18 Must-Have Negotiation Skills For Procurement Professionals
Ultimate 2023 Negotiation guide — A Comprehensive Overview
Negotiation is part of our everyday life. In business, negotiation allows parties to settle disputes, build stronger relationships, and create value in contracts. However, how can you negotiate professionally?
In this article, we will comprehensively tackle what negotiation is. We will go through the process and how you can negotiate effectively with another party.
The topics included in this article are the following:
- Negotiation in a Professional Setting
- How Does Negotiation Work?
- Key Elements in Negotiation
- Negotiation Preparation Process
- The Negotiation Process
- How to Have Power in Negotiation
- Skills a Master Negotiator Possesses
- Negotiation Terminology
- Negotiation Mistakes to Avoid Yourself
- Negotiation Styles
- Negotiation Tactics
- Negotiation Speakers
- Negotiation Books
- Negotiation Training
Once you are done reading this article, you will gain in-depth knowledge about negotiation. Thus, helping you to negotiate and close the deals that you will make in your profession. So without further ado, let us now dive into the world of negotiation.
Negotiation in a Professional Setting
Negotiation in a professional setting is a discussion used to settle conflicts and reach agreements between two or more sides. Negotiation is a “give and take” process which results in a compromise where both sides make a concession to mutually benefit in an agreement.
Negotiation is used in every situation. However, there are certain circumstances where it will require you to become a negotiator fully. These instances involve negotiating an offer, asking for a salary raise, closing a deal, or being a bridge between two opposing parties to reach a compromise.
In negotiation, there are three possible outcomes which are:
- Win-win scenario
- Win-lose scenario
- Both parties do not get what they want but shared all the variables in the negotiation equally
One thing professional negotiators are always aware of is their optics. You may ask, how can professional negotiators achieve their goals while also securing the approval of the other party for their ideals?
It is always wise for professional negotiators to consider what may happen if their decisions and behavior are known by many people. This does not mean that negotiations cannot be private. However, they may pause to think about how various proposals would affect people outside the agreement. Thus, this idea brings ethical concerns as it may clear the way for a fair and honest negotiation.
Furthermore, negotiation is not always a tool for tricking the other party into getting what you want. Negotiation can also open the dialogue for parties to understand their desires. Thus, mutually benefiting both parties in the agreement.
Many people are scared to negotiate as many assume that prices, offers, and the variables presented to them are final. However, this is not true at all.
Negotiation can be a way to make the discussion flexible, ultimately meeting the desire of each party. Through negotiation, you can gain a strong relationship with the other party which will be beneficial for you and your company’s growth.
How Does Negotiation Work?
Negotiation usually involves two or more parties who come together to reach a concession or resolution that is mutually agreeable.
One party will put their trade-offs or position forward, while the other will either accept or counter the conditions with their position. This process continues until parties agree to a resolution or one of them thinks that they reach an impasse and walks away.
In negotiation, participants learn as much as possible about the other party before the negotiation begins. This method allows them to assess what they must do in order for the other party to agree with them.
The length of the negotiation process depends on the circumstances. Negotiation can take as little as a few minutes or, in more complex cases, take years. For example, a seller may negotiate for minutes or hours just to sell to you an appliance. However, negotiations between two countries who are in dispute may take years to even reach an agreement.
Key Elements in Negotiation
In negotiation, there are some key elements that come into play to determine if you are going to be successful. These key elements are:
1. The involved parties
This element lays out the parties involved and their interests in the negotiation. It also includes the background of each party and how it can affect the negotiation.
2. Relationship between the parties
In this element, you will determine your relationship between the parties and to intermediary if you have any. This element also defines your connection with the other party and how it can be beneficial in the negotiation process.
3. Communicating the desires of both parties
In negotiation, both parties must be able to communicate their interest in the negotiation to secure agreements. However, both parties must hear each other to be heard and convey effectively their desired outcomes.
Alternatives are your backup in negotiation. If a direct agreement is not possible, what are the possible alternatives to make the negotiation work? What options are available to achieve an outcome?
Legitimacy checks if the parties in the negotiation can fulfill their promises. This answers your doubts about their validity and the guarantee that they will follow through on the results of the negotiation.
