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How do you present the value you bring to the table when negotiating a deal?

When it comes to negotiating a deal, we need to make sure all the aspects are met. It creates a win-win situation for both the parties.  Negotiation skill is a must life skill which everyone should have as it can help you in variety of different situations.

Any negotiation is said to be successful when it has a good balance between claiming and creating value which is critical and often misunderstood.

Creating a value occurs when the solution found creates a win-win situation for both the parties or atleast one without affecting or hampering the other.

On the other hand, value claiming refers to how value is distributed in a negotiation.

It is important to make sure that when negotiation is made it is fair and well – balanced according to both the parties. This includes company’s mutual benefit with their customers, lenders, suppliers, and other stakeholders.

And this is done with collaborative problem solving technique. For this we also need to share information and this will create an understanding of needs and expectations.

For negotiation, there should be alternatives to offer valuable trade exchanges. By analysing interests creative solutions can be made for overarching values.

One way for this is practicing reciprocity which will provide a give – and – take with a positive end result for all sides.

This also gives us a high – low trade confidence through which we can make gestures creating high value for other party without making any losses for you.

During negotiation few things like showing generosity will, in turn, make the other team more willing to give up a term, such as lowering their price or adjusting a time frame in your favour.

When we make a kind gesture, reciprocity works in our favour. It should be in a form of gift and not a compromise for the other. Once you make an offer we should wait until the counterpart reciprocates for making further any concessions.

While negotiation we need to ask questions related to deal and listen to the replies for coming on a result. This will also bring some hidden interests which might not have been shared previously. And to bring our interests into table we need frame question accordingly which will also help in driving a conclusion while making a deal otherwise the responses will be guarded.

By analysing interests, you might uncover overarching values with the potential for high-low trades.

There are six strategies for creating value at the negotiation table as below:

  1. Exploring your alternatives to make best decision.
  2. Accessing their alternatives to choose the best.
  3. Set the stage for success through which we get to make the best deal.
  4. Insist on reciprocation but making it’s a win – win situation.
  5. Explore interests further so that if any left would be noted and changes can be made accordingly.

By doing all the above activities we can make a great deal with a successful negotiation creating a win – win situation which means no one faces a loss after a deal is made.

 

About Snehal Deshmukh

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