Negotiation is a basic, generic human fuss that
everyone engages in. Good negotiating skills are essential to the smooth
running of your business. You need to be able to negotiate with many different
types of people in many different business situations - whether you are
negotiating a loan from your bank or the next pay rise with a union or staff
representative. The skills, once learned, will stand you in good stead. The
most familiar approach to negotiation is positional in which each side adopts
conflicting positions on pertinent issues and strive to convince the other side
to accept the persuader's preferred position. Some people are quite skilled in
positional negotiation and are able to achieve their goals most of the time
using positional techniques. Moreover, successful use of positional techniques
is difficult to sustain. Positional bargainers develop reputations that reflect
their negotiation approach. Individuals facing negotiators with such
reputations are very vigilant, distrustful, and reluctant to share information
that can lead to agreement. Individuals typically view negotiations with
positional negotiators as competitive challenges and strongly resist positional
efforts to change their positions. Often the result of such encounters is a
breakdown of negotiation and no agreement. When this happens, there are no
winners.
Here are few tips to make negotiation process less painful:
Complete Home Work: Before you start to negotiate, draw up a list of the factors that are most important to you for having strong grip for example, price, value for money, payment terms,delivery, after-sales service and maintenance arrangements quality, lifetime costs of a product or service etc.
Understand
your supplier: By conducting
some basic research into a potential supplier you can work out how valuable
your business is to them. Your bargaining power increases in direct proportion
to your potential supplier's need for your business.
Negotiating
Strategy: It's important to plan
your strategy in writing before beginning negotiations. This will help you set
clear goals and work out where you will draw the line and walk away from the
deal. Start by defining what your priorities are, such
as low price, high specification goods or a specific delivery schedule.
Impact-full
Communication: Start
Negotiation well by having strong communication skills don’t give weak gesture
while communicating, it'll be great grasp on overall negotiations.
Identify
Mutual Consent: Try to
discover the area of mutual understanding for example if supplier don’t
compromise on price focus on other areas of agreement such as down payment duration of warranty or discount on bulk purchasing, that might provide even
greater benefits for both parties.
Mention
Multiple Suppliers: Let the
supplier know that you are getting different quotes and will consider the best
one available. This creates some competitive pricing.
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