|
|
|
Haggling Makes Business Sense
Whether it's buying or selling,
dealing with customers or employees, business owners have to negotiate
virtually every day. Yet many may not view it as a separate skill, such
as bookkeeping or time-management. Successful negotiating is both a
science and an art, and central to your success. Therefore it makes
sense to brush up your skills.
Most negotiating is applied common sense, yet there are many mistakes
people make. The most common is greed: starting out with the attitude
that you are going to get everything you want, and that's that. Another
pitfall is getting too emotional about what should be a dispassionate
business deal. You should focus on what you want out of the deal, and
shouldn't let yourself be distracted by what you feel about the person
you are negotiating with.
This is the nub of negotiating. It is a form of communication, close to
persuasion, but aimed at a realistic outcome. The process will only work
if both parties want it to. This means coming to some kind of agreement
that satisfies all involved.
Another very common mistake is not to negotiate at all. For instance, if
you are dissatisfied with the service you are getting from a supplier,
it may be tempting to ring them up and berate them. While this may be
emotionally satisfying in the short run, all you have done is generate a
row. It is unlikely that you will come to some new understanding with
your supplier that leads to what you really want, a better service.
Far better if you had rung up, described your concerns and then asked:
“What can you do about this?” The result might not have been much better
- but then it might have been a lot better. You don't know until you
try. Not starting a negotiation at all is the worst option.
The good news is that negotiating is one of the most carefully studied
business skills. There is plenty of help at hand. There are some highly
entertaining books on the theory, such as Everything is Negotiable
by Gavin Kennedy (Arrow Books), or Getting to Yes by Roger Fisher
and William Ury (Century Hutchinson).
There are three central points to bear in mind: negotiating is
adversarial but not just an argument; there are certain rituals to be
followed in order to keep everyone happy; and negotiating is, by its
very nature, complex.
Good negotiators prepare carefully, concentrate throughout the process
and yet are able to fit the smallest detail into the overall picture.
The adversarial point is one of the trickiest to master. Remember, the
idea is to reach a deal agreeable to both of you. Being too aggressive,
or too passive, can be self-defeating. Being able to negotiate in a
reasonably dispassionate way, while being emotionally persuasive, is a
delicate balancing act which can take a lot of practice.
The idea of ritual may sound odd, but it merely means paying respect to
the other party, taking the time to make sure that all opinions are
heard and taken into account. Meetings should take place in a manner
with which both parties are comfortable. You should also be prepared to
take your time. If the other party feels it is being hurried into a
deal, it may dig its heels in.
Preparation is key. Just 30 seconds spent trying to think yourself into
the other party's position will pay dividends. What are they thinking?
What are they prepared to give up? Having a full command of the facts
will also impress upon the other person that you are a professional
negotiator who should be treated with respect.
The following points are very important in winning a negotiation:
Query whether fixed issues can't be altered. In this
way you may be able to bring unexpected factors into the bargain.
Time is always negotiable. However fixed various
deadlines may seem, they can always be changed.
You will only succeed if you concentrate throughout
the process. Keep on top of the details as they build up and don't be
afraid to make frequent notes.
Always talk as if a deal is possible. If you give the
impression that you are skeptical about the possibility of any deal at
all, this will cast a shadow over the proceedings.
Be happy to signpost the conversation and appear
positive. You will get a lot more out of the process if, by using
positive comments and body language, you can convince the other side you
are prepared to be reasonable.
Keep a careful eye on the subtext. Listen for
giveaway phrases indicating they think they are “getting away” with
something.
Give yourself time. If something pops up that you
didn't expect, or about which you can't make up your mind, take the
pressure off yourself. Pretend to take some notes, or say something
Alike “yes, that's a very good point, perhaps you could tell me more”.
Don't feel pressured into blurting out something that you may regret
later.
Always keep the whole deal in view. There is a danger
that if you settle particular points first, you may run out of things to
haggle over as you get to the end of the list. Don't try to clinch the
whole deal too early, when the other side is still introducing new
factors.
(C) 2002 The Independent - London. via ProQuest Information and Learning
Company; All Rights Reserved
|
|
