According to a publication by Grandes PYMEs, small and medium enterprises (SMEs) tend to negotiate more through intuition than method. Although this strategy works on some occasions, it probably won’t secure consistent results all the time. We are all capable of negotiating and we can learn to do so better each time. 

Harvard experts affirm that every minute of negotiation requires at least one minute of preparation

Preparation is essential. It helps to picture the scenario before it occurs, understand the other party, the objectives and points in common of both parties involved, among other factors. Grandes PYMEs sustains that planning ahead helps define the negotiation roadmap. Then, the negotiator simply has to follow it and have sufficient flexibility to adjust his behavior to the possible changing circumstances that may arise.

• Prepare yourself: this is essential to any negotiation process. Harvard University experts affirm that every minute of negotiation requires at least one minute of preparation. It is very important to know who the decision makers in the organization with which you are going to negotiate are and, more importantly, to understand their needs. It is also necessary to be perfectly familiar with the discount ranges if you are negotiating a price or any other element that can influence the negotiation.

• Define the objective: it is advisable to previously determine if you want to close a general deal and later get down to specifics; or to start out with the details of the transaction. If the objective is to form a strategic alliance, then it will be more effective to negotiate a general agreement at first; however, if the objective is to negotiate a specific purchase, then it will be necessary to determine the specific aspects.

• Write down the main interests and sort them by relevance: this refers to previously organizing and writing down both parties’ needs and interests. This helps come up with a better position and convince the other party. For example, maybe price is not as important as delivery times or quality; hence the order of priorities would delivery times, quality and price.

• Know the market: it is essential to know about the field in which you are negotiating. By way of example, if the other party is a customer from the IT industry, which is very cost-competitive, consider that price will be a priority; however, if the client belongs to the pharmaceutical industry, product safety will probably rank first.

• Offer alternatives: it may help to propose alternatives that the other party can evaluate without having to make a commitment. For example:What if I pay in two months?;What is the price if I pay cash?; What if we deliver the product or service in phases or installments? This allows both parties to have a greater margin of negotiation or latitude to reach an agreement that will maximize the benefit for all.  

• Separate results: a tip is to make agreements without ties to other negotiations. According to Emprende PYME, a recurring example is when the other party says: “We are giving you lots of business; you should be granting us a concession.” You should not let yourself be influenced by these comments. When negotiating, it is advisable not to mention previous negotiations; they should be treated as if it were the first time.    

• Seek empathy: Harvard University negotiation studies have proven it: in a cooperative negotiation where both parties are friendly and have the common goal of reaching a win-win outcome, the piece of the pie or cake (profit) increases for both. In contrast, in a competitive negotiation where the parties are adversaries, the pie or cake is divided and the parties do not gain as much.   

• Identify capabilities: if one of the parties is considered weak and recognizes that it withdraws positions in response to pressure it is possible to come up with alternatives for closing the deal. For example, to include another person with firm negotiating skills.

Grandes PYMEs also suggests remembering the following phrases before negotiating: 

• “Do not back down”
• “Do not make concessions unless you are asked and always for something in return”
• “Do not give in easily. Do not give out extra information”
• “Do not make commitments before making sure that they can be achieved”
• “Let the other person talk”
• “Offer alternatives”