|
|
1 Simple Negotiation Skills Method That Will Instantly Produce Better Negotiation Outcomes
There is one simple negotiation skills method that can be used by anyone to immediately and positively influence their negotiation results. This method is to always (yes always) overstate your expectations at the negotiation table.
Henry Kissinger, the famous American Secretary of State said: Effectiveness at the conference table depends upon overstating one's demands, a well known quote referred to in both negotiation training and sales training courses. There are numerous reasons why it is vital for you to begin with high aspirations when you participate in negotiations:
1. Research has proven that high aspirations will constantly outdo low aspirations. It could be said that if you want to hit the moon, you should aim for the stars. You will be astounded by the value of something so straightforward. Many of my clients are very happy when they realise that they can accomplish more from their deals by simply requesting more!
2. Having high aspirations will permit you to 'anchor' the deal around your goals. It is much better 'anchoring' negotiations around your aspirational level rather than your minimum acceptable rate. Having high aspirations express self-assurance and serves to emphasize the quality of your suggestions.
3. Perhaps most importantly, having high aspirations will present you with the opportunity to be accommodating in your negotiations. Research tells us that almost everybody equate their success at the negotiation table with their opportunity to gain dispensations from their counterparty. The reality is that the other side will have no incentive to be flexible or to make concessions to you if you are not willing and able to make allowances to them.
Therefore, if you do not permit yourself some 'room to move' then you risk coming across to your counterparty as somebody who is uncompromising and unwilling to make concessions. Please note that I am NOT suggesting that you start your negotiations with elaborate and unrealistic demands. Your opening offer should reflect a level that is realistic and that you are able to rationalise using a good, factual argument. It can be high risk using unrealistic requirements and offers as your counterpart may well decide not to deal with you at all.
I once worked with a large multi-national organisation who used an approach of 'the price we ask for is the only price we sell at'. As they are a well recognised and old company in the USA, most of their clients have come to know them as the type of organization that has a conservative approach to business and have learned to live with this approach. However, when using this method in Poland, the company realised that they were being perceived as being uncompromising by the other side because they would never budge on their prices.
In Polish business culture this method was not acceptable and they found it exceedingly difficult to finalise agreements in the Polish market place. The simple solution was for them to ask for a little more than their standard prices so that they could allow clients the opportunity to negotiate with them and to gain some allowances from them. This method proved to be very successful for them.
Of course, bear in mind that 9 out of 10 times your counterparty's first offer will be an ambitious goal, not their minimum anticipated results. This means that you should never accept any first proposal that is made - you should always negotiate!
|
More Articles
Blogroll
|
