NEGOTIATIONS: 1 Thing that Often Gets Ignored!
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The 101 lesson of negotiations is to Prepare. But how many do it? And out of those who do it, how many know what to prepare?
Today’s issue of Procurement Leaders Playbook talks about this and 5 things you Need to Prepare before setting foot in a negotiation (whether face to face, phone or email/text).
Prepare, Prepare, Prepare!
To ensure you have better chances of getting what you want in a negotiation, simply prepare better than your supplier/sales people.
So, what do you need to prepare?
When negotiating on behalf of your company, you need to prepare about supplier’s price & Cost, Supplier Delivery Times & Costs, Supplier Service Response time etc. Very simply if you do not have good information about these items, you will not be able to negotiate. Below are some things that you need to prepare:
1. Issue Identification Identify the issues you want to negotiate. For example, read the suppliers offer, highlight important parts and jot down notes about part that you are not clear, or that you cannot accept.
2. Issue Information Have good information about each issue that you want to negotiate (after all this is what preparing is all about).
3. Classify the Issues
Classify them according to:
Negotiable:
These are issues that you can negotiate and be flexible. State your maximum that you can negotiate on these points, so that at any point in time during negotiations you know your limit. (just in case you go over your limit and then you get that Donald Trump famous saying: “You’re Fired”).
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Non-Negotiable:
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These are issues that you will not negotiate and not budge.
4. Prepare the meeting agenda
When doing this you will outline your issues again, but more importantly you would want to give the supplier the first turn to highlight any issues they may have with your contract.
When you have a prepared meeting agenda, you will work according to that, and will not forget any point.
5. Get ready to Negotiate
Understand the most important thing before going to the negotiation table: MOST issues can be negotiated, but not all.
Yes, some “negotiation gurus” mention that ‘everything is negotiable’, but in real life it is not so. There are things that you or your supplier will not budge no matter what.
With that in mind be positive and believe that it will go well. Most of the time it will … when you are prepared!
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