VirtualVocations

The Art of Negotiation

In some ways, we negotiate every day. Whether it is with our spouses, significant other, or our children we find ourselves constantly bargaining for what we need. In business negotiation, we simply outline in more detail what we want and we take into account what they want to give us. Then we a make a deal that works for both of us.

Here are some strategies to help us get to where we want to be in our negotiations. After deciding what we want, we need to look carefully at the company/person. What do they want from us? Once you realize what they want you can agree on certain basic facts of the contract. Remember to keep things very positive and in an upbeat climate and be as flexible as humanly possible.

At the end of a long afternoon and you both have just agreed on the final per hour rate for a large project their company will manage. There are only two minor items left to negotiate. The spokesperson has agreed to the rate and shaken your hand on the deal. Then you hear him say, “of course, it’s all subject to my VP’s approval.” This is the first time you have heard of this, you thought you were negotiating with the final authority.

You need to repeat your earlier questions to be in complete agreement. Does he have the authority or is the permission just a formality? Can you determine the money level or does he have authorization without having to wait for the okay? Ask questions, listen carefully to the answers and then ask more questions in such a way they are eager to answer them. Your listening skills are the most important thing – look at the verbal and non-verbal responses you are getting. If they are positive-, keep going.

If they are not, listen to what your inner voice is saying – do not pay attention to what you are hearing. Are they looking away when they make financial statements? Are they rubbing their face or crossing their arms? If you get a funny feeling, table that item until later. Make it the last item you discuss. Be prepared to have a later, separate meeting just on this one item if necessary.

You need to persuade them that your needs are reasonable and customary and describe to them how it suits their own contract needs. Take the time to do it line item by line item until all the points on which you disagree are resolved. You will know you have reached this point when you find both of you smiling at each other and nodding heads as your conversation starts to gain momentum.

Close the deal by stating that you believe you both agree. Confirm who will draft the contract and who will sign. Set the date and time before the end of your current meeting. Congratulations! In addition, remember, “Everything can be negotiated!”

Posted:Wednesday, April 23, 2008