I believe the skill of negotiating also has the most misconceptions
attached to its name. Many think the best of the best dig a hard line in the
sand and stick to it. The most successful negotiators are the sternest. But, when
you are searching for a win-win, is this the most logical strategy? I do not believe
so. Being aggressive towards your counterpart does not lead to successful
partnerships. To give an inch and take a mile will not build a long-term
relationship that promotes positive growth for your organization.
So, how do you deploy a negotiation that is successful, builds
partnerships, and does not make you want to rip your hair out? Read on to see
my favorite tips that I employ with my friends, family, clients, suppliers, and
in long conversations with my dogs when they are being bad that they absolutely
do not understand.
Do NOT Draw A Line in the Sand
As I stated before, the misconception of drawing an
arbitrary line and sticking to it no matter what is not negotiating. Negotiating
requires some form of compromise from all the parties included. Even with all
the power, do you really want to crush a smaller sized supplier? Will the
supplier want to help you when times get tough, like in the supply chain
disruptions of 2020 due to COVID, if you just gauged them for a single sided contract?
Instead, hear each party’s wants and needs and craft a deal that is mutually
beneficial. It almost always creates a better agreement in the long term.
Business is Business, Kind Of…
In a negotiation, even when attempting to create a mutually
beneficial deal, things can get heated. Remember that your negotiation
counterpart is a representative of a larger organization. They have higher ups,
in most cases, that are really making the decisions. So, what should you do? Separate
the negotiation from the person. Just because they are not compromising on a
specific piece of the sought-after agreement does not mean they are attacking
you. The issue is YOU. You are too closely tied to your points and are
projecting the same attachment on your counterpart. Talk it through and find
out why they are not budging. Attempt to craft a solution that provides enough promises
to get them to budge or ask for something in return elsewhere to even the
playing field.
Kindness is Not Necessarily Good
If you are not a confrontational person that is often a positive.
However, sometimes that can cripple you. Just because the goal is a mutually
beneficial deal in your mind does not mean that it is in your counterpart’s
mind. If you are too kind to objectively quantify your position and stick up
for your reasoning, you can open yourself up to getting steamrolled. The lack of
tact can lead to bad terms for you and portray that you can be taken advantage
of. This will harm your future negotiations, as well. If you have sound reasoning,
explain it until the supplier wholly understands. If you do not feel you can
push back, get someone who will. Using your coworker’s skills is a benefit to
the organization and there is nothing shameful about requiring help.
Require Objectivity and Objectivity Only
Finally, perhaps the most important tip I can offer is to keep
negotiations objective. Subjectivity leads to the “drawing a line in the sand”
type of negotiations in my first tip. It can also lead to a personal attachment
to the items you are negotiating. If you do not think of objective reasons as
to WHY compromise should take place, you are not crafting solutions. You are
creating whimsical ideas and acting as if they are objective. There is no room for
impulsive decision making in negotiating. Use logic, math, statistics, and hard
data to provide actual reasoning as to why you want what you want. Use the same
objective standard to provide solutions that simultaneously show how your offering
gives the supplier what they want, as well. That is creating a true win-win situation.
Hopefully, employing these tips can aid you in more
successful and less stressful negotiations. This step in the Procurement
process does not have to be the worse. If done right, it can be an enjoyable
way to build your rolodex of supplier contacts for future projects. Long
lasting, very beneficial relationships can be built that put you and the
supplier in an advantageous position within your market.
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