5 precepts of a successful negotiator and partner
Every day we negotiate: with a boss about promotion, with business partners about purchases, with the administrator of a gymnasium about an individual visit package.
It seems that these negotiations are not similar, but the principles for concluding successful transactions and strategies for behavior in critical situations are one. In the book “You can agree on everything!” Gavin Kennedy talks about how to make any deal and situation profitable for you.
I publish valuable tips and my conclusions from the book:
If a partner asks for a discount - think about how the price will affect the completeness of the product. For example, when selling at a lower price, you can exclude the marriage check or make the warranty period shorter.
Each assignment on your part must be “paid for” by a partner or client.
Now let's imagine that a partner wants a discount on the goods you supply. The main argument: competitors offer lower prices.
How can I do?
1. Reject the offer. “No discounts! We have the best product on the market and there is no reason to reduce the cost. ”
This option will work if really the price / quality ratio of your product on the market is unmatched. If the partner is not honest and in fact the competitors do not offer low prices, he will note that you have not responded to the provocation.
2. “Yes, of course, we will lower the price. Since competitors have a lower price, it means they know something ... ”,“ If we don’t lower the price now, we’ll lose contact. Even if this assignment will lead to significant losses, you cannot lose it. ”
If it’s so easy to get a discount from you, you should always use this opportunity! The next time a partner will bring more arguments and require an even greater discount.
3. “The price for a product involves changes in the product or in the terms of the transaction.”
You accept the option that competitors provide the product at a lower price or the partner does not have money for the product at the current price. However, this is not a reason to reduce the price.
And you offer another partner package with less attractive conditions. So the company saves on checking / delivery of goods, and therefore it will logically be able to reduce the cost of the product. The client receives the goods and understands that any price reduction will cost him additional expenses. Next time he will think whether he should ask for a discount or not.
There is a theory that in negotiations it is most important to find a compromise through concessions, sometimes unilateral or unequal.
The author proposes to look at the situation from a different angle. In negotiations, you need to remember the needs and desires of the partner in order to maximize their benefits. At the same time, concessions for the sake of friendship in the future is a myth.
Making concessions is like cutting off pieces from your prey and throwing them to the wolves so that they will fall behind.
What result will we achieve? The wolves will start to run together from everywhere, howling will attract new flocks and soon there will be so many wolves that there will be nothing left of the prey.
The more you go to meet your partner, the more you try to please, the more he will try to bend you under his conditions later. You have already made a concession - it means that you showed your flexibility or weakness. And in any case, you can use this characteristic for personal gain and ask for (and sometimes demand) large concessions.
In addition, if a partner tells friends about your flexibility and the market finds out about your flexible pricing policy, many partners will already require discounts.
How do I start to ignore the rule of assignment for the total benefit afterwards?
Even if the partner gives in to you and loses on the deal, he will get a valuable lesson. If you make concessions, the price of the transaction will gradually decrease, there will be less resources and an incentive to make the product better.
The higher the requirements from the partner, the more dynamic the market will develop.
Going too far is not worth it, bankruptcy partner - a serious risk.
Every once in a while it gets into a situation when, due to the fault of another person, we suffer inconvenience. Our usual reaction is outrage, indignation, anger.
We are depressed by the circumstances, we reproach people for their lack of professionalism and lose energy. Does this help to fix the situation? Hardly.
For example, we come to a restaurant and it turns out that the table we booked is busy and there are no more free tables.
What to do in this situation? Friends are already assembled, everyone is in a good mood and hungry. Go looking for another restaurant? Perhaps, but it will take time and there is a risk that during the rush hour in the best restaurants all the tables are occupied.
And what if you offer the administrator a deal? You will wait until the group at your table will eat up, and while you sit down at the bar and get free snacks from the restaurant.
Choose the most profitable option, instead of wasting time and energy on disputes.
Not all people are productive negotiators.
Most often, they will apologize to you, but you will not get any benefit until you propose measures for resolving the situation on your own.
How often do we become participants in sales or promotions? Companies reduce prices when it is profitable for them. Nothing prevents us from asking for a price reduction or special conditions each time we need it.
The rule is perfect for complex services that can be decomposed into components. If you understand that you can independently make delivery on your own, ask for a discount on condition of self-pickup.
You offer long-term cooperation to business partners - ask for a price revision.
If you want to pay in cash, this is an excellent reason to demand a discount, because the company receives funds immediately for operating activities. If it is important for the company to sell the product / service as soon as possible, offer an instant payment at a price slightly lower than indicated. Understand your strength before your negotiating partner, offer him favorable terms and get a price bonus for yourself.
Who to ask for a discount? Usually, the boss or manager must approve such conditions of purchase, so ask for a conversation with an authorized person.
Negotiators often copy partner behavior. If the second party replies to the letter in a few days, you also begin to delay with the answer. Quick answers are a reason to hurry.
However, there is also a situation where a partner does not know how to wait for an answer and suggests that you need to change the conditions so that you agree.
Do not change anything until you get a disagreement.
Until the second party submits a contract offer, leave your conditions alone. All that you know about the situation is your conditions, and now you have to wait patiently until the partner declares his own.
It is then that the negotiation process begins, taking into account the wishes of each party.
Thank you for your attention, good luck and successful transactions to you!
