Monday, May 10, 2010

Negotiation

First of all, i'd like to state the main reason of writing this is because one of my friends wants to know about my secret of negotiation. several years ago, my negotiation style was far from good... I then to negotiate with the skill of small trader... it's very simple and rely most on stamina and time delaying method. Until one day, upon seeing my negotiation ability (which is abysmal actually), the Minister of Transportation at that time Mr Djusman Syafeii Djamal give me a negotiation book that save his business when dealing with the Indians, and i mix that book and my small trader style of negotiation which give me a new style which are devided into four main part, before opening, middle and closing :

1. Before, in this part, you should do :
a. knowing your opponents, it's very useful to know their intention to the negotiation, interest as well as weakness
b. give a detailed target of your negotiation, give them points if you have to

2. Opening, in this part it's the essesial part of breaking the barrier, so you should do :
a. give them promises :D <= mostly lies though
b. state the goals from you side <= also lies
c. be patient, don't rush to the main dealing... confuse them with trivial issues to drain their stamina, but be aware, if they look like annoyed with it, try ice breaking jokes

3. Middle, in this part you should talk about non trivial issues
a. Talk about things that you focused on gaining the most, such as pricing issues
b. extract the information which they focused on
c. if it comes to price, make sure to open the bargain as low as posibble, but not too low, cause it will break their hearts :)...
d. when come to price, just make sure to stand on 15 % lower if you are buyer and 15 % higherif you are seller from the exact price you want to achieve (you can raise the limit though, but be aware that they might go for another vendors), this will make them think the actual price is around that.

4. Closing
a. give them trivial bonuses (if you have heart), especially when the deal is too profitable on your side, trivial bonuses are things that are not to expensive... this will make your opponent anthusiastic about the deal, and they will think you are a good person... also this will avoid them to rethink about the main issues :D
b. When you are losing on the main issues, ask for special bonuses like free on delivery, free insurance and so on, if they don't want to just tell them that you think on that price the delivery is for free... or make the price higher a little and ask many bonuses... this will make them attracted to agree on your offering

The essence of negotiation is about giving something for something and so dont you ever give something for free >:)

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