Negotiation Occurs All The Time

Writen by Pj Germain

By now you've been more aware of the times when you are in a negotiation with someone, whether it be a customer, co-worker, vendor, or someone at home. You've no doubt had one or two outcomes that were very different than what was available to you before the win/win training. You also probably had many negotiations that didn't result in win/wins, that went as they have in the past, or perhaps worse than usual as you tried new things. Remember, to be a successful win/win negotiator, you must:

A. Have the knowledge, which you now have and can reinforce and strengthen by review of the training materials in your manual and in the book, Getting to Yes.

B. Have the desire to be a great negotiator. This includes seeing yourself as a businessperson, providing leadership for others and not simply focusing on tasks alone.

C. You must practice. Each unsuccessful negotiation or failed attempt to create a spirit of collaboration can be used and learned from. Rather than take the position that what you are doing doesn't work or some other defeatist attitude, look at what you learned from your success and failures, what you could have done to have a different outcome, and begin experimenting and trying different things. Negotiations, like many skills, require practice daily. Let's review:

Separate the people from the issues. You must be soft on the people but tough on the issues. This means also creating a spirit of collaboration and not saying things that could be taken as offensive. For example: I feel pressure rather than you are pressuring me. Set the tone of collaboration early on in the discussion!

Uncover interests. Positions are solutions. Interest are the needs behind those solutions, not only being aware of your interest but also asking questions to uncover the other party's interests.

Creating options. When working with customers, you may need to create some commitment. For example, "We certainly want to see, Mrs. Jones, that whatever we do meets with your needs and requirements. Here are a few options of ways we may go about doing that..." Do not try to rush this part of the process. Often times you can create solutions that are better than either party would have dreamt of.

BATNA. Remember to have a backup, an alternative to negotiated settlement. This is not your bottom line in negotiation, rather it is what you can do without the other party if you cannot reach a negotiated agreement with them.

Use objective criteria or an objective process for reaching a decision. The classic example here is if your car is stolen, what should the insurance company pay you. Is it wholesale, retail, is it what's remaining on the financing, is it what's in the paper on Sunday on similar vehicles, etc. You will want to forward the objective criteria that helps persuade the other party and that creates a foundation of fairness for both parties.

Relationship. One of the truest tests of the successful win/win negotiation is that the parties will want to negotiate again. There may be some upsets along the way during the negotiation, but the primary results of the negotiation in terms of the value provided for each party, and the state of the relationship at that point, is what really counts.

Commitments. What are all the factors to be included in a negotiated agreement. Never make a negotiation about one issue because then it becomes a battle of wills. Rather than have inflexible criteria for the ending of the negotiation, this part of the process involves you in thinking about all the things that need to be considered for an agreement to be complete and to be followed through by each party successfully.

PJ Germain Macular Degeneration Crohns Disease Colon Cancer

Ask For More You May Get More

Writen by Graham Yemm

If you are involved with sales, how do you feel when you hear phrases such as, "Can you do anything about your price?" or, "You'll have to do better than that." and variations on these? Does a cloud or two cross the sun? You start to think, "here we go again….." – yet, have you prepared for this situation?

As a purchaser, do you push suppliers on price alone? OK, it is a fair tactic when so many sellers will give in, but does it lead to long-term gain? What other ways could you get a better deal for your organisation? Maybe extended credit terms or volume rebates?

Whichever side you are on, what difference could 2% make to your company? Just to get another 2% on a selling price – and/or 2% less on your purchases? How much extra profit will this produce?

Developing your ability to negotiate more firmly and flexibly is not a contradiction in terms, it can be the foundation for increasing business success and also improving relationships. The simple definition of negotiation is: "To work or talk (with others) to achieve a transaction, settlement, an agreement. (from Latin negotiari – do business with)"

Typically, there are four options for the outcome of a negotiation – and the desired one is the "win-win" unless you are just going for a one-off deal and you may want to opt for the "I win – you lose" choice, although that is not really necessary!

We can all improve ourselves as negotiators by following a few simple steps and treating situations as more than just a bargaining joust. It will also help your cause if you consider situations as something to be resolved and not as a battle to be won! As with many things in life, the key to success is in the planning and preparation. This will impact your confidence, and behaviour, when with the other party. The more prepared you are, the greater the chance of you achieving the deal you want.

One of the first things to consider in your planning stage is "the balance of power". Imagine a set of scales – and list the pressures or drivers each side faces:

I wonder what you find? Many similarities? When you recognise that both sides might be facing similar pressures you can take heart! Another way to use this is to assess what drivers the other party is facing, and you can do to reduce the ones on your side to increase the "leverage" you have.

