Negotiation Tactics Agreement

by admin on April 10, 2021

A few years ago, a small technology company was in negotiations to renew a critical agreement with an Internet giant. The small business was heavily dependent on the revenues generated by the agreement, and the idea of going out without it, even for a short time, was terrifying. The giant tried to put pressure on the small business and showed little urgency to conclude the deal and indicated that it was not certain that the contract was worth renewing. 12. Never accept the first offer. It is often a mistake to accept the first offer on the other side. For example, if you sell your home and receive an offer, you should object to a higher price or better terms (even if there are no other offers). If you do not counter-attack, the other party will be worried that it offers too much and may end with the buyer`s remorse and try to get out of the deal. And buyers expect there to be a meter, as they expect their first offer to be probably rejected.

Most buyers give way in their first offer to increase by at least 5%-15% in price depending on the situation. Counter-offers and a few back-and-forths are likely to lead both sides to be convinced that they have reached the best possible agreement and, therefore, to become more committed to the conclusion of the agreement. 11. Identify who is the real decision maker. You want to understand which authority is the other person you are negotiating with. Is he or she the ultimate decision maker? Recently, I have had long and fruitless negotiations with someone who has repeatedly told me that they do not have the authority to accept a number of issues on which we have negotiated. He could say “no” to my questions, but he didn`t have the ability to say “yes.” My solution (because I had levers) was that I ended the conversation and said I had to negotiate with the person who was empowered to make decisions and concessions. If you are not negotiating for your own purchases, you will need a negotiating team. Each person on this team brings their unique skills and know-how to the table.

Ideally, these skills should be complementary.

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