Successful Negotiating Skills

Successful Negotiating Skills

Successful Negotiating Skills Course Companion/Workbook

The multimedia training course and this companion/workbook are Copyright Interactive Training Technologies Ltd. 2002. Website www.itrain.co.uk This document contains 33 pages.

Study Area1 - Introduction 2

Section 1 - The Principles of Negotiating 2

Section 2 - The Negotiation Process 4

Section 3 - The Spirit of the Deal 5

Study Area 2 - The Preparation Phase 7

Section 1 - Preparation 7

Section 2 - Knowing the Marketplace 8

Section 3 - Assessing Your Position 9

Section 4 Ð'- Planning Your Objectives 10

Section 5 Ð'- Defining the Details 12

Study Area 3 Ð'- The Opening Phase 13

Section 1 - Opening 13

Section 2 Ð'- Asking the Other Side to Open 15

Section 3 Ð'- Gathering Information 16

Section 4 Ð'- Using Positive Body Language 17

Section 5 Ð'- Identifying Key Issues 18

Section 6 Ð'- Opening First 19

Section 7 Ð'- Opening in Response 20

Section 8 Ð'- Using a Shock Opening 21

Study Area 4 Ð'- The Bargaining Phase 22

Section 1 Ð'- Bargaining 22

Section 2 Ð'- Arguing Persuasively 24

Section 3 Ð'- Bargaining Tactics 26

Section 4 Ð'- Making Concessions Pay 27

Section 5 Ð'- When Things Go Wrong 28

Study Area 5 Ð'- The Closing Phase 30

Section 1 - Closing 30

Section 2 Ð'- Handling Last Minute Tactics 31

Section 3 Ð'- Asking for Commitment 32

Section 4 Ð'- Post Closure Activities 33

Study Area 1 - Introduction

Section 1 - The Principles of Negotiating

Screen 1 - This section introduces

The view that nearly everything is negotiable, and

The four phases which characterize most negotiations.

Screen 2

The World is full of countries that prove the precept that those that live closer to the principles of free trade do better than those who have abandoned them. The famous economist Adam Smith spent 12 years, up until 1776 writing his seminal piece 'An Inquiry into The Nature and Causes of the Wealth of Nations'. In it he remarked on the propensity to truck, barter and exchange - which he found to be common to all people on the planet and yet was not present in any other species. - Smith wrote.

Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog. Nobody ever saw one animal by its gestures and natural cries signify to another, this is mine, that is yours: I am willing to give this for that.

If you want to trade you have to negotiate, the alternative is to accept what you are offered. There are many opportunities to negotiate better deals and terms, however these chances are often missed because neither side makes it clear that negotiating is an option. Many people wrongly assume that nothing is negotiable unless the other party indicates that this is the case - a more realistic view is that everything is negotiable.

Screen 3

The complexity of the negotiating process will vary according to the size and complexity of the proposed deal as well as the attitudes adopted by the parties involved. This course explains a comprehensive and detailed approach, which should be tailored to suit the needs of each particular negotiation. It is worth remembering that the time and effort that you invest in any round of talks should reflect the potential benefit that can be gained from them.

Nearly all negotiations are characterized by four phases - preparation, opening, bargaining and closing. In large scale negotiations each of these phases are normally tackled sequentially., However, in smaller scale negotiations it is quite common for these phases to merge - possibly into a single unstructured process. Where this is the case, a good understanding of the logic that underpins the four phase approach can guide you, even when you are negotiating smaller deals.

Preparation involves information gathering - knowing the state of the market, being aware of the supply and demand status, being aware of any current or imminent discounts and special offers and so on.

The opening phase of a negotiation involves both sides presenting their starting positions to one another. It usually represents the single most important opportunity to influence the other side.

In the bargaining phase your aim is to narrow the gap between the two initial positions and to persuade the other side that your case is so strong that they must accept less than they had planned. In order to do this you should use clearly thought out, planned and logical debate.

The closing of a negotiation represents the opportunity to capitalize on all of the work done in the earlier phases. The research that you've done in the preparation phase, combined with all of the information that you've gained since should guide you in the closing phase.

Screen 4 - Question

Screen 5

In practice negotiations can be a messy business - there are no hard and fast rules. Human behavior plays a strong part in any negotiation process - varying attention spans, deviations and interruptions are just a few of the hurdles, as are a whole range of emotional responses - from the