How to Conduct Commercial Negotiations

How Conduct Commercial NegotiationsPlanning negotiations typically includes the following main items:

    * Preparation and preliminary planning

    * To propose and start negotiations for the sale

    * Fixed a problem and customer needs

    * Obtain confirmation from the client that he actually has such needs

    * Proof that the products and service companies can solve problems and meet the needs of

    * Generalization of the benefits of purchase

    * Analysis and control.

 

Useful Tips:

I) How to Meet a Partner  

Foreign company interested in your proposal, is ready to come to you for negotiations. In the letters, telex and telecopy agreed terms, the program of the visit, a visit to the company. You should be well prepared for this visit. Sometimes we forget, it would seem on the details. For example, many of us have met the representative of the company at the airport, escorted him to the hotel? Unfortunately, this does not happen often, but our "service" (search for a taxi, contact the administrator of the hotel) still leaves much to be desired. These unusual, uncomfortable moments, you can harm, and vice versa - to take care of the meeting, it is advantageous to declare itself.

So be careful about how to arrive at your company cordially greeted at the entrance, was carried out in a comfortable waiting room and offered to withdraw his coat, sit "at home", have a cup of tea or coffee.

Speaking of tea. In foreign practice, even in unions with many years of experience, very often you can see a picture: the talks ended, people were already standing forgiven, and at that time secretary of the elbow or other body parts (hands full tray) opens the door and makes a meal. It turns out she did not expect that negotiations will conclude so quickly, and included a kettle with a guest appearance.

Make sure that on the table before standing mineral water and spotlessly clean glasses. Do not forget opener.

If you put an ashtray on the table, it is a signal that smoking can be, but before you smoke, ask the permission of the presence of women. If you do not have ashtrays on the table, you can not smoke. In this case, be prepared for the smoking room. You can use the break to get out of the difficult situation during negotiations.

Try to lead the meeting room in the proper form. In any case, it must be very clean, not stuffy and noisy. Chairs should be comfortable and not placed in front of the windows: it can prevent sunlight distract unseemly landscape. In any event, the guests should be invited to choose their seats.

If a meeting room has a telephone, ensure that the Secretary is not connected with this number. In other words, the situation should help calm conversation partners to be able to speak without interference, and not be distracted. At the front door should hang a sign "Do not go in, negotiations."

II) To the Negotiating Table: General Tips

By the time the guests all the groups involved in negotiations with your hand, should be assembled. Bad impression owners who in the presence of visitors continue to discuss their affairs, entrances, exits, even with an apology.

IIa) Are remembered First and Last Sentences

After dating put the cards in front of guests. Make an effort to remember who belongs to which card! Correctly pronounce the names. If you find it difficult to read the name of the partner asked, at the start, repeat aloud, and do not confuse.

To make conversation flowed easily, it is necessary to start with a friendly greeting and phrases of a general nature. Give your partner sufficient time to ponder your answer, especially if you figure out his opinion.

Conducting negotiations must be friendly and ask direct questions, listen to answers, correctly interpret and verify, assess and accurately record all relevant information, and create a favorable image of your company. Avoid leading questions (ie questions suggest the answer that would please ask). Ask questions one at a time, by formulating them so that they sounded neutral, do not take anyone's side, do not put into question the reliability of a partner, not moralizuyte about his political, religious beliefs or behavior.

Be attentive and receptive to that and as they say. It would be an illusion to believe that the negotiation process can outsmart the interlocutor only using different tricks and gimmicks and get him to go for excessive concessions. In any negotiations can not do without the patient and deliberate reasoning.

IIb) Generally Should not Be

- Use the time factor for the pressure on the interlocutor, for example, forcing him to start negotiations for a long time to wait;

- "Pressure" on the companion terms - set in front of him obviously unrealistic deadlines for the implementation of agreements;

- To seek benefits for itself by mimicking the "misunderstanding", the endless demands proof, fool, etc.

It should be remembered that the negotiating partner, as you are well prepared and can be falsely substantiate his statements, without succumbing to all kinds of tricks.

Take for granted the exact analysis of the balance of their own interests and the interests of the partner, which is especially important in determining the purpose of negotiations, ways and means to achieve it. So do not start negotiations without a careful phasing of the plan.

At the talks may have a temporary tension, disorder, interference and difficulties. No need to lose my temper, if all proceeds are not as desirable. Look for new ways. If you can not achieve the planned result in the negotiations cautiously to express their emotions. Saving importantly, in the little things you can and give up. Just do not be satisfied with partial success, use effective arguments to refrain from the assurances of empty promises.

Begin negotiations with the most important aspects of trying to gradually reach agreement on key issues. After that you should move on to discussing the issues on which agreement can be relatively easily and time-consuming. And only then useful to focus on key issues of the agenda of negotiations that require further discussion.

IIc) Atmosphere of the Talks: Manner of Speech of Participants

On the atmosphere of negotiations affects the manner of speech of participants:

  * Because it is too loud speech with a partner can give the impression that you try to force their views;

  * Is too quiet or slurred speech is also hindering the progress of negotiations: A partner is forced to ask counter-questions to ensure a proper understanding of you;

  * Hasty statement of thought can create the impression that you just want to get him, and, conversely, too slow presentation will lead to the conclusion that you are playing for time.

