In any kind of negotiation the planning stage is probably the most important. Too often in negotiations we go in badly prepared and end up giving concessions that reduce the overall profitability of the final deal.

The importance of planning is in having a very clear idea before entering into the negotiation.

1. What are my objectives?

2. What does the other side wish to achieve?

3. What information will influence the final outcome of the negotiation?

4. What concessions can I make?

5. How am I going to achieve my objectives?

6. What part will other people play in the negotiation?

Generally, the more time that is spent in planning and preparing for the negotiation, the more beneficial will be the final outcome.

Objectives

Before entering into the negotiation, you need to have a clear idea of your objectives and try to work out those of the other side. Ask yourself the following questions:

1. What exactly do I wish to achieve from this negotiation?

2. Which of my objectives:

a. Must I achieve?
b. Do I intend to achieve?
c. Would I like to achieve?

3. What options or alternatives would be acceptable to me?

4. What are the other side’s objectives?

5. How does the other side see the negotiation?

Information

It has often been said that information is power. In any negotiation, there will be four types of information that is important to the final outcome.

1. What information do I have that the other side has also?

2. What information do I have that the other side does not have?

3. What information do I need to have before negotiating with the other side?

4. What information does the other side need before it can negotiate with me?

This can be particularly important when negotiating with people who concentrate on price issues. What other things are important to this person? What pressures do they have on them to conclude the deal? How well is their company doing at the moment? How important is it that they deal with my company? etc.

The early phases of negotiation consist of both sides finding out more information before talking about a specific deal or set of alternatives.

For example, if you find out the other side has a time deadline that only your company can meet, it may give you the chance to negotiate on more favourable price. If you know that the other side has recently expanded their production capacity, you may be able to negotiate more favourable terms in return for a commitment to buy certain volumes over an agreed time period.

By spending time as part of your preparation in listing what you already know and what you need to know, you will give yourself a better chance to negotiate well on your company’s behalf.

Today’s News: I discovered some excellent new sales related sites this week: The first has been designed and created by an old friend Jan Visser and I was really impressed, think you will be too – www.salesteamtools.com

Tomorrow: Mr Sales Gravy himself, Jeb Blount is my guest on The JF Guest Author Spot

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