Ask for More - You May Get More

Home
>
Negotiation
>
Ask for More - You May Get More

Ask for More - You May Get More

If you are involved with sales, how do you feel when you hear phrases such as, "Can you do anything about your price?" or, "You'll have to do better than that." and variations on these? Does a cloud or two cross the sun? You start to think, "here we go again?.." ? yet, have you prepared for this situation?

As a purchaser, do you push suppliers on price alone? OK, it is a fair tactic when so many sellers will give in, but does it lead to long-term gain? What other ways could you get a better deal for your organisation? Maybe extended credit terms or volume rebates?

Whichever side you are on, what difference could 2% make to your company? Just to get another 2% on a selling price ? and/or 2% less on your purchases? How much extra profit will this produce?

Developing your ability to negotiate more firmly and flexibly is not a contradiction in terms, it can be the foundation for increasing business success and also improving relationships. The simple definition of negotiation is: "To work or talk (with others) to achieve a transaction, settlement, an agreement. (from Latin negotiari ? do business with)"

Typically, there are four options for the outcome of a negotiation ? and the desired one is the "win-win" unless you are just going for a one-off deal and you may want to opt for the "I win ? you lose" choice, although that is not really necessary!

We can all improve ourselves as negotiators by following a few simple steps and treating situations as more than just a bargaining joust. It will also help your cause if you consider situations as something to be resolved and not as a battle to be won! As with many things in life, the key to success is in the planning and preparation. This will impact your confidence, and behaviour, when with the other party. The more prepared you are, the greater the chance of you achieving the deal you want.

One of the first things to consider in your planning stage is "the balance of power". Imagine a set of scales ? and list the pressures or drivers each side faces:

I wonder what you find? Many similarities? When you recognise that both sides might be facing similar pressures you can take heart! Another way to use this is to assess what drivers the other party is facing, and you can do to reduce the ones on your side to increase the "leverage" you have.

To help you with planning and handling negotiations you may find it useful to work through the "AIMING HIGH" process.

AIMING HIGH

A ssess: Consider situation, balance of power, leverage. What is going to be needed for a win/win outcome. What is the previous experience with this contact? How much do you need the deal ? how much do they need it? What might be the barriers? What have you to offer that is unique?

I nterests: What are your needs, wants and desires? What are theirs? Think about their interests ? put yourself in their shoes ? what do they need ? what are their drivers (business and personal)?

M ake time: Planning and preparation is key ? create time for it. Do not be rushed ? do not negotiate under (or "un") prepared. Also, make time for the actual meetings ? time pressure can be a problem in a negotiation ? the party feeling under most pressure will often make the biggest moves.

I nnovate: Remember, it is not just "their" problem ? if a genuine negotiation is to take place it is a joint one! Think about ? then rethink ? "the pie" and how it can be shaped and cut. Look got different ways of approaching the situation.

N eeds: What are their key needs ? and wants ? and objectives? What are yours? Check back that your ideas can satisfy these ? for both parties.

G enerate options: Put your package together ? consider all the tradable items ? those you want and those you can give. The more options the better. Whether the buyer or the seller, think about the package in terms of more than price.

H uman factors: Even when being at your most objective and professional ? the negotiation is still usually between two (or more) people. Your interpersonal skills count for a great deal: ? how well you can assess the others; what they want and are doing; your skills in gaining rapport and getting them to talk; good listening ? and questioning. Also, handling tough situations and managing the dynamics of the meetings is key.

I ntegrity: Do not get caught up in game playing. Good negotiations will normally be taking place in the context of (or at the start of) an on-going business relationship and partnership. It does not matter what others may do ? operate with integrity and be true to yourself and your values. You will get more good quality deals in the long run.

G et before you give: Trade well ? ask for what you want BEFORE you give!

H appy endings! Aim for win/win ? and if you cannot get that leave the door open for another time!

If you follow this process you will be well-equipped to negotiate effectively. You will be more confident and successful if you make time to work at developing the package you are offering and, at the same time think about what you want from the other party. Think about the things you can build into your package that you can use to "trade" with. (Called variables or currency or other terms to suit!) What might be the things the other party has which they would be happy to "trade" or move on? The key to this, is to choose things which are of low cost to you, but valuable to the other party ? and vice versa. Remember, in a negotiation, everything has a value, no matter how insignificant it might seem at the time!

As part of this, plan your "best deal", ie the ideal solution for you, and your "worst deal", ie the lowest position you will take. It is important that you are clear about this ? and know when to walk away! Within your best deal, include as many variables as possible so that you have things to trade with other than price. Think about what you will be willing to give, and more importantly, what you want to get in return!

The actual approach to the meeting can be improved if you follow the principles of "Triangle Talk" from Kare Anderson's book "Getting What You Want". Be clear about what you want, what they want and then keep your proposal tuned towards what they can accept.

When you are through the "proposing" stage and in what many think is the actual negotiation or bargaining stage, it is important to remember a simple phrase and it is all about "get" then "give". "If you??..then I will??..". Think about the impact of the opposite order, "If I??then will you??.?" What will an experienced negotiator do in response to that?

To help yourself with negotiations, practise! Look for opportunities in low-key situations and test out ways of getting a deal. Before going to meet that important client or major supplier, as part of your preparation make some time to go over your plan, your package and the options, and then how the other party might act. Practice using the "get-give" trading phrase ? and anticipate potential problems. You will be pleasantly surprised by the results you get.

Graham Yemm a founding partner of Solutions 4 Training Ltd. During his years as a consultant he has worked with a variety of major companies in the U.K., Europe, USA, the Middle East and Russia in Sales, People and Management Skills. He has had many years of experience tailoring programmes to address organisational issues around sales, account management, negotiations, sales management and customer service ? especially focusing on the communication and personal skills aspects.

