How to negotiate really good deals http://www.qed-consultancy.co.uk Copyright Jeremy Thorn QED www.qed-consultancy.co.uk en-us Be sure you have their full shopping list of demands before you reply To make sure of this, consider saying: "If we can settle these issues, would you then be ready to agree our requirements for ...?" Engineering Adventures Ltd 2007-03-25 Reveal no initial position, if you can Successful negotiation requires some revelation of what you want, and what you might concede in return, but also some concealment. The more you reveal at the start, the more you weaken your case. Engineering Adventures Ltd 2007-03-25 Aim High! Make your initial demands as high as you reasonably feel you can This is your best chance to get the most favourable deal you can. This is how good negotiators win exceptional deals - by asking for them! You can always come down from a high bid, but rarely will you be able to go up. Engineering Adventures Ltd 2007-03-25 Justify your demands. Unrealistic demands are damaging Even the most adventurous demands should be capable of some explanation. If they aren't, you can only make your case look unreasonable. Engineering Adventures Ltd 2007-03-25 Be ready to decline their first demands, and their first offers Their first bid has to be their best bid (for them!), just as yours was for your side. Even if you don't think you have a good case to refuse their first offer, you may be pleasantly surprised at the other side's willingness to settle for something less. Engineering Adventures Ltd 2007-03-25 Keep the whole package of proposals in mind That way, where you have to concede on one issue, you can reasonably ask for them to concede on others. So deal across a broad front rather than point by point. Engineering Adventures Ltd 2007-03-25 Try to package the deal, to sweep up as many points as possible But if you are offered a package, get them to break it down. That is how superior deals are often won. Engineering Adventures Ltd 2007-03-25 Settle easy points first This builds an atmosphere of co-operation and provides momentum to deal with the more difficult issues later. If you start with the most difficult issues, you may never reach the easier ones. Engineering Adventures Ltd 2007-03-25 Offer your smallest and easiest concessions first These may be enough to seal the deal. Keep your more expensive or prized concessions as something to hold back in reserve, for the key points you need to win. Engineering Adventures Ltd 2007-03-25 Prize any concessions you have to offer and highlight their value to the other side If you don't value them, why should they? Engineering Adventures Ltd 2007-03-25 Trade your concessions reluctantly, however little they may actually cost you It is what they are worth to them that matters! Engineering Adventures Ltd 2007-03-25 Minimise the value to you of their concessions Outstanding negotiators win more by asking for more, not by just being reasonable! Engineering Adventures Ltd 2007-03-25 Keep on looking for variables, in their case and yours Then seek to trade them to your advantage. Whatever they might want, look for cheaper ways to do the deal. Engineering Adventures Ltd 2007-03-25 Propose a remedy if you are complaining, rather than just complain Otherwise, you may only win an apology! Engineering Adventures Ltd 2007-03-25 Seek something back in return, whenever you are asked to concede something Remember, negotiation is the resolution of conflict by the exchange of concessions, not gracious collapse! Engineering Adventures Ltd 2007-03-25 Move the mid-point in your favour. The mid-point between two claims is where most negotiations finish Move the mid-point in your favour. The mid-point between two claims is where most negotiations finish. You can move it in your favour by aiming high to start with and then moving in smaller steps than them. Engineering Adventures Ltd 2007-03-25 Make sure any concessions you offer are traded for something of at least equal value to you Otherwise, they will pull the mid-point back in their favour. Engineering Adventures Ltd 2007-03-25 Trade in small steps, rather than big ones, and let the other side feel they are winning the best deal This will diminish their expectations and enhance the deal you seek. An unexpected or large concession may signal to the other side that you have much more to offer if they push you hard enough. Engineering Adventures Ltd 2007-03-25 Try to trade concessions at regular intervals This helps keep the momentum going and helps to reinforce a collaborative atmosphere. Remember: complete inflexibility by one side will usually breed inflexibility in the other. Engineering Adventures Ltd 2007-03-25 Summarise both positions regularly This will help to ensure you are keeping the whole picture in mind, but can also stress how reasonable you have been. Engineering Adventures Ltd 2007-03-25 When you are ready to say 'yes', try saying 'no' (several times) This takes courage, but this is another example of how exceptional deals are won. Engineering Adventures Ltd 