6. Level of Commitment
The level of commitment is a critical element of negotiation as it is the measure of all the parties making an effort to achieve and deliver the negotiated result.
Negotiation Preparation Process
Planning before the negotiation will improve the chances that your negotiation will be successful. You may have heard the adage, “failing to plan means planning to fail” which is perfect in the negotiation context.
Failure to plan properly leads to unclear objectives in the negotiation. You may also use a negotiation style or tactic that is not suitable or inappropriate for a particular negotiation.
Negotiation is a structured piece of business. Thus, why you should not think of it as a simple chat about a deal as discussions in this setting can heavily impact your business or even a whole country.
Negotiation preparation has several stages which are shown in the figure below.
1. Company Strategy
The first negotiation preparation process is to be clear about what you want to do. This may not always be straightforward. However, your business objectives and goals can be your guide to help you know your focus and your expected results.
Your objectives help you provide a definition of the endpoint that you can use to monitor your progress and to know whether you achieve your desired results.
Additionally, your objectives must be clear, measurable, and quantifiable. It will be hard for you to assess whether you have met your objectives if they are not clear. Thus, aligning your objectives is important to have a clear view of what you want to achieve.
Here are some guide questions that you may answer to determine what you want in a negotiation:
2. Negotiation Approach of the Other Party
The information on how the other party might approach the negotiation can come from a wide variety of sources. Some of the most critical are the following:
- The documentation and all information submitted should clearly explain the approach to the contract pricing and performance
- Historical or previous documentation for identical products may give you an idea about the flexibility of contracts during negotiations.
- People who have had previous dealings with them that can provide personal information about the company.
- Information from the exchange sessions may allow you to identify where the other party’s position is firm and where they may allow for compromise.
3. Power Balance
Bargaining power has to be known by the other party to be effective in the negotiation. It does not necessarily mean to be real as long as the power is perceived.
Here are some of the factors that you should consider as you evaluate the power of each party in the negotiation:
The availability or lack of competition may give one side the upper hand in a negotiation. For example, sellers have more power when resources are limited. However, buyers have more power when they have multiple alternatives.
The more that you know about the negotiation, the greater power you have.
Some companies have an in-house professional negotiator. Their experience and expertise can give them the perception and reality of power.
Negotiators may gain power by taking action to lower the risk exposure that is perceived by the other party. Thus, making it a power in the negotiation even if the negotiator taking the action does not perceive the same level of risk.
Time constraints become a source of power when the constraints only appear to one party and not the other. However, you must not be complacent. A time constraint that appears to affect only one party may actually affect all parties involved.
Importance of the deal to both parties
If a negotiator perceives that the contract is more important to the other party, then he/she may be willing to make concessions. Here is a template you can use to evaluate the power of each party in the negotiation:
4. Negotiation Styles
The negotiation style of your opponent in the negotiation can greatly impact the negotiation. But most importantly, knowing your own style in negotiation has a direct impact on your ability to make a good deal.
Master negotiators know how to use their primary negotiation style to their advantage and when it is appropriate to introduce the other negotiation styles.
The negotiation style allows you to communicate your desire and position to the other party effectively. However, there are some instances where you will need to use a negotiation style that will end the negotiation when you feel that the negotiation is one-sided.
Thus, being able to navigate and use which negotiation style is appropriate for a certain situation will have a positive impact on your career and on your negotiation outcome.
5. Strategy and Goal Setting
The first step in making a strategy is to plan the order of addressing the issues. One approach you can use is to start from the least important ones to the most important issues.
Another approach is to address issues according to the anticipated ease of agreement. Agreeing early in the negotiation will set the mood of the atmosphere lightly.
Once you are done preparing your approach, you must now move to identify potential concessions. Flexibility is critical for a win-win outcome in negotiations.
Negotiators expect something in return as a result of their effort in the negotiation. Thus, refusing to make concessions may frustrate the other negotiator and may lead to a lose-lose situation no matter how reasonable your position is.
If you are considering making concessions, then you must identify these first:
- Potential concessions that you are willing to make in response to the concession of the other party
- Concessions that you would expect from the other party in response to your concession
Additionally, during the negotiation, the selection of your negotiation tactics should be based on your personality and the result of your research on the tactics that the other party will likely use.
