Scribd
Upload
784 views5 pages

10 Rules of Negotiation PDF

The document outlines 10 rules of negotiation provided by Alan McCarthy to resolve conflicts through mutual compromise and build sustained relationships. The rules are intended to help negotiators control negotiations to their advantage while protecting against aggressive tactics. Some key rules include listening more than talking, not accepting the first offer, not disclosing your bottom line, and avoiding making quick deals without review. Following these rules can help negotiators feel less regret than those who don't recognize negotiation strategies.

Uploaded by

Mukesh Kochar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
784 views5 pages

10 Rules of Negotiation PDF

The document outlines 10 rules of negotiation provided by Alan McCarthy to resolve conflicts through mutual compromise and build sustained relationships. The rules are intended to help negotiators control negotiations to their advantage while protecting against aggressive tactics. Some key rules include listening more than talking, not accepting the first offer, not disclosing your bottom line, and avoiding making quick deals without review. Following these rules can help negotiators feel less regret than those who don't recognize negotiation strategies.

Uploaded by

Mukesh Kochar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

10 Rules of Negotiation

The Resolution of Conflict by Mutual Compromise


In today's competitive business environment, an
absence of negotiation - or negotiation skills is perhaps the single largest contributor to the
lack of success. The changing nature of the
buyer/supplier relationship in this increasingly
challenging marketplace means all business
people need to be ultra sophisticated
negotiators.
Of course good negotiation isn't about you
Winning and someone else Losing. A
satisfactory outcome leaves both sides feeling
that they haven't compromised too much, felt
threatened or unnecessarily pressurised, or
made sacrifices that they didn't want to. It is
about reaching a Win-Win resolution. People

now expect to negotiate and see the process as


a positive relationship builder, rather than a
potential threat. Principled negotiation can
achieve a solution that is acceptable to all
parties involved, which of course, encourages
repeat business.
But good negotiation skills are not just an asset
in the traditional sales person/customer
situation. In all areas of life, with colleagues,
employers, even your own family, being able to
negotiate well will allow you to get what you
want without damaging your relationships. A
lack of ability in this area can be the single
largest contributor to preventing people and
businesses getting what they want (and need).

Alan McCarthy of the Resource Development Centre suggests 10 negotiation rules that
will resolve conflict by mutual compromise and promote sustained relationships.

What are the 10 rules of successful negotiation?


The rules are intended to identify the techniques available to control and influence events to
the individual's own advantage. They also provide a good defence against aggressive
negotiators, thereby producing better agreements with fewer expensive concessions.
Everyone feels that they know how to negotiate, just as everyone knows how to kick a
football. But try explaining the off-side rule to a beginner and compare that with
understanding the subtleties of defensive negotiation, it is then that the need for clear rules
becomes more important.

1. Don't Negotiate.

Don't. (Negotiate) unless you need to. Always evaluate your needs
honestly and buy/sell hard; never, if at all possible Negotiate, as it
always requires compromise, which costs. Some people are tempted to
negotiate too soon, just because the other party says this is the
negotiation phase - doesn't make it so. Work out your ideal
position and don't be afraid to state it straight away.

2. Never negotiate with yourself.

People regularly try to second guess the other party and in doing so
minimise their own expectations i.e. Ideally I want to be paid 10,000
for this, but maybe they don't have that much. If I ask for 10k or
nearest offer, it might sound less aggressive - this is the start of
negotiating with yourself. If you start reducing your expectations
from your ideal before you even see the whites of their eyes, you
will always end up with a lesser, over-compromised deal. Start out
with your ideal and wait for the other party to ask for a lower figure.

3. Never accept the first offer.

There is almost always a different (better) offer behind it. Don't


forget they will be instinctively (or professionally) trying not to break
rule 2 - so their opening stance will obviously be leaning towards their
ideal (perfect) position - with probable room for manoeuvre. Also, be
aware, that you can sometimes annoy the other party by accepting
their first offer; if you accept too quickly they will think they should
have asked for more, resulting in their perception of a lose/win
conclusion (they lost, you won).

