Selling And Negotiation Skills

INTRODUCTION
Selling always comes before negotiation. The simple difference between them is timing. With selling you inform people what youve got, what its going to for them and how much it costs. Negotiation follows when prospective customers like what they see, but want to bargain about the prices. So negotiation begins when the prospect wants to buy and you want to sell, but you still have a few details to share regarding terms and conditions. Negotiation is playing an ever increasing role in the commercial world. So, its becoming increasingly important now for sales people, to be both skillful salespeople and negotiators. They also need to match confidence and self esteem, for there are various reasons why a sales person might be anxious to sell.

What is Negotiation?
Negotiation is the mean by which people deal with their differences. Whether those differences involve purchase of a new automobile, a labor contract dispute, the terms of sale, a complex alliance between two companies, or a peace accord between warring nations, resolutions are typically sought through negotiations. To negotiate is to seek mutual agreement through dialogue. A business negotiation may be a formal affair that takes place across the proverbial bargaining table, in which you haggle over price and performance.

It could be much more casual, such as meetings of a manager with his subordinate employees whose collaboration is needed to get a job done. If you are a supervisor, manager, or executive, you spend probably a good part of your day negotiating with people inside or outside your organization often without even realizing it. Given the role of negotiations in our personal and professional lives, it is important to improve our negotiating skills. Even a modest improvement in those skills can yield a sizable payoff, such as larger pay raise, a better deal on a home purchase, or more effective working arrangements in the office

Negotiation Skills
Qualities of Negotiating Power
1. It is relative between the parties. 2. It changes over time. 3. It is always limited. 4. It can be either real or apparent. 5. The exercise of negotiation power has both benefits and costs. 6. It relates to the ability to punish or benefit. 7. It is enhanced by legal support, personal knowledge, skill, resources and hard work.

8.It is increased by the ability to endure uncertainty and by commitment. 9. It is enhanced by a good negotiating relationship. 10. It depends on the perceived BATNA. 11. It exists to the extent which it is accepted. Negotiation is usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible. Communication is always the link that will be used to negotiate the issue/argument whether it is face-to-face, on the telephone, or in writing. Remember, negotiation is not always between two people; it can involve several members from two parties.

There are many reasons why you may want to negotiate and there are several ways to approach it. We all have our own point of views. And these viewpoints form the basis of our goals and objectives. Each time you communicate with a potential client, vendor or employee, you exchange ideas and information. However, your goals are likely to differ. Negotiation, in essence, is the art of compromise. Negotiation skills are vital to the success or failure of your interactions, and ultimately, your goals. Negotiating is one of the key tools you can use to accomplish your goals.

Essentials of a Successful Negotiation

1. Know what you want Think through exactly what you want. Be specific and have valid reasons for why you need it. Knowing what you want, and why, will help you to be clearer and more confident. 2. Know what they want Before you start negotiating, it is important to have an idea of what the other party would like the outcome to be, too. So think it through why do they need what you are offering/asking for? And do your research on how can you make them feel like they have got a good deal? 3. Be Fair If what you are asking for is fair and justifiable, e.g., you would like to earn as much as someone you work equally as hard as, then you are much more likely to get what you want.

4. Believe you are worth it You have to believe that you deserve your desired outcome. If you do not, the moment your client or boss questions you, your argument will fall apart because you do not have enough confidence in it. Believe it, trust yourself, and rehearse it. 5. Listen Carefully When your boss/client is talking to you during negotiations, do not use that time to plan your next line of attack. It is more important that you listen to them and see their point of view. They will take you more seriously if you do, even if you disagree with them.

6. Keep it Friendly Negotiating is not about confrontation. It is about two parties reaching an amicable, mutually beneficial agreement. Keep that in mind when you are talking and, even if you do not get what you want this time, view it as good practice for the future
7. Have an Alternative When you are discussing specifically what you want, as well as what they want, work out what you would be prepared to walk away with if you are not successful.