You should avoid using win-lose tactics. Negotiators should always pursue a win-win outcome. Also, do not try to use tactics that do not suit your personality. However, it does not mean that you cannot explore other tactics.
Successful application of any negotiation tactic needs a great deal of planning as some tactics are treacherous. Negotiators must be prepared to respond if the other party has seen through their tactics. Failing to do so will be detrimental to your reputation and to the name of the company.
The use of BATNA (Best Alternative To a Negotiated Agreement) is one of the most powerful contingency plans in negotiation. Having a well-developed BATNA is a source of great power in negotiation. You may call it a fire exit when the negotiations do not meet your expectations.
Options that may exist outside the current negotiation can tip the balance of power in negotiation. However, attractive alternatives may not obviously appear. It may take some time until you identify them.
If you have a strong BATNA, you have a greater range of alternative courses of action. Additionally, having a strong BATNA enables you to walk away from one-sided negotiations.
If you are unaware of your BATNA, then you are in danger of entering into an agreement that does not benefit you as much as you expect. Thus, before you begin a negotiation, know your options.
7. Carrots and Sticks
“Carrots and sticks” is not a familiar term. What we often hear is give and take, which are two words for the same concept.
Thinking of the important variables for you and the other party in negotiation communicates that you recognize the perspective of the other party.
A variable, also known as an issue in the negotiation, is any assertion that you and the other party disagree with. On the other hand, non-issues are assertions that both parties can agree on.
Differences in negotiation occur due to the different interests and perspectives of the parties. Due to the fact that issues are the roots of differences between the parties, you must know first the key issues that may change those positions before you develop your negotiation objectives.
There are key considerations that you have to take note of when it comes to listing the variables in negotiation. These may include:
- Value for money
- Delivery terms
- Payment terms
- Maintenance arrangements
- The lifetime cost of a product or service
Now that you know the variables in negotiation, you can now think of what you can take from the other party by giving something through concession. Best deals are created when you exchange the variables that have a low value for you and a high for the other party.
8. Negotiation Team
Some negotiations are simple enough to be handled alone. However, those deals are increasingly rare in the business world. Nowadays, for you to thrive in negotiation, you usually need to work effectively as part of a negotiation team.
Negotiation teams are better at effective negotiation strategies such as formulating tradeoffs among issues in the negotiation. However, the team must devote time to discussing the substance of the negotiation before assigning roles and planning the process with your team.
Additionally, it is important to discuss the differences within the team as the other party may use them to exploit you.
Commonly, a smaller negotiation team is more effective in efficiently formulating and attaining the negotiation objectives, unless the additional members can make a significant contribution to the team.
The Negotiation Process
The negotiation phase is the trickiest part of the procurement process. Because if you fail to convince the supplier about your position in the negotiation, then you will have to go back from the start of the procurement process.
Each phase in the negotiation process coincides with the other. Although there is a lot to take into account in the negotiation process, we have divided it into 4 phases that will enable you to understand each phase.
1. Preparation and Planning
Preparation is critical in negotiation. Failing to plan your approach with the other party will likely make the negotiation end up at an impasse.
In preparing for a negotiation, the most important thing is to collect as much information about the other party as possible. Every negotiation process starts with planning, followed by a strong strategy, and then the actual negotiation itself.
This phase involves making sure that all the relevant facts and information about the negotiation are known in order to clarify your own position. Furthermore, preparing before the negotiation will help you avoid any conflicts and unnecessary talks during the discussion.
2. Opening the negotiation
The second step in the negotiation process is to open the negotiation the right way and make sure you have the right content-related skills ready. Having the required skills, such as financial and legal skills, will enable you to create a deal that fits your strategic goals and to use your BATNA better.
Additionally, during the exchange stage, it is important to build a strong relationship with the other party. You must remember that trust plays a crucial role in negotiation. Because who would want to do business with someone you do not trust, right?
3. Analyzing and Influencing
After the parties started the negotiation with the opening bid, it is now time to start the actual negotiation. You can influence your negotiations in many ways. One of the ways is through the use of skills such as active listening and reading body language.
