Business & Real Estate

Posts Tagged ‘negotiation’

The following are some key features commonly found in successful businesses, and that we should acquire or develop if we want to become good negotiators and always achieve the best possible deal.

Is prepared well before negotiations
A good negotiator knows that much of a negotiation is won before sitting at the table and therefore always prepared well before negotiations.

Not only an analysis of himself (his goals in the negotiation, how is willing to accept, the arguments and negotiation tactics to be used, etc.).

But also collects and analyzes information from the other party (which is what it claims, what are their motivations, their alternatives, how to negotiate, their strengths and weaknesses, etc..).

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Agreement

The last stage of the negotiation process is the stage of closing or settlement.

As we approach what we wish they were a definitive agreement, a council is the counterpart to let you know we are close to a deal acceptable to it, thus, do not expect many more concessions from us.

Before reaching the agreement is also advisable to have covered all the points related to the negotiation, which thereby prevents the other party may make demands of last minute.

Once agreed it is advisable to write down everything agreed and then sign the document, so that thereby avoid future conflicts and confusion.

And finally, another tip is that when you agree, we always present the value of relationships, ie the value of creating and maintaining good relations with the other party.

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Proposals
The next stage of the negotiation process is the stage of proposals.

As for the proposals, a negotiating tactic is to bid high in order that the other party “anchor” their perception of the range of possible agreement (search for a deal close to the point of our offer.)

But always ensuring that our offer does not exceed the point of booking, it could lose credibility, be considered serious or a little bit concerned and / or make the other party decides to withdraw from the negotiations early.

If the other party is the one who established the first offer and it is exaggerated, we have the following choices: also establish a counter-high, and thus most likely end up in the middle.

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Start of negotiation
When you start the negotiation is advisable to frame the negotiation as a joint effort, and show respect and concern for the interests and concerns of the other party, and to reach an agreement favorable to both.

In this initial stage of the negotiations we must explain some of our needs, interests and concerns, but if the other party is displayed reserved to do the same, we should be cautious in providing information.

Also, at this stage, we should not overlook the importance of informal conversations.These will help us to the other party feel less defensive, more cooperative and more communicative.

But also will help us better understand and analyze the other (something we’ll look at the following stage).

However, if the other party is displayed formal, we should not speak too informally it could be interpreted as a lack of seriousness on our part.

Analysis of the counterparty
The next stage of the negotiation process is to analyze the other party, either through formal or informal questions, or through the interpretation of his words, actions and nonverbal language.

Any information that makes us better understand the other hand, will put us in a better position to negotiate.

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Negotiation is a dynamic communication process in which two or more parties attempt to resolve differences and parochial interests directly through dialogue to achieve a solution or a satisfactory agreement.

Let’s look at each of the steps in the process of negotiation:

Preparation
Good preparation is the key to success in any negotiation. According to research, 80% of a negotiation is won before sitting at the table.

In preparation, we determined what we want to achieve through negotiation (our goals), what arguments and use negotiation tactics, and how we are willing to settle.

For the latter, which is key in any preparation, is to determine our BATNA (best alternative to negotiation), and our backup point (the minimum that we are willing to accept).

In determining our BATNA and our backup point, we know when no agreement is better (when possible agreement is lower than our backup point) and, therefore, when withdrawing from the negotiations.

In addition, a BATNA and well-defined backup point will give us the perspective to know when an agreement is beneficial to us, when to stand firm, and when it is possible to make concessions.

A note on the BATNA and reservation point is that we must be as objective as possible when you define them, taking into account all factors involved, including some intangible and difficult to measure, such as the value of the relationship.

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