Negotiation

Negotiating is a part of everyday life, but in business it's absolutely critical to your success. Poor negotiation can cripple a company just as quickly as losing key customers. While most negotiating strategies seem like common sense, it's not uncommon for people to get caught up in the emotion of the moment and ignore their basic instincts. Emotion, luck and magic have no place in a successful negotiation. It takes an iron gut, homework, street smarts and unblinking discipline. These keys will unlock your ability to get the best deal possible under any circumstances.

While experienced negotiators sometimes refer to their methods as the "negotiating game", it's really a misnomer for a process in which the stakes are often extremely high. Check your ego at the door and keep your eye on the big picture at all times. This is all about business. It´s important to know about the party you're negotiating with so you can capitalize on your strengths and the party's weaknesses. If the other party is very experienced, that means they also have a history that could contain useful information. If possible, talk to business associates who have dealt with this person before. If you are a buyer, make sure you are thoroughly familiar with the product or service that will be the subject of the negotiation. Most negotiators have a price target or goal in mind before they start. This should be based on realistic expectations considering all the constraints that will undoubtedly surface. These may include budget limits, direction from management, pressure to make sales goals, and a myriad of other external forces. During the course of the negotiation, the goal may change based on changes in scope and other unforeseen actions by either party. While your ultimate goal should be realistic, this should not constrain your first offer or counteroffer.

Before you start the negotiation, ensure that the other party is fully empowered to make binding commitments. You don't want to find yourself in a position where you believe you've struck a deal only to discover that your agreement must be approved by someone higher in the chain of command.




On October 12 2011 11 Views

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