To help you with planning and handling negotiations you may find it useful to work through the "AIMING HIGH" process.

AIMING HIGH

A ssess: Consider situation, balance of power, leverage. What is going to be needed for a win/win outcome. What is the previous experience with this contact? How much do you need the deal – how much do they need it? What might be the barriers? What have you to offer that is unique?

I nterests: What are your needs, wants and desires? What are theirs? Think about their interests – put yourself in their shoes – what do they need – what are their drivers (business and personal)?

M ake time: Planning and preparation is key – create time for it. Do not be rushed – do not negotiate under (or "un") prepared. Also, make time for the actual meetings – time pressure can be a problem in a negotiation – the party feeling under most pressure will often make the biggest moves.

I nnovate: Remember, it is not just "their" problem – if a genuine negotiation is to take place it is a joint one! Think about – then rethink – "the pie" and how it can be shaped and cut. Look got different ways of approaching the situation.

N eeds: What are their key needs – and wants – and objectives? What are yours? Check back that your ideas can satisfy these – for both parties.

G enerate options: Put your package together – consider all the tradable items – those you want and those you can give. The more options the better. Whether the buyer or the seller, think about the package in terms of more than price.

H uman factors: Even when being at your most objective and professional – the negotiation is still usually between two (or more) people. Your interpersonal skills count for a great deal: – how well you can assess the others; what they want and are doing; your skills in gaining rapport and getting them to talk; good listening – and questioning. Also, handling tough situations and managing the dynamics of the meetings is key.

I ntegrity: Do not get caught up in game playing. Good negotiations will normally be taking place in the context of (or at the start of) an on-going business relationship and partnership. It does not matter what others may do – operate with integrity and be true to yourself and your values. You will get more good quality deals in the long run.

G et before you give: Trade well – ask for what you want BEFORE you give!

H appy endings! Aim for win/win – and if you cannot get that leave the door open for another time!

If you follow this process you will be well-equipped to negotiate effectively. You will be more confident and successful if you make time to work at developing the package you are offering and, at the same time think about what you want from the other party. Think about the things you can build into your package that you can use to "trade" with. (Called variables or currency or other terms to suit!) What might be the things the other party has which they would be happy to "trade" or move on? The key to this, is to choose things which are of low cost to you, but valuable to the other party – and vice versa. Remember, in a negotiation, everything has a value, no matter how insignificant it might seem at the time!

As part of this, plan your "best deal", ie the ideal solution for you, and your "worst deal", ie the lowest position you will take. It is important that you are clear about this – and know when to walk away! Within your best deal, include as many variables as possible so that you have things to trade with other than price. Think about what you will be willing to give, and more importantly, what you want to get in return!

The actual approach to the meeting can be improved if you follow the principles of "Triangle Talk" from Kare Anderson's book "Getting What You Want". Be clear about what you want, what they want and then keep your proposal tuned towards what they can accept.

When you are through the "proposing" stage and in what many think is the actual negotiation or bargaining stage, it is important to remember a simple phrase and it is all about "get" then "give". "If you……..then I will……..". Think about the impact of the opposite order, "If I……then will you…….?" What will an experienced negotiator do in response to that?

To help yourself with negotiations, practise! Look for opportunities in low-key situations and test out ways of getting a deal. Before going to meet that important client or major supplier, as part of your preparation make some time to go over your plan, your package and the options, and then how the other party might act. Practice using the "get-give" trading phrase – and anticipate potential problems. You will be pleasantly surprised by the results you get.

Graham Yemm a founding partner of Solutions 4 Training Ltd. During his years as a consultant he has worked with a variety of major companies in the U.K., Europe, USA, the Middle East and Russia in Sales, People and Management Skills. He has had many years of experience tailoring programmes to address organisational issues around sales, account management, negotiations, sales management and customer service – especially focusing on the communication and personal skills aspects.

Graham is a Master Practitioner of NLP and was involved with setting up and running "The Business Group", which promotes uses of NLP in organisations. He is an accredited trainer for the LAB profile programme – "Words that Change Minds". His personal enjoyment comes from helping individuals to take more responsibility for their own actions– freeing them to feel they can make more choices about their lives. Contact, http://solutions4training.com/ or +44 1483 480656

My Eight Best Negotiation Tips

Writen by Paul Knapp

Negotiation is a part of life we all have to deal with. Being able to do so successfully can make a big difference to our outcomes. Here are eight tips that have helped me.

