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What is a negotiation process?

by Pradip Singh
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A negotiation process can be defined as the development of an agreement or pact, which begins from the moment the parties involved prepare until values ​​are exchanged, reaching a final decision.

Studies show that 80% of negotiations are won before sitting at the table with the client, hence, the importance of carrying out a preparation process, where we will determine what our objectives are, for this, we will have to know our arguments and the negotiation techniques that we are going to use, especially with what disposition we will settle.

Negotiating is a process very similar to that of selling, with the main difference that during a sale we try to convince the client, so that they act as we want, always looking for the positive interest for both parties, while, in a negotiation, they will attempt to resolve a conflict of interest.

This negotiation process must be understood with the best way to resolve a conflict of interest, within the business and commercial relationships between companies.

The technological advance that we suffer becomes so rapid and profound that it has forced us to modify the traditional managerial negotiation techniques, passing to the use of commercial strategies, creating the Human Resources department, influencing marketing and sales, and, therefore, last, developing negotiation skills.

The new key is for senior managers to spend all day negotiating, that is, to live in a negotiating environment.

At every moment that there is a desire for satisfaction, the opportunity arises to start a negotiation process, which will depend mainly on communication, where it will seek to negotiate and bargain.

The negotiation between companies arises when one wants what the other has, that is, companies with common interests, which are willing to negotiate to achieve their objective.

How to negotiate with your client and employees

Within a negotiation, the following aspects must be taken into account:

  • Stakeholders: as there are more individuals involved in the negotiation, it will be more difficult to reach an agreement, since we will play with a greater number of points of view, behaviours, behaviours and expectations.
  • The participation of those involved: it will depend on whether the negotiations are direct or indirect, in the latter case, a mediator will enter that may cause the mediation process to be extended.
  • The subject discussed: it is important to have adequate knowledge about the subject to be discussed, in addition to creating an environment that is short for the negotiation.
  • Status of the participants: the hierarchical level among the negotiators must be taken into account.
  • Friendly climate: the environment before a negotiation is fundamental since it will not be the same that it is a friendly environment how controversial.
  • Free or no negotiation: this aspect must be considered, since it could be a forced negotiation, and the behaviour, values ​​or attitudes of the opponent should be analyzed.
  • The means of communication: it will be necessary to take into account the degree of influence that the way of communicating has, for example, with representatives, face to face, by telephone, etc.
  • The mode of negotiation: it could be a cooperative or competitive negotiation.

Negotiation with a supplier

Suppliers are a very important part of any company or self-employed, what’s more, part of the profit we get from selling our product or service to customers will depend on them.

When we negotiate with suppliers, not only will we have to take into account the search for a lower price, but we must also analyze the influence that similar companies have.

When starting this type of negotiation, it will be necessary to establish communication with the equality character, so that a successful agreement is achieved, obtaining the best market price, through a supplier that provides the necessary quantity of product with regarding the purchase volume.

If we make a high volume of purchase a priori from the same supplier when we carry out a new negotiation, it will want to impose itself in the agreement, hence the importance of the company knowing the amount of product it needs, since, if the company You are going through a loss situation because the product is not sold, it is obvious that you should not buy large quantities, while if you are making a profit it would be a good idea to think about purchasing a larger quantity of the product.

Negotiation with an employee

Knowing how to handle your employees is a fundamental aspect within your company, especially when they are difficult workers, we teach you to obtain the productivity of each one of them.

The challenge will be to achieve a good work environment to guide them towards greater productivity, we give you the following tips:

  • Documents everything offered to the employee, as well as seminars, training, training, etc.
  • The use of the word “attitude” should be avoided in the face of these difficult workers, rather, we have to clarify what their objectives and goals are, since their manager will become their guide.
  • Use a low, controlled tone of voice, as well as gentle body language.

Negotiation with a client

The most common mistake we make when negotiating and meeting a client is not taking into account what they tell us, and doing what we consider correct.

Let’s see the steps to follow to achieve a good negotiation, and that the client thinks that he has won this match:

What does the customer want to tell us?

The customer’s responses will have to be investigated, writing down their own words, since they will seek the solution to their problem, and we will offer them the necessary tools for their satisfaction.

How much budget do you have?

The first thing will be to investigate a program to make a budget, to know if you are going to make an investment, since, when an individual has a budget to acquire something, it is because he has decided to invest in it.

Get the client’s confirmation.

It is essential that you leave nothing to your imagination, but rather that the individual, whoever says what they are and are not.

Presentation of your product

You already know what the client needs, in addition to knowing the available budget they have, therefore, it is time to present your offer and price it.

Customer objections

If you have followed all these steps, no objection should arise from the customer, in any case, you could dispute the price, then it would be time to ask how much you can pay, and thus offer a product to suit you.

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3 comments

pradipjkc January 16, 2021 - 10:54 pm

Twice is a good idea. At least.

Reply

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