Asking questions and listening effectively are important skills for both selling and
negotiating. The first phase of the negotiation involves both parties agreeing on the
Background of the negotiation and fishing of the opening demand or offer.
It is often better to present the opening bid or ask in terms of a hypothetical
ask, as this allows the negotiator to retreat to his starting position if necessary.
The opening offer will likely be at or near the level of the negotiator.
maximum expectation, giving you room to maneuver, but not so high that the offer
it lacks credibility. Don’t try to win. at this stage, but retain enough so that
it can be moved, if necessary, at a later stage.
This is a difficult period in the negotiation process and a professional negotiator
often use silence or other pressure techniques to solicit information from the other
match.
More movement and concessions:
During negotiations, it may be in each party’s interest to continue asking questions.
and raise objections. Many excellent negotiators are low reactors that will move on
very slowly. However, since each party’s starting position is different, then there must be movement and compromises if an agreement is to be reached.
Negotiators will tend, at first, to discuss additional demands, trying to get the other side to
accept these without offering anything in return. They will be reluctant to give
information or postpone decisions in order to increase pressure on the other
person.
When an offer comes in, it will often be on the basis of a quote based on the
minimum quantity at the lowest possible price. In all of this, the negotiator is
try to dominate the interview, push for maximum advantage, and try
to force the other person to compromise on an important matter.
The expert negotiator will ask the other party for a complete list of all your
requirements, and you won’t give in on a single issue until you know the nature of
The whole package. Then you will start negotiating concessions, starting with the
smaller and less important aspects of the package.
Negotiators must avoid making unilateral concessions that will seriously undermine
your final position and could affect the overall profitability of the deal.
When the movement comes, it starts slowly and then it can be very fast as both parties
feel like there’s a deal on the cards. Movement tends to be discontinuous with
Either party moves and the other retains the agreement at any time. This
leads to brief periods of stagnation, which can be ended in different
shapes.
Some of them are:
o Period of silence. Wait for the other party to speak.
o Accept a concession. Always trade concessions by saying“If I do this, will you do that?”
o Postponement to review positions.
o Agree to put certain topics aside for later and focus on the rest.
Identify areas of common agreement.
o Using the relationship with the other party to break the deadlock.
Signs to be aware of could mean that the other party wants the movement to take
the venue could include:
o Trial movement. One side uses words like “What would you say if …?”
or use hypothetical examples.
o Summarize the position to date and ask “Where do we go from here?”
o One side asks for postponement.
o Appeal to the best nature of the other party.
o Ask for more information.
o Uses “crowding” techniques to force movement, eg aggressive behavior, sets
deadlines and time limits, threatens the use of competition.
Using concessions is a vital part of building a profitable relationship for both of you.
parties to the negotiation. Previously, we discussed the different elements that could
make up the final deal. The use of concessions allows negotiators to build a
mutually profitable deal that is not one-sided in favor of the other party, that is, that results in a win-win outcome.
And finally – Negotiation:
When it comes to negotiating, try to get the other party to commit first. For
example:
Scenario 1.
Buyer: “I am willing to reach some kind of deal, but I want a 10% discount”.
Seller: “Okay, I’ll accept a 10% discount, but we’ll have to consider a
longer term agreement “.
Buyer: “Well, thanks for the 10%, but the 1-year contract we already have
agreed will have to stand “.
Scenario 2.
Buyer: “I am willing to reach some kind of deal, but I want a 10% discount”.
Seller: “Okay, we may be able to see our discount structure, but to
do that, we’ll have to agree to a 2-year contract “.
Buyer: “Okay, well, 2 years may be possible, but can we get to the full 10%?”
In the first scenario, a 10% offer was made, but what was asked was vague.
To respond to a specific demand like this, we must be vague, but positive: “Okay, we may be able to see our discount structure.”. and our counterclaim must be specific: “But to do that we will have to agree to a 2-year contract.”
Remember, when negotiating, offer vague questions, ask specifics.
Copyright © 2007 Jonathan Farrington. All rights reserved
