Broadly speaking, negotiation is an interaction of influences. Such interactions, for example, include the process of resolving disputes, in sales however it is more agreeing upon courses of action, bargaining for individual or collective advantage, or crafting outcomes to satisfy various interests. Negotiation is thus a form of:
• alternative dispute resolution
• a way to interact about a wished outcome.
Looking at it very simplistic, negotiation involves three basic elements:
1. process,
2. behavior and
3. substance.
To 1) The process refers to how the parties negotiate: the context of the negotiations, the parties to the negotiations, the tactics used by the parties, and the sequence and stages in which all of these play out.
To 2) Behaviors to the relationships among these parties, the communication between them and the styles they adopt.
To 3) The substance refers to what the parties negotiate over: the agenda, the issues (positions and - more helpfully - interests), the options, and the agreement(s) reached at the end.
Skilled negotiators may use a variety of tactics depending on where you are in the sales cycle, it can range from a straight forward presentation of demands or setting of preconditions to more deceptive approaches such as cherry picking (from your product or portfolio). Intimidation and salami tactics (also known as the salami-slice strategy, is a divide and conquer process of threats and alliances used to overcome opposition. With it, an aggressor can influence and eventually dominate a landscape) may also play a part in swaying the outcome of negotiations.
Here are some simple Negotiation tips, that ether you can use in a negotiation situation or you can start understand the others strategy and counter act:
Everyone in sales will find themselves in situations where they have to negotiate for the best price possible. You can’t get everything you want but you do have the power to get more than the other side might choose to give you. Here are a few simple tips that might help you to produce a better deal for both sides.
Do Your Homework.
List all the issues involved. Understand what you want and why you want it. Separate the core issues from the attractive additions and assign a value to each component. Unless you are clear on these values, it is going to be difficult to make the necessary tradeoffs. It is just as important to anticipate the needs and wants of the other side.
Know When To Walk
Decide the best alternative to this deal. It may be as simple as knowing when no deal is better than this deal. Accepting there is a time to move on will empower you to persuasively present your case and not send mixed signals that lead your rivals to believe they can gain even greater concessions.
Aim High
The key to achieving more is to aim higher from the start. You may have to accept less than your ideal package but it is unlikely that you will be able to improve a low opening offer.
Who Is Involved?
Negotiation is a process where both sides have the power to say no and it takes everyone to say yes. Do you know all the people involved? Avoid surprises and identify everyone who is a stakeholder at the start.
Let Them Make The First Offer
Unless you are certain that you know their opening position, let them make the first offer. You might be surprised where they begin and find your position is much better than you ever dreamed. If it is not what you were hoping for, it is time for a convincing flinch.
Use The Flinch
A visible reaction says more than words can alone. If they lack confidence in their offer, your flinch will often earn an explanation or even a concession. Good presentation skills, like acting, include all of you. But you must be believable.
Collect Their Thoughts.
Don’t accept everything at face value. Use a range of questions to collect their reasons and then the reasons behind their reasons. It can be more important to understand why they value a point than simply how much they value it. Probe a bit more for their alternatives and then the resulting benefits and consequences.
Listen
Whenever they are speaking, listen. It doesn’t matter if you think their point is unimportant or if you know where they are headed. The truth is you don’t know what they are going to say, and they don’t know everything they are going to say either. It may sound like a slower approach but your best shortcut is to listen.
Always be willing to look at both sides of the argument. Understanding the other side is the best way to strengthen your own.
Persist
Patience is rewarded. It may take time to convenience your partner that they cannot have it their way. Ask questions and explore other alternatives. You can set a difficult point aside and come back to it later. Remember, people in a hurry are seen to be at a disadvantage.
Use Humour
Humour can diffuse a difficult situation. If you can catch them by surprise, they may find it difficult to hold a tough line. A laugh can ease the way to a concession and will normally improve the atmosphere.
Defend Your Price
You know they will test your price; it’s their job. So, be prepared to defend it point by point. Having a "take it or leave it" attitude will make it harder for them to say yes. Don’t be insulted or defensive, be ready.
Be Open To New Facts
No amount of research will eliminate surprises but you can choose not to be surprised. Instead, be interested. Ask questions and learn everything you can before you respond. The complete picture is often totally different to your first impression.
Tradeoffs
When you decide to make a concession, get something in return. Each trade-off can build agreements that lead to a deal while concessions may build an expectation of even greater concession. Your weakness will lead them to expect even more.
Attitude
Our approach to negotiations often reveals our attitudes. If you are reluctant and lack confidence, the negotiation will become much more difficult. But if you start with the certainty that you will get what you need and some of what you want, or there will be no deal, your fear is eliminated. Let the pressure go and enjoy this opportunity.
I know that these are just some basic rules and hints,for the skilled Negotiater way to simplistic. But I thought we should start easy for everybody to build some skills. For one thing is sure, everyone in sales will find themselves in situations where they have to negotiate for the best price possible, the delivery or something else.. ....so I'm looking forward to read some comments or new aspect or ideas to this discussion topic!
Regards – Mark von Rosing
