Using your negotiation skills to analyse the context is a great place to start preparing for negotiations.
The key elements to think about are:
- What is the nature of the sale/purchase in terms of risks involved, the level of expenditure and the complexity of the deal?
- Competitive analysis: What is the current position of the market and what options do our counterparties have available? We will deal with a sole supplier differently than those in a competitive market.
- Is it a one-off deal or should we consider maintaining a long-term positive relationship that develops alternatives for future business?
- Have we had any dealings with our counterparty in the past and what is their most likely approach to doing business?
- How experienced are the negotiators on the other side?
- What cultures will be represented and what are the local traditions?
- Who are all the groups & individuals concerned in the transaction and what is the decision making process? A diversified style is required as final decision makers will very often be interested in Return on Investment and increased revenues & margins. The end user who looks for better productivity and efficiency regard the financial elements almost totally irrelevant.
Almost any negotiation training course will highlight the importance of setting formal deal objectives.
If we fail to prepare and prioritise our deal objectives we put ourselves at risk of being exploited and/or ending with a sub-optimal conclusion. Whether you are engaged in negotiation on the sales or purchasing side, think about the following factors when preparing for negotiation:
- Price and payment, Key obligations, Delivery, Warranties, Intellectual property and Risks.
Price and Payments: The competition and the complexity of most business deals demand finding methods to create extra value and to move negotiation from haggling to synergistic and creative joint problem solving. Professional buyers are not charged with buying the cheapest solution but rather with providing their businesses with the cheapest total cost of ownership, which is made up of things like:
- Acquisition costs, Service costs, The cost of use, Training costs, Supplier performance metrics, Delivery, Quality and Customer Support. (These concepts are covered in most purchasing training programmes).
If we are able to lessen the other side's costs in the entire life cycle of the product, solution or service and simultaneously offer value for money, we are in a better position to find agreement.
Key Obligations: Ensure your product and services are defined and reflect your priorities. Include all the relevant quantities and specifications.
Delivery: How important are the delivery timelines and what happens if the delivery doesn't take place on time?
Warranties: In order to maintain trust and credibility ensure that you can live with any promises.
Intellectual property: Carefully negotiate IP ownership rights and consider the following elements:
- Who is paying for the Research and Development?
- Could the product development be used by competitors to your loss if you don' t own the IP? How can you avoid competitors to use the same IP?
Risks: The best way to manage exposure is to include the factors in a contract. Cultural consideration is very important. In Asian countries the goal of negotiation is not a signed contract. In China, unforeseen events are resolved through the relationship.
Analysing the above elements are crucial in planning Concession Strategies that will assist you to leverage maximum value from trades and in planning meetings optimally.
Your Insufficiently Developed Commercial Negotiation Skills Capability Could Cause Critical Negotiation Interventions To Fail Due To Inappropriate Planning
The main reason to a profitable business negotiation result is the quality of your planning. If you don't plan, prepare to fail and expect to not reach your goals.
Sales Funnel: The Most Powerful Way To Generate Results
I have outlined the most effective way, that I have discovered to set up my Sales Funnel for my MLM business. I lay out each step for you to easily follow.
Industry Meltdown: Using Your Negotiation Skills To Safeguard Your Stability
In times of market instability, it is advisable to move away from price as the key negotiation factor and concentrate on 'loss framing', creating more alternatives, reciprocation and value in order to reach agreement and realise your objectives in negotiations.
2 Vital Elements Of A Successful In-House Negotiation Training Initiative
Merely depending on the negotiation abilities of individuals is a familiar oversight businesses make. Developing a strong negotiation capability is contingent on critical factors: The negotiation strategy, process, the individual's skills and the supporting network.
Sales Training: Pros And Cons Of Coaching To Get Buyers And Enhance Your Business
In the global economy of today's world that encompasses both virtual and actual opportunities, there are so many kinds and numbers of businesses for a potential customer to choose from that a business owner must use every possible advantage to generate sales
Secret Of Powerful Selling
There are three factors that can influence a person. These three things are imagination, language, and perception systems. Combine these three factors and you will win the competition.
Incorporate This Tip In Your Negotiation Skills Training Programs To Guarantee These 3 Things Never Occur
If you are getting ready for a non-competitive negotiation, deploy some effective negotiation skills and make every effort not to make any of the most common mistakes during your dealings with your counterparts.
Perhaps You Have Thought About What Makes A Good Negotiator With Remarkable Negotiation Skills?
This is a question that many people before have tried to answer, but this is the wrong question and this is why.
Important Aspects To Take Into Consideration When Applying Your Negotiation Skills During Cross Cultural Negotiations
We could easily make the mistake of stereotyping people according to their national culture whilst ignoring the other elements of culture that will contribute to the success in your negotiation.
