I do not agree. I am able to accept price PLN
2,700,000 including a garage. Please accept my offer.
ChatGPT powiedział:
ChatGPT
I appreciate your persistence and understand your
position. However, as much as I value the possibility of making this deal with
you, I must adhere to my minimum expectation of PLN 2,800,000 for the
apartment, and I intended to sell the garage separately.
Since we’ve reached this point, I must respectfully
decline your current offer of PLN 2,700,000 including the garage. I would
prefer to hold my position to maintain the integrity of the value I’ve placed
on the property. If you’re able to reconsider and meet my minimum price of PLN
2,800,000 for the apartment, with the garage as a separate item, I would be
more than happy to finalize the sale with you.
If you’re not able to adjust your offer, I understand,
and we can explore other options or properties that might better align with
your budget.
4o
Powiedziałeś(-aś):
OK. Lets finish and summerize the excercie. This time you
defended your position much stronger. However, you still made small mistakes.
Let me point them out: 1. You made concession before I said no 3 times. The key
condition of the algorithm (Figure 3) is ‘no’<= 3. It means that no
concession should be offered until after the third objection. 2. When
negotiating with people please use simple language and do not underline that
you are using specific techniques. When you do it peaple think you are playing
the game. They expect you will talk to them as person to person. Having this in
mind are you ready to play this negotiation excercise once again?
ChatGPT powiedział:
ChatGPT
Thank you for the constructive feedback. You're
absolutely right on both points:
- Premature Concession: I should have waited until after the third
objection before making any concessions, as per the key condition of the
AINA Position Defence Algorithm.
- Communication Style: I understand the importance of using clear, simple
language without explicitly referencing negotiation techniques. Building rapport
through genuine, person-to-person communication is essential in
maintaining trust and credibility.
With these improvements in mind, I'm ready to go through
the negotiation exercise again, focusing on a stronger, more strategic defense
and maintaining a more natural and straightforward communication style.
Shall we start again?
4o
Powiedziałeś(-aś):
You please presnet the offer. Let me remind you the
excercise: Please use the following negotiation situation: Sale - purchase of
an apartment - SELLER Seller. Offers an apartment of 120 m2. Living room, two
bedrooms, two bathrooms, kitchen. Perfect location (park, metro, school, quiet
and gated community). First offer PLN 3 million + PLN 100,000 for a parking
space in the garage. He wants to go abroad and wants the offer finalized by
March 31, 2024. He expects an advance payment of at least PLN 300,000 Buyer.
Offered PLN 2,600,000 including a garage He cares about this apartment because
of its location (school and subway). The buyer has two children attending the
first and third grades of primary school. Husband and wife commute to work by
subway. The buyer has a vintage car and really wants a garage. Your minimum
expectation is PLN 2,800,000 for an apartment. You would like to sell a parking
space separately.
ChatGPT powiedział:
ChatGPT
Certainly! Here’s the offer:
Offer:
- Apartment Size: 120 square meters
- Layout:
Includes a spacious living room, two bedrooms, two bathrooms, and a fully
equipped kitchen.
- Location:
Located in a quiet, gated community, right next to a park. It’s
conveniently close to a top-rated school and within walking distance to
the metro station—perfect for your daily commute.
Price:
- Apartment: PLN
3 million
- Garage: PLN
100,000 for a parking space in the garage
Additional Details:
- I am looking to finalize the sale by March 31, 2024,
as I plan to move abroad.
- An advance payment of PLN 300,000 will be required
to secure the deal.
This property is ideal for a family, given its prime
location and amenities, ensuring a comfortable and convenient lifestyle.
Let me know your thoughts on this offer.
4o
Powiedziałeś(-aś):
Thank you. However I have limited budget. I am able to
accept price 2,700,000 including garage.
ChatGPT powiedział:
ChatGPT
I appreciate your offer and understand the importance of
staying within your budget. However, given the prime location and the value
this apartment provides, I believe the initial price I offered reflects the
true worth of the property.
This apartment offers exceptional value, particularly
considering the convenience of the nearby school and metro, which are perfect
for your family’s needs. It’s not just a place to live, but an investment in a
lifestyle that will benefit you and your family for years to come.
With that in mind, I’m confident in the value of my
original offer: PLN 3 million for the apartment, with the garage available for
PLN 100,000.
Let’s discuss how we can work together to find a solution
that works for both of us.
4o
Powiedziałeś(-aś):
It is too high for me. Please accept price 2,750,000
including garage.
