{"id":9590,"date":"2017-12-11T10:00:06","date_gmt":"2017-12-11T09:00:06","guid":{"rendered":"http:\/\/passodue.flywheelsites.com\/2017\/12\/11\/ethical-buying\/"},"modified":"2020-12-09T14:47:12","modified_gmt":"2020-12-09T13:47:12","slug":"ethical-buying","status":"publish","type":"post","link":"https:\/\/diariodiunconsulente.it\/en\/2017\/12\/11\/ethical-buying\/","title":{"rendered":"When the customer makes the difference: ethical buying"},"content":{"rendered":"<p><span style=\"font-size: 18px;\">by <a href=\"\/en\/passodue\/\">Alice Alessandri<\/a> and <a href=\"\/en\/passodue\/\">Alberto Aleo<\/a><\/span><\/p>\n<p><span style=\"font-size: 18px;\">We often talk about ethical buying to refer to choosing items that are <strong>sustainable<\/strong> and produced without harming the <strong>environment<\/strong> and communities. Actually, a customer\u2019s choices can influence the market not only in terms of &#8220;<strong>sustainable production<\/strong>&#8221; but also in <strong>relationship styles<\/strong>, contributing to make negotiations more ethical. Many sellers argue that <a href=\"https:\/\/diariodiunconsulente.it\/en\/calendar\/\">our ethics courses<\/a> should also address <strong>customers<\/strong> because, they believe, it is the <strong>poor behaviour<\/strong> of customers that forces salespeople to act incorrectly as a matter of self-defence. <span class=\"text-highlight\">We dedicate this article to \u201ccustomers\u201d to encourage them to promote <strong>ethical buying,<\/strong> as this has a considerable impact on relationships.<\/span><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-9893 size-full\" title=\"ethical buying\" src=\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/pexels-photo-95425.jpeg\" alt=\"ethical buying\" width=\"1920\" height=\"1280\" \/><\/p>\n<h2><span style=\"font-size: 32px;\"><strong>Suppliers and Partners<\/strong><\/span><\/h2>\n<p><span style=\"font-size: 18px;\"><strong>Poor customer behavior<\/strong> can be linked to the idea that purchasers have \u201cthe upper hand\u201d. <span class=\"text-highlight\">Let&#8217;s face it, if you are the one paying you can try to exploit your purchasing power. But are we really sure that it\u2019s always worth pushing home this advantage?<\/span> Even the most ruthless <strong>buyers<\/strong>, in fact, must strive to <strong>preserve a good relationship with their suppliers<\/strong>, especially if these are true partners who are party to creating the <strong>differential value<\/strong> of an offer.\u00a0<\/span><\/p>\n<h3 style=\"text-align: left;\"><strong>&#8211; &#8211; &#8211;<\/strong><br \/>\n<span style=\"font-size: 21px;\">Just as companies <strong>rank customers<\/strong> not only on the basis of how much they buy, but also on the basis of their <strong>purchasing potential<\/strong>, so those buying should <strong>classify their suppliers<\/strong> according to the degree to which they participate in <strong>value-building<\/strong>.<\/span><strong><br \/>\n<span style=\"font-size: 18px;\">&#8211; &#8211; &#8211;<\/span><\/strong><\/h3>\n<p><span style=\"font-size: 18px;\">It may be useful to dedicate yourself to <strong>customer profiling<\/strong>, using <strong>specific purchasing indicators<\/strong>: the possibility and advisability of <strong>replacing the supplier<\/strong>, the level to which this supplier is an <strong>integral<\/strong> part of your production chain, their ability to express <strong>added value<\/strong> for you and for your customers, as well as the existence of possible purchasing <strong>alternatives<\/strong> and so on.<\/span><\/p>\n<h2><span style=\"font-size: 32px;\"><strong>Marketing Mix of Purchases<\/strong><\/span><\/h2>\n<p><span style=\"font-size: 18px;\">We all know the <a href=\"\/en\/2017\/04\/24\/marketing-mix\/\"><strong>Marketing Mix<\/strong><\/a>: product, price, place and promotion. To build an effective market strategy you need to look at all of these elements, but what should you consider to render your <strong>negotiations<\/strong> <strong>with suppliers<\/strong> more profitable? The ingredients of the <strong>Ethical Buying Mix<\/strong> can be extracted from the theory of <strong>Fisher, Ury <\/strong>and<strong> Patton<\/strong> (creators of the <strong>Harvard Negotiation Program<\/strong>): <strong>people<\/strong>,\u00a0<strong>interests<\/strong>,\u00a0<strong>options<\/strong>\u00a0and <strong>standards<\/strong> (objective\u00a0criteria). Let&#8217;s briefly analyze this:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>People<\/strong>:<\/span> <span class=\"text-highlight\">It is necessary to value our interlocutors as <strong>human beings<\/strong>.<\/span> The goals that we have when bargaining may diverge from those of the other party and this could lead to a certain level of tension in the <strong><a href=\"\/en\/2015\/06\/01\/incremental-negotiation-nash\/\">negotiation<\/a>,<\/strong> but remember to separate people from problems<\/span><\/li>\n<li><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>Interests<\/strong>:<\/span> these are the objectives that each party has during the bargaining. They have to be carefully analyzed and ranked according to importance; additionally, we need to define what goal is hidden behind a certain position. <span class=\"text-highlight\">Sometimes the <strong>means are confused with the solutions<\/strong>.<\/span> For example, some <strong>buyers<\/strong> may ask the supplier for an exaggerated discount to show off to the boss, forgetting that by doing so they risk losing a reliable supplier and so harming their organization<\/span><\/li>\n<li><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>Options<\/strong>:<\/span> these are the <strong>alternative solutions<\/strong> that we will find if we use our creativity and maintain our focus on the <strong><a href=\"\/en\/2015\/06\/29\/customer-vs-seller-conflict-of-interests\/\">shared objectives<\/a> in the negotiation<\/strong>. Do not hold out for a unique solution, rather <span class=\"text-highlight\"><strong>be flexible about how<\/strong> to reach an <strong>agreement<\/strong>.