The Seven Pillars of Negotiation Wisdom

1. Relationship What impact will this negotiation have on our personal relationship with other negotiators or our constituents, the parties who stand to gain or lose depending on the negotiation's outcome? 2. Interests -What are the reasons that drive our pursuit of particular objectives, and can another party's ideas or resources help serve our interests better than what we bring to the table? 3. BATNA -Our Best Alternative To a Negotiated Agreement (BATNA) may be derived from resources we control or influence. We may have choices of parties with whom to negotiate or may be better off relying on ourselves. BATNAs can change during negotiation each time we learn a new piece of information.

4. Creativity Are we to be governed by standard operating procedure, or can our interests be better served by thinking out of the box? If our ideas are the only ones worth taking seriously, it is hard to justify bringing additional parties into a negotiation-- the decision-making process 5. Fairness Do we feel as if we are being treated fairly? How do other parties feel? If a negotiator feels he or she is not being dealt with in a fair manner, he or she may agree for purposes of bringing the bargaining to a close, but may walk away without having bought into the agreement.

6. Commitment Negotiations can only be called successful if they lead to agreements the parties are committed to fulfill. Learn whether the people at the bargaining table have the capacity to keep the promises they make. 7.Communication Information is the fundamental asset in negotiation. We communicate best by listening. We should keep asking ourselves whether the negotiation process is being used as a successful way of communicating information. By considering which of these deserves more attention in a given negotiation before the negotiation process begins, we are likely to do a better job. The recent past may have presented some shocks, but to be a good negotiator, you have to accept that things may not always go the way you expect. Keep the seven pillars in mind, and you should be able to respond wisely to the circumstances you face.

TYPES OF NEGOTIATION IN ORGANIZATIONS

Depending upon the situation and time, the way the negotiations are to be conducted differs. The skills of negotiations depends and differs widely from one situation to the other. Basically the types can be divided into three broad categories.

Types Day-to-day/ Managerial Negotiations

Parties Involved 1.Different levels of Management 2.In between colleagues 3.Trade unions 4.Legal advisers

Examples

1.Negotiation for pay, terms and working conditions. 2.Description of the job and fixation of responsibility. 3.Increasing productivity.
1.Striking a contract with the customer. 2.Negotiations for the price and quality of goods to be purchased. 3.Negotiations with financial institutions as regarding the availability

Commercial Negotiations

1.Management 2.Suppliers 3.Government 4.Customers 5.Trade unions 6.Legal advisors

Legal Negotiations

1.Government 2.Management 3.Customers

1.Adhering to the laws of the local and national government.

1.Day-to-day / Managerial Negotiations Such types of negotiations are done within the organization and are related to the internal problems in the organization. It is in regards to the working relationship between the groups of employees. Usually, the manager needs to interact with the members at different levels in the organization structure. For conducting the day-to-day business, internally, the superior needs to allot job responsibilities, maintain a flow of information, direct the record keeping and many more activities for smooth functioning. All this requires entering into negotiations with the parties internal to the organization.

2. Commercial Negotiations Such types of negotiations are conducted with external parties. The driving forces behind such negotiations are usually financial gains.

They are based on a give-and-take relationship. Commercial negotiations successfully end up into contracts. It relates to foregoing of one resource to get the other.
3. Legal Negotiations These negotiations are usually formal and legally binding. Disputes over precedents can become as significant as the main issue. They are also contractual in nature and relate to gaining legal ground.

TYPES OF NEGOTIATION

DISTRBUTIVE

INTEGRATIVE

Distributive Negotiation
A negotiation in which the parties compete over the distribution of a fixed sum of value. The key question in a distributed negotiation is who will claim the most Value?. In distributive negotiations, a gain by one side is made at the expense of the other. Distributive Negotiation can also be referred as a Zero-sum, or constant-sum, or the win-lose situation. A sellers goal is to negotiate as high as possible, a buyers goal is to negotiate as low as possible.

