Negotiation tactics take various forms. Some require a hardball approach, whereas others rely on learning as much as possible about the counterparty and creating a mutually agreeable compromise. This all depends on the type of industry you're dealing with. Before you meet with the counterparty, conduct research with your team, and devise the optimal negotiation approach to take based on the company you're dealing with and the type of deal you hope to secure.
See Things From the Counterparty's Perspective
It's vital to analyze the counterparty before formulating any negotiation strategy. This helps you determine what type of company you're dealing with. Certain situations may require a softer approach with an effective negotiation strategy based on what the counterparty is offering. Try to find out more about the issues they're facing and their desired outcomes. Ask yourself various questions, including:
Who are their customers and clients? Looking at the end-users helps you to see the value of the business.
What does the counterparty want to achieve? Look at their goals and objectives.
What's the driving motivator behind their negotiation? Is there a specific product or service they're pushing more than others? If so, why?
Are there issues you need to be aware of? Step into the counterparty's shoes to analyze the source of possible problems.
Who are their competitors? Find out who the competing companies are and if they have an impact on the counterparty.
The advantage of due diligence is to avoid continuing with a negotiation that's potentially flawed. This process takes time but ensures all aspects are considered and researched in-depth so that decisions are made from an informed place.
Mutually Beneficial Relationship
The aim of any negotiation is to reach a place where both parties benefit. There may be some give and take, but if you have set negotiables and nonnegotiables, you're more likely to achieve a desirable outcome.
Preparing Your Contract
Taking the time to apply the necessary due diligence is a key risk management tool that can help you prepare your contract for presentation to the counterparty. To ensure your desired outcomes are clearly defined, check that your contract is readable, well laid out, formatted correctly, and error-free. It’s important to convert JPG to PDF, as it allows you to have an easily accessible file that preserves the document's spacing and formatting for consistent display on any computer.
Walking in the Counterparty's Shoes
Once you've done the research and you have a better idea of what the counterparty desires, you can take a different approach, whereby you walk in their shoes. If you were the counterparty, what would you do? How would you react to a certain negotiation strategy or tactic? What would your non-negotiables be? By reversing the roles, you gain a greater understanding of the counterparty and how to reach that agreeable deal that's advantageous to both parties.
Join your local chamber of commerce for more tips on productive negotiating.
This Hot Deal is promoted by Corona Chamber of Commerce.