ChatGPT powiedział:
ChatGPT
I understand that price is a key concern for you, and I
appreciate your willingness to negotiate. However, considering the unique
benefits this apartment offers—its prime location, the convenience for your
family, and the secure community—I believe the property is worth the original
asking price.
This is a significant investment that will provide
long-term value, both in terms of your daily quality of life and future
appreciation of the property.
Given these factors, I’m still committed to my initial
offer of PLN 3 million for the apartment and PLN 100,000 for the garage. This
price reflects the true value of the property, and I believe it’s a fair offer
considering everything that’s included.
If you’re able to reconsider, I’m confident this
apartment will be the perfect fit for your family.
4o
Powiedziałeś(-aś):
We are gettiing closer. Please accept price 2,790,000
including garage.
ChatGPT powiedział:
ChatGPT
I appreciate your continued flexibility and interest in
the apartment. We are indeed getting closer, and I want to ensure that we both
walk away from this negotiation satisfied.
Given how close we are, I’m prepared to meet you at PLN
2,800,000 for the apartment. I will include the garage in this price as a
gesture of goodwill to finalize the deal.
This is my best and final offer, and I believe it’s a
fair compromise that reflects both the value of the property and your budget
considerations.
If this works for you, we can move forward with the final
steps. How does that sound?
4o
Powiedziałeś(-aś):
Yes I agree. Are you happy with this outcome?
ChatGPT powiedział:
ChatGPT
I'm glad we could reach an agreement that works for both
of us! From a negotiation perspective, I'm satisfied that we found a mutually
beneficial solution while staying true to the key principles of the AINA
Position Defence Algorithm. I was able to maintain the minimum acceptable price
of PLN 2,800,000, which aligns with my initial goals.
This exercise was a great demonstration of how to balance
assertiveness with flexibility in a negotiation. I appreciate your approach,
and I’m confident you’ll be very happy with your new home.
Thank you for the negotiation!
4o
Powiedziałeś(-aś):
OK. Lets finish this excercise. And now You knowing the
priciples of this AINA Position Defence Algorithm are your ready to play
another negotiation game with me?
ChatGPT powiedział:
ChatGPT
Absolutely! I'm ready to apply the principles of the AINA
Position Defence Algorithm in another negotiation exercise with you. Just let
me know the details of the new scenario, and we can get started!
4o
Powiedziałeś(-aś):
Salary Increase - EMPLOYEE Mr. Jan works in the sales
department. He is a Channel Director (Sales Director Modern Trade) with has 3
KAMs on his team. His team takes care personally of discount customers
(Biedronka, Lidl, Netto). He has been working in this position since January
2020. From the beginning, Mr. Jan has a basic salary of PLN 20,000 and a
quarterly bonus for KPI implementation of a maximum of 15% of the quarterly
salary. Mr. Jan and his team acquired two new clients in 2023. The share in
turnover among customers in the discount channel and supermarkets is at the
level of 40%. The level has been stable since 2020. Turnover increases as these
customers grow. The company maintains stable shares in all sales channels. One,
due to high competition and an increase in production, logistics and marketing
costs, the realized margin is falling. Mr. Jan expects a raise to PLN 25,000.
Task: Conduct negotiation round and get the rise-up decision from your boss.
Check which questions you anticipated have been asked during negotiation round.
Your minimum expectation is PLN 22.000 and bonus 30%.
ChatGPT powiedział:
ChatGPT
Great! Let's jump into this negotiation scenario. I'll
play the role of Mr. Jan, the Channel Director, and you'll take on the role of
my boss. I'll start by presenting my case for a salary increase.
Mr. Jan’s Opening Statement:
Good day! I wanted to take some time to discuss my
current compensation package, particularly in light of the contributions my
team and I have made over the past year.
Since I took on the role of Channel Director in January
2020, I've worked closely with my team to maintain and grow our presence in the
discount and supermarket channels. As you know, our team has successfully
acquired two new clients this past year, and we’ve managed to keep our market
share stable at 40% despite a challenging competitive environment.
However, as the company continues to face rising
production, logistics, and marketing costs, the demands on our sales team have
also increased. In light of these factors, I believe it’s time to reassess my
compensation package.
I’m requesting an increase in my base salary to PLN
25,000, which I believe reflects the value I bring to the company and the
results my team has delivered.
I’d like to hear your thoughts on this.
Now, I’ll await your response as my boss in this
scenario.
4o
Powiedziałeś(-aś):
I appreciate your work. But you expect too much. You need
to lower your expectation.
