How to Use Negotiation Tactics to Negotiate Well

Negotiations regularly happen in less formal settings.

Most business owners must negotiate at least once during the lifespan of their enterprise. Many proprietors regularly engage in negotiation and use tactics learned from previous employers or experienced trainers in their respective fields. Most trainers design negotiation tactics as a method of overcoming resistance from opposing parties and reaching a common ground desired by all entities involved. These tactics may greatly enhance the outcome of any business negotiation, including product and materials contracts or wage discussions.

Instructions

1. Compile all information on your end of the negotiation. This includes desired outcome, the areas that must remain unchanged and the areas where some flexibility exists. This information aids in the determination of limits.

2. Gather information on the other party's desires and offerings. Knowing what the opposition brings to the table allows you to address their concerns before they announce them. Such actions demonstrate your willingness to learn about others and view the proceedings from their side of events.

3. Carefully listen to proposals on both sides of the table. Your own proposals may contain unnecessary offers that don't increase the chances of success in the negotiation. The initial deal of your opponent should represent a starting point in the negotiation process and not a deal-breaker.

4. Counter offers using the flexible areas designated by your research. These represent areas where you may entice the other side with your offer or allow them to gain ground in reaching compromise.

5. Conclude any deals as soon as agreement appears. This may require signing a contract designed on the spot or a simple handshake and a promise to have a legal team draw up the required documents. Act fast so that both parties gain exactly those things determined through the negotiation process and no confusion results from delays.

Tips & Warnings

• The negotiating table represents a place for people to come together for mutual benefit. Request a recess or other break if negotiations become too heated so that parties may relax and return with clear heads.

• International negotiations come with their own set of caveats. Strive to learn when handshakes may not be appropriate and the average time a foreign company takes making decisions. Companies in some nations may regularly decide immediately at the negotiating table; others may present cases and take a few days to mull things over before reconvening.

References

• "The Seven Habits of Highly Effective People: Powerful Lessons in Personal Change"; Stephen R. Covey; September 1990
• "Habit 4: Think Win/Win"; Stephen R. Covey; July 2006
• Stanford Graduate School of Business: Negotiation Strategy: Six Common Pitfalls to Avoid
• Program on Negotiation at Harvard Law School; Should You Negotiate Sooner or Later?; PON Staff; June 2011
• The Wisconsin State Public Defender's Office; Principled Negotiation: What It Is and Why You Should Try It; June 2010
• Journal of Oncology Practice; Principles and Tactics of Negotiation; American Society of Clinical Oncology; March 2007