<\/span><\/span><\/li>\n<li><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>Standards<\/strong><\/span> (objective\u00a0criteria): When defending a choice, use an <strong>objective criterion<\/strong>. Many negotiations are wrecked because they are based on <strong>opinions, not data<\/strong>. For example, take the case of those customers who insist \u201cI think you could do more for me\u201d instead of quantifying what they expect and thus trigger a negative reaction from the supplier. <span class=\"text-highlight\">Use numbers, statistics, and anything that can help you to make your requests <strong>concrete and objective<\/strong>.<\/span><\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6042 size-full\" title=\"human beings\" src=\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/challenging_challenge_climb_cliff_group_help_together.jpg\" alt=\"human beings\" width=\"1688\" height=\"1125\" \/><\/p>\n<h2><span style=\"font-size: 32px;\"><strong>Positional or Principled Negotiation<\/strong><\/span><\/h2>\n<p><span style=\"font-size: 18px;\">There is a fundamental difference between a <strong>positional negotiation<\/strong> in which the two interlocutors defend opposing views to the end, and a <strong>principled negotiation<\/strong> based on the search for a <strong>common objective<\/strong>, an approach in line with<strong> ethical buying<\/strong>. The first case is an example of the so-called \u201c<strong>zero-sum game<\/strong>\u201d where one party wins and one party loses: the only way to make an exchange is to seek a <strong>compromise<\/strong>. As we discussed in the article on <a href=\"\/en\/2015\/07\/13\/win-win-or-compromise-what-does-win-win-really-mean\/\">Win-Win<\/a> situations, a compromise does not produce a <strong>result that will last<\/strong> over time. <span class=\"text-highlight\">But how does one pursue an <strong>ethical buying<\/strong> strategy?<\/span> The basic rules are summarized below.<\/span><\/p>\n<p style=\"padding-left: 30px;\"><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>1.<\/strong><\/span> Consider the interlocutor as <strong>part of the solution<\/strong>; without the other party there would be no agreement<br \/>\n<\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>2.<\/strong><\/span> Include \u2018<strong>maintaining your relationship<\/strong> over time\u2019 as one of your objectives in the negotiation<br \/>\n<\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>3. <\/strong><\/span>Use the <strong>law of reciprocity<\/strong> by being the first to offer <strong>trust<\/strong> and openness, in the certainty of receiving them in return<br \/>\n<\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>4.<\/strong><\/span> Do not attack the <strong>people<\/strong> but the problems<br \/>\n<\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>5.<\/strong><\/span> Try to recognize the <strong>objectives<\/strong> behind the positions, explain in detail the <strong>motivations<\/strong> that support your stated needs<br \/>\n<\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>6.<\/strong><\/span> Be <strong>creative<\/strong> and invent as many <strong>alternative solutions<\/strong> as possible<br \/>\n<\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>7.<\/strong><\/span> Basis your request on <strong>objective criteria<br \/>\n<\/strong><\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>8.<\/strong><\/span> Leave bias and <strong>pride<\/strong> out of the negotiation and accept <strong>diversity as a value<br \/>\n<\/strong><\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>9.<\/strong><\/span> Analyze the <strong>strategic value of the supplier<\/strong> before starting the negotiation<br \/>\n<\/span><span style=\"font-size: 18px;\"><span style=\"font-size: 21px;\"><strong>10.<\/strong><\/span> Be <strong>flexible<\/strong> about solutions but focus on the results<\/span><\/p>\n<p><span style=\"font-size: 18px;\">Whether you have decided to adopt a style of <strong>ethical buying<\/strong> or not, remember that your <strong>suppliers<\/strong> are part of a <strong>system of shared value building<\/strong> of which you are part. The benefits of maintaining a good relationship with them will also reflect on your relationship with your customers. <\/span><\/p>\n<h3 style=\"text-align: left;\"><strong>&#8211; &#8211; &#8211;<\/strong><br \/>\n<span style=\"font-size: 21px;\">With ethical buying you will increase the efficiency and satisfaction level of your business with hugely <strong>positive effects on the results.<\/strong><\/span><strong><br \/>\n<span style=\"font-size: 18px;\">&#8211; &#8211; &#8211;<\/span><\/strong><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-9895 size-full\" title=\"negotiation\" src=\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/rawpixel-com-403493.jpg\" alt=\"negotiation\" width=\"2000\" height=\"1438\" \/><\/p>\n<pre>| partem claram semper aspice |<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>by Alice Alessandri and Alberto Aleo We often talk about ethical buying to refer to choosing items that are sustainable and produced without harming the environment and communities. Actually, a customer\u2019s choices can influence the market not only in terms of &#8220;sustainable production&#8221; but also in relationship styles, contributing to make negotiations more ethical. Many&hellip;<\/p>\n","protected":false},"author":6,"featured_media":9591,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[98,85],"tags":[244,241,235,150],"class_list":["post-9590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-in-love-2","category-abilities","tag-customers","tag-ethics","tag-negotiation","tag-negoziazione","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When the customer makes the difference: ethical buying - Passodue<\/title>\n<meta name=\"description\" content=\"Even clients have the power to make negotiations more ethical, adopting an ethical buying style. 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