4. Never make the first offer.

(If you can help it!) It leaks your bottom line straight away. Always
ask the other party What is your ideal (or target) price? If you are
backed into a corner - or a I asked you first situation occurs,
make the offer under protest and don't break rule 2. State your ideal
position i.e. your list price if you're selling or your lowest target price if
you're buying.

5. Listen more and talk less.

Good negotiators lead by listening, not talking. Let them ramble on


even if it sounds like rubbish, you must bide your time and bite your
tongue. Continued silence will provide you with the opportunity to
pick off their position by their leaked messages of movement. Also,
don't forget, whilst You are listening You can't leak your own position
and give them the advantage!

6. No free gifts.

Always ask for something in return. No one values a free gift for long
(it immediately decreases in value once it has been offered), and a free
gift today becomes tomorrows starting point. Don't forget free gifts
are not always money, but can be the disclosure of useful information
or even giving up your time too easily.

7. Don't be the repentant rookie

Don't forget the differences between cost, price and value, and work
with these. Cost is how much the concessions cost you, price is how
much you want to charge for it and value is what its worth to the
other party
i.e.: The cost of this tap washer is 10p, the price to fit it is 10 minutes
of my time, which is 10, the value to the other party is that it doesn't
ruin their bathroom carpet and destroy the living room ceiling plaster
at 500 replacement. Aim for the super win-win where both parties
get high value concessions at low cost i.e. We will finish the job early if
you pay 100% up-front in cash.

8. Watch out for the 'salami' effect

(i.e. itemising every element of the deal and pricing it). Start with a
complete value-orientated price e.g. materials, labour, clean-up and a
5-year guarantee - 1000. Not 300 materials, 500 labour, 100 cleanup and 100 5-year guarantee.
The other party will always know where to buy cheaper materials,
then query your labour rates, say they'll do the clean-up themselves
and forego the guarantee - thank you very much!
So a 1,000 deal easily becomes 200-materials, 400-labour in total a
smaller, 600 job. That's the Salami effect!
Only salami when, and as far as you are requested to. Never 'band'
your expectations - it leaks your bottom line i.e. I am looking for a
10-15% discount. Which one do you think you are more likely to get?
Yep, it's going to be closer to 10% than 15%!

9. Never make a quick deal.

Say 'maybe', a quick deal usually ends up in regret. Check your


understanding of their offer, by repeating it back to them. It may be
that the other party think that they have seen an advantage for them
(or mistake by you) you have missed, so give yourself time to check the
proposed agreement thoroughly. Never be afraid to take a short break
and review your position before concluding proceedings.

10. Never disclose your bottom line.

Not before you start, not during the discussions and never (ever) after
a successful win-win conclusion. By doing this you will always be giving
the other party an undue advantage over you. People learn their
negotiation skills from their interaction with you. They also learn your
limitations and abilities in post negotiation analysis. So don't let them
know how you work under any circumstances - keep them guessing
about your no-deal positions and they will have to move more towards
you than you will towards them.
If you follow all of these rules you will rarely feel the pain the losers
regret, something often experienced by non-professional negotiators
who fail to recognise that there are rules to follow when resolving
conflict.

Contact: alanmccarthy@rdc-uk.com

Alan McCarthy is an award winning career


salesman, selling for Rank Xerox, Exxon, Dun
and Bradstreet, US Lines ICL and Fujitsu. In a
career spanning 30 years, Alan has sold into,
and managed, sales teams selling to
Financial Services, Logistics, Automotive, IT
and Consultancy sectors.
With a realistic and experience based
pragmatic style, Alan continues to engage in
successful assignments with a wide variety of
clients. Focussing on coaching and
developing experienced sales teams and
their executives, he has conducted over 500
assignments in 26 countries.

His experience in competitive selling


strategies for high value sales propositions
has resulted in his clients winning hundreds
of millions of pounds worth of business in
highly competitive arenas.
Alan has worked with large enterprises such
as Oracle, BT, Fujitsu, Invensys, IMI, Europcar,
Federal Mogul, Siemens, AT&T and Epson in
addition to many smaller companies.
Alan is the owner of
www.negotiation-skills.org and is associate
trainer and senior advisor to
www.brightsparkstraining.com

For more information go to

www.negotiation-skills.org

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy