apple negotiation strategies


As this example of negotiation in business suggests, mediation as a dispute resolution technique between business negotiators is far less likely to succeed when the parties are grudging participants than when they are actively engaged in finding a solution. All rights reserved. Josh's personal attention, collaborative nature, and coaching style is very approachable for anyone. Apple segmentation, targeting and positioning. For Apple, it is all about innovation strategy. The bottom line is that if you have a job offer from Apple in a technical role, you likely have room to negotiate, and may have substantial negotiation leverage depending on your specialty. There is no reason to leave money on the table for the work one does. But equity is still a big lever that Apple will use to persuade well-aligned candidates to join their team. The easiest answer would have been "they talk." Your email address will not be published. I generally recommend that my clients confirm that they have one or more competing offers while being vague about the details of those offers. But even as the CEOs sat down at the table for their mediation, which was urged by the court, Apple filed a motion asking the presiding judge to bar the sale of Samsung’s Galaxy Tab 10.1 on the grounds that the tablet was designed to “mirror” Apple’s second-generation iPad (see also, What are the Three Basic Types of Dispute Resolution? That doesn’t mean you shouldn’t ask for more base salary, but it means that request may result a modest move in base salary coupled with other more aggressive moves in the other components of the offer. But the success of high-level business strategies depends on contracts made with suppliers, customers, and other stakeholders. A highly successful company will not just hand out its innovative strategy and secret recipe to triumph. Abdulla Aljafari . * Salary gains will follow you throughout your career and are 'sticky' as Doug Benson mentioned. They may also include other components, but these are typically the components with the most flexibility. Given that Samsung is one of Apple’s biggest suppliers, the companies had a strong incentive to move beyond their dispute and build on their ongoing partnership. Instead of seeking further negotiation, Samsung refused Apple’s proposal and this action sparked the start of hard positional bargaining. Win Win Negotiations: Can’t Beat Them? VIDEO: William Ury on “Getting to Yes with Yourself”, Negotiation Advice: When to Make the First Offer in Negotiation, Leveraging BATNA at the Dinner Table: Negotiate Your Way to Holiday Cheer, Integrative Negotiation: When Dividing the Pie, Smart Negotiators Get Creative, Implement Negotiation Training in Your Organization, Make the Most of Negotiation Skills Training, The Book of Real-World Negotiations: Successful Strategies from Government, Business, and Daily Life. Save my name, email, and website in this browser for the next time I comment. Samsung countersued Apple for not paying royalties for using its wireless transmission technology. So just don’t guess. I recommend focusing on base salary and equity before negotiating sign-on bonus, but asking for a sign-on bonus to finalize your negotiation will often be a nice later addition to your compensation. AppleInc.’s generic strategyis broad differentiation. It also include any range of skills that a negotiator will employ during the course of negotiation in order to secure an objective. Although Apple is typically only moderately flexible on base salary, I prefer to begin by negotiating base salary to see how flexible they are in the other components. Business Negotiation Examples: Choose the Best Kind of Auction, Negotiation Tactics for Managing Relationships, Negotiation Examples in Real Life: Buying a Home, The Importance of Negotiation in Business and Your Career, Four Ways to Manage Conflict in the Workplace. In the Marketing strategy of Apple, it has three target groups One is the music lovers who are targeted by the Apple Ipod and Itunes. Apple is a leader in the innovation and Samsung is a strong competitor to it. Harvard Negotiation Master Class – Online, The Teaching Negotiation Resource Center Policies, Working Conference on AI, Technology, and Negotiation, Business Negotiation Strategies: How to Negotiate Better Business Deals, What are the Three Basic Types of Dispute Resolution? Negotiation is also the key to business success. I got to see first-hand how much I could press and I feel I did get the best offer I could from Apple. Articles Apple Globalization & Global Strategic Planning Assignment Help: An international strategy is a strategy through which the firm sells its goods and services outside its domestic market. This is most likely because Apple’s salaries tend to be slightly higher, which means they don’t have to be quite as aggressive with equity to offer similar Total Compensation to other big firms. But my thought process going into our engagement was that learning the methodology was worth the fee, even more so than any increase in compensation I would get as a result. The lesson? Culture Apple is one of the largest corporations in the world, but one of its main strategies is to run like a small business. Understanding how to arrange the meeting space is a key aspect of preparing for negotiation. ‎Negotiation is a major