Introduction
Negotiation has been described as:
- Getting your own way.
- A process of bargaining to reach an outcome.
- The trading of concessions aimed at reaching an acceptable compromise
- Persuading the other party to do business on your terms.
However it is defined, it reduces to a process of bargaining or
trading in an effort to effect a transaction that each party would like to result
in a benefit for themselves. At the same time, each party realises that they may
have to settle for a little less, or sometimes even a lot less, than they would
like, depending on how desperate they are to arrive at an outcome. This means that
the outcome of a negotiator can vary according to the circumstances. The buying
negotiator's skill at extracting concessions is displayed through their use
of negotiating strategies to obtain additional concessions from salespeople.
Key Learning Outcomes:
At the end of this course participants will be able to:
Organise Negotiation into the 4 stages of Preparation: Preliminaries: Bargaining:
Finalising:
Recognise and Position with Competitive Buying Negotiating Strategies:
- Prepare a negotiating "Shopping List".
- Gain the Negotiation Initiative.
- Adjust the other party's outcome expectations in the preliminary stages.
- Introduce "Intimidation" tactics
- Draw the other party into revealing their opening offer.
- Neutralise the other party's strengths.
- Alternate negotiating styles
Employ the 10 Negotiating guidelines for buyers:
- Include a satisfactory situation for the salesperson.
- Study the salesperson during the preliminaries.
- Reaffirm that this is a competitive negotiation
- Don't be afraid to bid lower than expected.
- Learn not to give in too easily.
- Use time to your advantage.
- Make a shopping list.
- Confirm all concessions as they are donated or traded.
- Introduce Straw Men.
- Test for a collaborative option.