How to negotiate a better deal ? Art of Negotiation

Art of Negotiation

Introduction

A few words are needed to introduce five very simple but very important ideas about art of negotiation:

  • What we mean by it
  • It is not necessarily about being tough
  • It’s about trading
  • It is about achieving mutual benefits
  • It is not about defeating an enemy

The word “negotiate” comes from the Latin meaning business. It reminds us of the market stall where buying or striking a bargain was an everyday part of living.  A deal comes from the equally earthy Anglo Saxon meaning a share or a portion. It implies compromises because people often share part of booty.

Negotiating and selling are parts of the same process the difference is one of emphasis; with the sales person focusing more on the meeting the customer needs, while negotiators emphasize their own needs first.

Successful negotiating is more than toughness. The final result of successful negotiating is agreements: without that there is no deal. But the ‘tough guy’ approach carries great risk of a breakdown in relationships; hence all those lost deals that should have been agreed.

SELLINGNEGOTIATING
Satisfying customer’s needs consistent                            satisfying own needs consistent with other party’s
With own needs

TRADING

Negotiation is all about trading something an exchange must pass each way for it to be negotiation. If you ask a favor or threaten someone these are not negotiations.

 In this trading one party does not have to loose in order for the other to gain. The party may have different interest that do not conflict or they do not may have opportunity for mutual benefits.

Since the result of negotiating is agreement and since the parties must see a benefit to agree, negotiating must achieve benefits for everyone.

MUTUAL BENEFITS

Discovering creating and developing ‘Win: Win’ situations where both parties leave the negotiation satisfied, is at the heart of good negotiating. Indeed the techniques used to achieve mutual benefits are common to all effective negotiation.

They include good communication, listening, preparation and planning. They go all it is attitude of mind that leads to avoiding negatives fixed and unbending attitudes never discover area of mutual interest. They lose deals that were there to be done.

Winning

The most irritating thing in negotiating is to agree to quickly; a man and holiday in Italy, works around a street market with his wife. They like a beach towel on a stall:

  •  How much is this towel?
  •  25,000  Lira.
  •  I’ll give you 10,000 Lira
  •  Okay,

The successful purchaser works away feeling in adequate and humiliated: he worries that there is something wrong with the towel or that he be too much. He had no prepared before starting to deal he had not look at other stars of course.

it is only in imaginary world of economist that there is a really open market probably know others take holder head exact the same towel the question who won is meaningless one if you achieve your objective then you won and why should you care if the other person won too.

Preparation

Of all the possible improvements to negotiating the most powerful is the devoting a little more time to preparation and do researching, before even starting to negotiate:

  • Any deal is in investment or money can debility and opportunity. If the outcome is about millions then it is worth investing a great deal of time in preparation. If the day is about a beach towel then a stroll to look into other markets does is still probably justified.
  • Every meeting is an investment of your own key credibility and reputation with colleagues, friends, and negotiating partners. it can therefore effect your whole future career.
  • Time and energy are sacred resources. while a meeting of two or three people may only take an hour of their time following up, discussing and recording its outcome Man multiply that manifold.

Know your opponent or partner

The next key element do preparation is understanding with whom you are negotiating.

Two businessmen shaking hands in boardroom, smiling, side view

The Relationship

What is our ‘continuing relationship ‘worth? Building our relationship with people helps to establish how to speak to each other to build mutual trust to understand each other’s organizational politics.

Assume rational behavior

You have a dominant position in a negotiating and have humiliated and crushed the other party who is weak and creature they have no alternative but to submit or do they suicide is a valid option.

Diverse interest

We speak off the ‘other party’ as if there was one person but there may be several principals, lawyers, accountants and financier. All these have may have different angles and approaches.

Understanding

The word ‘opponent’ is full of confrontation before embarking upon the deal it is helpful to understand the other person.

  • What drives them?
  • What are they trying to achieve?
  • What are their sticking points?

From a view of what they want to get out of the meeting and thing through what you want.

DO they want a Deal?

Peoples don’t always intend to do a deal. They may want information about your business. A competitor may negotiate in order to damage your business through management distraction and encouraging trade rumors.

  • Give limited information and demand and indicate a bit
  • demand an introduction from a reputable intermediary
  • conduct and auction
  • demand a deposit to confirm seriousness.

preparation summary

Following points you may need to understand before you are going for a deal

  • Who called the meeting?
  • What’s the deal about?
  • Who will be there?
  • What are you objectives?
  • What are your alternatives?
  • What is your bottom line?
  • Do you understand the issue?
  • Have you looked at the documents and the numbers?
  • Have you spoken to key colleagues?
  • Do you need expert advice?
  • Do you have the necessary authority?
  • Have you got or do you need clear instructions?
  • Who are the other party?
  • What is their interest likely to be?
  • Is there a history or past contacts?
  • Is there a starting point for this meeting?
  • What negotiations style fits the circumstances?
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