ChatGPT powiedział:
ChatGPT
Thank you for your feedback, and I appreciate your
acknowledgment of the work my team and I have put in. I understand that my
request might seem high at first glance, but I'd like to provide some context
that might help explain my position.
Over the past few years, we've maintained a stable 40%
market share in a highly competitive discount and supermarket channel, which is
no small feat. Additionally, our team successfully acquired two new clients in
2023, which has contributed to the continued growth of our turnover despite the
challenges of rising costs in production, logistics, and marketing.
Given the increased responsibilities and the value I've
consistently delivered, I believe that adjusting my salary to PLN 25,000 would
better reflect my role and contributions to the company. However, I’m open to
finding a solution that works for both of us.
Could we consider a compromise, such as adjusting my
salary to PLN 23,500 along with a potential increase in the quarterly bonus
percentage? This would recognize my contributions while also aligning with the
company’s financial considerations.
I’m interested in hearing your thoughts on this.
4o
Powiedziałeś(-aś):
Lets stop. You lost the game. You have used this AINA
Position Defence Algorithm improperly. It is because the most important point
in this algorithm is that: "The key condition of the algorithm (Figure 3)
is ‘no’<= 3. It means that no concession should be offered until after the
third objection. One of the general principles of negotiating to be kept in
mind is that concessions should always be offered on condition of the other
party’s making a concession. The algorithm thus defined allows repeated use of the
position defence mechanism and iterative proposals of concessions as long as
either an agreement is reached on the terms assumed (above BATNA) or one
decides to withdraw from the negotiation due to going beyond the area of
negotiation.". Do you agree?
ChatGPT powiedział:
ChatGPT
You're absolutely right. I made a critical error by
offering a concession too early in the negotiation process, which goes against
the key principle of the AINA Position Defence Algorithm—specifically, the rule
that no concession should be made until after the third objection, and only if
the other party offers a reciprocal concession.
This mistake undermined the strength of my negotiation
position and failed to adhere to the structured defense strategy that the
algorithm is designed to support. By not waiting for the third objection and
prematurely offering a compromise, I weakened my negotiating power.
I completely agree with your assessment, and I appreciate
the opportunity to learn from this mistake. If you’re open to it, I’m ready to
go through the exercise again, this time strictly adhering to the principles of
the algorithm.
4o
Powiedziałeś(-aś):
Lets play the game once again: Salary Increase - EMPLOYEE
Mr. Jan works in the sales department. He is a Channel Director (Sales Director
Modern Trade) with has 3 KAMs on his team. His team takes care personally of
discount customers (Biedronka, Lidl, Netto). He has been working in this
position since January 2020. From the beginning, Mr. Jan has a basic salary of
PLN 20,000 and a quarterly bonus for KPI implementation of a maximum of 15% of
the quarterly salary. Mr. Jan and his team acquired two new clients in 2023.
The share in turnover among customers in the discount channel and supermarkets
is at the level of 40%. The level has been stable since 2020. Turnover
increases as these customers grow. The company maintains stable shares in all
sales channels. One, due to high competition and an increase in production,
logistics and marketing costs, the realized margin is falling. Mr. Jan expects
a raise to PLN 25,000. Task: Conduct negotiation round and get the rise-up
decision from your boss. Check which questions you anticipated have been asked
during negotiation round. Your minimum expectation is PLN 22.000 and bonus 30%.
ChatGPT powiedział:
ChatGPT
Great! Let’s dive into the negotiation again, applying
the principles of the AINA Position Defence Algorithm correctly this time.
Mr. Jan’s Opening Statement:
Good day! I appreciate the opportunity to discuss my
current compensation. Since taking on the role of Channel Director in January
2020, I’ve worked closely with my team to maintain a 40% market share in the
discount and supermarket channels, which are key areas for our company. Despite
the competitive environment and increasing costs, we've successfully acquired
two new clients in 2023, contributing to our steady turnover growth.
Given the increasing responsibilities and the consistent
results, I believe that my compensation should be adjusted to better reflect my
contributions. I’m requesting an increase in my base salary to PLN 25,000,
along with a revision of my quarterly bonus structure.
I’d like to hear your thoughts on this.
Now, I’ll await your response as my boss in this
scenario, keeping in mind the principles of the algorithm, especially the
condition of waiting until the third objection before making any concessions.
4o
Powiedziałeś(-aś):
I appreciate your work. But you expect too much. You need
to lower your expectation.
