Definition of negotiation
negotiation - a talk between people to reach an agreement
The negotiations between the two countries resulted in a new trade agreement.
Points to consider when negotiating
1) Always try to negotiate for at least 15 minutes, anything less than that usually results in a one-sided outcome. The size or seriousness of the negotiation determines the amount of time needed to negotiate it. The sales lead time for a new power plant or car component contract can be as long as three years with many points of negotiation before final agreement and signature.
2) When meeting, always offer to let the other party speak first. It is not a sign of weakness and may reveal some useful points, especially if it is you who is seeking a raise. The other party may have overestimated what you are going to ask for and may actually offer more than what you were going to request. This could be especially useful if you need to make a concession elsewhere.
3) Always respect and listen to what the other party has to say. This is important even if he or she does not extend the same courtesy to you. The list of tricks used in negotiation is long, from positional power to advising they lack authority to sign or by displaying frustration or anger. Remember some people will do anything to intimidate you.
4) Acknowledge what the other party says, everyone likes to know that what they say is important. A skilled negotiator will be able to reflect back this information quickly, paraphrasing what has been heard and applying the key points. It is a good chance for you to introduce your own ideas, hearing the news about a key order may mean new quality standards are required by your client. Do you accept the work within your present contract or use it as a lever to improve margin?
5) Write everything down as you negotiate, when you concede some points you seek to gain advantage on others and it helps to summarise the discussion.
6) Please be aware of your counterpartner's body language. The purchase of a book or revisiting old studies could be paid back many times over as you learn not to convey any negative body language. Remember the cultural differences of nodding your head, avoiding eye contact and posture.
English language demonstrating understanding /agreement
on a point:
- I agree with you on that point.
- I think we can both agree that...
- I don't see any problem with/harm in that.
- In other words, you feel that...
- So what you're saying is that you...
- That's a fair suggestion.
- You have a strong point there.
Language to use for objection on a point or offer:
- I'd have to disagree with you there.
- I'm afraid I had something different in mind.
- I'm afraid that doesn't work for me.
- I'm prepared to compromise, but...
- If you look at it from my point of view...
- I understand where you're coming from, however,...
- The way I look at it...
- The way I see things...
- That's not exactly how I look at it.
- From my perspective...
Some other general language used whilst negotiating contracts
- If I agree to this, will you accept that I need ....
- If you agree to ....... , I can offer a slight improvement in .... to recognise that it will save my company work.
- Looking at clause 4 in more detail, what term do you not like?
- I am sorry but the clause cannot be altered, it is linked to ....
- Do we need to run it past legal again?
- Which country law is applicable? ( Important when it comes to breach of contract and if you need to sue the other party or recover debt).
- Can I courier the hard copy over to you ahead of our meeting?
- Do you need it electronically?
Negotiation
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