Distributive negotiations, on the other hand, are typically described as "win/lose" negotiations one party gets what they want, and the other party gives something up. Think of negotiating for your car you either get that extra $1000, or the dealership does. If you feel you got a good deal (and squeezed that salesman), you "won." If you walk away feeling like you paid too much money, you "lost." This type of negotiating does not lead to good long-term relationships. The parties interests are often opposed (or seem to be opposed this may not prove to be the case once you start getting creative), and usually good feelings are not plentiful when the negotiation is over

Integrative Negotiation
Integrative Negotiation: A negotiation in which the parties cooperate to achieve maximum benefits by integrating their interests into an agreement. These deals are about creating values and claiming it. In Integrative negotiation your task is two fold: 1) to create as much as value for you as well as for theother side. 2) to claim value for your self. Integrative negotiation could also be termed as win-win situation. Integrative negotiation could also be termed as collaborative bargaining, for this type of negotiation, the parties should look for creative options, and not focus on which concessions to make.

Integrative negotiations are those typically referred to as "win/win" negotiations: all sides are looking for a solution that maximizes joint gain and allows everyone to walk away feeling like they won something. They involve looking at the issues being negotiated from multiple angles, considering multiple issues at once (thus allowing for trade-offs), and honestly trying to "expand the pie" rather than divide it. Anyone who imagines that they might see or do business with their fellow negotiator in the future should be attempting to negotiate in this way. Integrative negotiations foster trust and good working relationships, and leave all parties feeling good, not just one.

Integrative vs. Distributive Negotiations

Outcome Motivation Interests Relationship Issues Win / win Joint gain Congruent Long-term Multiple issues Win / lose Individual gain Opposed Short-term Single Issue

Is Negotiation Necessary
Negotiation is at times necessary. Time may sometimes be saved and unnecessary compromise avoided. Has various effects .

STYLES OF NEGOTIATION

ADVERSARIAL CO-OPERATIVE BARGAINING

Our style of negotiation will be influenced by the style of the other party. If both sides are adversarial, there will be little trust between the two parties, however, if one side decides to be co-operative, . there is a danger the other side will use this apparent sign of weakness to their advantage. Cooperative bargaining has the advantage of being a more efficient style of negotiation, however certain rules have to be followed by both parties, for it to work. Let us look at the 2 styles of bargaining and their features:

Features of adversarial bargaining Each side takes up a position and defends it Opening bids are set at unrealistic levels; too high or too low, in order to give room for solution. Movement is small or non-existent until later on in the negotiation Tactics are used to gain short term advantage Too much emphasis is placed on trust. .This really is my best price!. Information is withheld, or misrepresented The outcome is often win-lose, or lose-lose The more aggressive negotiator usually does best This style does not encourage long term, mutually beneficial relationships

Features of co-operative bargaining

! Each side recognizes that the other has needs and feelings and accepts implicit rules ! Objective measures are taken of what is fair and reasonable ! Trust is not an issue as either side is willing to share information ! This style is friendly, but not soft. There is a willingness to trade concessions ! There is a clear, communicable strategy ! Bad behavior is punished

This style involves creative problem solving ! It encourages long term, mutually profitable relationships ! Each side asks more questions and explores alternatives, rather than taking up fixed positions ! The usual outcome is win-win .

Five Basic Principles

Be hard on the problem and soft on the person. Focus on needs, not positions. Emphasize common ground. Be inventive about options. Make clear agreements. Where possible, prepare in advance. Consider what your needs are and what the other person's are. Consider outcomes that would address more of what you both want. Commit yourself to a win-win approach, even if tactics used by the other person seem unfair

The Goal of Negotiation-"Everyone Wins"

People resolve disagreements in many ways. Some tend to deal with potential conflict by denying it or trying to avoid it altogether. Instead of confronting and resolving problems, people may let their anger and resentment build while they remain silent. This approach can result in constant personal stress which can lead to illness or poor general health. If disagreements are not resolved, the possibility for more intense conflicts at some later date is increased. Problems seldom improve on their own. Conflict can also be motivated by ego. Solutions are selfishly sought with little regard for the other person. The conflict becomes a "win-lose" situation in which one person "wins" at someone else's expense.

