The key to a successful negotiation - the best practices of the preparation
Prepration: basic research, negotiations?
Most negotiators underestimated the time to prepare for the negotiations, effective and research background for any business. The old cliche says: "Failing to prepare means prepare to fail". You should at least double the time spent preparing for business negotiations, we expect the performance of the actual negotiations. For example, if you estimate that is one hour long negotiationwith our business partners, we should not consider issues about two hours preparing for this engagement. The best of our preparation, the greater the chance of better results in our business negotiations.
negotiations on the preparation the most important component of best practice and economic negotiations is particularly important for complex multi-issue, multi party negotiations. Now let's analyze what is important to our efforts to support and be deemedDecisions in trade negotiations.
Before the understanding of the connection.
The work context of the negotiations can be understood by a business analysis of the context. Some of the key elements for the negotiation of view for understanding the context of a company include:
What is the nature of the sale / purchase you make with regard to the risks, the level of cost and complexity of the project?
CompetitiveAnalysis - What is the nature of the market, our company and what alternatives you have available. For example, for a purchasing role, it is important to understand the market, supply, prepare for strength of our negotiating strategy. We negotiate with suppliers with one other potential suppliers in a fully competitive market mechanism. Identify the characteristics of the market for certain goods and services will allow us to understand how the labor of theirCompetitiveness and the largest supplier.
It is a question of when we look at the creation or maintenance of long-term relationship, the chances of a successful development of future activities. For example, in a situation where we sell a car or a house that we usually only interested in the best price and not really interested in a long term relationship. One approach ompetitive without reference to the relationship is likely to help us achieve our goals and objectives, if not a solid relationshipinvolved. In contrast to most complex commercial negotiations, and even if the price is usually an important factor, there are many other criteria to be met by both partijen provided a basis for mutually rewarding and reports.
We had to do with the other party in the past and what is their most likely way of doing business?
That looks about the same power? (Legitimate power, the power to reward, coercive power of expert speakersPower)
How qualified are the negotiators on both sides of the table?
What cultures are represented in these negotiations? Cultures (ethnic, corporate & Professional should be taken into account). Need to do all the tasks related to local customs?
Who are all parties and persons involved in the negotiations and decision making? In case of sale, it is important not only those responsible for final decisions, but also consumers of our product or serviceDeveloping internal support groups as part of our organization counterparts. A diversified approach is so different than purchasing roles look different than the benefits and advantages of buying a product or service is required. Final decision (read about people, money eg CEO, FD, etc.) are most likely interested in the return on investment and higher sales and margins that the final result of the purchase of the product, services or solutions. Latest User Searchimproved productivity and efficiency are the financial aspects almost entirely irrelevant.
According to the objectives Understand the deal.
In any negotiation it is important to achieve understanding of the physical resources that the parties are all trying to win or not. If we are not prepared and we treat our priorities we have set ourselves at risk to be exploited and / or ends with an agreement that suboptimal. Or involved in negotiations to sellbuy-side, consider the following to prepare for negotiations
Price and payment - principal obligations - Delivery - Warranties - Intellectual Property - Risks, etc.
Fees and payments: the idea that the price negotiation is the only logical problem of not enough. Competition and the complexity of most stores will have to find ways to create value and move the negotiations for further negotiations of position data from thesynergistic and creative common problem. professional buyers do not buy the cheapest solution, but with its organizations, with the lowest total cost of ownership charged. This means that in addition to our company, product attributes and the seller, we are able part of the game with our buy the TCO - Total Cost of Ownership approach, which together include:
Cost: The price includes freight costs, legal costs,Storage costs, the costs of initial training, etc. Maintenance costs - repairs, loss of productivity or revenue during maintenance - The cost of use - fuel or energy costs, security, performance monitoring costs. Support costs - insurance, taxes, management, etc. Vendor performance metrics - financial stability, cost improvements - Costs the buyer or supplier and can include custom taxes, fuel, etc. are the property of the tax Quality -Testing, defect management costs and losses associated with possible failures outside. Customer service - how many people are involved, for how long, etc. Remember that satisfied customers tell others about their positive experiences.
The cost is much more to attract a new customer to an existing coverage.
If we are able to offer the other side, the cost over the lifecycle of our products, solutions and services, while the price-performance ratio we Minimizeare in a better position to find common ground with our trading partners and ultimately to increase our market share. You must also clear the payment terms. If you buy, make sure you know what is included in the price, cost of which is what happens and if you do not pay on time.
main responsibilities: What work does and what the supplier provides the buyer will in return. Check the products and services are clearly defined and should reflect your priorities.Add all relevant quantities and specifications. As a provider, make sure you can live with all specifications provided by the buyer.
Shipping: When and where are the goods or services are delivered? What is the cost for delivery? How important are the delivery times and what happens if the delivery does not happen on time.
Warranty: a promise that the goods or services must meet a standard. If a supplier does not expect an agreement with the signing of aGuarantees for everyone and make sure you know the limits of what you offer. To build trust and credibility, make sure you promise to live.
Intellectual Property: difficulties in negotiating IP ownership can lead to delays in the execution of a contract.
Consider carefully negotiated IP properties and the following factors:
Which party pays for R & D? Development could be used by competitors for your loss if youNot really the time? - How to prevent competitors using the same IP?
Intellectual property is an important factor in a highly competitive market has become. Risks: The best way to manage risk is to negotiate the contract to include the fact that the elements to take all risks written. cultural analysis is crucial. In Asian countries such as China, the purpose of negotiating the contract was not signed. China - unforeseen circumstances, when they occur, are resolvedand the ratio should be maintained for each hazard by using the relationship as well. Discover the risk aversion of the hand, since the value of negotiations, the potential returns are created by transferring risk to the party, to the situation to go is more, in exchange for the grotere.
The analysis of the above items are granted planning strategies using maximum support from the business and planning sessions most crucial. Always DisplayAll your goals and possible negotiation of goals for each record, you and your opponent to the finish with the best information you have.
successful | negotiation | best | practices | preparation |