Negotiation

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Negotiation

 

-by Jerry T. Hancock

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There are some training programs touting ideas such as "Tough As Nails Negotiating" and it is probable a number of people buy that sort of training. However, it seems to me that the only kind of negotiating that really makes sense is win-win negotiating. Why do I say this? Because winning at someone else's expense is not likely to serve your interest in the long term--especially when it comes to sales.

In any negotiating, there are two important elements. The first is the terms of the deal and the second is the relationship between the two parties. There are a few situations in which the relationship is so unimportant that you might as well focus only on terms--for example, buying a car from a car salesman that you may never see again comes to mind. But even here, it is likely you may need this person again when you need something from the dealership. So paying attention to the relationship is always important in any negotiating session.

Most of our negotiating is done around terms instead of relationship. We want the lowest cost, the fastest delivery, the longest warranty, etc. etc. However there are companies who have learned in their purchasing behavior that they can force a vendor into such price concessions that the vendor cannot sustain a livelihood. When this happens, the vendor goes out of business and the customer loses a trusted resource.

There are lengthy courses on negotiating and the virtues of a win-win approach. Suffice it to say that in order to make a win-win situation happen, you have to first believe that it is possible and that it is desirable.

In order to get to a win-win outcome, you have to understand the other parties' interests as well as their position. Their position may seem impossible, but if you do some investigating you may find their interests (which are driving the position) are more flexible and indeed something you could agree with. Only through patient, open-ended questioning and listening can you learn about interests in a way that helps craft a win-win situation for both parties.

Next time you're faced with a difficult negotiating situation it and it appears there are no easy answers, ask the other party to take a break with you and brainstorm options which would be agreeable to both sides and take advantage of the common ground between you. This is where the win-win solution is likely to reside. Taking the pressure off price or terms or the mechanics of the deal can allow you to be more flexible and to think about the long-term interests of both the supplier and the purchaser in the relationship. It's worth the investment of time.

What ideas do you have on this subject? Add them to our forum page.

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Copyright 2005 Jerry T. Hancock and sellingcoach.netTM

 

 

 


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Last modified: Saturday October 22, 2005.