How to Negotiate

So, it’s time to negotiate and you’ve prepared well. What else must you have? Two things: confidence and power. Your power will come from your ability to influence. For example, you may be the buyer (but not always a strong position), or have something that the other party wants, or you may be able to give an intention to penalize if the other party fails to meet the agreement (as is the way with construction). As briefly mentioned above, you may be able to give a reward or an incentive. For example, you may be selling kitchen knives and as part of the package you are giving a knife sharpener and a storage unit away free as an incentive. It is always important that you keep the negotiation in your control: this can mean within your price range, your delivery time or your profit margin. If you fail to do so, you will end up on the wrong side of the agreement, and with nothing more out of the deal other than maintaining trading relationships. When negotiating, aim as high as you feel necessary in order to gain the best deal for yourself. The other party may bring this down but it is a good tactic, as it is always easier to play down than to gain. Make sure that you remain flexible throughout the negotiation in case the opposition decides to change the direction of the agreement (they may want different incentives or even change their objectives). This is where your preparation comes to good use: knowing your limits and the other party’s needs. If you’re a quick thinker then you’ve got an advantage. You’ll need to turn it around quickly if things start to go against you without putting your objectives at risk. Confidence comes from knowing your business, your product, what its worth, and being able to communicate this well to the other party: these people are almost impossible to get the better of, as some of you will know only too well.

Coming to an Agreement

Once you have come to a final agreement, it is important that you have it down in writing along with both parties’ signature: this is not always possible or practical. Before it is signed, or formally ordered, it is wise not to say anything about the terms agreed because your next sentence could break the agreement: the best sales-people never over sell – well, not until they have to! If it is a sale/purchase that you are making, then officially, it isn’t a sale until you/they have actually ordered the product/service. Usually, this will be an Order Form. In most other negotiations, one party sending a letter and fax to the other in which the agreement is outlined (to a sufficient degree) will form a legal basis. If the other party then amends the conditions in the agreement in writing to you, those amended terms then become part of the agreement, UNLESS you disagree in writing, and so on…

Summary

We use negotiation in everything we do but you have to be sure that it is done in the best way possible to achieve maximum benefit. The most important part is planning: preparing well will give you an advantage when negotiating.
Only use the knowledge and experience you need to achieve your objective: having the business owner negotiating the supply of pencils is over-kill, and leaves you little room to power-bargain with the same supply company when you want them to supply you with, say, colour photo-copiers. Have confidence and be sure that you can keep control at all times. Aim highly, but don’t underestimate the opposition. They too may have just read the same advice. If you’re selling something, be persuasive and offer some incentive to keep the customer interested. Don’t close an agreement until you are happy. This could be difficult if you have been put in a ‘corner’ but this would perhaps be an effect of poor preparation.

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Negotiating Skills for Managers Manager’s Guide to Negotiation provides a practical, easy-to-read overview of what’s involved in successfully negotiating any type of business deal. This book will help readers ; Learn how to prepare to negotiate so the result works for all stakeholders ; Negotiate effectively in cross-cultural situations ; Understand negotiation games people play ; Deal with emotions in negotiation. <<< buy

DK Essential Managers: Negotiating Skills Learn all you need to know about negotiating, from preparing your argument and briefing a team, to establishing the right atmosphere and closing a deal. “Negotiating Skills” not only shows you how to start from a strong position and find common ground with other people, but also provides practical techniques for you to use when talking and bargaining. Power tips aim to help you to handle real-life situations and develop first-class negotiating skills that will dramatically improve results and relationships. buy >>>

25 Role Plays for Negotiation Skills This represents a truly excellent training resource. The role-plays are comprehensively written and can be applied without modification. The book follows a useable six step negotiation process, with the role-plays skillfully reinforcing key stages of this process. This work stands head and shoulders over the others for its pure usability and well thought out approach. <<< buy

Words That Change Minds : Mastering the Language of Influence Based on Language and Behaviour Profile (LAB Profile) – a tool which makes possible the prediction of a person’s language in everyday conversation and how they will behave in a given situation – this text is for professionals who need to understand and influence behaviour in order to succeed. buy >>>

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