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Asking questions and listening efficaciously are crucial accomplishments both in retail and
negotiating. The basi phase of negotiation involves both parties agreeing the
background to the negotiation and fishing for the opening demand or offer.
It is many times better to present the opening demand or offer in terms of a hypothetical
question, as this allows the negotiator to retreat to his initial position if necessary.
The opening offer will in all likelihood be at or just when it comes to the level of the negotiator’s
maximum expectation, giving him room to manoeuvre, but not so high that the offer
lacks credibility. Do not try to win. at this stage, but hold sufficient back so that
you are competent to move, if necessary, at a later stage.
This is a difficult amount of time in the negotiation routine and a professional negotiator will
often use silence or other pressure proficiencies to solicit info from the other
party.
Further Movement and Concessions:
During negotiations, it may be in the interest of each side to keep asking questions
and raising objections. Many splendid negotiators are low reactors who will carry on
very slowly. However, given that the opening position of each party differs, then there has to be motion and concessions if a deal is to be struck.
Negotiators will tend, at first, to talk about extra demands, attempting to get the other side
to agree to these without providing anything in return. They will be reluctant to give
information or will defer conclusions in order to increase the pressure on the other
person.
When an offer does come, it will many times be on the basis of a quotation based on the
minimum amount at the lowest possible price. In all this, the negotiator is
attempting to dominate the interview, pressing for greatest or most complete or best possible advantage, and attempting
to strength the other person to concede on a major issue.
The skilled negotiator will ask the other side for a finish list of all his, or her
requirements, and will not concede on a single issue until he knows the nature of
the whole package. He will then start out to trade concessions, starting with the
smaller, less important distinct features of the package.
Negotiators will have to keep away from making one-sided concessions which will seriously weaken
their final position and could affect the overall profitability of the deal.
When motion comes, it begins slowly, and then may be very rapid as both parties
sense a deal is on the cards. Movement does tend to be discontinuous with
either party moving and the other keeping up the agreement at any one time. This
leads to short periods of deadlock, which may be brought to an end in dissimilar
ways.
Some of these are:
o Period of silence. Wait for the other party to speak.
o Agree to a concession. Always trade concessions by saying“If I do this, will you do that”?
o Adjournment to review positions.
o Agree to leave sure issues to one side for later and concentrate on the rest.
Identify areas of mutual agreement.
o The use of the kinship with the other side to break the deadlock.
Signals to be conscious of that could mean the other side wishes motion to take
place could include:
o Trial movement. One side uses words like “What would you say if …?”
or uses hypothetical examples.
o Summarises the position to date and asks “Where do we go from here?”
o One side calls for adjournment.
o Appeals to the other side’s better nature.
o Asks for more information.
o Uses “crowding” proficiencies to strength movement, e.g. aggressive behaviour, sets
deadlines and time limits, threatens use of the competition.
The use of concessions is a critical portion of building a profitable kinship for both
parties in the negotiation. Earlier, we discussed the dissimilar parts that could
constitute the final deal. The use of concessions enables negotiators to build a
mutually profitable deal that is not one-sided in the other side’s favour i.e. It results in a “win-win” outcome.
And Finally – Bargaining:
When it comes to bargaining undertake to get the other side to commit themselves first. For
example:
Scenario 1.
Buyer: “I’m more than willing to reach galore sort of deal, but I want a 10% discount”.
Salesperson: “Okay, I’ll agree a 10% discount, but we’ll have to look at a
longer-term agreement”.
Buyer: “Well, thanks for the 10% but the 1 year contract we have already
agreed will have to stand”.
Scenario 2.
Buyer: “I’m more than willing to reach a great deal of sort of deal, but I want a 10% discount”.
Salesperson: “Okay, we may be capable to look at our discount structure, but to
do that we’ll need to agree a 2 year contract”.
Buyer: “Okay, well 2 years may be possible, but may we go to the full 10%?”
In the basi scenario an offer of 10% was made, but what was asked for was vague.
Responding to a specific demand like this we need to be vague, but positive: “Okay, we may be capable to look at our discount structure”. and our counter demand needs to be specific: “But to do that we’ll need to agree a 2 year contract”
Remember, when you bargain, offer vague, ask specific.
Copyright © 2007 Jonathan Farrington. All rights reserved
Bargaining For Advantage Negotiation
The award-winning guide to business negotiation applied by top negotiators and training programs all over the world—completely altered and revised
As conductor of the famous Wharton Executive Negotiation Workshop, Professor G. Richard Shell has taught thousands of business leaders, administrators, and other pros how to survive and thrive in the now and again rough-and-tumble world of negotiation. His systematic, step- by-step approach comes to life in this book, which is available in over ten alien editions and combines lively storytelling, proven tactics, and dependable perceptivities gleaned from the latest negotiation research.
This altered edition includes:
• A brand-new “Negotiation I.Q.” test designed by Shell and applied by executives at the Wharton workshop that reveals each reader’s distinguishable intensities and weaknesses as a negotiator
• A concise manual on how to keep away from the perils and pitfalls of online negotiations involving e-mail and instant messaging
• A elaborate look at how gender and cultural deviations may derail negotiations, and counsel for putting talks back on track
About the AuthorG. Richard Shell teaches negotiation at the Wharton School of Business at the University of Pennsylvania, where he is professor of legal studies, business ethics, and management and academic conductor of the Wharton Executive Negotiation Workshop.
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Most helpful client reviews
144 of 146 persons found the following review helpful.
 Second Best of Both Worlds
By David M. Landis
There are two basic styles or systems in negotiation literature: vantage seeking and joint gain finding. The best work on joint gain is the seminal work by Roger Fisher, Getting to Yes. The best work on vantage seeking is the work of Chester Karrass who extols high aspiration and concession management. The great thing when it comes to this book is that it is simultaneously the second best book in two very dissimilar paradigms. This is the best work on the topic of the data parties interchange as part of the negotiation process. That is why this is such an perceptive work and worth each penny expended to buy it and hour it takes to read it Five stars and there are only four books in this entire niche subject that is worthy of that rating. Since I instruct this stuff I read or at least skim scores of negotiation books. Many are exhaustively second rate. Reading a in truth good book on a subject you care with regards to makes you want to write a review for Amazon. See.
61 of 65 persons found the following review helpful.
I Highly Recommend This Book
By Meir Ben David
This book gives a great deal of very essential understanding of negotiation to humans who are not professional negotiators and do not know all the ins and outs of the current exploration in the field.
40 of 44 persons found the following review helpful.
Best in Category
By Robert A. Hall
This is one of those books I wish I’d read years ago. It was commended to my colleagues and I for the duration of a negotiating workshop I scheduled for the managers at the professional association I manage. “Bargaining for Advantage” is clear, informative and entertaining–what more could you want? After 24 years as an Association Executive and ten as a state senator, I think of myself as an experienced negotiator. And I learned a ton from this book. It will be worthful for everyone, as we are all often called upon to negotiate. But for humans managing a business, non-profit, agency or even a military organization, it’s a pearl. Best business book I’ve read this year.
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