Newsletter - Learning Matters - No.16
How to negotiate successfully
- Before starting discussions decide on your parameters: set your absolute 'bottom line', decide what is essential for you to achieve and what is desirable
- Don't be afraid to ask for a break if you reach a deadlock. People often make decisions whilst you are not in the room!
- Be prepared with information about the other party
- Know the value of your offering to the other party. If you understand what is important to them you are in better position to make a deal
- Remember that people only value what they pay for. Routinely giving away your product or service devalues it
- Bargain on the things you are willing to concede. Offer to give something to the other party if they give you something in return
- Be flexible in your approach. Be willing to change your negotiating style if it is not working. Alternatively bring a third, neutral, party into the negotiations
- Read and respond to signals. Observe body language carefully, listen to what's being meant in addition to what's being said. What is being left unsaid?
- Be concise when making your proposal. Avoid saying too much as you will weaken your position. Make your proposal and then wait for a response
- Follow up in writing once you have reached an agreement
US navy stand-off story - how not to negotiate
This is the alleged transcript of an actual radio conversation between a US naval ship and Canadian maritime contact of the coast of Newfoundland in October 1995.
Americans: Please divert your course 15 degrees North to avoid a collision.
Canadians: Recommend you divert YOUR course 15 degrees South to avoid collision.
Americans: This is the captain of a US navy ship; I say again divert your course.
Canadians: No. I say again, you divert YOUR course.
Americans: THIS IS THE AIRCRAFT CARRIER USS LINCOLN, THE SECOND LARGEST SHIP IN THE UNITED STATES' ATLANTIC FLEET. WE ARE ACCOMPANIED BY THREE DESTROYERS, THREE CRUISERS AND NUMEROUS SUPPORT VESSELS. I DEMAND THAT YOU CHANGE YOUR COURSE 15 DEGREES NORTH, THAT'S ONE FIVE DEGREES NORTH, OR COUNTER-MEASURES WILL BE UNDERTAKEN TO ENSURE THE SAFETY OF THIS SHIP.
Canadians: We are a lighthouse; your call.