Active listening is not just listening to what other people say. It is actively involving and paying full attention to what someone is going to say. Active listening is a great skill to have as you can make the other party feel that they matter. Thus, it will make them more honest, open, and willing to cooperate.
Having the skill to know the body language of other people will allow you to notice if they will agree or disagree with you. For example, if you notice that the other party is scratching his/her neck when talking about the offers, then it might mean that he/she could be uncertain or lying about what he/she is offering to you.
Another way to influence negotiation is through effective communication. Communicating effectively will allow you to make the negotiation process with less friction, making the discussion smoother.
The last way to effectively influence negotiation is through assertiveness. Assertive negotiators are able to communicate their wishes without making the other party upset or becoming upset themselves.
The final stage in the model of Procurement Tactics is the closing of the deal phase. In the very last step of the negotiation process, you will work on closing the deal, wrapping up what has been agreed, confirming the next steps and any follow-ups, and finally, signing the paperwork.
Typically, skilled negotiations confirm with the other party what has been agreed upon. They also specify who is doing what and by when. Not just between them and the other party but also within their own organization. Failure to perform will always have an adverse effect on the relationship between the parties.
Closing the deal, the last step of our process is the most boring one, but very important. Almost at a deal? Make sure to add one important new variable to the deal table in the final phase. Do not relax! Keep your ‘endless list of gives and takes’ up to date during the ongoing negotiation process.
Why? In most negotiations, the moment to achieve ‘unexpected’ results is in the final phase, where a logical psychological process ensures that people are more likely to give away things more quickly. It is in this final phase, when negotiators are often tired & exhausted, that the highest chance of making mistakes appears.
Last-minute nibbling is a trick you can use yourself by making small requests before the deal is done. This particular trick can be effective, especially if the other party is really intent on just getting the deal done and getting out of there.
They don’t realize that they’ve already lost a good chunk of profit because they haven’t thought much about what the last-minute nibbler got.
Remember, there is no such thing as a ‘fair deal’, but there are many new variables to include in the final stage of the process towards a deal. Purchase volume rebates, lump sums, and growth bonuses are excellent examples.
I want to share a personal example of something I did in the final phase of an annual negotiation. When I came to a final agreement, I directly produced the first draft agreement via email. Not the hour after closing the deal, but directly after coming to an agreement, with all negotiators in the room.
By doing this, I saved myself hours of discussion after closing the deal. Especially when dealing with large,100 million dollar+ suppliers, it often took me months to come from a face-to-face deal to a signed contract. After closing the deal, we went on to the next step: negotiating what we agreed upon.
This was a waste of time that led to many negative feelings on both sides of the negotiation parties. Save yourself time & effort in moments you have the opportunity to wrap up the made deal directly when all negotiating people are still in the same room.
I did this by sharing my screen on a monitor while writing my wrap-up email. I sent that email to the supplier, which directly after sending it, confirmed it with a reply to my email.
5. Execution of the contract
If the parties manage to agree with the negotiation and close the deal, then it is time for both of you to carry out what you have agreed upon.
At this phase, you should take note of any changes or failures on both sides so that if there is another negotiation, you can bring up the ones that you listed in greater detail. Thus, ensuring that both of you will truly fulfill your obligation to each other.
How to Have Power in Negotiation?Power in negotiation is the predictor of the outcome. Thus, why it is necessary for you to know where you can get power in negotiation. Below are some of the sources where you can gain power:
1. Your BATNAThe importance of BATNA in negotiation cannot be overstated as it is your way out if the negotiation becomes unfair on your part. It is the power that can allow you to walk away from unappealing deals. Additionally, your BATNA enables you to put pressure on the other party. By telling them that there are other parties that are willing to give you what you want, then the former may be provoked into doing a compromise. Thus, your BATNA can help you to gain more in the negotiation.
2. Your StatusStatus is obviously another way to gain power in negotiation. The demands of people who have higher status are more likely to be granted due to some benefits that you may think you may gain once you accept their request. Another thing why you can gain power by having status is due to the fact that a person is perceived as more competent and partnering with him/her has an advantage. However, the problem with status is that it can only be accumulated slowly through years of training and experience. Therefore, you should aim to build status by being a trustworthy party in the negotiation.
