TAILOR-MADE TRAINING (IN COMPANY)
The Cost Breakdown Strategy course provides buyers with essential skills to perform detailed cost analysis and gain strategic advantages in negotiations. You will learn how Cost Breakdown Strategy works and master the technique of subdividing a price quote. Our experienced trainers will guide you through interactive sessions and hands-on exercises so that you can start using the knowledge gained immediately.
This training will help you improve your procurement process by emphasising the importance of preparation and showing you how information can become a powerful negotiating weapon.
THE KEY OBJECTIVES
1. Knowing how Cost Breakdown Strategy (CBS) works and mastering the technique.
2. The importance of preparation in a CBS: how an information can become a negotiating weapon.
3. Learning to break down the price quote into Work breakdown and Cost breakdown structures.
4. Psychological pressure (destabilisation) and maintaining control of the conversation.
PROGRAMME
Introduction
How does the Cost Breakdown Strategy (CBS) work?
- Psychological goal: create vulnerability and destabilise.
- Material goal: obtain sensitive information.
- Financial goal: minimise the supplier’s profit margin.
The preparation
- Making cost analysis of the price quote.
- Work/product breakdown structure.
- Cost breakdown structure.
- How an information can become a negotiation weapon.
- What information should I share?
- What information am I allowed to share?
- What information should I definitely not share?
- What information do I need to know before the negotiation starts?
- What information do I wish to obtain?
The negotiation
- The ideal approach to obtaining information from the seller.
- The psychological warfare during the negotiation : prepare yourself well on:
- psychological level,
- behavioural level,
- strategic level,
Using psychological pressure (destabilisation) and maintaining control of the conversation
- Destabilisation and persistence.
- My personal sensitivity.
- How to control and avoid tension and eruption.
- The attitudes required.
- Being able to take control of the conversation: when, how and which questions to ask.
Decision and individual action plan
TRAINING METHOD
Discover
Before the training, we send participants an online survey to measure their current skills using up to 10 criteria. We also look at their individual expectations and the type of difficulties they face. This approach allows for initial communication with the trainer and tailor-made work.
Deliver
- Practical 1-day in-company training.
- Practical exercises, cases are prepared by mutual agreement and coming from the context of the buyers.
- Frequent Work breakdown and Cost breakdown exercises of price quotations and role plays recorded on video.
- Interactive and participatory pedagogy. 25% focus on theory, 75% practice-oriented.
- Mnemonic sheets with tips & tricks.
- Action plan and objectives to be achieved.
Decondition
VAH Consulting offers various opportunities to further apply the skills and techniques learnt in the future. Feel free to contact us for more information.
View VAH Consulting’s full training offerings here.
More info
Contact us for more information. If you would like more information on the content, you can always request an appointment with no obligation.
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