9 Rules for Negotiating a Complex Deal

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  1

  munna_live

  04/16/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  OMG .this is the best article ...this site is heaven ..

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  2

  gkanegis

  04/16/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  You need to understand the drivers for your counterpart, what are their business needs, how much flexibility and authority do they have, and what they need emotionally to feel like they've gotten a win. Note that doesn't mean win/loss as a good negotiation will be win/win. Finally, to the extent possible, view the negotiation from your counterparts point of view. While you may not want or be able to offer all that they want, understanding their point of view is critical to reaching a meeting on minds on a winning strategy and result.

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  3

  nicholas clifford

  04/16/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  and....... once you've agreed the deal , SHUT UP......not one word more......no, dont think about it .....stay schtum...just smile, sign if you need to.... and walk away

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  4

  reuben@...

  04/16/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  Very helpful article. Points 3, 4, 5, and 6 all go together. In addition to knowing your pricing parameters, you should understand what you're willing to trade off. Build a good value case first, build your pricing around that, and if the customer resists on price, lower the price by taking away value.

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  5

  Ajeet Singh

  04/16/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  ofcourse the artical is very good but i am impressed with Nicholas pt. of view thats true really the advice is much valuable.

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  6

  Ian P

  04/17/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  If I may disagree with Nicholas Clifford, there are two words you should always use after closing a deal... "thank you" in conjunction with a smile and a handshake.
  

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  peter.dilger@...

  04/17/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  Manage the concession process
  
  The answer is very simple NEVER give concessions always TRADE with an if and then - if i was to agree to that then I would need .....
  If you give a concession - give without receiving something in return there are two problems - the concession has no value and secondly if you give concessions the other party will keep asking for more
  
  Negotiating is not all about price - thats bargaining - you can make and lose more money arround the other considerations like payment terms, delivery, quantities, technical support, warranties, returns, exclusivity, marketing support, and many more
  It is also worth considering the issues around having "a plausable rationale for the position you are taking" - learn to seperate reasond from demands - the other party will find it hard to attack a demand " I want 5%" but relatively easy to attack your rationale - "because inflation is running at etc"
  
  Hope this adds to the thought process
  
  

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  alok ojha

  04/17/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  The key is to Prepare well (Point No 1), even if you are negotiating with your existing customer There is learning curve for the customer also He too tries to be more wise next time.
  
  1 Some idea of how critical is the product / service to the customer provides the sales person some maneuverability
  
  2 If the customer/ negotiators are a team ( differs from organization to organization) it is interesting to know who is from the end user department and who is from techno-commercial side . The end user is keen for quality/ timely delivery where as commercial team are keen on pricing related consideration.
  
  There is another aspect in B2B negotiation " Patience " it pays
  

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  sumitbaldua

  04/17/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  2 & 4 Point not practically possible for a sales person.
  

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  sriedel

  04/17/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  Do not answer the question that was never asked or you may buy back all of your negotiations!

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  11

  Malcolm Sask

  04/17/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  4 thoughts;
  
  1) I'm surprised that there is no step anticipating or revealing
  what the other side's wants vs needs are (assuming your
  own prioritizing happened during preparation)
  
  2) Agree with Pete's 'If...then' concept, but be strategic by
  creating high resistance over issues you don't mind
  conceding, so you have higher reciprocity value on issues
  that are important to you.
  
  3) Perhaps this is obvious, but complex deals often have
  several members at the table, so ahead of time clearly define
  the role and purpose of having each of your own team
  involved. The flip side is that there is almost always an
  opportunity to use someone's big mouth on the other side to
  your advantage, expect it, watch for it, and then pounce
  when it happens!
  
  4) Never, ever be comfortable with your 'standard' methods
  when working in other cultures. It may be a global economy
  but there certainly are home field advantages.

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  Q N Q

  04/17/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  Geoffrey, Healthcare business where surgery is expected eg. Cardiac etc and end-user can not afford it ( almost in 90% cases) is the toughest one wherein negotiation is involved with third party. Many a times their interests are vague. Then Smiling face is half the meal and Mr. Nicholas's advice is correct while closing the deal.
  However you have given good basic guideline for new comers.
  Thanks.
  

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  13

  DeonBasson

  04/19/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  THE MOST VITAL ATTRIBUTE IN TOUGH NEGOTIATIONS IS TO UNDERSTAND THE PSYCHOLOGY OF NEGOTIATION
  
  Where most organisations get it wrong is to truly understand their customers and I am not talking about understanding the customer's needs and requirements (that is important also), but understanding who that specific customer is and when I say who the customer is I am referring to what messages do I pass to that customer given the way the customer thinks.
  
  Let me elaborate.....
  
  Our thinking preferences are major contributors to the strength of our negotiation and communication and hence the ability to persuade people. Some people enjoy blasting facts, while others think it is boring; some people want to hear about the big picture, while others think it is too vague; some need variety while others need to specialize. Our thinking preferences differ from each other even more than our fingerprints, creating complete different styles of communication. However if you pitch in the style of the person you are negotiating with, you will enhance your success rate dramatically. The 4 types of thinking preferences that we all have are :
  Visionary people are opportunistic, risk takers and enjoy new ideas. When talking to them talk about the future and the bigger picture, but don't be inflexible and don't play it too safe.
  Connected people focus on people and are emotional. When talking to them talk about people and family, be supportive and keep eye contact, but don't be insensitive or impersonal.
  Analytical people want all the facts and like to analyse. When talking to them talk with logic and prepare your facts, but don?t be too informal or unprepared on facts and don't create answers.
  Methodical people want order and get things done. When talking to them talk each point to conclusion and stick to an agenda, but don't be disorganised or introduce too much change.
  SPEAK THE LANGUAGE OF THE PERSON YOU ARE TRYING TO INFLUENCE AND NOT YOUR OWN PREFERENCE.
  
  To do your own free profile and get some more information go to www.2interact.com and follow the blue arrow.
  

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  14

  peter.dilger@...

  04/19/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  Deon
  
  More of an advert than a reply - might want to look at Strength Deployment Inventory SDI or DISc or Insight which do the same analysis

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  15

  GeorgeKP

  04/22/09 | Report as spam

  RE: 9 Rules for Negotiating a Complex Deal

  before doing all that, make absolutely sure that you are talking to the right person...