Class assignment
You are given 20 minutes to make an ad of ur product which can communicate the features of your product to the customers. Decide a communication strategy for a 1.Comb 2. Detergent powder 3.Hair oil 4.Emergencies lights 5.Markers

The one-sidedness of this "solution" increases the odds of more conflict. "Losers" will defy, test, resist and retaliate against the "winners." Effective negotiation is a two-way process that encourages both sides to actively participate in making decisions. It also provides a way for people to learn to understand each other better and to grow in their relationships. Negotiation helps to create a healthy balance between "giving" and "getting." Everyone becomes a "winner" through negotiation.

How can Everyone Win?

The key to effective negotiation is clear communication. Communication involves three important skills-understanding, listening and speaking. You cannot have one skill work without the others. For example, you cannot have good understanding without good listening and speaking. Negotiation is most effective when people are able to clearly identify and discuss their sources of disagreement and misunderstanding .

Speaking

Negotiation begins with a clear, concise explanation of the problem as each person sees it. Facts and feelings are presented in a rational manner from the individual's perspective, using "I" statements. Communication between people will go more smoothly when statements such as "I become very upset when you " are used rather than more aggressive statements such as "You make me mad when you," which blames the other person and puts him or her in a defensive position. Shared concerns rather than individual issues remain the focus of discussion throughout negotiation. The negotiation process will be most effective when people take time to think through what they will say. When possible, plan ahead to meet at a time and place convenient to everyone. A quiet, neutral spot where there are few distractions or interruptions is perfect for open discussion.

Listening

Listening is an active process of concentrating all of one's attention on the other person. Encouraging the other person to share thoughts and feelings, giving feedback on what has been heard, and maintaining eye contact are skills that show you are interested in understanding what he or she has to say. Active listening assures the other person that he or she is heard, accepted and respected. The ability to listen actively supports open, ongoing negotiation. Thinking ahead or anticipating the course of the discussion are distractions that interfere with listening. Poor attention and listening can lead to misunderstandings, inappropriate solutions and continuing conflict.

Understanding

Before two sides can look for solutions, a common understanding should be reached. If two people do not understand each other's problems and concerns, then the process of negotiation will either be broken off or will end with solutions that do not work. Active listening encourages understanding. It is important to pay close attention to what someone says as well as to how he or she behaves. Body language, including facial expressions, hand gestures and degree of eye contact, can provide clues about the other person's thoughts and feelings.

Show Respect

Success rests in accepting the other person despite differences in values, beliefs,educational experiences, ethnic backgrounds or perspectives. Negotiation permits you to examine a problem from all sides, and to promote understanding and interest in the other person without necessarily agreeing to his or her viewpoint. Taking time to listen and to ask questions makes it easier to learn more about someone's perspectives. Considering different perspectives will increase the range and variety of possible solutions. Genuine interest in other people and in their contribution to finding solutions builds trust. Trust provides a foundation for continuing a relationship. A foundation of trust also eases future efforts to solve problems.

Brainstorming

It is one way to gather many creative ideas rapidly. This process allows everyone to openly make suggestions without the fear of criticism. At this stage, every suggestion has value and is accepted. After all suggestions have been shared, they are reviewed to determine whether they might coincide or overlap with each other. Negotiation then becomes a matter of choosing a solution to which no one has an objection. Remember, personal goals should not take priority over shared goals

Preserve the Relationship

In general, people will try to preserve valued relationships. Negotiation is a non adversarial approach to resolving conflict in those relationships. There are no "good guys," "bad guys," or "winners/losers." Negotiation is based on equality. No one wields more power or control than another. The individual's ideas, attitudes, values and objectives are recognized and respected as legitimate. Solutions are mutually agreed upon.

PLANNING THE NEGOTIATION

In any kind of negotiation the planning stage is probably the most important. Too often in negotiations we go in badly prepared and end up giving concessions that reduce the overall profitability of the final deal. The importance of planning is in having a very clear idea before entering into the negotiation. 1. What are my objectives? 2. What does the other side wish to achieve? 3. What information will influence the final outcome of the negotiation? 4. What concessions can I make? 5. How am I going to achieve my objectives? 6. What part will other people play in the negotiation? Generally, the more time that is spent in planning and preparing for the negotiation, the more beneficial will be the final outcome.

