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Some believe negotiating is negative, unethical and gets
in the way of technical people doing their job. Most of the technical people I’ve
worked with do not enjoy negotiating. Many view negotiating as a part of their
job that they want to avoid. If a negotiation occurs they are going to lose.
Since this is the case, they try to avoid the process.
Others view negotiation as a necessary and positive part
of business and relationship building. To those parties, negotiating is part of
the communication process. It is part of the process of assuring that a fair
price is obtained for the services or products received. During the negotiation,
valuable information is learned about each other. This results in each party
better understanding the others’ position, personality, philosophy, approach
to business, the benefits of the service/product, greater appreciation for each
other’s views and needs and other direct and indirect benefits too numerous to
list.
In the U.S. there is, at times, a perspective that
negotiating is challenging the value of the service/product; and this is wrong.
This is much different than other parts of the world. In many parts of the world
almost everything is negotiated. When I was in Italy, I witnessed an American
trying to pay the asking price of an article and obtaining change that reduced
the price. Others were paying one-half the asking price. Negotiating occurs in
grocery, clothing, hardware, crafts and virtually all stores and places in other
parts of the world. It is accepted and understood.
With competition increasing and clients asking more
questions about scope of work, fee schedules, labor rates, subcontractor
mark-ups, other charges, overhead rates, changes and other costs, negotiating
skills are more important than ever. Many clients are taught the skills of
negotiating. They know that if they do not ask, they will not receive. They are
finding that when they do ask, they often receive. They receive from you, from
me and from others they ask.
I believe the only long-term winning approach to
negotiation is a win-win approach that builds relationships with your clients, suppliers,
employees, shareholders and others. Other ways of negotiating can be successful
in the short-term, but not the long term. If I win and the other party loses,
they will be unhappy and will determine some way to win in the future, or sever
the relationship. Either way, the end result is that I lose in another future
situation or visa versa. In win-win negotiating, you can be fair and reasonable
and still protect yourself from those who may try to take advantage of your
fairness. In the end, this type of negotiating will protect you, enable
relationships to further develop and result in more repeat and profitable work.
The following should enable you to further prepare for
your negotiations:
WIN / WIN NEGOTIATING
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Don’t narrow to one issue |
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Be
open-minded |
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Don't
personalize |
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Try
to downplay power and control
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Unless
others are using this |
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Relationship
is more important than the conflict |
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Try
to avoid setting deadlines
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They
can but not you |
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Determine
what they want
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What
do they really want! |
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State
what you want - step in gaining position |
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Consider
the big picture |
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Rank
desires in order of importance |
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Recognize
what obstacles exist in getting what you want |
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Identify
what you have, what they want, and what stands in the way
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Keep
differentiating yourself |
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Trade
what you have for what the other person has |
PROFILE OF A GOOD NEGOTIATOR
| Prepared |
| Patient and persistent |
| Quiet confidence |
| Experienced |
| Flexible |
| Uses common sense |
| Understands human behavior |
| Controls emotions |
| Positive attitude |
| Effective communicator / persuader |
| Listener |
| Tactful |
| Thinks well under pressure |
| Honest / trustworthy |
| Respects and cares about others |
| Committed to excellence |
SURVIVAL RULES FOR NEGOTIATING
| Listen |
| Understand and acknowledge the other
person's point of view |
| Use questions more than statements |
| Especially avoid "you"
statements |
| Understand other's personality, style,
et. al. |
| Take notes |
| Use silence - it is a symbol of strength |
| Establish thresholds |
| Have numerous options / alternatives |
| Be prepared to give up something
| Don't give up something unless asked |
| Specifically let the other party
know this is a concession |
| Try to get something in return for
the concession |
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| Ask - you will never receive if you
don't ask |
| Never say "yes" to the first
offer - the seller needs to believe they made a good deal! |
| Make low offers |
| Always ask for more than you expect to
get |
| Never argue |
| Smart is dumb and dumb is smart |
| Have the capability to "walk
away"
| If you cannot do this, you should
not be negotiating! |
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| Avoid setting time deadlines - the
person under the greatest time pressure usually loses. Don't let other
party know you have a deadline |
| When you are ready to say
"yes", practice saying "no" |
| Watch for sudden changes in body
language |
| Don't leave the hardest issue to last |
| When coming to an impasse - discuss, go
onto other points and come back |
| Don't lose control of your emotions |
| Don't make assumptions |
| Believe your service is worth more than
you are asking |
| Believe that if the client goes anywhere
else - it is a mistake |
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