3. Information about the negotiationInformation about the other party that you collected can give you power in negotiation. Knowing their position in negotiation will allow you to somehow align or approach them with your strategy that also caters to their interests. If you learn what the other party wants in the negotiation, such as their reservation price and desires, then you can make an offer that is slightly better than what they are expecting. Information about the other party also includes knowledge about their culture. By knowing their culture, you will avoid making concessions or offers that may seem taboo with their principles which may cause misunderstandings or worse, disputes.
4. Your ConnectionHaving a wide network of connections does not just give you power in negotiation but it will give you access to the other three sources of power above. The connection does not necessarily mean that you have to be close friends or even an ally with all the networks you have to be valuable. Even having a low level of closeness can be useful. Your connection will allow you to know some hidden or private information about the other party that you can use to gain the upper hand in the negotiation. Additionally, having connections will allow you to find suppliers that can give you big discounts for your purchases.
5. How you prepare for the negotiationWe will never get tired of repeating that preparation is critical to the success of negotiation. Preparing for negotiation is not just about gathering information about the other party. It also includes formulating your strategy by taking into account the information you have collected. If you know that you prepare for your upcoming negotiation, then it can give you confidence that will allow you to steer the discussion on the outcome that you wish to gain.
6. EmpathyYou may think about how you can gain power through empathy. Well, having empathy will allow you to understand the position of the other party. Thus, allowing you to know what you can give and what you can take for a win-win outcome. Empathy will make you understand the interest of the party. Thus, they are also willing to make a compromise in order to make the negotiation work.
Skills A Master Negotiator Possesses
A master negotiator is not born overnight. A person does not wake up as someone great already. He/She has trained hard and spent a lot of years enhancing his/her craft. Here are some skills that you must possess for you to become a master negotiator:
1. Negotiation preparation skills
Negotiation preparation allows you to collect information for you to know the overview of the negotiation, the position of the other party, and how you can achieve your goals.
Additionally, negotiation preparation includes analyzing your BATNA which will allow you to walk away from deals that are unsatisfactory.
2. Content-related negotiation skills
Content-related negotiation skills include technical, financial, and legal skills. To make a great deal, you must possess technical expertise in negotiation. You will always be at a disadvantage if you do not know the technical details of the negotiation.
On the other hand, financial skills will help you create deals that are aligned with your strategic goals. Additionally, it will help you not to overcommit to something that will bleed your money dry.
Lastly, legal skills will ensure that you know the legal aspects of your deals. Thus, ensuring that the other party will comply and do his/her obligation that you both agreed upon.
3. Observational negotiation skills
Observational negotiation skills are crucial if you want to make the flow of your negotiation smooth. Being able to actively listen to what they say will allow you to know their true intention with the negotiation.
Additionally, knowing the subtle changes in their body language will allow you to know if they are sincere or lying when they are making an offer.
4. Interpersonal negotiation skills
Interpersonal skills are important in creating and nurturing a strong relationship with the other party. Additionally, it will allow you to make well-informed decisions that will enable you to make the best out of a deal.
Additionally, in negotiation, you must know how to communicate effectively. Having this skill will allow you to know how you will interact with the other party.
5. Negotiation questioning skills
Negotiation questioning skills will give you a lot of value, especially in negotiation. Questioning the other party about their offers and position will allow you to steer the negotiation in your preferred direction.
Also, questioning is a great way to manipulate the other party. It will also protect you from agreeing on things that are less favorable for you.
When you are new to negotiation, you may have heard a word that seems unfamiliar to you. This is normal, especially if you are just new in the negotiation field. These terminologies allow negotiators to build a sense of community among themselves. Additionally, it helps them to communicate better with other negotiators.
Here are some of the negotiation terminology that you may encounter along your journey to becoming a master negotiator:
1. Anchoring and Adjustment
This is called an opening position when a negotiator incrementally moves away during a negotiation. The choice of an anchor may be based on faulty or incomplete information.
2. Linkage Effect
This effect happens when one deal point of a negotiation is attached to another.
Short term for “Most Desired Outcome”.
A technique where you repeat the last words of what the other party has just said.
Leverage is something that gives you power in a negotiation.
