Negotiating actually can be a lot of fun, but to have fun and eliminate the tension, you need to be well prepared. You should not be intimidated by the thought of having to negotiate. In many cultures around the world, people enjoy it and look at it as a game. In fact, most cultures outside of North America consider negotiation as an integral part of any transaction. In some countries, it is a way of life. They will not even sell to you if you do not first negotiate. To them, it is considered bad Karma or bad luck. In extreme circumstances, it is a cultural abomination, and even an insult, to some people if you offer to buy something at the stated price without negotiating. These cultures further reinforce and support my belief that everything in life is negotiable, and if you do not ask, you will not get!
To take the discomfort out of negotiating, and enhance your chance of achieving a better outcome, you need to focus on the fundamentals:
Understand the Basics:
1. Everything in life is negotiable and you are negotiating all of the time -- day and night, at work and at home
2. You do not necessarily get what you deserve; you will get what you negotiate
3. Focus on the big picture
4. Manage the relationship as well as the transaction
5. Provide satisfaction which will lead to a "win-win" outcome
6. Compromise is a key ingredient to a successful outcome
7. Willing parties will find a way to come to a mutually satisfactory agreement
Do Your Homework
1. Understand your most desired outcome
2. Identify the essentials (i.e. the "must haves")
3. Develop alternatives and build in flexibility
4. Gather information
Information - (Key input to a successful negotiation)
1. Information is power - the more you have, the more your cards are worth.
2. Ask open-ended questions, those that cannot be answered with a simple "yes" or "no."
3. Develop information about the other party's stated needs.
4. Gather information about the other negotiators - understand their personal needs.
5. Develop contacts and sources throughout the other party's organization.
6. Understand your own team members' needs.
7. Use outside resources to gather information (i.e. people that have had dealings with the other party).
Role Play
1. It will help you eliminate surprises
2. It will help you further develop your skills
3. It will help you achieve better outcomes
4. It will help you better understand yourself and how you are perceived by others
5. It will help you develop a comfort level
Other
1. Understand that you are not the only one under pressure to reach agreement; the other party is under just as much pressure.
2. Avoid arbitrary deadlines. Time pressure can force you to accept less than the most desirable outcome.
3. A successful negotiation leaves both parties comfortable and with the feeling that they have been treated fairly. As a result, they both feel that they would be willing to do another "deal" with one another.
Lesson learned: The better prepared you are, the more fun you will have negotiating and the final result will be a better outcome.