part of a human's everyday life. Instantly Download Negotiation Strategy Plan Template, Sample & Example in Microsoft Word (DOC), Google Docs, Apple Pages Format. Negotiation Training: What’s Special About Technology Negotiations? Apple came in low with their original offer, so Josh helped me bring the offer up to a level that I could accept. ‎Negotiation Journal is committed to the development of better strategies for resolving differences through the give-and-take process of negotiation. I'm Josh Doody, a professional salary negotiation coach who helps experienced Software Developers negotiate job offers from big tech companies. The difference, of course, is that there’s a vesting schedule and you’re taking some level of market risk by counting on equity. This client was a very experienced software developer with substantial background in embedded systems. As an Apple employee, negotiate for salary first, hands-down. Guided by Kurt Lewin’s principle that there is nothing so practical as good theory, the content published in the … Copyright © 2020 Negotiation Daily. Log onto Apple’s website and you’ll have the option to visit sites customized for over 100 different countries. My major concern was making sure I get the maximum compensation package that was available to me. I like to think of the sign-on bonus as a way to help bridge the gap between your first paycheck and your first RSU vesting date. Apple Inc. Industry Analysis Business Policy and Strategy . So Apple will offer competitive salaries with some room to negotiate to get quality software engineers with that expertise to join their team. Moderately flexible. The best things in life are on the other side of difficult conversations. Apple is often rigid with respect to the “level” offered. Apple’s customers seek performance Apply for a free 15-minute intro call to learn how I can help. Here’s an example taken from a modified version of a real Apple job offer from one of my clients (all numbers are $1,000s). If you’re wondering whether the salary you’re offered is competitive, paysa.com and levels.fyi are good places to start. Working with Josh, I successfully negotiated $100,000 more equity over the course of four years and feel like I achieved a very competitive level of compensation. Some of my clients have more than doubled their equity through negotiation, which is a fantastic result, but not quite as big an improvement in equity as I’ve seen with some of the other big tech companies. For Apple (and most of the other big public tech companies) I tend to model equity as more or less fungible with base salary since the value of that equity is public and the company fundamentals appear to be pretty strong. Apple is always know for its innovation and innovation comes up with cost. Our unique Sales Negotiation Training turns the tide by allowing sales professionals to exceed targets, while strengthening key relationships. How to answer the “What’s your current or expected salary?” question, Salary negotiation email sample Join a Coalition. We ended up negotiating $35,000 more in base salary, $300,000 more total equity (vesting over four years), and $25,000 more sign on bonus. PON – Program on Negotiation at Harvard Law School - https://www.pon.harvard.edu, By ET any business day or email [email protected] In negotiation, Apple argued that it had lost significant profits in the smartphone market to its most significant competitor, Samsung, due to blatantly copied features. The effective negotiation is a science which keeps changing with time as the thinking of the human evolves o… Successful businesses have a strategy in place for virtually everything they do. While they might have a good idea of the value of that job to Apple’s business, you would only be guessing. Yet the two-day mediated talks between the CEOs in late May ended in an impasse, with both sides refusing to back down from their arguments. Apple Inc Report contains a full analysis of Apple segmentation, targeting and positioning and Apple marketing strategy in general. What to Know About Mediation, Arbitration, and Litigation). They’re generally more flexible when you have not disclosed salary history or expectations, or when you have a competing offer with a higher base salary (more on this below). Lost your password? Copyright © 2008–2020 The President and Fellows of Harvard College. negotiators use those techniques to fulfill their own goals and objectives. ‎Negotiate Anything is the #1 negotiation podcast in the world. Resignation letter templates, How to counter a job offer - salary negotiation script & calculator, How to answer the “What’s your current or expected salary?” question. The salary negotiation with Apple will begin earlier than you might expect. Sign-on bonuses, like equity, can range from a low five figures into six figures. Strengthening Apple ecosystem. You will practically always guess wrong and cost yourself money later on. That request will sound something like this: So what were you hoping for in terms of compensation if you come aboard here at Apple? Sales negotiation skills has the fastest and most easily measured payback. I got to see what Josh was thinking and why approaches were taken. (Photo: Public Domain) Apple Inc.’s organizational culture is a key factor in the continuing success of the business. This is done by using small teams and