Win-win Negotiation

as written by Amrit Vijay Vaswani, Senior Account Executive – Group Marketing & Creative Services

Recently I attended a seminar on Win-Win negotiation and I would like to share with you in a nutshell some of the knowledge I grabbed from the eight-hour seminar. Most people may feel they are experts in negotiating and go into sales meetings confident that the client will buckle and lose out. Most of the time they actually come back with their heads down and hammering themselves with regret because they couldn’t reach an agreement with the other party. Negotiation isn’t about winning or losing but about reaching an agreement that is beneficial to both parties, i.e. a win-win negotiation. So, the keys to achieving an effective negotiation are:

• Do some background research and plan ahead for your meeting. You must know who you are dealing with and the kind of person he or she is. If you are dealing with someone who is a Listener, your approach should be on the features of the product, its unique selling qualities and other information that might help the person to make a buying decision. Be sure of your goals, position and underlying interest. Go into the meeting knowing what the minimally accepted deal is and what information you need from the other party.

• Go into the meeting with a win-win mindset. If you go into the meeting with the intention to win at the other parties expense then most likely you won’t reach an agreement. It is critical to voice your interest in the other side’s concerns and your determination to find a mutually satisfactory resolution.

• Be prepared to compromise. Put your ego aside and think long term. Think of how this business will benefit you in the long run. If you think losing now will open more doors for you in the future, then do it. But if it’s not profitable then humbly retreat.

• Focus on the issue and not the people. We should separate the people from the problem. The aim should be narrowing the gap between the issue, not attacking the other party.

• Be an active listener and ask a lot of questions. Be sensitive to the other person’s feelings, listen intensively and make sure you ask questions to verify you are understanding the other person correctly.

• Analyze the situation. This might include time issues, current economic outlook, general state of the industry you are competing in, etc. For example, you may have a client in need of raw materials so as to meet an order due in two months, and he needs a quick supply. In such situations you have the upper hand and you have every right to take advantage of the situation. This way you can assure the client of speedy delivery but you can slightly raise the price. So, make sure you analyze the situation before entering the meeting.

• Take risks. Aim high and be prepared to bluff. You should think big and not be afraid to raise your prices. It is easier to bring down your prices than to raise them. Bluffing may also work in certain situations, but be careful and make sure you know who you are dealing with.

Unfortunately, this is all I can remember for now. But if you are interested in learning more, James Gwee has a few interesting books on win-win negotiation. Remember you have only won in a negotiation when the other party is comfortable and happy with the final solution. Negotiation is not something you learn in college but a skill you learn through years of experience. If you lose a deal once, twice or thrice, ask yourself why and learn from your experience.

You will have to negotiate in life at some time, be it with your wife, your boss, your kids or your suppliers. Thus it’s best to start developing the necessary skills early so you are prepared to win at the time of negotiation. Lastly, whatever you do it is important to be honest and open. Trust me, this is always the best policy.