The negotiation is part of the daily life of any person, but in business it is absolutely essential for success. Do not pay due attention to the trading company may lose key customers and paralyze rapidly. Most of the trading strategies appear to be common sense, but often people do you take the emotion of the moment, ignores common sense and follow the ‘instinct. The emotion, luck and magic have no place in a successful negotiation! Perseverance, skill and discipline are needed to handle the circumstances and check the best deal possible.

Negotiators experts often define their work and their methods as the “negotiation game”, this definition may be inappropriate for certain when the stakes are high. However, we can define the negotiation just like a game between two parties where you need to check their egos and keep an eye on the big picture at any moment.

The preparation

The negotiations should be preceded by a preparation of the field of “game”. During this stage you must get as much information as possible on the agreement that you want to contract and the person with whom you should address. Knowing the ‘agreement is being negotiated will help us focus on the strengths and weaknesses of trading. If the other party is very likely to have experienced a history that might contain useful information. If possible, you should talk to colleagues who have already experienced a negotiation with this person, because many negotiators always develop the same patterns and styles so that you can use to their advantage.

If you are a buyer, make sure you are familiar with the product or service that will be addressed in the negotiations. If you notice other side of your weakness on the details or the product may have as its primary objective to make a bluff or they can be designed to create anxiety and uncertainty. Psychology plays a crucial role in the ability to exploit the lack of competence and preparation of the other and so the ability to anticipate the next move.

Most of the negotiators has one goal in mind before starting, for example, the price. The negotiation should be based on realistic expectations, taking into account certain constraints that may be superficial. During the course of negotiation, the target may change due to some unforeseen changes or actions made by one party, so the ultimate goal must be realistic and would hold the first offer or counteroffer.

Before starting negotiations, will require that the other party is fully empowered to make binding commitments, unless you want to find in a position where you feel you have reached an agreement, only to find that the agreement must be approved from someone else who is higher up the chain.

The strategy

There are fundamental principles that must apply to every negotiation. The first offer is usually the most important step is the benchmark by which all subsequent bids will be judged and compared. You do not ever get what you ask, so it is important to make the first offer aggressive and effective. The asking price usually includes a margin or a block or to kick off the negotiation. The goal is to make a good deal and then, hopefully, start to discount the seller that we expect. Do not worry about offending the other party, because until the offer is not ridiculous, the other negotiator will continue the negotiations in the hope of resolving it in the best way.

As a buyer, do not completely reveal the available budget or other constraints for the ongoing negotiation. In fact, the promoters from favorite trick is to mix the product specifications, deadlines or other parameters, in order to sell an inferior product at a price that the buyer is willing to spend.

There must always be something positive that gives way to the negotiation. If you present a product to a buyer, you should consider the inclusion of commercials and speeches to draw attention to the other party. We must observe the clues, like body movements, the objections and reactions to what is being said. Be prepared to suspend or cancel the negotiation can be useful when things are not going anywhere either party seems stuck in your position, so it is useless to continue under these conditions. If you come near the conclusion of the negotiation will feel the pressure to close the deal, but instead, we must be able to be patient when the other party is not. This can be difficult for those who are rewarded with instant gratification (the closure of ‘deal), but the last thing you need to think about the other part is that you want to finish quickly because there has been no evidence to contradict.

From a contractual point of view, a counter will automatically reject all previous bids. Once an offer is made, you should expect to accept or reject the offer, or make a counteroffer to keep the negotiations open. If the proposal is rejected and we are required to submit a new bid or better, do not fall into the trap, since it would amount to negotiate with them, and you should never do this. If the last offer on the table is yours, you should always insist on a counter to force the other party to change its position before making another offer.

In addition to exploiting the weaknesses of the other party, the focus is best to take advantage of its capabilities. If you are the sole supplier for a particular product, it will be possible to speculate on the whole line of products offered. If the economic conditions have created a market where the product is sold is in great demand and supply is low, you will have the power to contract with a higher price. However, if you are the buyer, in the early stages of market crisis and low demand for the product, you typically have the advantage of good deals and check the best prices due to slackening demand. The current economic situation is a classic example of what happens when supply far exceeds demand and therefore there is a decline in market prices due to promotional offers and discounts offered by retailers.

You will need to establish a solid base at the beginning of the negotiation process, demonstrating their knowledge and technical expertise on the subject of negotiation. In practice, this “game” can intimidate the other party and allow you to strengthen your credibility.

Tenders

The offer is much more than just a sum of money; it must include all elements of negotiations and is the basis for a contract that formalizes the agreement. In fact, make an offer without fixing all the details, can be discovered only at the end that there was no point ‘encounter with the other party. The basis of the pact should include the offer price, the statement of work to be done, the identification and quantity of goods or services offered, delivery times, warranties, terms and conditions of the offer and the various and any documents incorporated by reference.

Set aside during the negotiation is always an element of an exchange to negotiate, such as a lower price for a different option. These elements of an exchange for trading should be kept hidden until you need it to close the deal and get the price you want. Even if your primary goal is usually the price, you should always remember all the other elements of ‘supply. You should not be forced to accept the proposed contracts as “industry standard” or as “something that is always used.” We must remember that everything, absolutely everything is open to change. If the other party refuses to amend the onerous conditions, it is better to consider the possibility to apply somewhere else.

To avoid misunderstandings, the offers should be submitted in writing and include all elements of the pact. It’s a good idea to write down notes with the reasons for each offer. These notes, of course, will not be disclosed to the other party, may be valuable in case things go wrong and need to restart the negotiation. During the negotiation process (even if it is successful) you will still be able to learn the dynamics of the negotiation, and to refine the approach and technique. If you work for a company, the notes are frequently used to document the outcome of the negotiations or to complete the tender documentation.

Solutions for win

Throughout the negotiations we must try to determine what is believed to be an acceptable outcome for the other party. It may be a combination of different things that are not necessarily related only to price. For example, the delivery date may be the most important thing for the other side, while the product quality may be the secondary factor.

Understand the priorities of the other party is just as important as knowing one’s own, in order to understand what would you do if I were in his shoes. In building your bids there should be an attempt to meet some of the priorities of the other party, but in a way that does not weaken your position overall. We must be prepared to sacrifice the little things in exchange for the bigger things that you do not want to grant. It ‘must, therefore, know your limits and know how much you are willing to move forward on all aspects of the transaction.

You have the power to influence the negotiation process on your behalf, and so the aim should be to ensure a good deal, do not pull the rope to the other party too, especially if you often negotiate together. The most effective negotiators are professionals who know their job and do not reveal their personality or irrational behavior that could interfere with their mission. Will they do believe the other party to have done the absolute best deal?

Once the deal is completed, you should be able to work effectively with persons of the other Party during the whole execution of the contract, in fact, if not satisfied, probably; the other party will not negotiate with you in more future. The comparison is a common phenomenon during the negotiation, in fact, at some point the cooperation and compromise will be needed to get a deal.

The closure

A successful negotiation requires a sense of time, creativity and a profound awareness and ability to anticipate the next moves of the counterpart. Negotiation is like a game of chess, each move must be made not only to build the next move, but also to advance. Generally, the moves should be progressive, and of course you can expect the same thing the other side.

You have to have in mind the purpose of negotiation, the only way to decide the strategy and be prepared to close the deal by playing the last chance if the parties are close to conclusion, but they can not make that leap that brings them closer. All offers that lead to that point in the negotiations are important because they set the stage for the final handshake.