Ten Tips for Successful Negotiating

 

1. Develop "negotiation consciousness." Successful negotiators are assertive and challenge everything. They know that everything is negotiable. "Challenge" means not taking things at face value. On a practical level, this means you have the right to question the asking price of that new car.

Being assertive means asking for what you want and refusing to take "no" for an answer. You are assertive when you take care of your own interests while maintaining respect for the interests of others.

2. Become a good listener. We are so busy making sure that people hear what we have to say that we forget to listen. Many conflicts can be resolved easily if we learn how to listen. You can become an effective listener by allowing the other person to do most of the talking. Follow the 70/30 Rule -- listen 70% of the time, and talk only 30% of the time. Encourage the other negotiator to talk by asking lots of open-ended questions -- questions that can't be answered with a simple "yes" or "no."

3. Be prepared. Gather as much pertinent information prior to the negotiation. What are their needs? What pressures do they feel? What options do they have? Doing your homework is vital to successful negotiation.

4. Know your goals. Before beginning any negotiation, determine the outcome you want. What is your ultimate goal? Where are you willing to compromise? What is non-negotiable?

5. Aim high. People who aim higher do better. If you expect more, you'll get more. Successful negotiators are optimists. A proven strategy for achieving higher results is opening with an extreme position. Sellers should ask for more than they expect to receive, and buyers should offer less than they are prepared to pay. You may be pleasantly surprised when the other person agrees to your terms.

6. Be patient. Whoever is more flexible about time has the advantage. Your patience can be devastating to the other negotiator if they are in a hurry.

7. Don't make the first move.

The best way to find out if the other negotiator's aspirations are low is to induce them to open first. They may ask for less than you think. If you open first, you may give away more than is necessary.

8. Don't accept the first offer. If you do, the other negotiator will think they could have done better. (It was too easy.) They will be more satisfied if you reject the first offer -- because when you eventually say "yes," they will conclude that they have pushed you to your limit.

9. Don't make unilateral concessions. Whenever you give something away, get something in return. Always tie a string: "I'll do this if you do that." Otherwise you are inviting the other negotiator to ask you for more.

10 Aim for a win-win. The goal of negotiation is not to destroy your opponent. It’s to arrive at a solution that all parties are happy with. This kind of negotiation builds lasting business relationships.

 

Vocabulary

13. Match terms (1-23) and their definitions (A-V):

 

ABC of Negotiations

1	agreement	A	offer made in response to an offer by the other party
2	alternatives		reduced price
3	bargain	B	provide customers with goods or services
4	bargain price	C	discuss a business deal in order to reach an agreement
5	bedrock price	D	try to change a person's mind by using various tactics
6	concession	E	any other choices a person or group has, rather then agreeing with the other person or group
7	commitment	F	an obligation to do something or deliver something
8	compromise	G	an agreement where you get less than you want but also give less than the other person wants
9	condition	H	A stipulation or requirement which must be fulfilled.
10	contract	I	lowest possible price
11	counter-offer	J	arrangement between two or more people or companies
12	deal	K	a topic that needs to be discussed in a negotiation
13	discount	L	the results of the negotiation that everyone agrees to put into action
14	final agreement	M	accepting less on one specific point in order to get something from the other person on a different point
15	issue	N	reduction in price
16	negotiate	O	a business transaction
17	party	P	written agreement between two or more parties.
18	proposal	Q	calculate (e.g. price of something); find a solution
19	quote	R	to give in to another's requests
20	range	S	either side in a negotiation is called a party, whether one individual or a whole group
21	supply	T	give an estimated price (a quotation)
22	work out	U	course of action, or plan, put forward for consideration;
23	yield	V	a selection of products sold by a company

Grammar

The golden rule of negotiations is this: never make concessions; always trade concessions. If you give something away, make sure you always get something in return.

The best language technique in this stage is to make every sentence an ‘if’ sentence: “we might be able to bring the price down by 5%, but only if you can increase your order by at least 10%”. That way, any concessions you appear to be making are tied to something you want from the other party.

The conditional forms are the cornerstone of negotiations. For proposals, offers and bargaining, the first and second conditionals are frequently used. In negotiations, the first conditional form (if + present + future) is used when we are more certain. The second conditional form (if + past + would infinitive) is more tentative.

 

14. Look at the examples and translate the sentences.

 

1. If you agree to the new working conditions, we’ll sign the contract now.

2. If you increased the order size, we could / would reduce the price.

3. So, we'll reduce the price by 5% if youincrease the order by 5%.

4. Unless you increase your order, we won't be able to give you a bigger discount.

5. Provided you deliver the goods in September, we can give you a bigger discount.

6. Suppose they don’t accept, what will you do? 

7. If you accepted 5%, we’d be prepared to negotiate the second point.

 

15. Complete the sentences using the right conditional form.

1. If your conditions are competitive, we (place) an order.

2. If I had more time, I (do) a course in business English.

3. If we had known more about their culture, negotiating (be) easier.

4. If you (customize) your CV, your chances of getting a job will be better.

5. We (cancel) our order if you don't deliver the goods by Friday.

6. If Brittany (speak) better English, she would apply for a job abroad.

7. If you (tell) me about the problem, I would have helped you.

8. I (let) you know if I weren't satisfied.

9. If you execute the order carelessly, they (place / not) another order with you in the future.

10. If I were you, I (worry / not) about the presentation.