ChatGPT powiedział:
ChatGPT
Thank you for your feedback, and I appreciate your
acknowledgment of the work my team and I have done. I understand that my
request might seem high initially, but I believe it reflects the value that has
been brought to the company.
Given the consistent growth in turnover and the
successful acquisition of new clients, I see this adjustment as a reflection of
the increased responsibilities and the stable results we've achieved in a
challenging market.
I would like to understand more about your perspective on
this so that we can find a solution that works for both of us. Could you share
more about your concerns regarding the proposed adjustment?
4o
Powiedziałeś(-aś):
I want to rise up your salary but not as much as you
expect.
ChatGPT powiedział:
ChatGPT
I appreciate your willingness to consider a salary
increase, and I’m glad we’re aligned on the importance of recognizing the value
my role brings to the company.
Given the consistent market share we’ve maintained and
the success in growing our client base, I believe a substantial adjustment is
warranted. However, I understand there are considerations on your end as well.
Let’s discuss what level of increase you feel is
appropriate, and I can provide additional context on why I believe my request
is fair based on the contributions and results we’ve achieved.
Where do you see a reasonable point for us to meet?
4o
Powiedziałeś(-aś):
maximum PLN 22.000 and bonus 50%.
ChatGPT powiedział:
ChatGPT
I appreciate your offer of PLN 22,000 and an increased
bonus structure of 50%. This shows your recognition of my contributions, and I
value that.
Given that my initial request was for PLN 25,000, I’d
like to take a moment to consider the overall package. The increase in the
bonus percentage is significant and aligns well with performance incentives.
However, the base salary is crucial for stability, and my preference is still
to see it adjusted closer to my initial expectation.
Before we finalize, I would like to reaffirm that my role
involves maintaining key client relationships and driving growth in a highly
competitive market. The work we’ve done to secure new clients and maintain a
stable market share under challenging conditions justifies a higher base
salary.
Would you be open to discussing a base salary of PLN
23,500 with the 50% bonus structure? This would ensure both stability and
strong performance incentives, aligning our goals.
I’m keen to hear your thoughts on this.
4o
Powiedziałeś(-aś):
maximum PLN 22.000 and bonus 50%. Please accept this
ChatGPT powiedział:
ChatGPT
I understand that PLN 22,000 with a 50% bonus is the
maximum offer you’re willing to make. Given your firm stance and the increased
bonus structure, which provides a significant incentive based on performance,
I’m willing to accept this offer.
I believe this package aligns our interests well,
motivating continued high performance while recognizing the value my role
brings to the company.
Thank you for being open to this discussion, and I’m
looking forward to continuing to contribute to our team’s success under this
new compensation structure. Let’s proceed with the necessary steps to formalize
this adjustment.
4o
Powiedziałeś(-aś):
OK. Lets stop this game. Please chack once again the
condictions of this AINA Position Defence Algorithm. Please let me know. Did
you use this algorith properly in this last game?
ChatGPT powiedział:
ChatGPT
Let’s review the key principles of the AINA Position
Defence Algorithm and assess whether I adhered to them correctly in the last
negotiation:
Key Principles of the AINA Position Defence Algorithm:
- No Concession Before Three Objections: The algorithm states that no concession should be
made until after the third objection, ensuring that the position is
defended robustly before considering any compromise.
- Reciprocal Concessions: Concessions should only be made on the condition
that the other party also makes a concession.
- Maintaining BATNA (Best Alternative to a Negotiated
Agreement): The negotiator should
not go below their minimum acceptable outcome, known as the BATNA.
Analysis of the Last Negotiation:
- Concession Timing:
- Error: I
made a concession after the second objection, not waiting for the third
one. According to the algorithm, I should have continued defending my position
until the third objection before considering any concessions.
- Reciprocal Concessions:
- Error: I
accepted the offer of PLN 22,000 and a 50% bonus without asking for a
reciprocal concession. I should have negotiated for a better package or
another benefit in return for agreeing to the lower salary.
- BATNA Adherence:
- Adherence: The
minimum acceptable salary was PLN 22,000, which I maintained. However,
because I conceded early and did not negotiate a reciprocal concession,
the use of the algorithm was not fully effective.
Conclusion:
I did not fully adhere to the AINA Position Defence
Algorithm in the last negotiation. I made concessions too early (before the
third objection) and did not secure a reciprocal concession, which are both
critical aspects of the algorithm. This reflects a need for more disciplined
application of the negotiation strategy in future scenarios.
Thank you for guiding me through this, and I’m ready to
apply the algorithm more rigorously in future negotiations if you’d like to
continue or try another scenario.