6. Resistance point
The point at which a party will not agree to make the deal as it is the lower limit of the range of acceptable negotiation outcomes.
7. Aspiration point
The aspiration point is the optimal settlement point that a negotiator hopes to achieve.
These terms will help you communicate with other negotiators, especially those who are well-experienced in the field. If you want to know more terminologies in negotiation, then click this link right here.
Negotiation Mistakes To Avoid Yourself
Mistakes allow you to grow personally and professionally. However, there are times when these mistakes can be avoided. Here are some of the negotiation mistakes many people make in negotiations and how you can avoid them!
1. No preparation
Many individuals or organizations rush into a negotiation without proper preparation. Thus, why many of those negotiations always come out as a failure.
Without preparation, you will not know how you will approach the other party effectively.
Additionally, preparing for negotiation helps you understand not just your position but also the position of the other party.
The more rigorous you are preparing for your upcoming negotiation, the better your negotiated results will be.
2. Not understanding the influence of cultural background
Understanding the cultural background of the other party falls within the preparation stage of negotiation. Knowing how negotiations work in other cultures will help you to get better results with your deals.
Additionally, this will allow you to avoid any words and actions that may seem offensive to them. Thus, making your relationship stronger.
3. Letting your emotion impact your judgment
There are multiple studies that have shown that negotiation that starts with anger or confrontation has poor outcomes. Additionally, emotions cloud your judgment.
You should always remind yourself to be objective and know that what you have discussed in the negotiation must not be taken personally.
4. Bluffing and lying
Credibility is one of the most valuable assets a negotiator can have. However, one of the quickest ways to lose your credibility is through lying and making promises that you cannot keep.
Sure, bluffing can sometimes be used as a negotiation tactic. However, you must be very careful in using it. Once your bluff is called out and you do not have anything to back you up, then you may now say goodbye to your credibility as a negotiator.
5. Not asking what you want
In negotiation, you must ask for what you want. Although it may seem simple, in practice, it can be intimidating to tell the other party what you really want. Negotiators naturally fear rejection or are taught not to be greedy.
However, in business negotiation, rejection is never personal. It is merely a reflection that you did not present a concrete argument of why you should get what you want. You should remember that the one being rejected is the offer and not you.
When negotiating, make it a priority to ask what you want. Most of the time, you will either get what you want or an acceptable alternative.
These mistakes that many people omit become a lesson to them which help them grow professionally. However, you can learn these lessons without having to experience them by gaining insight into other people’s mistakes.
If you want to know more about negotiation mistakes that many professionals make, then click this link right here.
Some negotiators tend to get what they want more than others. You may ask, what might make some people better at negotiation? The answer is that people bring different negotiation styles and strategies to the negotiation table.
When people with different negotiation styles meet, the results can be unpredictable. However, by knowing the other party’s approach, you will have the upper hand in the negotiation.
An effective negotiation strategy depends on how you will communicate your position in your own style. Thus, here are the five negotiation styles you need to understand in order to position yourself better in negotiation:
The competitive negotiation style is probably the easiest one to detect. This style is often described as a win-lose approach.
In this approach, one party is looking to get everything they want in the negotiation without giving something up in return.
This style is usually described as the disagreeable negotiator. Dealing with a disagreeable negotiator is considered to be tough and should be avoided if possible.
The accommodation negotiation style is the exact opposite of the competitive style. This is an interesting option as this style seeks to satisfy the other party’s needs while minimizing the level of conflict in the negotiation.
The avoidance negotiation style comes down to completely ignoring the entire negotiation. Here, negotiators prefer to remain objective and avoid creating tensions.
Additionally, negotiators who use this style do not actively pursue their own desires or the interest of the other party.
A compromising negotiation style happens when both you and the other party meet in the middle which is mutually beneficial to both parties. However, both of you do not get what you really want in the negotiation as well. Nonetheless, no one is losing. This is a classic scenario of “splitting the difference”.
The collaboration negotiation style is characterized as a win-win approach. Collaborative negotiators are great at finding innovative solutions to complex problems. By working together with each other, the needs of both parties will be satisfied.
These negotiation styles will help you know how you will approach the other party in your next deal. Thus, it will help you make your own style that suits your personality. If you want to know more about the other styles of negotiation, click here.