And one more rule, which, alas, too often neglected our, business people. At each firm is the so-called "keu-persons", ie people that affect the decision. Moreover, it may not be the director or his deputy and the man, who is not a prestigious position at the firm. However, his opinion for various reasons (skills, experience in this field, personal contacts, a thorough knowledge of the subject, etc.) is crucial. This practice is widely known in the world, and companies spend a lot of time and money to identify precisely those people with a partner and often try to first get them. So, even if that's such a "key person", remember that the decision taken by the head, is in talks head, join the conversation only after the head turn to you. If you want to add something, ask the permission of the ongoing negotiations.

In short, under no circumstances enter into the presence of, a partner in the war of words, no matter what were your relations with the leader. Sometimes one at random spoken word can change accents and even derail the whole thing. In addition, the partner should see in front of representatives of the Company, in which mutual understanding and respect prevail. This - person firm. Need to resolve all contentious issues between themselves in preparation for negotiations.

IId) Do you Know How to Ssk Questions?

In the initial stage of the negotiations should be encouraged to partner to provide information and talk about their needs and problems. This allows the later stages of the transaction agree on the most suitable conditions, or benefits from selling products and services. To do this, you can use, according to U.S. experts, the following questions:

IId.1) Questions About the Views

For example: "What are your views on the new system ...?" or "From what you have concluded that the majority of the industry focuses on ...?" or "How do you intend to continue production ...?"

IId.2) Questions About the Facts

For example: "By the way, how many people work in the company of your firm?" or "By the way, what is the performance of your car?" Note here, as mitigated by the sharpness of the issues with the words "by the way," among other things. "

IId.3) Leading Questions

For example: "Do you consider ,..." or "What if you get down to business on the other side?" .. " At this stage of negotiations for the most part have to say your contractor, as he answers questions - opinions and factual issues. If your partner deviates from the desired direction for you, you should intervene and ask the following question to return the conversation back on track.

Based on information obtained from responses to previous questions, you can draw parallels between the products, services (or their individual characteristics) and the needs of the company-buyer. To this end, emphasis should be placed on three or four or five major benefits that can get your partner to enter into business relations with your company.

IId.4) the Question of Consent

For example, after the announcement of the benefits associated with the performance level of the machine, the question of agreement could be as follows:. "Would you like to have a car of such power, right?"

If you properly assess the needs of a negotiating partner and offer real benefits, then the answer to this question would be: "Yes." Value of the answer to the question of agreement lies not only in the fact that he supported the participation of the counterparty in the trading process, because every advantage consistent affirmation or agreement, but that he had formed a positive, favorable view of the sales offer.

It is understood that before the submission of regular benefits you do not ask us, the buyer a negative question. For example, after the story and the performance of the machine should not speak to the client: "I think you did not expect that we can achieve this" performance, is not it, mister ...?" The answer to this question is "No", and a number of such response tends to develop in a negative or, at best, an uncertain buyer's position in relation to the offer.

There is a rule: negative questions should be used only if there is a need to act hints in the discussion of benefits and services of competitors.

Of course, the counterparty can answer "No" to the positive question, if you have incorrectly assessed his needs, problems or suggestions. However, you can regain control by putting the following question - a question-explanation

IId.5) Q-explanation

For example, after and on the positive question: "Would you like to have this power level, is not it?" partner to answer "No", you should ask the question: "Could you explain why? Using a question-explanation can positively influence the course of negotiations, because there is additional information and possibly neutralize the latent anger in the partner, which could block the successful completion of negotiations.

IId.6) Cumulative Issue an Opinion

For example, "Well, all of the major benefits that you receive from our services and products that you think about this, Mr. ..?"

IId.7) the Question of Finding Landmarks

For example,

- I have identified five major benefits of our products and services, but I'm not sure which one is most interested in you ... Perhaps this is an advantage associated with the level of performance?

- No, I am pleased with the performance score.

- It may be benefits associated with delivery?

- No, this "everything is in order.

- Maybe it's the benefits of mobility?

- Yes, perhaps this is what interested me, if I am confident that ...

Nuisance or question set, but before discussing them, you can use other kinds of questions.

IId.8) Question-Statement

For example: "If I can prove the fact of mobility, weight, whether you are ready to order?". The answer to this may be "Yes" if only doubt was sincere, and not imaginary, hide other obstacle. In the latter case, use another kind of question should be - about the hidden obstacles, such as: "Do you have other reasons?"

All answers conditions, the company offers the buyer should you strictly recorded for subsequent analysis and decision to action.

III) The Questions That Will Help You Prepare for Negotiations and Successfully Carry Out their

1) Why is this company has invited you for talks? (Reason)

2) The objectives of this company?

3) The main characteristics of the firm? (Professional, social, demographic)

4) How many employees your company has recently held talks with this company?

What impression of the talks?

Can you see the recording of the interview in these negotiations?

5) Who is the most successfully negotiated with this company in the past?

Who does it most successfully in the present?

6) What are the features of the upcoming talks?

What kind of humor prefer your future contractors? What are the taboo topics?

7) Try to learn the names of the leaders of this company. Whether they will attend the upcoming talks? Try to learn how to achieve positive results in negotiations with them?

8) Who will represent you in negotiations with this company? What is your attitude represents a person to you personally? What positive traits can be observed by you in this person?

9) What do you think, if all your questions are answered?

What are the major anticipated questions that you may ask?

What topics may be offensive to your contractor?

10) What kind of message (information) will be most intelligible to your opponents and the most valuable to the firm-contractor?

Should you submit any documents to back up your message (drawings, charts, reports)?

11) Does your company's "own man" who would help you prepare for negotiations so as to provide feedback''between you and your counterparts?