Tips on Negotiating

This article looks at some techniques for better negotiation as negotiating is part and parcel of the business world. As everybody knows salespeople, on a routine basis negotiate with purchasers to secure the business but often managers need to bargain with others to get agreement of their ideas. This is why in management training programmes, negotiation skills training can be a useful addition.

Most negotiations are underlaid by a ritual, which proceeds as follows:

Person A opens with an exaggerated offer.

Person B responds by acting surprised indicating that agreement on this level is impossible.

Person A then begrudgingly changes their position but gives a number of reasons why they cannot make further compromises.

Person B can still not accept and begins to explain the reasons why ...

Pressure of time, skillful strategies or simply exhaustion then bring the negotiation either to an agreement or to an unsuccessful end.

There are a series of techniques that can help you to break through these negotiating rituals. Whilst useful, caution is advised since these techniques can sometimes misfire. For more information on when and how to use these techniques we recommend you attend a sales or management training course on negotiating.

"More than fulfill" expectations

With this technique, right at the start of negotiation you come to the point by asking "What can I offer you so that you get more than you expected?" Most negotiating partners react with surprise to such a question. They will change their demands and come up with a suggestion which is agreeable for you. It is then comparatively easy to bridge any remaining gap between you.

However, be aware that some negotiating partners may also see this kind of introduction as weakness and try to exploit you.

Change the rules of play

In this technique you declare openly that you do not want to negotiate against them but with them. Thus you give your partner the opportunity to adopt a co-operative negotiating style. You do this by, for example, saying: "You might think that we find ourselves in a situation where only one of us can win. I would suggest that we can only solve the problem together."

Set out your own goals

Usually the rule of negotiation is never to put all your cards on the table straight away. However sometimes openness also has a very positive effect. For example, if you started by stating: "It is my goal for today's meeting that we come to an agreement which is in the range of a price of x and an order amount of about y. Does that agree with what you were thinking also?"

With this method the differing positions then come to light openly and more time is left to come together. However, there is the risk that your partner will take your ideas as maximum demands which they can then negotiate downwards.

Uncover your own secret weapons

Negotiating partners often unveil surprising new information later on in negotiations and hope to overcome the other party by doing so. At times it works, sometimes the partner responds with such annoyance that they refuse to accept the new arguments. You can get around this kind of situation if you openly present the changed facts immediately.

Do not answer aggression with aggression

Work a few attacks into your negotiation. Ask your partner to set out what they think in more detail and challenge them to give reasons for their position.

By doing this you take the sharpness off your opponent's attack. The more opportunity they have to give vent to their opinion and represent their stand point , the more ready they will be to make compromises. On the other hand if you strike back in the same tenor the positions will normally harden and it will be more difficult for compromises to be pushed through.

Basic questions for leading negotiations

Before taking their place at the negotiating table, everyone should be clear about the following ten questions. They are the instrument of analysis by which to assess your own chances of success in a negotiation beforehand.

If I negotiate then,

1. From where (starting point, negotiating power)?

2. Why, for what ? (reason, reasons)

3. About what? (points of argument)

4. For what purpose? (goal)

5. How (strategy to embark upon for attaining goals)?

6. With what, by what means (instruments for attaining goals)?

7. Where and when (most favourable place and time for achieving goals)?

8. With whom, against whom (partner / opponent)?

9. Against what (objections, contrary arguments, points of conflict)?

10. With what success (presumed result)?

By preparing yourself with these ten questions and knowing how and when to use the four methods described above you can break through the negotiation rituals and so achieve better negotiation outcomes. Remember, practice is needed to become a proficient negotiator and so a sales or management training course on negotiation can help.


------

Richard Stone is a Director for Spearhead Training Limited that runs management training programmes aimed at improving business performance.