Negotiation represents a concrete and essencial skill
Negotiation can be described as an art or a science, but for any professional confronted with the challenges of the world today, negotiation represents a concrete skill essential for the development of one’s business and projects.
The best negotiation is the one that allows the parties to leave the negotiation table with the impression that they have been heard and also that they have obtained a satisfactory result. Having good negotiating skills develops one’s network of contacts, solidifies one’s relationships with clients, and paves the way for future professional opportunities.
Seven basic negotiation techniques
Here, we present to you seven basic negotiation techniques that every manager should know and apply in their everyday negotiations:
Identify your true goals and rank them in order of importance
Are you looking for a new supplier with more competitive prices? Do you want to develop your client base? Note your short and long term goals and thereby identify your true priorities before beginning to negotiate
Investigate and analyze in order to arrive at the negotiation table prepared
Know the interests of the other party, study the market, and familiarize yourself with other transactions similar to those you are working with. You will be more persuasive and have a stronger position if you can quote statistics; for example, which market share your interlocutor would gain if s/he accepts the contract with respect to his/her competitors.
Know what can be sacrificed
You can never get absolutely everything, so identify the areas in which you can be more flexible and open with respect to things that have more value to you. Not receiving an order quickly can be a good option if the other party accepts a revision of the prices or terms of sale.
Know when to leave the negotiation that cannot satisfy your interests and goals
Identify clear limits that, when reached, you will stop negotiating and will not compromise. Be prepared to end the negotiation. If the other party cannot offer you an interesting agreement, it is better to cordially stop the negotiation and look for other more interesting partners.
Find out the successes of the other party to better identify their interests
This strategy will permit you to propose more interesting and appealing options for the other party. For example, if the other party prefers multi-year agreements, consider arriving at the negotiation with a biannual contract that may be more interesting to sign.
Present proposals that can satisfy all parties
You may find that there are many shared interests, such as in development plans or in the market price they are hoping to get.
Examine the resources of your own business to determine how to use them to reach an agreement
Maybe you can offer more options and create more value, by, for example, using your business’s marketing team in the service of the other or perhaps your network and connections can serve to develop the business of your negotiation partner.