Graham is a Master Practitioner of NLP and was involved with setting up and running "The Business Group", which promotes uses of NLP in organisations. He is an accredited trainer for the LAB profile programme ? "Words that Change Minds". His personal enjoyment comes from helping individuals to take more responsibility for their own actions? freeing them to feel they can make more choices about their lives. Contact, http://solutions4training.com/ or +1483 480656

In The News:

Yahoo! News: Top Stories

Georgia Sen. Chambliss wins re-election in runoff (AP)

AP - Georgia Republican Sen. Saxby Chambliss handed the GOP a firewall against Democrats eager to flex their newfound political muscle in Washington, winning a bruising runoff battle Tuesday night that had captured the national limelight.

Rice arrives in India in wake of Mumbai attacks (AP)

AP - Secretary of State Condoleezza Rice arrived in New Delhi on Wednesday as part of a U.S. effort to ease tensions in the region after a three-day terrorist attack killed 171 people in India's financial capital.

Gates: Military looks to accelerate Iraq pullout (AP)

AP - Defense Secretary Robert Gates signaled a willingness Tuesday to forge ahead with two key priorities for the incoming Obama administration: accelerating the U.S. withdrawal from Iraq and shutting down the Guantanamo Bay detention center.

Auditors fault Treasury oversight of bailout funds (AP)

AP - The government must toughen its monitoring of the $700 billion financial bailout to ensure that banking institutions limit their top executives' pay and comply with other restrictions, federal auditors said Tuesday in the first comprehensive review of the rescue package.

2 arrested in alleged torture of teen, who escaped (AP)

AP - A Girl Scout leader and her husband were arrested after an emaciated, terrified and nearly naked 17-year-old showed up at a gym with a chain locked to his ankle, saying he had just fled his captors, authorities said Tuesday.

Divorce rate increases in Marine Corps, Army (AP)

AP - The divorce rate among soldiers and Marines increased last year as military marriages suffered continuing stress from America's two ongoing wars. There were an estimated 10,200 failed marriages in the active duty Army and 3,077 among Marines, according to figures obtained by The Associated Press for the budget year ended Sept. 30.

Newly released Nixon-era memo shows aides dishing dirt on critics (AP)

AP - In Richard Nixon's time, all the president's men fretted about threats on every front: disquiet out on the streets, disloyalty inside the administration and trouble from political opponents who had to be discredited at any cost.

Study flunks 49 states in college affordability (AP)

AP - An independent report on American higher education flunks all but one state when it comes to affordability an embarrassing verdict that is unlikely to improve as the economy contracts.

Beyonce to perform at Essence Fest in New Orleans (AP)

AP - Beyonce is the first artist lined up for next year's Essence Music Festival in New Orleans.

Murphy's tip in lifts Pacers over Lakers, 118-117 (AP)

AP - Danny Granger scored 32 points and led Indiana back from a 15-point fourth-quarter deficit, and Troy Murphy tipped in a missed shot at the buzzer to complete an improbable 118-117 victory over the Los Angeles Lakers on Tuesday night.

Rice arrives in India to ease tension with Pakistan (Reuters)

Reuters - Secretary of State Condoleezza Rice arrived in New Delhi on Wednesday as part of urgent U.S. efforts to ease tension between India and Pakistan that has surged over the Mumbai attacks.

South Korea steps up crisis fight (Reuters)

Reuters - South Korea moved on Wednesday to help local banks through a cash crunch gripping the global financial system as central banks around the world were expected to cut interest rates again to support their fast flagging economies.

Automakers' desperate bailout plea gaining support (Reuters)

Reuters - A top lawmaker predicted Washington would approve a bailout for U.S. automakers after they submitted survival plans, and General Motors Corp and Chrysler LLC said they needed an immediate infusion of cash to avoid failures.

Obama wrapping up cabinet picks with Richardson (Reuters)

Reuters - President-elect Barack Obama moved swiftly toward wrapping up his cabinet appointments on Wednesday with the selection of rival-turned-supporter Bill Richardson as secretary of commerce.

Republicans win crucial Georgia Senate seat (Reuters)

Reuters - Republican Sen. Saxby Chambliss easily won a run-off election in Georgia on Tuesday, denying Democrats the chance for a 60-seat "super majority" in the Senate that would have enabled them to pass legislation virtually at will.

Pentagon chief Gates backs Obama Iraq policy (Reuters)

Reuters - U.S. Defense Secretary Robert Gates, who will stay on under Barack Obama, said on Tuesday he supported the president-elect's Iraq policy but declined to back his proposed timetable for the withdrawal of U.S. forces.

Oil rises more than $1 (Reuters)

Reuters - Oil rose toward $48 a barrel on Wednesday, recovering from a tumble of more than $100 off July peaks, but the upside could be limited, with further signs of weakening oil demand expected in upcoming weekly U.S. oil data.

Clinton for a Clinton? Senate guessing game begins (Reuters)

Reuters - New York Gov. David Paterson has famous names to choose from in picking a replacement for Sen. Hillary Clinton, including a Kennedy, a Cuomo and even another Clinton, as in the former president of the United States.

Thai protesters abandon airports as flights due in (AFP)

AFP - Hundreds of anti-government protesters packed up and left Bangkok's airports on Wednesday after a crippling siege, as authorities assured angry tourists that flights would resume within 24 hours.

Rice arrives in India after Mumbai attacks (AFP)

AFP - US Secretary of State Condoleezza Rice arrived in New Delhi Wednesday to try and ease India-Pakistan tensions over the Mumbai attacks, as US intelligence blamed a Pakistan-based militant group.

Ask for More - You May Get More

Negotiation Negotiation