Basics of a Successful negotiation.
A lot of people are intimidated by the thought of going into a negotiation with the customer because they feel they’re not well prepared. It’s kind of an intimidating thing to do. You shouldn’t be afraid to negotiate, think of it this way; You negotiate every day, anybody who has teenage kids knows that there are negotiations that go on within your own family. People also negotiate with friends. Where should we go? what should we watch at the movies? You also negotiate things with your boss about deadlines and assignments, there are things you negotiate with business colleagues and customers. We do every day and we should not be intimidated. The key is to do it in a thoughtful and prepared way.
Conditions for an effective Negotiation.
- Both sides want to reach an agreement If one side is not willing to agree at all, then that’s not a negotiation. Both sides need to have a motive to reach an agreement.
- Both need to be willing to give up something in order to achieve the desired negotiation you’re coming to some agreement where you give a little and you take a little, but it’s the least disagreeable result that you can reach. x
- Both sides want to arrange a conclusion without completely alienating the other side. want to try to retain business relationships for your company revenue and profit opportunity whenever you can and the best result of any successful negotiation again is where both sides are somewhat satisfied not necessarily completely satisfied but somewhat satisfied with the results.
- The resolution has to be not only satisfactory but it has to be actively supported and accepted by all the parties concerned. you don’t want the other side to walk away and agree to something but they feel bad about it, they didn’t really agree with it, they were forced into a conclusion that they don’t agree to.
- Have an understanding about what could resolve these differences in an amicable way Negotiation isn’t one-sided and it doesn’t reach an outcome that it is really a deal killer going forward with your other side of the negotiating table remove.
Techniques you can employ
Both Parties have to reach the table with the same core principles on how to negotiate. It won’t work if there’s a yeller and a screamer that will only take what they want and who are not willing to compromise. Both parties should come to the negotiation thinking there’s a way out of the problem and that they both can figure it out.
- Having a strategy, reaching an agreeable result will never happen automatically. A predetermine thought process about how to approach the issue is needed.
- Focus on the issues at hand, bring the conversation back to the core issues, and don’t let it go on things that are not relevant and just waste time. Don’t bring up issues that have no reason to be discussed in that negotiation either.
- Try to maintain an ongoing business relationship if it’s at all possible. Don’t walk away and lose good business for your company when it wasn’t necessary.
Characteristics of a good negotiator
A good negotiator looks at the big picture, but is also aware of the details and is able to prioritize.
- Be prepared to understand the needs and wants of the other side.
- If possible, try to have control of the playing field, set an agenda, and let the client know about the agenda, it will help control the conversation to a certain degree. set the tone for the negotiation, if it’s a serious negotiation you need to set the tone and if it’s something you think that can be easily worked out maybe your attitude could be different. the key is to do your homework so that you be able to guide the discussion as much as possible.
- An understanding that both sides have pressure to succeed. This is something you might not be aware of but you have to understand that you can’t push people to the breaking point. They also have needs, wants desires, and pressure from their company as well.
- Ability to maintain discipline in the discussion. Focus on the ultimate negotiation objectives. Don’t let the discussion wander off into areas that are irrelevant and just distract from the main issues.
- Have an understanding that the needs of the client must also be met. To some degree, for the negotiation to be successful you can’t win or take all. A successful negotiator always comes from that stance.
Do you consider you have any of these characteristics and why?
Outcomes of utilizing and understanding negotiation skills
Utilizing and understanding the techniques you need to collect money without totally alienating the customer is very important. All good negotiating skills particularly if you have ongoing relationships with the customer will help as follows;
Builds goodwill Relationships. Next time something comes around you can use that goodwill to your advantage.
Helps you reach the outcomes that you really want it might not be exactly what you anticipated, but it’s something that fosters ongoing business between you and your customer.
Maximize the financial returns to your company and the value of the negotiation.
Helps you from being created because you are understanding the real issues and problems and you can tell when somebody is not revealing something or not telling the truth.
Neutralize difficult negotiators People that do not want to negotiate in good faith.
Helps you know when and how to walk away Sometimes you have to do that, sometimes that’s a strategy, sometimes negotiations don’t work, and since there’s an understanding of your must-haves you know when to walk away
Provides confidence in yourself and provides the confidence and track record to conduct an effective negotiation.
Improves your personal and professional profitability If you’re a successful negotiator and you have brought in good results for your company then that’s a great career-building track record you have created.