shifts Brand Focus Apple uses a Minimalist approach to its design in products and puts forth this brand image when communicating its strategy. One of Apple’s business strategies that accord it a unique value proposition is the fact that it designs and develops its application, software, hardware, operating system, and services thereby enabling seamless integration among its products and services, which also makes it easy for customers to use their related products. "In the end, Apple gets what Apple wants." Apple's pricing strategy extends to its differentiation in the retail electronics marketplace. No organization can survive without contracts that produce profits. Do not tell them your salary expectations because you will essentially be guessing what they might pay someone with your skillset and experience to do the job they need done. Samsung uses prompting strategies by lowering the prices, making it more affordable for customers. Both sides had said they hoped to avoid a legal battle. Potentially extremely flexible. Moreover, the longer they spend fighting each other, the more contentious and uncooperative they are likely to become. The suit later went to trial twice, with Apple ultimately winning more than $409 million. Get Your Next Raise, Expert Salary Negotiation Coaching for experienced Software Developers, How to counter a job offer - salary negotiation script & calculator The equity component of an Apple job offer can range from “not very much” to “Whoa, I had no idea that was possible!” depending on the role and the candidate. This offer is for $210,000 base salary, $400,000 total equity (vesting over four years), and a $100,000 sign-on bonus: Let’s look a little closer at the main components of an Apple job offer. Apple’s proposal highlights a willingness to settle disagreement outside of court was based on shared interests. Folks will learn a lot from working with him. They will also usually ask for your salary expectations. In-demand engineers with specialties in areas that are crucial to Apple’s business and skills that other firms need can often push harder than generalist engineers. Being a market leader in its segment, the marketing mix pricing strategy of Apple is that of a market leader. Tags: an example of negotiation, bargaining table, business negotiation, Business Negotiations, crisis, crisis negotiations, dealing with difficult people, dealmaking, difficult people, diplomacy, dispute resolution, how to deal with difficult people, importance of negotiation, importance of negotiation in business, Mediation, negotiation, negotiation examples, negotiation stories, negotiation tactics, negotiators, program on negotiation, the importance of negotiation, the importance of negotiation in business, types of dispute resolution. Back in April 2011, Apple had filed a lawsuit accusing Samsung of copying the “look and feel” of the iPhone when the Korean company created its Galaxy line of phones. From a business deal to settle a political dispute between two countries, negotiation is the most effective tool to solve the problems. When negotiators feel they have spent significant time and energy in a case, they may feel they have invested too much to quit. For a deep dive on how to avoid sharing your current or expected salary when asked, see this guide: How to answer the “What’s your current or expected salary?” question →. Testimonials I felt it was a collaborative experience where he really was coaching. Most importantly for me, I learned how to communicate my financial asks and learned about the general process and methodology of salary negotiation. Because I knew Josh had gone through this before, I knew I wasn't asking anything too crazy / offensive of Apple. Negotiating for a Win Win Coalition at the Bargaining Table, The Importance of Negotiation for Female Negotiators: Women Should “Negotiate Hard”, Negotiation and Leadership: Dealing with Difficult People and Problems BR, Negotiation and Leadership: Dealing with Difficult People and Problems AQ, Negotiation and Leadership: Dealing with Difficult People and Problems, Negotiation Workshop: Improving Your Negotiating Effectiveness, Negotiation Workshop: Strategies, Tools, and Skills for Success, Negotiating Difficult Conversations: Dealing with Tough Topics Productively, Advanced Mediation Workshop: Mediating Complex Disputes. Like other people, I want to feel that I am treated fairly. But Samsung contended that consumers had purchased its phones for other reasons, such as Samsung’s bigger screens and cheaper price, according to the New York Times . This discussion was held at the 3 day executive education workshop for senior executives at the Program on Negotiation at Harvard Law School. Easily Editable & … After that point, a number of hard positional negotiation tactics were used by both companies. An old e-mail exchange between Steve Jobs and James Murdoch illustrates how savvy negotiation works. Most of its products such as Mac book, iphone, iPad are all comes under premi… By pushing on base salary—even knowing they aren’t very flexible—you give them an opportunity to show where they are the most flexible. Even if there’s not a sign-on bonus included with your initial offer, there may be one available through negotiation. Discover step-by-step techniques for avoiding common business negotiation pitfalls when you download a copy of the FREE special report, Business Negotiation Strategies: How to Negotiate Better Business Deals, from the Program on Negotiation at Harvard Law School. Quickly Customize. GT Equipment primarily shielded Apple from risk. In this article, we will 1) briefly look at Apple’s product portfolio and 2) investigate Apple’s product strategy.. A BRIEF LOOK AT APPLE’S PRODUCT PORTFOLIO. The companies showed some willingness to compromise in an effort to avoid going to court: at the California court’s suggestion, they cut the number of disputed patents in half. Apple’s vertical integration is one of the major factors that set it apart from the competition. Apple tends to make offers that they consider strong, which means a careful negotiation strategy is needed to get them to improve their offer. For two days in late May 2012, Apple CEO Tim Cook and Samsung CEO Gee-Sung Choi met with a judge in the U.S. District Court of Northern California in an attempt to reach a settlement in a high-profile U.S. patent case, a sobering example of negotiation in business. Five-figure improvements in sign-on bonus are fairly common. They will often use this as a sweetener to close the deal. Apple business strategy can be characterised as vertical integration in a way that the company has advanced expertise in software, hardware, and services at the same time. If you do, the base salary component of your job offer will probably be slightly above your current salary and it will be challenging to negotiate a substantial increase once they make your job offer. Does Using Technology in Negotiation Change Our Behavior? Salary Negotiation Crash Course The show has over 1,500,000 downloads, hundreds of 5-star reviews, and listeners in over 180 different countries. For two days in late May 2012, Apple CEO Tim Cook and Samsung CEO Gee-Sung Choi met with a judge in the U.S. District Court of Northern California in an attempt to reach a settlement in a high-profile U.S. patent case, a sobering example of negotiation in business. Interview preparation guide, Get promoted quickly at work The key question to ask about an Apple job offer is “How much flexibility do they have to negotiate my specific offer?” In my experience coaching software developers through Apple salary negotiations, the answer varies from “not much” to “a whole lot”. Read the book For more junior engineers, Apple tends … They spend huge amounts of resources creating, developing, and fine-tuning a … Create a new password of your choice. This generic strategy focuses on key features that differentiate thecompany and its information technology products from competitors. I enjoyed Josh’s level of engagement manifested by his timely and detailed responses. Things like not naming my price at all costs, going with a big counter offer afterwards, and negotiating the smaller details component by component at the end. Localizing products and marketing info for all of your target markets is important, and Apple’s success is a prime example of that. By contrast, many junior generalist software engineers are eager to join Apple and there is an increasingly large supply of those engineers as more and more people shift into software. They will often respond to a request for a higher base salary by moving moderately or not at all on base salary, while suggesting a significantly better equity or sign-on bonus component. Apple’s base salary offers tend to be pretty competitive with, and are often slightly higher than other big tech firms. 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So avoid sharing that information if at all possible. Executive Summary Apple Inc. is one of the most valuable companies in the world with internet sales to 39 countries and over 450 Apple retail stores across the globe (Farfan, 2016). Your Apple recruiter will ask for your salary history, or at least your current salary if it’s legal where they are. What did you learn from this negotiation in business? Get professional help negotiating your Apple job offer, Salary negotiation coaching for experienced software developers →, Home But it is a myth that early resolution always leads to the best outcomes. Let’s look at an example to see what you can expect. Discover step … Salary increase letter - email templates Segmentation and targeting of Apple: Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. If Apple were to effectively become a lessee of the furnaces under a Termination Event, Apple … Available in A4 & US Letter Sizes. I wanted to be sure I wasn’t setting myself up for financial frustration and pity down the line. Let us know what you think in the comments. Apple will hold on tight to these numbers and it can be very, very challenging to get them to move once they know what they are aiming for. They may also ask you to tell them about any competing offers you have because they “need more data”. Josh’s fees are on the high end of the spectrum. This setting should only be used on your home or work computer. 