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The negotiating process

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  7. Basic Negotiating Tips

After small talk to establish a good rapport, both groups normally present their opening position. However, strategies and tactics have been prepared and there is usually room to maneuver. Parties will prepare an ideal position but will be prepared to make concessions and move to a fallback position to meet the required conditions. Proposals and counter-proposals will be made as part of this process. It may also be necessary to identify and overcome obstacles to a settlement. After a great deal of bargaining or haggling, both parties should compromise without losing face. Finally, a deal will be reached and a contract will be signed.

Opening

The purpose of the opening stage of negotiation is to position yourself and your needs, letting the other party know what you want, both as a outcome and in the process of negotiation

If you open first, then you are showing a lead and forcing the other person to follow.

If you open second, then you have the opportunity to respond to whatever the other person says.

At the opening stage:

Create a positive atmosphere quickly.

Respect cultural expectations of behavior.

Establish a framework: agenda, procedure, roles.

Agree a timetable.

Establish a framework: agenda, procedure, roles.

Stress common interest.

 

During the negotiation

Listen and clarify the objectives of the other party.

Check to make sure they understand you.

Focus initially on areas of agreement.

Make constructive proposals.

Be clear, firm and to the point.

Handle conflict positively.

Be creative and flexible when bargaining.

Reach a position of mutual advantage.

 

Ending the negotiation

Summarize and agree the deal.

Clarify future responsibilities.

End positively.

 

After the negotiation

Recognize success.

Learn from failure and improve for next time.

Build up and extend a new relationship.

Some golden rules

DOS DON`TS
· have clear objectives with strategies for concession and fallback · know the negotiating culture of your partner · be flexible · when bargaining, give what is cheap for you and valuable to them · keep your true objectives secret as long as possible · be friendly when you haggle over money · never set unrealistic targets · never give anything away without getting something in return ·never be the first to make an offer ·never accept the first proposal ·never alter your offer without hearing a counter-offer · never say “no”, say ‘if” · never make promises you can’t keep

Useful Expressions


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Planning negotiations| Unit 4. Questioning

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