Negotiation tactics are methods you can use to gain an advantage in the negotiation. However, these tactics are usually deceptive which is why you also need to be aware of when it is going to be used against you.
Here are some of the negotiation tactics that you may encounter in your journey and techniques how to respond to these tactics:
1. Hanging Gramophone Record
This tactic uses an approach wherein you repeat your demand over and over again in the negotiation.
The hanging gramophone record tactic is also used when the parties are close to an agreement, the other party will tell you that they cannot meet your price whatever they try. This may be reinforced by showing some form of evidence to solidify their claims about your price being too high for them.
- You should be careful not to believe everything that is shown to you
- Decide if you still want to reach an agreement with the other party
- Insist that you will only meet their price if you will gain some concessions in return
- Use your own broken record tactic
In this tactic, you are offered what seems to be a great proposition like a big discount. Little do you know that when you agreed on this, there are conditions that you did not anticipate. Thus, realizing it too late and taking the deal just to save face due to the fact that you are semi-committed.
- Do not rush on saying yes to things that are too good to be true
- You should check carefully all the variables on the table before negotiating an agreement
3. Mystery man
The implication for the mystery man tactic is that some third party that is responsible or only has the authority to change the variables of the other party is absent.
The unseen third party is placed at a level in which it will be difficult for you to make contact to ask him/her about the terms.
- Get the other party to identify the person who is responsible for the negotiation
- Suggest that the issue is between you and the “unseen” person
- Stay calm and ask for a break to discuss the matter with your team
4. Personal favor
A personal favor tactic is an emotive stance. Here, you emphasize the trouble you went to for the other party. This allows the other party to make a concession due to the “perceived trouble” that you have been through just to fulfill their request.
- You should remember that this is a business deal
- You agree to the concession on the condition that they will also grant you a personal favor
Silence is a good tactic to diffuse emotions in the negotiation. Commonly, many people are uncomfortable with it, so they will have the urge to fill the “silence”.
When they fill the ”silence”, it weakens their position in the negotiation. Thus, you can now tell them your demands.
- Use the broken record tactic
- Use even more silence in return
- Tell them that you would appreciate a response regarding your last statement
- Smile and wait for them to fill the void
These tactics are a great way to achieve your desired outcome in a negotiation. However, you must be careful in using some tactics as they may affect your reputation, especially those that are downright dirty. If you want to learn more about the other types of tactics, click here!
Negotiation speakers are already masters in negotiation. However, they did not do it overnight. They have their fair share of ups and downs in their life. Nonetheless, they have succeeded in conquering the challenges in their life which made them popular.
Here are some of the most popular negotiation speakers where you can gain some insights about their journey in life:
1. Louisin Mehrabi
Lousin Mehrabi is an international speaker, trainer, and advisor in negotiations, emotional intelligence, and leadership. She began her career in finance in 2001, on the high-pressure trading floors of investment banks.
She is a certified professional negotiator by the International Scientific Experts Committee of Negotiators. Louisin believes that the world will become a better place through the art and science of negotiation.
Furthermore, she has a podcast called “life negotiations” where she talks to the world’s best negotiators and shares her negotiation skills to help people solve disputes.
2. Selena Rezvani
Selena Rezvani is an award-winning author of two books and an expert on self-advocacy and leadership. She is also known internationally as a speaker, consultant, and journalist.
Selena Rezvani offered workshops to teams and conferences including her sought-after workshop called “Be Your Own Fierce Self-Advocate”.
3. Kare Anderson
Kare Anderson is a respected columnist for Forbes and Huffington Post. She is also an Emmy-winning former NBC and Wall Street Journal reporter.
She has created over 208 issues-formation teams for former President Obama’s first run for office.
4. Linda Swindling
Linda Swindling is a former attorney and a master negotiator. She gained first-hand courtroom experience in negotiating difficult cases and had huge success in closing multimillion-dollar deals.
As a certified speaking professional, Linda helps leaders to improve their sales opportunities, strengthen business connections, and communicate more effectively.
5. Marijn Overvest
Our founder, Marijn Overvest, has more than 20 years of experience in procurement and negotiations. The online courses that he has extensively made help procurement professionals to be well-equipped and successful in the industry.
