Three Stages of Negotiation
Negotiations between suppliers and customers require a methodical approach in order to extract the best value from your negotiation.
The three key stages are simple:
- What happens before a negotiation
- What happens during a negotiation
- What happens after a negotiation
To “wing it” or negotiate “on the fly” is likely to lead to missed opportunities and unexpected demands from the other party to which concessions can rapidly follow.
Think of giving concessions as a cost to your business, one that we would rather avoid incurring. Having a clear 3 stage approach to a negotiation will help maximise the return on concessions you may need to give.
Pre Negotiation = Preparation. This will be where 80% of your time will be spent. Setting your objective levels, quantifying variables, understanding your counterpart’s objectives, variables and trading pressures. Obtaining internal alignment and authorisation of your negotiation parameters. There are many considerations prior to a negotiation but good preparation is the key.
During Negotiation = Holding to your negotiation plan. During your preparation you will have planned how to approach the negotiation including determining who should go first, tracking multiple offers, effectively proposing and receiving counter proposals, handling objections, managing your behaviour to align with their behavioural style and dealing with possible buyer tactics.
Post Negotiation = Implementing the agreement. Who does what and by when? Holding your counterpart accountable for their side of the agreement and ensuring you deliver on your negotiated commitments.
Having a clear three stage approach to a negotiation will enable you to identify opportunities, strengthen your objectives and highlight areas of potential weakness.
Of course, we advocate you not only take a 3 stage approach for your negotiation objectives, but also take a 3 stage approach from your customer’s perspective which will highlight both zones of potential agreement and zones which will be a challenge for both parties.
Hexis-Quadrant is a boutique provider of consulting, training and coaching solutions for consumer goods and service based organisations.Our team has decades of relevant industry experience within blue chip