Useful Tips 5 : Negotiation
Posted by Molli on January 30, 2010 · Leave a Comment
“When a person with money meets a person with experience, the person with the experience winds up with the money and the person with money ends up with the experience.” Harvey Mackay
We all negotiate because negotation is simply a very effective way of getting what we want. We negotiate to settle our differences and we negotiate out of self-interest to satisfy our needs. You know you are in negotiation if you have the authority and ability to vary the terms – to give as well as take. Negotiations in essence involve trading concessions. I have found it an art and often very intense that it makes one feel drained after the whole negotiation. It must end up as a win win situation, otherwise it makes the losing party feel deflated. That is not what we want to do in any business deals.
There are 7 steps to the art of negotiation.
R – Ready yourself. Set your objectives, list the issues, gather the information, plan your strategy.
E – Explore each others needs. Clarify and establish rapport and communicate.
S – Signal for movement. Negotiation begin with both sides taking strong initial positions, to create momentum you have to be able to signal that you are prepared to move and respond to signals from the other side
P – Probe with proposals. Make tentative proposals in order to probe for points where the other side will make concessions. Repackage rejected proposals into a more acceptable form.
E – Exchange concessions. Trade by giving the other party some demands in exchange for receiving some of what you want.
C – Close the deal. Avoid giving away too many concessions. Make an acceptable close.
T – Tie-up the loose ends. Confirm what you agreed, summarise the details, agree on a plan to settle possible future differences.
A good agreement is one that works. It leaves both parties satisfied.
Extract from NEGOTIATE by Harry Mills
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