Additionally, he has closed over €200 Mio + deals with suppliers like Unilever, Heinz, and Pepsico. He was also an invited speaker at the 5th Annual CPO Summit in 2022 where he shared his valuable knowledge and vast experience with other procurement professionals.
These negotiation speakers have already mastered the art of negotiation. However, it does not stop them from developing their craft and pursuing their passion by sharing their knowledge with other professionals.
Their insightful experience in the field of negotiation will help you be equipped and inspired for the journey you are about to start. If you want to learn more about the other negotiation speakers, just click right here.
Negotiators hone their craft not just through experience but by also reading negotiation books. Thus, the reason why many well-known negotiators read books. These books do not just help them in improving their skills and do something in their downtime, but it also helps them to see other perspectives about other ideas in negotiation.
Here are some of the books that we recommend you should read which will help you in your profession:
1. Mindful Negotiation – Becoming More Aware in the Moment, Conquering your Ego, and Getting Everyone What They Want
Written by Gaetan Pellerin, this book covers everything you need to become a master negotiator. Topics such as being accepted, fear of failure, and incompetence are discussed in the book.
The book tells the story of a young woman who is going through tons of failures in her life. The more you read the book, the more you will know how the young woman can get back up. Of course, we will not spoil anything for you. We will let you find it out for yourself.
2. Even CEOs Get Fired
This book that is written by Jotham Stein is all about how employees, executives, and entrepreneurs protect themselves while employed or if they are running their own businesses.
Based on his 25 years of experience in protecting known executives and employees, Jotham Stein, a Silicon Valley lawyer, will guide you through all the pitfalls and practices that he uses to help his client with this book.
3. Negotiation Essentials for Lawyers
Considered an easy-to-use guide for lawyers, this book helps you figure out quickly what went wrong with your prior meetings. Additionally, it will teach you how you can fix things during tomorrow’s follow-up meeting.
Moreover, this is a good book that will help you create a good atmosphere and the skills to get the results you want after the meeting.
4. Influence: The Psychology of persuasion
Written by Dr. Robert Cialdini, this book was first published in 1984 and delves into the psychology of compliance and persuasion that explains why people say yes.
He outlined in his book the six principles that can help you become a skilled negotiator. Additionally, the book will tell you how to use those principles to achieve your decided outcome in negotiations and how you can defend yourself from persuasion tactics.
5. Negotiating the Nonnegotiable: How to resolve Your Most Emotionally Charged Conflicts
This book by Daniel Shapiro is one of the most helpful books on negotiation and conflict resolution. It shows tactics for you to know the common ground and compromise in high-pressure situations.
Additionally, this book will teach you how you can talk about sensitive topics in a productive manner and know the common ground in opposing viewpoints in the negotiation.
These books that we recommend will open your mind and enhance the skills that you can use in different situations in negotiation. To know more books about negotiation, just click right here.
Developing yourself is nice. However, it would be great if you have negotiation training which will allow you to learn everything you need to become a master negotiator.
Having a structured framework will allow you to learn the ins and outs of negotiation. Thus, you will know when to accept or to walk away from a proposed negotiated agreement.
Negotiation training provides neophytes in negotiation with lessons on every aspect of negotiating successfully. A seasoned negotiator may also enroll in negotiation training to do a refresher course about the negotiation skills and principles that he/she might have forgotten.
Furthermore, Negotiation training is a positive way to discover, learn, and reinforce negotiation skills. If you are looking for negotiation training, then you should enroll in our Negotiation Course For Procurement Professionals.
Our course will teach you how to close better deals, prepare faster, and achieve the deal results that you always wanted. Simply put, this course is a perfect fit for ambitious procurement and sourcing professionals that want to be master negotiators.
Additionally, our online course is self-paced. This means that there is no rush and you can attend this online course once you are done with your daily work in the office or your business.
After finishing the course, you will also be given a certificate as proof that you completed our course and that you now have the skills of a master negotiator. So what are you waiting for, enroll now and become the best that you can be!
Negotiation Course For Procurement Professionals
You'll get a certificate after completing the course
Rated 9.2/10 ★★★★★