Negotiation SkillsPractical Guide

Negotiation Skills: Table of content1. Introduction2. What is Negotiation? And Its Reasons..3. Customer Attitude4. Negotiating with your client Process5. Negotiation Strategies6. Common mistakes to be avoided in negotiation7. References

Introduction

What is Negotiation?Simply it is the process of getting what you want from another person.The truth is we negotiate every day, everyone in their every day lives is a negotiator.

Negotiations occur for several reasons: • To convince people to take your side of an issue• To agree on how to share or divide a limited resource• To resolve a problem or dispute between the parties• To sell a product or service

• Sales negotiation

Customer Attitudes• A customer’s attitude toward your product or service generally falls

into one of four categories.....• Objection• Indifference• Scepticism• Acceptance

Customer Attitudes

Objection• Customer displays opposition to your product.

Indifference

• Customer shows a lack of interest in your product because of no perceived need for its benefits.

Scepticism

• Customer is interested in a particular benefit, but doubts whether your product can really provide the benefit.

Acceptance

• Customer agrees with your benefits and has no negative feelings toward your product.

Negotiation Process

Preparation

INFORMATION SHARING

BARGAINING

FINALIZING THE DEAL

Negotiating with your client Process

Before negotiation begins...

-Avoid negotiating unless you have had an opportunity to fully present your products and services.-Understand the objections raised by your prospect and identify what your prospect or customer’s main points of interest may be based on these objections-Be prepared to illustrate how your offering will benefit them and quantify the value they will get (if possible)

-Be prepared to be patient (which can lead to higher trust between you and your prospect)-Be confident in the value your product or service will provide your prospect-Be prepared to work toward a solution that works for both you and your prospect- Know in advance at what point the negotiation is no longer beneficial to you and your organisation and be prepared to walk away

Negotiating with your client Process

During negotiation...

-Use open ended questions to confirm your understanding of their needs.-Be prepared for tactical responses from clients.-Don’t rush to fill pauses with more talk – be comfortable with moments of silence

-Listen-Be prepared to make slight adjustments for your client if possible -Be prepared to work toward a solution that works for both you and your prospect- Try to identify small things you have both agreed on to help develop positive momentum – summarize these agreements periodically

Negotiating with your client Process

After the negotiation...If you are able to make a sale…-Summarize verbally and/or in writing the details of what you and the client have agreed on.-Thank the client for their time and reinforce the purchase decision -For your next negotiation, review the points that seemed to help move the negotiation process forward – study them, know them, use them

If you did not make a sale…-Sincerely thank the client for their time -Avoid appearing annoyed or disappointed-Give the prospect an “out” or an opening for them to come back to you/your organisation in the future

Negotiation outcomes

Negotiation Strategies• There are various well tested strategies that can be used to achieve a

win-win outcome…1- Good Guy/Bad Guy:The good guy / bad guy is an internationally used strategy. One member of a team takes a hard line approach while other member is friendly and easy to deal with. When bad guy steps out for a few minutes, the good guy offers the deal that under the circumstances seems too good to refuse. Bad guys usually comprise spouses, lawyers etc.

Negotiation Strategies• There are various well tested strategies that can

be used to achieve a win-win outcome…• 2- Vinegar – Honey:Start with the cheapest possible product or service but one which still has benefits for the prospect.

Negotiation Strategies• Keep in mind…• Keep It Light• You never want to let negotiations become too tense. Always

feel free to smile and inject some humour in the conversation. • Lightening up the mood can ingratiate you with your client

while also conveying your negotiating strength. • If you do not appear to be taking the negotiation as a do or

die affair, your client may conclude that you are ready to move on if s/he does not cooperate and based on that s/he may decide to be cooperative.• Wear a suitable suit.

Common mistakes to be avoided in negotiation• Inadequate preparation• Use of intimidating behavior• Impatience• Loss of temper• Talking too much, listening too little, and remaining indifferent to

body language. • Arguing instead of influencing.

References• http://www.uvm.edu/extension/community/nnco/cd/unit4a.htm#4a

• http://www.teachingenglish.org.uk/lesson-plans/negotiations-1-building-relationships

• http://www.bms.co.in/explain-different-types-of-negotiation-strategies/

• http://www.psych-it.com.au/theses/article.asp?page=6

• http://www.negotiation.biz/negotiation_objectives.htm

Any Questions ?

The EndThank You

Abd Al-Rahman Habiba