Buyers and suppliers need to act together for countless deals. The realisation or fiasco of the agreement depends on how competently you negotiate with your suppliers. However, not many professionals have the experience and knowledge of Negotiation. Consider some guidelines to agree in mutual interest.
The Negotiation skills you require to succeed:
It would help if you got ready for the negotiation by taking the time to plan; gather all the crucial information you might need, such as your timelines and financial plan to accomplish the best possible deal. Define when to start, your purposes and tactics to handle an effective negotiation, considering as well the ones of other partakers.
If you first plan, you can direct the way the negotiation goes and close it to your advantage. Identify the critical issues and what your targets are; then, put a goal on each before you enter a negotiation.
Choose the best tactic: a Negotiation with a central point on a win-win outcome or going in line to conflict negotiation, mending broken relations whilst seeking to accomplish suitable potential results. The tactics you choose will be changing along with the deal, so, you would not know for sure how the other party will act in response. Always have a Plan B at hand!
It is difficult to control your emotions to lessen a possible risk from emerging while planning strategies. Exasperation and anxiety expose weak tactics. Similarly, launching a negotiation on an unconstructive or provoking tone would in the long-run direct to an unsatisfactory ending. Planning breaks or sharing the burden with a larger team would be a good idea.
2. Opening a negotiation
Choose the best tactic: a Negotiation with a central point on a win-win outcome or tackling a conflict negotiation, mending broken relations whilst seeking to accomplish suitable potential results. The negotiation tactics you choose will be changing along with the deal, so you would not know for sure how the other party will act in response. Always have a Plan B at hand!
Opening the negotiation starts on a friendly note and building a climate for the deal; first, listening carefully to what the supplier has to say, valuing their offer. Try to hold up your opening-offer as much as possible; let the supplier give you his initial considerations and then make your proposal.
3. Understanding the “what and whys” of the other party
Visualising the other party’s targets could help you to understand their position; it can provide context for decisions or requests. It may also allow you to offer something that’s valuable to the other party without adding significantly to your own expense.
4. Do not make guesses
Taking something for granted in negotiations will bring problematical results. Assuming the behaviour or outcomes of others can lead you to a wrong interpretation of their motivations and lead to negotiation strategies coming out wrong because of incorrect assumptions.
In conventional negotiations, parties rarely come to a discussion nor into communication before the meeting. Even though, it is your option to try to communicate with the other party to gain information. It is advisable to email your counterpart and ask about what they would like to consider in the agenda.
5. Conducting a negotiation
After you have heard the supplier’s offer, you should present yours. Discuss first the negotiable requirements you identified before starting the dealing to get the most favourable offer on each. Excellent negotiators extract information from the other party by asking relevant questions. The questions you ask and how you ask them can influence the outcomes of your negotiation.
6. Leverage the Experts
If you still feel tense around your expertise, it would be advisable to seek an expert to support your negotiation; there are experts assisting companies on these issues, and able to exercise stronger power than most companies alone can do.
They can negotiate several matters, and much more they help to buy you time to focus on your current processes, avoiding risk whilst providing significant benefits to your enterprise. Together, you and your external advisor can face the final negotiation obstacle easily, tidying up the path for you to end with the awarding contract with confidence.
7. Closing a negotiation
Towards the end of a negotiation, you will recognise several clues indicating that it is time to close down the deal. When the supplier is accepting your terms and presents very few arguments against offers, then they are ready to close the deal. It is time to summarise all the points you have discussed to avoid any disagreements at the time of signing the contract.
If the supplier asks for special consideration on a critical part, don’t accept it right away. It would help if you handled it by giving a credible explanation.
Are you ready for the final negotiation and to seal the deal?
This article was originally published on the Prophetic Technology blog.