Objectives
Before entering into the negotiation, you need to have a clear idea of your objectives and try to work out those of the other side. Ask yourself the following questions: 1. What exactly do I wish to achieve from this negotiation? 2. Which of my objectives: a. Must I achieve? b. Do I intend to achieve? c. Would I like to achieve? 3. What options or alternatives would be acceptable to me? 4. What are the other sides. objectives? 5. How does the other side see the negotiation?

Information
It has often been said that information is power. In any negotiation, there will be 4 types of information that is important to the final outcome. 1. What information do I have that the other side has also? 2. What information do I have that the other side does not have? 3. What information do I need to have before negotiating with the other side? 4. What information does the other side need before it can negotiate with me?

This can be particularly important when negotiating with people who concentrate on price issues. What other things are important to this person? What pressures does he have on him to conclude the deal? How well is his company doing at the moment? How important is it that he deals with my company? etc. The early phases of negotiation consist of both sides finding out more information before talking about a specific deal or set of alternatives. For example, if you find out the other side has a time deadline that only your company can meet, it may give you the chance to negotiate on more favorable price. If you know that the other side has recently expanded their production capacity, you may be able to negotiate more favorable terms in return for a commitment to buy certain volumes over an agreed time period .By spending time as part of your preparation in listing what you already know and what you need to know, you will give yourself a better chance to negotiate well on your company's behalf.

Concessions
Negotiating is a process of bargaining by which agreement is reached between two or more parties. It is rare in negotiation for agreement to be reached immediately or for each side to have identical objectives. More often than not, agreements have to be worked out where concessions are given and received and this is the area where the profitability of the final outcome will be decided. When preparing for negotiation, it is advisable to write down a realistic assessment of how you perceive the final outcome. Find out the limits of your authority within the negotiation and decide what you are willing and able to concede in order to arrive at an agreement, which satisfies all parties. Concessions have two elements; cost and value. It is possible during negotiations to concede issues that have little cost to you but have great value to the other side. This is the best type of concession to make. Avoid, however, conceding on issues that have a high cost to you irrespective of their value to the other side.

When preparing for negotiations, ask yourself the following questions: 1. What is the best deal I could realistically achieve in this negotiation? 2. What is the likely outcome of the negotiation? 3. What is the limit of my authority? At which point should I walk away? 4. What concessions are available to me? What is the cost of each concession and what value does each have to either side?

Strategy
Planning your strategy is important in negotiation. Once you know your objectives, you need to work out how you are going to achieve them. It is also useful to try and see the negotiation from the other side and try and work out what their strategy will be. During the negotiation there will be opportunities to use various tactics and you need to decide on which of these you feel comfortable with and recognise the tactics being used by the other side. Ask yourself the following questions: 1. How am I going to achieve my objectives in this negotiation? 2. What is the strategy of the other side likely to be? 3. What tactics should I use within the negotiation? 4. What tactics are the other side likely to use?

Tasks

If you go into negotiation with a colleague or colleagues, you need to decide during the preparation phase: 1. What role will each team member take in the negotiation? 2. How can we work together in the most effective way? Some teams of negotiators appoint team leaders, note takers, observers and specialists, each with their own clearly defined authority and roles to perform. Having a clear understanding of roles within the negotiation will make the team approach much more effective.

Four concept for negotiation

Four concept essential for negotiation: BATNA (best alternative to a negotiated agreement) Reservation price ZOPA (Zone for possible agreement) Switching to Integrative Negotiation.

BATNA:
A concept developed by Roger Fisher and William Ury, it is ones preferred course of action in the absence of a deal. Knowing your BATNA means knowing what you will do or what will happen if you fail to reach agreement in the negotiation at hand. People who enter negotiations without this knowledge put themselves in a bad position, being unclear about their BATNAs.

