Preperation for Negotiation

How to Prepare for Any Negotiation Session

If you think successful salespeople “wing it” when it comes to negotiation, think

again. In truth, they prepare for every negotiation with the same rigor as a student

preparing for an upcoming exam. Smart salespeople realize effective negotiation depends

on preparation. They take time to think through their own position and that of their

counterpart so they can ultimately handle anything that may arise during the bargaining

process.

To become an effective negotiator and a more successful salesperson, you must

understand the power of preparation. The first step is to solidify your position. Start by

answering the following question: “Where do I stand?” In other words, what is your

position in the negotiation process?

Knowing your position means more than saying to yourself, “I want this,” or, “I

want that.” In most cases, your position will encompass more components than just the

issue driving you to the bargaining table. Before entering the crossfire, use the following

three inventory items to establish your position:

1. Know What You Want

Rather than enter a negotiating situation with a vague idea of your position, take

time beforehand to formulate a detailed picture in your mind of what you want. Start by

making a list of your demands. Say, for example, you’re applying for a new job. In this

case, your list may include a desired salary, benefits, and vacation time.

Be very specific in your list of items, because specific demands carry more

negotiating power. When you know exactly what you want, you will feel more confident

and your counterpart will respond more favorably to your requests. Sometimes just acting

like you expect a positive response will sway the other party in your favor. And while

you can’t always rely on your confidence alone, the force with which you present your

demands will at least give you an edge.

2. Know Where You Can Afford to Compromise

So what happens if you...