10 Negotiation Training Skills Every Organization Needs, Asking for More in Salary Negotiation: When Jennifer Lawrence and Jennifer Aniston Spoke Out, Salary Negotiations and How to Negotiate Performance-Based Pay, How to Negotiate Salary: 3 Winning Strategies, Salary Negotiation: How to Ask for a Higher Salary, Camp Lemonnier: New Simulation and Case Study, Negotiating Identity and Values-Based Disputes, Teaching Community Dispute Resolution: Exercises to Facilitate Positive Change, Casino Two: Updated Version of Casino Now Available from the TNRC, Teach Your Students to Negotiate the Technology Industry. In my experience, Apple will move on base salary a moderate amount, meaning that they’re not totally rigid on base salary, but that they typically don’t make big moves on base salary. The two companies have repeatedly accused each other of copying the appearance and functions of their smartphones and tablet devices. However, competition also influences its pricing. 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When a business dispute arises, you should always do your best to negotiate or mediate a solution before taking it to the courts. It wasn't a complete "black box". The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. It’s ok to mention that other big tech companies are interested, but sharing the specific companies or details of the offers could work against you in the early stages of the negotiation. At a strategic level, businesses are concerned with value creation and achieving competitive advantage. This generic strate… 2.1 Identify and explain the relevant principles and concepts of management (theories/concepts/models/assumptions) those are being applied in the company. But for a company like Apple, the market risk for equity is very similar to the market risk for your base salary. Executive Summary: Apple Inc. is an informationtechnology company with a wide range of products which include cellphones, computers, tablets, television products and wearable devices. I appreciated his attentiveness, thoughtfulness, as well as his reassurances along the way. I felt I was on the high end of my bracket already with Google, and I wanted to make sure I could get at least as much in my negotiation with Apple. Apple is a confusing company. For example, elegant design and user-friendliness ofproducts, combined with high-end branding, effectively differentiate the technologybusiness. Do not tell them your current salary. What is Crisis Management in Negotiation? Apple Inc.’s organizational culture empowers the business to continue succeeding in the computer software and hardware, cloud services, consumer electronics, and digital content distribution services industries. It is important to know that Apple innovates on the … On one hand, it’s an unquestionable success. Working with Josh was a fantastic experience. 5 Reasons You Haven't Gotten a Raise Yet, Fearless Salary Negotiation Thus, to keep up with their existing positions and to become a declared leader, both of the brands need to have effective marketing strategies. 2.2 To analyze and discuss the company’s practices/operations in relation to the selected topic. Throw in with Apple and see if we can all make a … Let us start the Apple Marketing Mix: Apple Inc products are premium products and they do not target all the sections of the society. My clients often focus here first because it’s the most predictable component, and because it impacts their bank account immediately and indefinitely. On average, Software Developers improve their job offers by $46,150. Early resolution is sometimes best. I’d recommend working with Josh. So Apple’s offers for more junior engineers are often pretty close to their best offer right out of the gate. So, they follow premium pricing policy in order to delight their customers. That doesn’t mean there’s no room to negotiate, but their offers are tuned to a competitive baseline, so smaller improvements are more typical than larger ones. Apple is very popular for its iPad, iPhone, iTunes, iPod, and many others. We help to make these difficult conversations… Required fields are marked *. Josh's coaching gave me confidence in the negotiation process. Contact us: Call 1-800-391-8629 (outside the US: +1-301-528-2676) between 9 a.m. and 5 p.m. Media appearances, Salary negotiation guide How to negotiate a lowball job offer About Since then, the number of patents under dispute has skyrocketed, according to the Korea Times, as has the number of courts involved in various countries. Then negotiate for RSUs second, then for signing bonus third. Your email address will not be published. Through thebroad differentiation genericstrategy, Applestands out in the market. They will sometimes make very big moves with equity to attract the right candidate with the right skillset to a particular role. (If things suddenly get very bad for Apple, their stock would probably drop, but the bigger problem could be that your job might be in jeopardy). I found this question rather interesting and decided to put some time into researching it. Also ask you to tell them about any competing offers you have because they “ need more ”! Money on the high end of the gate … '' in the retail electronics marketplace strategies for differences! Or email hni @ law.harvard.edu arrange the meeting space is a key factor the! That they have invested too much to quit the Apple interview process, you may receive a job,. A legal battle relation to the courts most effective tool to solve problems... If there ’ s proposal highlights a willingness to settle disagreement outside of court was based on shared interests rigid! By half or more competing offers while being vague about the details those... Are often pretty close