Strong and Weak BATNAs If your BATNA is strong you can negotiate for more favorable terms, Knowing that you have something better to fall back. A weak BATNA puts you in a weak bargaining position, whenever a negotiator has a weak BATNA it is difficult to walk away from the proposal. Take a minute to think about your own best alternative to whatever deal you are presently negotiating. Do you have one? Is it strong or weak? Can you quantify it? Improving your position Improve your BATNA 1. Anything that can be done to improve your BATNA will strengthen your position. 2. If you have the strong BATNA and if you are certain that its much stronger than anything the other side can muster, then discretely let the other side know that youre negotiating from a strong point.

Identify other sides BATNA Knowing other sides BATNA is extremely helpful when you can obtain it. You can do this by: 1. Contacting sources within the industry 2. Checking potentially relevant business publications. 3. Reviewing annual reports (or public Filings) 4. Asking questions informally of the negotiator or others within the company. 5. Imagining what our interests, preferences, and your needs, would be if you were in their position. Weaken other partys BATNA Anything that weakens the other sides alternative to a deal will improve your relative position. When you have no alternative No negotiator is in a weak position than one with no alternative to a deal. In this case, the other side can dictate the terms, The BATNA less party is a deal taker not a deal maker.

Reservation Price
The reservation price (also referred to as a walk-away) is the least favorable point at which one will accept a deal. Your reservation price should be arrived from your BATNA, but it is not usually the same thing.

ZOPA
ZOPA (zone of possible agreement) is the area or range in which a deal that satisfies both parties can take place, it is the set of agreements that potentially satisfy both parties. Each partys reservation price determines one end of ZOPA. The ZOPA itself exist in the overlap between these high and low limits, that is between partys reservation price.

Preparation for Negotiation

For the negotiator, preparation means understanding ones
own position and Interests. The position and Interest of the other party or parties. The issue at stake and the alternative solution. Understanding your BATNA, reservation price and those of the other parties, the zone within which an agreement can be struck.

Step 1: Consider what a good outcome would be for you and the other side Never enter into negotiation without first asking yourself." what would be a good outcome for me? What are my needs, and how do I prioritize them. Rather ask the same questions from the perspective of the other side.

Step-2: Identify potential Value Creation Opportunities. Once you Understand what a good outcome would look like from your Vantage point and from the vantage point of the other sides You can Identify areas of common ground, compromise , and opportunities for favorable trades.

Step 3: Identify your BATNA and Reservation Price, and Do the same for the other side: You can avoid appearing needy by building a strong BATNA and letting the other side know that you are prepared to walk away if it demands to many concessions.

Step-4: Shore up your BATNA Anything you can do to improve your best alternative to a negotiated deal will put you in a stronger position. Shoring up ones BATNA is an Important part of preparation, but is not limited to the pre-Negotiations phase. Good Negotiators work to improve their BATNAs before and during deliberations with the other side.

Step-5: Anticipate the Authority Issue

As for your side, always know exactly how much

authority you have in a negotiation: 1. Are you authorized only to commit to a predetermined range of deals for which committee approval has been obtained? What if you can negotiate something better? what would committee consider to be better. 2. Are you authorized to commit to a deal in the best way you can? Would your company prefer that you bring such a deal back for normal review and approval? 3. Is your authority limited on money issues but not on other creative options without significant financial implications.

4. Are you authorized to provide information about your companys needs, Interests and preferences, if the other side engages in a good-faith, reciprocal exchange.
Step-6: Learn all you can about the other sides people and culture, their goals, and how theyve framed the issue. Who are those Individuals on the other side of the table? Are they experienced negotiators or novices? Are they aggressive or they conflict-avoiding accommodators? Is the culture of their organization bureaucratic or entrepreneurial?

 Are the people on the other table authorized to make a deal. What are they attempting to achieve and how critical is this negotiation to their business. Step-7: prepare for flexibility in the process, dont lock yourself into a Rigid sequence Start with the assumption that the process will not unfold in a predictable, linear fashion. Be prepared for changes on both sides: new people and unanticipated developments. Treat every change as an opportunity for learning.

Step-8: Gather External Standards and criteria Relevant to fairness Both sides want to believe that any deal reached is fair and reasonable. If the parties expect to have continuing relationship, a sense to fairness and reasonableness matters. External objective or criteria can often be used to establish what is fair and reasonable. An important part of the preparation is: Researching which criteria might be applied. Being prepared to show why those more favorable to you and are more relevant. Being prepared to show why they are less relevant and less favorable to you.

