Power Negotiation

The Secrets of Power Negotiation

When home based businesses, or small businesses, have to negotiate with larger ones for supplies, outlets, or sales, the secret of success lies in power negotiation.

All to often you, as a small business owner, is frightened of the larger business, and approach the negotiating table,'cap in hand'.

When negotiating with somebody more powerful, better established, or simply much bigger than you are, follow these simple power negotiation rules:-

Preparation is Key

Before you decide to negotiate, it is a good idea to prepare.

What is it exactly that you want to negotiate?

Set out your objectives (e.g. I want a price increase).

You have to take into account how it will benefit the other party by offering some sort of service, or incentive.

Know Your Extremes

What is involved (money, sales, time, conditions, discounts, terms, etc)?

Know your extremes. Although you are not aiming to give out the maximum, it is worth knowing so that you will not go out of your limits.

Know What The Other Side Wants

Know what your opposition is trying to achieve by their negotiation. This is useful information that could be used to your benefit, and may well be used to reach a final agreement.

Consider What Is Valuable To Your Company

Consider what is valuable to your business, not the costs. You may end up losing something in the negotiation that is more valuable to your business than money. It could be a reliable client, or your company reputation.

Do Not Negotiate over Lunch or Drinks

Why? These maybe designed to impress and overaw you. Accept them, but keep business talk for later, with a clear head.

Bargain By Appealing For Fair Play

Most people with real power are benevolent if they are not put on the defensive.

Look For The 'Satisfiers'

'Satisfiers' are things like delivery, personal service, or other things that are not 'Price' related.

Try to obtain agreement on all those type of things first.

Put Yourself In The Other Person's Shoes

Look at what is being negotiated from the other side's perspective, and ask him or her to look at your viewpoint.

Break Tensions

Try to break tensions if the negotiation is getting too serious, or stuck down. Suggest a restroom break.

Demand a Price Breakdown

Always demand a breakdown in the price to spot any possible areas that could be agreed on. Finally, when the other side forces you to renegotiate a deal later on, don't repeat the same arguments.

Let them do it, and concentrate only on the new factors that have entered the relationship.

"Happy Negotiating"

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