Studies show that those who prepare for negotiations close better deals more quickly. In fact, planning for a negotiation is the single most important thing you can do to influence the deal in your favour. When you find a few minutes to prepare your negotiation strategy, what will be the most effective use of that time?
Here are five key questions to consider before you send that email or leave another voicemail. Answering them will give you the advantage in your negotiations.
- How will the agreement you are negotiating further your
company's business goals?
You will be more powerful at the bargaining table if you are able to keep the conversations aligned with your business goals. And, by keeping an eye on your goals, you will know more quickly whether you should continue to negotiate with your counterpart or pursue an alternative path to meet your business goals. - What's motivating you to want to do business with
them, and what's motivating them to want to do business with
you?
List the factors that motivate you, and then list the factors that motivate the other negotiating party. Successful negotiators know how to leverage common ground into a financially lucrative deal. But it is easy to lose sight of these in the heat of the moment, so keep them in mind when haggling over the issues that seem to separate you from your negotiation counterpart. - What must you absolutely have in order to close the
deal?
Rank these "must haves" in order of importance. If something is a deal breaker, know this early on; when the issue is discussed during your negotiations, address it openly and with certainty. This will also help you to avoid spending time and energy negotiating things that are of little importance to you. - What issues can you give a little on?
Are there parts of your service or product that can be eliminated from the deal you are negotiating, to reduce price? Can you work on a shortened deadline without risking quality? Identify the items you're willing to trade off in exchange for something from the other person. Do not give something up without getting something of value in return. - Whom are you talking to?
Is the person you are negotiating with the decision-maker? Who else has a vested interest in the result of this deal? When negotiating with a non-decision-maker, or with one of many decision-makers, you need a different objective. Your negotiation objective shifts to provide information for them to pass along, and to reassure them that your solution will meet all of their needs – even the needs of people you are not talking to at the moment.
Advantages of planning your negotiation responses
There are two main advantages to sketching out your responses to these questions before negotiations begin.
- First, the negotiation planning process itself solidifies your thinking about what you believe would be a good deal for you and your company.
- Second, and possibly more important, the negotiation planning process will give you an immediate picture of what you do not know. What you do not know now can kill the deal. Not only might you leave money on the table, you might miss an opportunity to ask for a valuable trade-off from your negotiation counterpart.
As you can see from these simple and straightforward questions, preparing for a negotiation doesn't have to be onerous and time consuming.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