It seems that these negotiations are not similar, but the principles for concluding successful transactions and strategies for behavior in critical situations are one. In the book “You can agree on everything!” Gavin Kennedy talks about how to make any deal and situation profitable for you.
I publish valuable tips and my conclusions from the book:
Rule 1. Never give up something just like that - exchange
If a partner asks for a discount - think about how the price will affect the completeness of the product. For example, when selling at a lower price, you can exclude the marriage check or make the warranty period shorter.
Each assignment on your part must be “paid for” by a partner or client.
Now let's imagine that a partner wants a discount on the goods you supply. The main argument: competitors offer lower prices.
How can I do?
1. Reject the offer. “No discounts! We have the best product on the market and there is no reason to reduce the cost. ”
This option will work if really the price / quality ratio of your product on the market is unmatched. If the partner is not honest and in fact the competitors do not offer low prices, he will note that you have not responded to the provocation.
2. “Yes, of course, we will lower the price. Since competitors have a lower price, it means they know something ... ”,“ If we don’t lower the price now, we’ll lose contact. Even if this assignment will lead to significant losses, you cannot lose it. ”
If it’s so easy to get a discount from you, you should always use this opportunity! The next time a partner will bring more arguments and require an even greater discount.
3. “The price for a product involves changes in the product or in the terms of the transaction.”
You accept the option that competitors provide the product at a lower price or the partner does not have money for the product at the current price. However, this is not a reason to reduce the price.
And you offer another partner package with less attractive conditions. So the company saves on checking / delivery of goods, and therefore it will logically be able to reduce the cost of the product. The client receives the goods and understands that any price reduction will cost him additional expenses. Next time he will think whether he should ask for a discount or not.
Rule 2. The purpose of the negotiations - the most profitable deal for you
There is a theory that in negotiations it is most important to find a compromise through concessions, sometimes unilateral or unequal.
The author proposes to look at the situation from a different angle. In negotiations, you need to remember the needs and desires of the partner in order to maximize their benefits. At the same time, concessions for the sake of friendship in the future is a myth.
Making concessions is like cutting off pieces from your prey and throwing them to the wolves so that they will fall behind.
What result will we achieve? The wolves will start to run together from everywhere, howling will attract new flocks and soon there will be so many wolves that there will be nothing left of the prey.
The more you go to meet your partner, the more you try to please, the more he will try to bend you under his conditions later. You have already made a concession - it means that you showed your flexibility or weakness. And in any case, you can use this characteristic for personal gain and ask for (and sometimes demand) large concessions.
In addition, if a partner tells friends about your flexibility and the market finds out about your flexible pricing policy, many partners will already require discounts.
How do I start to ignore the rule of assignment for the total benefit afterwards?
Even if the partner gives in to you and loses on the deal, he will get a valuable lesson. If you make concessions, the price of the transaction will gradually decrease, there will be less resources and an incentive to make the product better.
The higher the requirements from the partner, the more dynamic the market will develop.
Going too far is not worth it, bankruptcy partner - a serious risk.
Rule 3. Stop complaining, suggest how to fix the situation
Every once in a while it gets into a situation when, due to the fault of another person, we suffer inconvenience. Our usual reaction is outrage, indignation, anger.
We are depressed by the circumstances, we reproach people for their lack of professionalism and lose energy. Does this help to fix the situation? Hardly.
For example, we come to a restaurant and it turns out that the table we booked is busy and there are no more free tables.
What to do in this situation? Friends are already assembled, everyone is in a good mood and hungry. Go looking for another restaurant? Perhaps, but it will take time and there is a risk that during the rush hour in the best restaurants all the tables are occupied.
And what if you offer the administrator a deal? You will wait until the group at your table will eat up, and while you sit down at the bar and get free snacks from the restaurant.
Choose the most profitable option, instead of wasting time and energy on disputes.
Not all people are productive negotiators.
Most often, they will apologize to you, but you will not get any benefit until you propose measures for resolving the situation on your own.
Rule 4. No solid prices, bargain!
How often do we become participants in sales or promotions? Companies reduce prices when it is profitable for them. Nothing prevents us from asking for a price reduction or special conditions each time we need it.
The rule is perfect for complex services that can be decomposed into components. If you understand that you can independently make delivery on your own, ask for a discount on condition of self-pickup.
You offer long-term cooperation to business partners - ask for a price revision.
If you want to pay in cash, this is an excellent reason to demand a discount, because the company receives funds immediately for operating activities. If it is important for the company to sell the product / service as soon as possible, offer an instant payment at a price slightly lower than indicated. Understand your strength before your negotiating partner, offer him favorable terms and get a price bonus for yourself.
Who to ask for a discount? Usually, the boss or manager must approve such conditions of purchase, so ask for a conversation with an authorized person.
Rule 5. Do not rush to answer
Negotiators often copy partner behavior. If the second party replies to the letter in a few days, you also begin to delay with the answer. Quick answers are a reason to hurry.
However, there is also a situation where a partner does not know how to wait for an answer and suggests that you need to change the conditions so that you agree.
Do not change anything until you get a disagreement.
Until the second party submits a contract offer, leave your conditions alone. All that you know about the situation is your conditions, and now you have to wait patiently until the partner declares his own.
It is then that the negotiation process begins, taking into account the wishes of each party.
Thank you for your attention, good luck and successful transactions to you!