The Art Of Negotiation
Preparation
The whole concept of preparation is about having a strategy in order so that you know about the party you're negotiating with in order to leverage on your strength and the party's weakness. It is important to also think about what you want to achieve from the process and what would make sense to reach the desirable outcome. During the course of negotiation, the goal May change by unforseen actions by either party. It's important to visualize the scenarios to think about how you'd handle each of them.
Action Steps
- Plan the deal that you will be excited with, the target you will be content with and the deal that you will walk away.
- Set the negotiable and non-negotiable.
- If possible, have a conversation with associates who have dealt with the person before, then grab the chance to gather information and styles that you may be able to use to your advantage.
Tips
- Make sure you are dealing with the party fully empowered to make the agreement.
- Have a price target or specific goal which is realistic.
- Put yourself in their shoes and anticipate the conditions or counteroffers from the other party.
Opening Offer
When both parties have enough information, then the negotiation starts with someone offering an exchange. The offer maybe accepted, rejected or trigger a counter offer. The secret of a good opening offer is to be firm and clear to retain credibility, the offer should be realistic and acceptable by both parties without short changing one another. In this phase, you need to disclose everything you want, but in a reasonable way which can be acceptable by the other party to reach an agreement.
Action Steps
- Make your first offer bold and aggressive, but not ridiculous, to give buffer for negotiation
-Have something which is 'nice to have' to give away without hurting your position - Watch for clues such as body language, speech patterns and reaction to what you say
Tips
- Ask questions
- Establish a strong foundation by demonstrating your knowledge and expertise
- Talk less, listen more to find the leverage
Bargain
The heart of many negotiation is bargaining, which is The adjustment of what is being offered until both parties are satisfied with the agreement. An important aspect of bargaining is trading which may be about individual items or the whole package. It may also consist of intangible items such as support provided and when thing will be delivered. This stage is the most crucial part of negotiation where you make or break the deal it may become heated especially if the parties have a win-lose attitude. In an ideal and more collaborative negotiation, parties should show more concern for one another but carefully seek for an equitable deal.
Action Steps
- Trade one element for another such as lower price for a more relaxed schedule.
- Maintain posture by standing firm and clear
- Present your offers in writing to avoid misunderstanding
Tips
- Aim for a win-win solution
- Have a list of tradable items as your bargaining chips
- The options from you shouldn't be more than 3
- Keep your acceptable deal in mind where you are prepared to suspend or walk away
Closing The Deal
The closing phase require a sense of timing, creativity, keen awareness and the ability to anticipate the other party's next move down the line. Always have the end game in mind and move towards the stage of the final handshake. A handshake is a powerful in preventing people from backing out. Subsequently, strengthen the end of the deal with a format contract, especially in a commercial setting.
Action Steps
- Once the agreement is reached, move towards a final handshake
- Formalize the deal by having an attorney draft a contract soon after the negotiation process is complete and make certain that it is signed by all pertaining parties in a timely manner
Tips
- No deal is better than a bad deal
- plan for the worst; prepare yourself for the last minute tricks by the other party
- Beware of relaxing too early before the contract is signed by all pertaining parties
Article Source: Slideshare