How to structure a negotiation

People who are successful negotiators, always have an ingenious strategy before entering into negotiations, they are well prepared, confident and the structure of trading in order to maintain control of the negotiation process.

The structure is recommended for negotiations:

Ø Establish the issues under negotiation

Ø Gather information

Ø Building a solution

Step 1. Establish Problems

Start by agreeing an agenda for negotiation or

o What needs to be discussed and agreed?

Ø Who will be involved and what will be their role?

o What time are we working on?

Ø What are the main issues to be okay?

Many negotiators make the mistake of negotiating too quickly, while skilled negotiators spend 20% more of their time asking questions and seeking
alternatives.

Being unaware of the fact that buyers want to get your professional efforts on issues such as: price, in the early stages of negotiation, but you should never agree to anything until you have established all that is negotiation.

Skilled negotiators often lead to a problem at the end of the negotiation, when you are vulnerable and likely to accept a one-side (Lose-Win) license for the purpose of concluding the deal. You can legislate for this trick the other side asking for them. "Shopping list" before you start trading and refuse to accept any last minute additions to the list.

Problems that include such things as prices, delivery schedules, payment terms, packaging, product quality, the duration of the contract, etc. At this stage the problems are generally required and no concessions are made or agreements reached

Step 2. Gather information

This is a vital part of trading and you must remember that there are four types of information

The information you or that you're willing to give the other side

or information in your possession that are not willing to give the side

information or the other side has that they are willing to give

information or the other side has that they are willing to give

You must decide before the negotiation, how much you are willing to share information and what your information needs are specific. This will set the climate for negotiation and will determine the amount of trust that exists between the two parties. The negotiators experts are able to make a series of open, closed and follow-up questions and are able to listen effectively. They also wait until they have all their information requirements, before making concessions

Step 3. Create a solution

After gathering information, the next step is to start putting together a solution. This usually takes the form of sell-side to submit a proposal, or the opening bid. The initial offer should be ambitious, but defensible. We must always challenge an opening bid and refuse to leave an offering acceptable to remain on the table

Typically, there is then a process of bargaining, concessions will be negotiated and the movement takes place, until, hopefully, an agreement is reached. The concessions should not be given away for free and you should be very cautious in granting of matters for which they are not prepared.

One last tip: I always get the best negotiators in talks with a "top three position"

That is, Best Price, a realistic price and Fallback Price - never, never accept less than their "reserve price"

Jonathan Farrington .......