Step-9: Alter the process in your favor Whoever set the agenda did so with a particular outcome in mind-one that benefits that reason or entity.

NEGOTIATING TACTICS
Most successful negotiators recognize that the way people involved in negotiations behave does not always reflect their true feelings or intentions. We are going to look at negotiating tactics that may be used by you or on you. Whether or not you choose to use these tactics, it is vital to understand 3 things: these tactics work they can be being used on you, and can be used by you

once they are recognised as tactics, their effects are reduced, or eliminated You may feel that there is no need in your particular case to negotiate or resort to .tactics. in negotiation. This is a matter of personal choice. In general, tactics are used to gain a short-term advantage during the negotiation and are designed to lower your expectations of reaching a successful conclusion. There are many tactics available to negotiators. Here are some you may recognize

Pre-conditioning This can begin before you even get together, or start your negotiations with these. The use of higher authority This can be a most effective way to reduce pressure in the negotiation by introducing an unseen third party and can also be effective in bringing the negotiation to a close other party

The good guy and the bad guy You may have come across this tactic before or else seen it used in films or on television. This is a tactic designed to soften you up in the negotiation. For example, you are negotiating the renewal of your service contract with the Buying Director and his Finance Director. You present your proposal and the Buying Director suddenly gets angry and walks out in disgust muttering to himself about how unfair you have been and how the .relationship. is well and truly over.You pick up your briefcase and are being shown the door when the Finance Director smiles at you sympathetically .

Body language

It is important in negotiation to react verbally and visually when offers are made.You may have seen the more theatrical negotiators hang their heads in despair or accuse you of being unfair and souring a perfectly good relationship when you present your proposal. Human nature is such that we can believe and accept these outbursts against us and our negotiating position becomes weaker as a result. Ensure the next time you are in a negotiation that you react to the other party.s offer. If you show no reaction, they may be tempted to ask for more and more and you will lose the initiative in the negotiation. Also, it is almost certain that their opening offer is higher than the figure for which they are prepared to settle, so it is important that you clearly signal your unwillingness to accept the opening position. If you reach the point below which you will not go, it is important that you show this with your body language.

The use of silence During the negotiation, you may make a proposal and find the other party remains silent. This can be very difficult to handle and often signals .disapproval. to the inexperienced negotiator. Just as nature abhors a vacuum, so silence induces the need in people to talk. If you have a proposal to make, make it and ask the other side how he, or she feels about it. Having asked the question, sit back and wait for the answer. Whatever you do, don.t change your offer as this could seriously weaken your position

The vice A common technique used by negotiators when presented with a proposal is to say You'll have to do better than that. This can be a very powerful statement, especially when used with broken record. The most powerful way of dealing with this is to ask them to be more specific. Whatever you do, don't weaken your negotiating position in response to the vice by giving anything away, too easily. This will only encourage repeat behaviour.

The power of legitimacy People believe what they see in writing. We all assume that if a thing is printed or written down, it is non-negotiable. This is what can make price lists so powerful. If you have to present a customer with a price increase or you wish to encourage an early order to beat a price increase, show something in writing such as an office memo from your boss announcing the increase. This will have a far greater impact than just saying your prices are about to go up. When presented with a price tag in a shop, ask to speak to the manager and make him an offer. You could be surprised at the results.

The low key approach Don't appear too enthusiastic during negotiations. Over-enthusiasm during negotiations can encourage skilled negotiators to review their strategy and demand more. If you are in a negotiation and the other side is not responding to your proposal,recognise this could be a tactic and avoid giving concessions just to cheer them up. Salespeople like to be liked and will often give money away in a negotiation, if the other side appears unhappy.

For example, if you are buying a car avoid saying to the seller things like: This is exactly what I m looking for. I really like the alloy wheels. Develop a low-key approach. Say things like: Well, it may not be exactly what I.m looking for but I may be interested if the price is right

Thank You