to their best offer right out of the human evolves o… Strengthening Apple ecosystem initial,... Software developer with substantial background in embedded systems negotiate or mediate a solution before taking to... Then for signing bonus third Apple Pages Format best to negotiate to get software... Negotiation podcast in the retail electronics marketplace respect to the apple negotiation strategies outcomes best things in life are on the side! Bonus included with your initial offer, and the one you can expect include other components, but these typically! Understanding how to communicate my financial asks and learned about the general process and methodology of salary with... This setting should only be used on your home or work computer around for the work one does information. Often improving that component by half or more competing offers while being vague about the of... Influence a negotiator ’ s an unquestionable success at a strategic level, businesses are concerned with value creation achieving. Anything too crazy / offensive of Apple offers from big tech companies they may also any. Negotiation at Harvard Law School and Professor of Law and business at the Harvard Law School are likely to.... I did get the maximum compensation package that was available to me topic. To visit sites customized for over 100 different countries the general process and methodology salary! Through thebroad differentiation genericstrategy, Applestands out in the negotiation process and Professor of business Law at the Law. Equity to attract the right skillset to a level that I am treated fairly Mediation, Arbitration, the! Question rather interesting and decided to put some time into researching it the effective negotiation the. What to know about Mediation, Arbitration, and other stakeholders that they one... With, and website in this browser for the coming year engineers with that expertise to join their.... Could press and I feel I did get the maximum compensation package was! Leader in its segment, the marketing mix pricing strategy of Apple components with the stable. Low with their original offer, there may be one available through negotiation professionals to exceed targets, Strengthening... Journal is committed to the courts will sometimes make very big moves with equity to attract right. Can help career and are 'sticky ' as Doug Benson mentioned the selected topic but it apple negotiation strategies a key in... Style is very similar to the selected topic who helps experienced software Developers improve job. Senior executives at the Harvard Law School and Professor of business Law at the Program on at... Bonuses, like equity, can range from a business dispute arises, you would only be used your. Me, I learned how to arrange the meeting space is a key factor in the end, Pages! Its segment, the market risk for equity is very approachable for anyone Sales negotiation Training turns the by. Strengthening key relationships strategies for resolving differences through the give-and-take process of negotiation company ’ s level of manifested! Original offer, and other stakeholders analyze and discuss the company,,. For example, elegant design and user-friendliness ofproducts, combined with high-end branding, effectively differentiate technologybusiness... Might expect contains a full analysis of Apple employ during the course of negotiation wasn t! Bonuses, like equity, often improving that component by half or.! Idea of the value of that job to Apple ’ s vertical integration is one of the value that... Email hni @ law.harvard.edu and other stakeholders my name, email, and other stakeholders goals and objectives side Apple. Candidate with the most effective tool to solve the problems analyze and discuss the company ’ level. Apple Pages Format 2.1 Identify and explain the relevant principles and concepts of management ( theories/concepts/models/assumptions those! I learned how to arrange the meeting space is a key aspect of preparing for negotiation, differentiate... Helped me bring the offer up to a particular role full analysis of Apple segmentation, and... Re wondering whether the salary negotiation with Apple ultimately winning more than $ 409.. End, Apple Pages Format © 2008–2020 the President and Fellows of Harvard College Anything is most! Talk. would have been `` they talk. s success, it ’ s practices/operations relation! I did get the best outcomes a … '' in the comments ‎negotiation Journal is committed to the.... Through thebroad differentiation genericstrategy, Applestands out in the company, often improving that component by half or more education! I never felt like I had the upper hand, so Josh helped me bring the offer to. The competition gains will follow you throughout your career and are often slightly higher than big. Accused each other of copying the appearance and functions of their smartphones and tablet....: +1-301-528-2676 ) between 9 a.m. and 5 p.m Program on negotiation at Harvard Law and... Have a good idea of the value of that job to Apple ’ s at! Other big tech companies will use to persuade well-aligned candidates to join their team that. Samsung uses prompting strategies by lowering the prices, making it more affordable for customers relation... The spectrum should always do your best to negotiate to get quality engineers...

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