Negotiating is a difficult task for everyone involved in business processes.
Examine the context
The top tip is to study in detail the context in which the negotiation will take place. It is important to remember the four main points that determine how to proceed:
- Geography. Preparing for negotiations will vary from territory to territory. For example, when buying a business in Europe, the style of dialogue will be one, in the East – another.
- Level of negotiations. Depending on the level, internal or external, the negotiation tactics and techniques may differ. It is the inner level if you negotiate with your colleagues or supervisor. If with international counterparties – the external level. At the internal level, you can share some details, such as legal details.
- Reality of intent. Negotiations can be real and fake. Fake negotiations are carried out when there is a task to get more information to build their negotiating position and are not yet ready to make any decisions, i.e., at the current stage, there is no intention to agree on the interests of the parties.
- Format of negotiations. Communication can be held with the coordinator’s and others’ participation or unilaterally.
Drawing a stakeholder map
A stakeholder map is an essential tool that reflects the stakeholders. It helps to determine how a leader can influence those involved in a project or company.
Gathering relevant information
CMA Consulting claims that a good negotiator always tries to find as much additional information as possible. When making a business deal in another country, he finds out all the details about the specifics of the market, and its dynamics rather than just settling for the basic facts. When talking to a business partner, he studies in detail the views of the opposite side, his interests. At first sight, the determining and important can be insignificant, so it is worth paying attention to everything.
Understanding the true intentions
It is essential to know the true intentions of both parties for a successful negotiation. You must understand why your partner wants to negotiate a 20% discount. Does he need it to improve cash flow or to show his colleagues that the terms are better for them? Understanding interests opens up more possibilities when discussing and achieving your goal.
Drafting an alternative
Before you sit down to negotiate, think about an alternative. What would plan B be? If you don’t understand what to do when things go wrong, the other side will sense this, and you will lose your initial advantage.
Marking the zone of potential agreement
The zone of a potential agreement is one of the conditions for a successful deal. It is the space where everyone is comfortable within a commercial negotiation. For example, if the seller is willing to sell his product for $70-90 and the buyer is willing to buy for $60-80, then their zone of the agreement will be between $70 and $80
Determining a negotiation strategy
Depending on the type of negotiation, you need to choose the right strategy. Sometimes you need to go for confrontation, and sometimes you need to go for cooperation. Choosing the best one is one of the tasks of a good negotiator.
Focusing on timing
In the negotiation world, you need to be able to manage the concept of time. For example, during a negotiation, you can fail to react quickly and get to the point for a long time, and your opponent for the same time will have time to come up with an alternative behavior or a new strategy, and you will lose. Consider how much time you can spend on your arguments, your opponent’s arguments, and on additional agreements.
You need to know how to end any negotiation properly. Depending on the outcome of the negotiation process, various techniques help part on a good note and continue cooperation in the future. Let the other party speak or summarize the meeting on their own if it is important to them.
Using psychological techniques
Two of the most common psychological tactics are often used in negotiations. For example, provide an imaginary choice to the opposing party. It is better to offer the interlocutor several options at once, even if they all are virtually indistinguishable from one another. It gives the impression that the master of the situation is the interlocutor who chooses the case’s outcome.