Helpful Negotiation Tips

This week I have been negotiating with a supplier therefore I thought the experience would be perfect for some extra training, having found a great website and put these tips in to action I thought I’d share them with you … In the mean time thanks to … thank you to http://www.businessballs.com/negotiation.htm. for the help info and training

… helpful negotiation tips …

First and most importantly, positioning is everything in negotiation.

1. Create the impression there’s no alternative  

Whether you are buying or selling, if you haven’t got an alternative then you are at a serious disadvantage. If the other side believes they have no other options then you have the advantage. Therefore create an impression that there is no alternative supplier and that the other person cannot afford to walk away.

2. Only negotiate when the sale is conditionally agreed, not before.  

Don’t get drawn into negotiating until you’ve got agreement in principle to do business. If you start to negotiate before receiving this commitment you’ll concede even more ground when the customer comes to order.  Ask questions like “If we can agree the details will you go ahead today?”

3. Aim for the best outcome possible.

Many negotiations are little more than a split-the-difference exercise so always start at the best possible outcome (without losing credibility of course).

4. Always let the other side go first on price if you can

If you know the other person’s starting point before you have to give your own, then this is clearly an advantage to you. Sometimes you will be pleasantly surprised at what the other side expects to pay which enables you to adjust your price.

5. List all of the other side’s requirements before negotiating

It’s critical to know exactly what your buyer wants before you start to negotiate. Get the full list of issues written down and commit him to it. This is vital if you are to keep a track of the deal also you avoid your position being eroded by the late introduction of further concessions required.

6. Trade concessions – don’t give them away

Never give away a concession without getting something in return. If you do you are not negotiating you are simply conceding. The simplest and most elegant concession to secure is agreement to proceed with the deal now – use it to close.

7. Keep the whole package in mind at all times

The buyer’s tactic will be to separate out single issues, or introduce new ones later. If you allow this to happen your position will be eroded so keep the whole situation in mind – explain how each change or demand affects the whole thing.

8. Keeping looking for variables, concessions bargaining chips on both sides

Prepare and estimate values of real and perceived variables before the negotiation, and keep looking for new ones during the negotiation. If the other side is cooperative involve them in looking for variables too.

The more variables you find the less you will have to give on price, and the more added-value you can build into the deal.

9.Keep accurate notes

The other person may forget, misunderstand, or attempt to distort interpretation of what was discussed and agreed. Keeping notes shows that you are in control, professional, can’t be out-flanked, and enables you to assess continually.

10. Summarise and confirm understanding as you go

This avoids misunderstandings developing, accidentally or otherwise which can undermine the trust, which is critical to being able to do business in the first place.

Getting positive agreement throughout the process strengthens trust and commitment, and helps to ease the other person into an agreeable frame of mind.

After the negotiation obviously it is essential to give the other person clear written confirmation of the deal.

This information is gathered from the help of http://www.businessballs.com/negotiation.htm