We spend our life negotiating in so many different ways. In business, with our families and friends, and in our pursuit for happiness in the various organisations or groups with which we belong. No matter the type of negotiation that you're working through, the results that you're looking for at all times, will be more beneficial if there is a win for both sides.
There are five stages of negotiation to achieve the results that you want. The conversation you have may be crucial to your business or the person you are dealing with. Your business negotiations should be planned out thoroughly before you start the meeting. There are many factors to take into consideration. The financial cost is often the only factor we consider. This can lead to failure if you do not consider physical, emotional and environmental considerations.
In all negotiations there are three possible outcomes
A. There is no win for you and the negotiations fail completely with no favourable outcome.
B. You win on this occasion, but you don't get the opportunity to go back for a second negotiation in the future. You burn your bridges for ongoing opportunities.
C. Both you and the party with whom you are negotiating come to a compromise that is beneficial to both parties. This leads to long term relationships.
There are 5 keys to a successful negotiation:-
Building long term relationships
Listen carefully to all that is said
Communicate clearly
Have a Win/ Win Mindset
Be fully prepared before you go into the negotiation
The key is in the preparation. How do you prepare?
DEFINE what are our desired outcomes.
What are the minimum requirements that you're prepared to accept as a win?
What is the end result, that is most beneficial to you and your business.?
What impact will the negotiations have on other areas in your business?
What impact could this have on your stakeholder relationship?
2. DETERMINE the parameters under which you are working.
Know your marketplace
Know the value of the negotiation that you were trying to achieve,
What are the market forces?
Know the costs physically, mentally, and financially to the person or company you are negotiating with.
Know the party with whom you will be negotiating. What are their limitations?
Be sure you are speaking to the right person?
What are other benefits you may negotiate that do not cost either party, such as: exclusivity, or pre-launch window of opportunity, or Gift With Purchase (GWP), or delivery, or service as applicable to your business.
3. DEVISE a plan for the deal which will ensure success.
What are the minimum negotiating points that give you a complete win?
What are you prepared to relinquish to achieve a workable result?
What are the implications to your business
What impact will these have on your ongoing business relationship?
4. DELIVER on those plans as you devised them,
Thorough planning will enable you to know the outcomes that are most beneficial to secure a deal.
Maintain focus on your goals
Ensure any concessions will still achieve the desired results
If the deal is not going ahead as you need, suggest a new time to renegotiate.
Walk away, regroup and re-consider your needs
5. DISSECT the planning stages with a mentor or co-worker before you go into the meeting.
Listen to their suggestions and possible adaptions you made to get the deal over the line.
Were you fully prepared before you started the conversation.
What concessions did they make?
What impact will these negotiation have on your long term business ?
Going through these 5 steps will enable you to be fully prepared for a favourable outcome. Maintaining good customer relations is just as crucial to the result as the negotiating the right price. If you push to hard you may harm future customer relations and the longevity of supply.
A win at all costs is not a win
If you would like support to address this in your business, book a time for a complimentary strategy call with Deb Fribbins.
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