2007-03-25 Record any concessions you win You are unlikely to be reminded of them by the other side later should you forget! Engineering Adventures Ltd 2007-03-25 Be aware that research shows that losers in a negotiation usually make the first major concessions If you feel you need to make the first move, use this formula: "If you will offer us.. (something specific you want), we would consider your request that we look at.. (something non-specific they want)". It works! Engineering Adventures Ltd 2007-03-25 Make only a few points at a time The more points you make, the more they will diminish the ones you have already made and the more easily they will be forgotten. Engineering Adventures Ltd 2007-03-25 Build your case from the ground upwards Before you reveal your specific demands, give all the reasons, circumstances and background why you are making them. This will make your case much more difficult to refuse. Engineering Adventures Ltd 2007-03-25 Make sure each point is relevant and don't let emotion get in your way Some negotiators are trained to use their emotions to swamp the other side, but this may result only in confusing both sides. This is why you must always try to remain placid. Engineering Adventures Ltd 2007-03-25 Keep each point brief. Let it speak for itself, make sure they have noted it, and move on If the other side needs further clarification, let them ask for it. Engineering Adventures Ltd 2007-03-25 Stick to proven facts if you can Remember the importance of trust and integrity. If you say something that is capable of being proven wrong, you run the risk of weakening the rest of your case which might be perfectly valid. Engineering Adventures Ltd 2007-03-25 Listen carefully and watch carefully More information is often given away (usually unwittingly) by people's body language than by what they actually say. Check whether the other side is acting in a way that is defensive, mistrusting, suspicious or even divided within their own team. Engineering Adventures Ltd 2007-03-25 Clarify the real issues. Most negotiators will boost their case as much as they can, but not all the points they make will be equally important to them Find out which are their real issues (and 'must haves'), and which are secondary and less important, or even manufactured to strengthen their case. Engineering Adventures Ltd 2007-03-25 Be positive and confident. Trained negotiators look for discomfort and weakness in others and focus on this Even if you are not truly confident, it is vital that you appear as though you are. This is often a key to building your power base. Engineering Adventures Ltd 2007-03-25 Be wary of becoming overbearing or domineering Most people dislike bullies and will know they have to be stood up to. This is not what you want! Engineering Adventures Ltd 2007-03-25 Try to get their side of the story before you give yours Build on your trust, credibility and competency, demonstrate at least some understanding and empathy for their point of view, and then use your rational arguments. Engineering Adventures Ltd 2007-03-25 Be willing to hear their arguments and do not interrupt It is vital that the other side feels their points have been listened to and understood, even if you do not agree with them. Otherwise, you may only end up in an unprofitable argument. So avoid trivial point scoring, sarcasm or naked threats, as they are rarely effective. Engineering Adventures Ltd 2007-03-25 Try to get their side of the story before you give yours Build on your trust, credibility and competency, demonstrate at least some understanding and empathy for their point of view, and then use your rational arguments. Engineering Adventures Ltd 2007-03-25 Be willing to hear their arguments and do not interrupt It is vital that the other side feels their points have been listened to and understood, even if you do not agree with them. Otherwise, you may only end up in an unprofitable argument. So avoid trivial point scoring, sarcasm or naked threats, as they are rarely effective. Engineering Adventures Ltd 2007-03-25 Be non-committal about their proposals and explanations Note them without showing any sign that you either agree or disagree with them. Engineering Adventures Ltd 2007-03-25 Test the other side's commitment to their position (which will give clues to their key priorities) but do give them time to make their case That way a weak case will more easily be spotted. Engineering Adventures Ltd 2007-03-25 Remember, arguments on their own cannot be negotiated; only proposals can So don't just complain: seek something specific back in return. Engineering Adventures Ltd 2007-03-25 Copyright Jeremy Thorn QED www.qed-consultancy.co.uk Jeremy Thorn is a prize-winning author and Chairman of Quantum Enterprise Development (QED), a multi-functional management consultancy and development company based in Doncaster, England, dedicated to making good businesses better, encouraging customers to be more loyal and to helping employees and suppliers be more effective. Engineering Adventures Ltd 2007-03-25