Negotiation is a part and parcel of life for everyone today. Some people regard negotiation as a second or last priority as it does not play a major role in their profession or life. When it comes to business, negotiation is critical to success. It is crucial to carefully study and learn negotiation strategies and apply them differently with different people we come across to make sure business deals close as profitable ventures. Key customers will be lost in no time if we fail to analyse the market trends, prices and customer preferences.
A majority of sellers play with potential buyers emotions and successfully sell products which they even need. Such buyers get caught in emotions and ignore basic instincts. It is very important to understand that emotion and luck are major weaknesses in a negotiation. The circumstances of negotiation occur when two parties or groups of individuals disagree on a price or a solution for a problem which becomes the goal for a project or contract. A successful negotiation requires the two parties to come together and hammer out an agreement that is acceptable to both. A basic understanding in business is that we never get deals finalised for the initial price or conditions on offer. Prices or agreements are finalized based on a series of negotiations and what is agreed upon by both the parties. Preparation is an integral factor to carry on a negotiation. The first thing to be considered is the knowledge of the negotiating party, their requirement, options available in the market in terms of pricing, quality and availability. This will give a clear picture to capitalize on our strengths and cover our weaknesses in addition to knowing the other parties strengths and weaknesses. Training on Effective Negotiation Skills will give quality insights to important points where critical negotiations are made or broken
Negotiations should be based on realistic expectations considering all the constraints including budget limits, direction from management, pressure to make sales goals, and a myriad of other external forces. Most negotiators have a price target or goal in mind before they start. The goal may change based on changes in scope and other unforeseen actions by either party during the course of the negotiation. However, the ultimate goal should be realistic and not be effected by our first offer or counteroffer.
Below are some of the key factors behind a successful negotiation:
- Active Listening: Negotiators have the skills to listen actively to the other party during the debate. Active listening involves the ability to read body language as well as verbal communication. It is important to listen to the other party to find areas for compromise during the meeting. Instead of spending the bulk of the time in negotiation expounding the virtues of his viewpoint, the skilled negotiator will spend more time listening to the other party.
- Emotional Control: It is vital that a negotiator have the ability to keep his emotions in check during the negotiation. While a negotiation on contentious issues can be frustrating, allowing emotions to take control during the meeting can lead to unfavourable results. For example, a manager frustrated with the lack of progress during a salary negotiation may concede more than is acceptable to the organization in an attempt to end the frustration. On the other hand, employees negotiating a pay raise may become too emotionally involved to accept a compromise with management and take an all or nothing approach, which breaks down the communication between the two parties.
It would be highly advisable to undergo Advanced Negotiation Skills Training offered by highly skilled and accredited bodies that give real time scenarios of negotiation.