Industry Breakdown: How To Use Your Negotiation Skills To Guarantee Your Security

One can see an air of insecurity in the world financial markets wherever you go - for the first time - irrespective of where you find yourself in the world.

Warren Buffet said that it is only when the tide goes out that you can see who is wearing no swimsuit. In other words, it is easy to be prosperous when the economy is thriving; it is only when tough financial times arrive that we can easily distinguish quality & commitment.

How can you use your negotiation skills, negotiation training or purchasing training to avoid losses in the current economic situation?

Use 'Loss Framing'

We are more interested by evading loss than by attaining the very same gain. Kahneman & Tversky's Prospect Theory work describes how people will become risk seeking when trying to avoid a loss whilst they are likely to be risk averse when seeking benefits. In the way that we negotiate, we can make the other side aware of the unique items that they stand to lose if they don't agree to our requests and otherwise gain if they do.

Create Alternatives

In times of uncertainty it is vital to create alternatives so as to strengthen our negotiation position. Creating options are important in the context of negotiation and the strength of alternatives to securing a transaction is the primary driver of our negotiation power.

We normally wait until we know that we are not going to make a deal before we start thinking about alternatives. We risk entering into unfavourable transaction and if we have not studied all the options. Similarly, thinking about the alternatives available to the other side in the negotiation will give you a clear understanding of their relative position of strength in the negotiation. If they have strong alternatives available then they will be more aggressive and if they don't, they will tend to be more accommodating.

Use Reciprocation

Reciprocation is one of the key principles of powerful influencing skills, because we are most likely to return to others the form of behaviour that they exhibit towards us. In times of economic uncertainty it is vital that we act in the interests of the other side if we would like them to act in ours. You can use this principle to your advantage by acting first and invoking the rule of reciprocation. One note of caution and make sure that you register the obligation with the other side.

Move from price to value

It is key to take the focus off price and home in on the Total Cost of Ownership. For any service, product or solution that we buy or sell, there is always an exchange between value & price. If we only focus on the price, the best that we will do is to barter and it is only when we investigate the entire lifecycle of the service, product or solution that we buy or sell, that we begin to discover opportunities for negotiation. Before you mention price in negotiation, examine your counterparty's long term strategic fit, capabilities, switching costs should they wish to change a business partner, financial stability and potential risks or negative consequences that may occur when your counterparty doesn't manage to reach agreement with you.

Remember that the magic in negotiation is found in the quality of your preparation. In times of economic uncertainty it is more important than ever to commit adequate time to planning your negotiations.

One Simple Negotiation Skills Method That Will Instantaneously Deliver Better Negotiation Outcomes
Research has proven that high objectives will constantly outdo low aspirations and if you therefore exaggerate your expectations at the negotiation table, you will continously influence your negotiation outcomes positively

Enrich Your Negotiation Skills By Discovering The 1 Element That Separates The Novice From The Professional Negotiator In The Negotiation Game
Understanding your counterparts interest in your negotiations is one of the most imporant elements to attain and ensure profitable, gratifying and long term business relationships.

Two Critical Factors Of A Successful In-House Negotiation Training System
Merely depending on the negotiation abilities of individuals is a familiar oversight businesses make. Developing a strong negotiation capability is contingent on critical factors: The negotiation strategy, process, the individual's skills and the supporting network.

Sales Training For Today's Business Environment
Sales coaching is a tool of modern day sales and was totally unnecessary in days gone by when people frequented local businesses in their small towns as a matter of course. Because of limited opportunities and means of travel, the local hardware store and grocery were usually the first choice for most people's needs

Improve Your Negotiation Skills By Employing These Examples On Dealing With The Vice Tactic In Your Commercial Deals
You will inevitably have to negotiate with counterparts who use tactics against your organisation. It is very important to be able to recognise negotiation tactics and have the confidence and negotiation skills to counter them successfully.

Proper Negotiation Training Can Demonstrate That Failing Can Be More Valuable Than Succeeding
Instead of indicating to your opposite number that supporting my offer will assure a deal, it may be even better to say and specify what they are going to squander if they do not support it.

Important Aspects To Take Into Consideration When Applying Your Negotiation Skills In Cross Cultural Discussions
We could easily make the mistake of stereotyping people according to their national culture whilst ignoring the other elements of culture that will contribute to the success in your negotiation.

Ever Thought About What Makes A Great Negotiator With Excellent Negotiation Skills?
This is a question that many people before have tried to answer, but this is the wrong question and this is why.

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Industry Breakdown: How To Use Your Negotiation Skills To Guarantee Your Security

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