four ingredients in effective negotiation
objective
once the issue of commitment is settled, we must have clear objectives. otherwise we will invariably settle for less than we need to. not being sure of what we want is a common reason for getting poor negotiated results. ask for more and you get more, ask for less and you get less. if you don't have clear objectives you won't know where to aim, and in every negotiation you will end up 'shooting from the hip'. this will always reduce your authority and will also leave you feeling less than confident. you will get less.
objectives for your company
we need to establish clearly what our company objectives are, what business the company is in. this can cover many areas, but in the context of negotiation we need to have an overall objective that states our profit levels, the type of business or supply that we want, the type of product or service we want and the levels at which we want to buy and sell.
one legitimate objective would be for a business manager, an owner or a buyer to aim to reduce overall costs by 15 per cent while improving specific elements of supply. on the other hand, an owner or salesperson could have an objective of increasing the value of every sale by 10 per cent. by that i don't mean more sales, i mean better sales. more sales is also a good objective but it is not primarily a negotiation-related objective. the two could comfortably sit together.
objectives for the negotiation in hand
before we start negotiation we must know what our goals or objectives are. what is our ideal position, how can we support it or defend it? what are the objectives on price, on delivery, on volume, on frequency? what do we want to achieve from the other person? the clearer these objectives are, the more likely we are to ask for them and the more likely it is that we will get them. the more you ask for what you want, the more you will get.
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