Be willing to negotiate in the first place
Some people are too shy to talk about money. Others think it's rude or demeaning. And in many cases they're right. However, when it comes to doing a deal - and we all have to sometimes - being unwilling to engage in "money-talk" can be a very expensive business.

There are a lot of experienced negotiators out there. If you're buying a house or a car, or taking a new job, you can be sure you'll have to deal with such a person. If they can see you're timid about the whole business, many will take advantage of that fact.

You also shouldn't be shy about turning something that may not immediately appear to be a negotiation into one. If I'm buying a few expensive things from the same store, I'll often ask them to throw something in for free or reduce the price. Just because there's no sign saying you can do that, doesn't mean you can't. Often, simply by asking for something extra I'll get a better deal.

Don't get emotionally involved
One big mistake many amateur negotiators make is to become too emotionally attached to winning. They shout, threaten and demand to get their way. This is all counter-productive.

Most deals are only possible if both people feel they're getting something out of it. If the person across the table feels attacked, or doesn't like you, they probably won't back down. Many people hate bullies, and will be more willing to walk away from a transaction if it involves one.

Keep calm, patient and friendly, even if the other person starts losing their cool. Make sure you leave any pride or ego at the door. You're much more likely to do well that way.

Don't get suckered by the "rules" trick
When someone sends me a contract to sign, if there's something on there I don't like, I'll cross it out. I'm also happy to write things I want added in if I think they should be there. Sometimes, the other party will come back to me and say "You're not allowed to make changes to our contracts like that".

Oh really?

Since I'm the one signing the thing, I'll make any changes I want, thank you very much. There's no law that says they're the only one allowed to add things to a contract. If they're not happy with my changes, let me know and we can work it out, but don't simply tell me I don't have permission.

This highlights a common tactic used by experienced negotiators such as real estate agents, employment agents, car salespeople and the like. They know many people are sticklers about following rules. So they'll make up official sounding pronouncements and insist that "this is the way it's done" or "you're not allowed to do that". If someone starts trying to box you in by adding rules to the deal, ask them to provide proof that such rules really exist.

Never be the first person to name a figure
This is an expensive lesson to have to learn, but a good one. I do a lot of contract work, and one of the first questions I'm usually asked is "What's your hourly rate?". This is a high pressure question, and I often found myself blurting out a figure that was lower than what I really wanted.

These days, I've learned the importance of getting the other person to say a number first. Now, I respond to that question by asking "What's the budget for this contract?". Often, I'm surprised to discover they're offering me a better deal than I thought they were.

Ask for more than you expect to get
Once the other person's given their figure, even if it's much better than you expected, say something like "I think you'll have to do better than that". Don't be arrogant or aggressive. Just say it calmly.

When they enquire about your expectations, ask for more than you expect to get. Few people will walk away from a deal once it's commenced, and you can let the other person feel as if they're winning by lowering your "unrealistic expectations" a bit at a time.

Let them believe the final decision doesn't rest with you
Once a negotiation starts, most people want to get it over with as quickly as possible. Let their impatience beat them. One great way of doing this is to let them believe the person they're negotiating with isn't actually you, but some other "authority figure".

Say something like "Well, I'll have to talk it over with my boss / spouse / partner before I can give you a definite yes".

A skilled negotiator will always want to talk to the person who has the final decision, but don't let them do it. Say the person with the authority over the deal wants you to sort things out but still needs to have the final say. Tell them you'll discuss it and get back with an answer tomorrow. Ask them to make sure that's their best offer you can take to your "authority figure".

This is also a great strategy for preventing people rushing you.

Don't act too interested
Just giving the impression that you're willing to walk away can do wonders for getting a better deal. Always play the reluctant buyer or seller.

Don't leave the other person feeling as if they've been cheated
Many people try to screw every last drop of blood from any negotiation. This is a mistake. If the other person feels they've been cheated, it can come back to bite you. They may not fulfill their part of the deal, or refuse to deal with you in the future.

Most negotiations should leave both parties feeling satisfied with the outcome. Be willing to give up things that don't really matter to you in order to create a feeling of goodwill. For example, if I'm renegotiating my rent downwards, I'll often offer to sign a longer-lease. That way, the landlord knows his property will have tenants for a longer time, and I get a cheaper rent.

Paul Knapp regularly adds new articles to his website Paul's Tips (http://www.paulstips.com) in order to help others enjoy their lives more. It's nothing less than the collection of lessons he's learned about how to live better. It's rapidly becoming a very popular self-help site with thousands of visitors every day.