List Categories | List All Articles | List Articles By Title
Negotiate to Your Advantage
The hardest and most important part of any negotiation is knowing when to walk away.
Few things are sweeter than a successful negotiation session where both parties leave the table with a winning solution. That's because the stakes are high: Negotiate too hard and you lose the deal; be too timid and you may not get what you want.
The three most important concerns in any negotiation are the relationship, the risk, and the value--the real decision criteria underlying any future business transactions. So whether you're negotiating a salary increase with your board or a contract with a vendor, before beginning the process it's critical for you to cross three essential mental bridges:
1. Clarify the relationship. "What is the current real and perceived business and personal relationship, and what is its true value to my credit union's future?" Far too often people hold on to the past not realizing that they need to let go to be free to reach out for something better.
Carefully consider what could be lost in this negotiation, but also what new doors may open should there be successful negotiation. Too many business leaders continue with existing relationships beyond their prime simply because it's easier and more comfortable than striking out to develop a new relationship that better suits their organization's future.
2. Clearly structure the outcome both parties desire. Very often, people enter a negotiation with the drive to win, but they never commit to paper beforehand precisely what that means. Yes, they have a general idea (to place the contract at the best price or cost); however, they haven't defined the optimal combination of price/cost and all other terms that reflect both parties' best long-term interests.
Identify what it will take for all parties to believe they've been treated fairly. Outlining what each party should view as a "great deal" often leads to the optimum win-win agreement. After all, negotiating is merely a more formalized variation of common marketplace bartering. It's all about give and take and each party's perceptions of value. You offer. They counter. You respond. And so it goes.
3. Determine your walk-away point. The hardest and most important part of any negotiation is knowing when to walk away. Decide when you'll walk away from the deal before the negotiation process, because it's difficult to identify it in the heat of the negotiation.
It's important to approach your walk away point calmly, as negotiators truly need to understand what each side requires to make it a "great win-win" agreement. Then, if the other side becomes unreasonable and prevents your desired outcome from happening, weigh the predetermined value you placed on the relationship as well as ask the question, "Do we really have a mutual relationship or merely one party taking undue advantage of the other?"
Once you've laid out the previous three steps you can begin negotiation, realizing that at times the process requires the patience and confidence to be still. For example, if the other party precipitates a long silence then wait, say nothing, and let the other party break the silence.
While it's important to hold out firmly for your high priority/risk issues, holding out for a lost cause isn't in your best interest. Know when to give in on a point. If it's not a walk away issue, then concede and negotiate onward. Most important, realize when you're approaching the walk away point. That will help you try and steer the negotiations away from falling unnecessarily into a downward spiral, where relationships deteriorate and from which it's often impossible to recover.
Copyright 2005 by John Di Frances.
Four Ways To Work Out Business Disputes
Business owners have four options to resolve disputes with partners, vendors or customers. Each option is based on different assumptions, and entails a different cost.
How to Change Somebody's Mind
Believe me, it's not easy! And sometimes, it doesn't work at all.But while researching my book on how to produce more memorable writing, I stumbled upon these "mind changing" ideas from multiple sources.
How Barter Can Help Your Business Online or Offline
How Barter Can Help Your BusinessBarter trade is a powerful instrument that represents a solution for companies with available stock or services. By accepting payment in trade money instead of cash, a business maximizes their efficiency by increasing stock turnover or billable hours.
Better Internal Proposals
A colleague of mine has a problem. We belong to the same association and he's been trying for quite some time, without success, to get support for one of his proposals.
Negotiation: A Compromising Position
Negotiating is a hot topic these days for a good reason. It is difficult to imagine a more vital managerial skill than the skill of negotiating.
What Are The Four Types Of Negotiating Outcomes?
Negotiating outcomes are the types of results that can happen at the end of a negotiation. All negotiations end up with one out of four possible outcomes: one party wins and the other loses, both parties lose, they get stuck in a stalemate, or both end up winning.
The Art of Negotiation in 535 words
I want to get better at negotiation, but where to start? UK Amazon currently has 2332 books on negotiation. Google indexed nearly 4 million relevant (yeah right) pages.
Power Pricing - Getting the Right Price for Your Products and Services
There's an old joke about the New York City blackout. Power was out everywhere, and the electric company couldn't figure out what was wrong or how to fix it.
Business: Keys To Negotiating Well
Whether it's buying a car, asking for a pay rise, saying 'no' to a friend or renting an apartment - at some stage in our lives we all are going to need to know how to negotiate. Yet, so few of us know the basic skills before embarking on life changing purchases or decisions! These 8 keys will assist you negotiate well.
Negotiations: The Art, Science, & Sport of Online Deals
Negotiations can seem as complex as physics, and in fact, people go to college to study the science of negotiating just as they would the laws of nature. At the same time, negotiation is like an ancient art form, some sort of Zen mental jujitsu.
Lets Make a Deal
Smart buyers will always ask for a better price. Unfortunately, too many sales people and business owners automatically think that reducing their price is the most effective way to respond to this request.
Can a Corporate Executive Really Use The Beautiful Mind; To guide decision making?
I would like to comment on the "A Beautiful Mind" movie and the book, which was actually much better. I just finished reading another book on the similar side of John Nashs' assertion of working together rather than competing against.
A One Stop Financial Solution
Amy Wright, 34, was extatic when her realtor showed her the three bedroom townhome overlooking the lushious golf course. It was exactly the home she was looking for.
Can a Service Be a Commodity
Well Enron dealt with this a little for instance an intangible such as the available bandwidth in fiber optic lines. So what is a commodity in a service business? Well, a commodity could be considered are capacity to wash cars for a mobile car wash business like the company I own, the additionally created capacity coming from increased efficiency in studying production rates.
Dont Be Afraid Of Silence
In any conversation with two or more people, there is a tendency to want to talk all the time to fill any awkward silences or gaps that appear in a conversation.However, if you think of the conversations that you have with your closest friends or family, you will notice that there isn't the same need to fill these gaps, as silences between you are comfortable.
Negotiating Technology Contracts
Have you ever tried to negotiate a deal for software, computer equipment, or consulting services with a technology company? The task can be daunting. Unfortunately, the sales forces of most IT companies are armed to the hilt with techniques to get the best deal for them, and not necessarily the best deal for you.
7 Tips for Bartering Products and Services
What better way to gain a new customer than by getting something you need in return? The following are tips to help you use bartering correctly, and make it a good experience for both you and who you are bartering with.1.
Negotiating Tactics: Don't Let 'Good Guy - Bad Guy' Control the Sales Negotiation
Counter one of the classic negotiating gambits by addressing it directly.You've assembled a brilliant sales proposal for a new client and when you arrive to the meeting to hammer out the final details, you suddenly find yourself sitting across the table negotiating with two people.
Communicating Across Time Horizons
There was a time in my life when I sold life insurance. Well, to be frank, I tried to sell life insurance.
Managing the Sales Negotiation Process
How many times have you heard:"You've got to drop your price by 10% or we will have no choice but to go with your competition.""You will have to make an exception to your policy if you want our business.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !