My Effective Negotiation Behavior
- Competitive by nature in most of the situations
- Able to understand the opponent perfectly. Ready to compromise on some critical issues depending on opponent’s effectiveness in negotiation. If the opponent does not match with my capabilities, I will try to be competitive and aggressive in the negotiation and close the deal. If the opponent of over matched, the only my way of dealing with the situation is ‘Compromising’.
- Though, I am very aggressive in my negotiation, I know how much close the deal amicably.
- With my personal experience of handling negotiation conflicts in my early stages of life, I know what I can offer (in return) to close the negotiation in favor to me.
- The competitive attitude never let me give-up any negotiation irrespective of the ability of opponent (either big or small).
- I believe in open and direct communication in negotiations and follow the same. And, the best part is, most of my clients like open conversation.
- I always show my confidence in the proposal I give to my customer. I feel, if the proposal does not carry the confidence (reducing the price because my opponent has quoted lesser than me), the customer will take you for granted. So, stick to your words and carry or maintain same confidence until the negotiation is completed. I always do the same.
- Openness and transparent in the negotiation. Most of my customers just do not entertain my opponents because I am transparent to them on pricing and offerings part.
- Though, I show aggression in my negotiation, I always try to be as humorous and friendly as possible with the customers.
- Reading customer mindset as well as opponent mindset.
- Closing the negotiation with a positive note. I try to think more rationally while giving commitments and resource allocation before the agreement is getting signed.
My Ineffective Negotiation Behavior
- I am kind-hearted; most of my opponents try to take this as an opportunity to seal the negotiation.
- The stubborn and never give-up nature, sometimes, become my weakness in negotiations because one needs to work-out the best price for the customer to settle the deal amicably. Some of my deals were lost because of my stubborn and never give-up nature on pricing part.
- As I am aggressive and dominant in nature, I try to be argumentative in most of my negotiations. Some of my customers raised this issue with me.
- Sticking hard to one number (In terms of price). Not discussing any other pricing options with the customer.
- Blindly hurting customer ego by blatantly saying ‘Seems, you are not interested in the product, you seem to be lying etc’.
- As I feel, I am a born negotiator, I do not prepare for negotiations. But, my recent negotiations taught me a great lesson. If you are unprepared, several unintentional things can also fall into ineffective negotiation behavior.
- Good Listening Skills. I always take active participation in negotiations not only by speaking, but also by listening.
- Competitive as well as Compassionate in negotiations.
- Avoiding Complex Situations, where I am not really competitive enough
Concepts that have given great insights to my negotiation behavior
The Concept of Relationships/Networks also has given most insight into my negotiation behavior. I always love to be loyal and transparent to my customers. No matter what the purpose of my meeting with the customer is (negotiating a big order or a casual meet), I will try to be reliable and transparent to the customer. I build relationship with the customer by following the rule of reciprocity. The Rule of Reciprocity emphasizes three major areas.
- Be trustworthy and Reliable – As I always open to honest communication with the customers, they never try to bargain regarding the pricing. You cannot get this kind of treatment from the customer unless they believe in you.
- If your opponent treats you unfairly, let them know about it – This is where I become more aggressive and try to outmatch with my opponents
- If somebody is fair to you, be fair to them – I feel, this is related to my weakness. Sometimes, I show sympathy on my opponent, who takes that opportunity to out match me.
The Concept of Preparing the strategy gives most insight to my negotiation behavior. As I feel that I am a born negotiator, I never used to believe in preparing a strategy for a negotiation. But, after I lost a couple of deals, I am trying to adopt concept of preparing a strategy to my next negotiations. When I read this concept in Richard Shell’s ‘Bargaining for Advantage’, I totally fascinated to the concept. Richard has clearly elaborated the concept with the help of situational matrix, which is used to determine the basic situation you face in any negotiation process. I am, still, not proficient in using situational matrix, but definitely, it helped me understand the importance of preparation for a negotiation process. Situational matrix also helps you to derive a concession strategy. Depending on the quadrant you locate, you can come out with a concession strategy to avoid competition in the negotiation process.
The basic bargaining styles have given insights to my negotiation behavior. The bargaining styles are Competitors, Compromisers, Problem Solvers, Accommodators and Avoiders. Just by reading, I understood that the concept of basic bargaining styles has given me the most insight on my negotiation behavior. Nearly, all the bargaining styles have impacted my negotiation behavior except accommodators. I love to be competitive in most of the situations and try to compromise depending on the situation. As I listen to both the customer and opponent carefully, I take quick decision to solve the problem. And, I also mentioned that my weakness is that I will avoid the complex situation, which is not in my control. I am a non-accommodative person in nature and the same will reflect in my negotiations too. Though, it is very tough to forget a behavior that I got inherently, I am trying to be as accommodative as possible in my negotiations. So, a couple of basic bargaining styles are very close to my personal negotiation behavior.
The Concept of Leverage in negotiation process has also given most insight into my negotiation behavior. Finding the alternative options will improve your leverage in a negotiation process. Some of my customers have given the feedback that I did not provide other options to close the deal. This concept has taught me to find the alternatives to gain control over the negotiation process. I am trying to implement the same in my negotiations as well.
Ethics in Negotiation has really given a great insight into my negotiation behavior. Personal integrity plays a major role in the negotiations. One bad move on ethics will lose your credibility in front of the customer. As I am transparent in nature, I did not get any issues of personal integrity, but when you are trying to obscure something from the customer, you may fall into the trap of personal integrity issue. If you are transparent and open to the customer, there is no scope for ethical dilemma in the negotiation process.
Closing and Gaining Momentum is also key are in the negotiation process. It is very important to give right commitments when you are in the final stage of deals. Richard’s Bargaining for Advantage helped me learn various methods a negotiator to follow while closing the deal. Giving over-commitments will affect the relationships in the future. So, one need to be rational while taking decisions on commitments and resource allocation in the final stages of deal.
Key Learning Points (Takeaways) from the Course
- Be clear with your goals and expectations from the negotiation process. If you are clear with your goals, you can speak confidently in the negotiation process.
- Prepare a strategy for the negotiation process by using situational matrix. Once you draw a situation matrix, you can easily comprehend the likeliness of getting the deal. When you know the likeliness of getting the order, you will be able to prepare for the negotiation in a better way.
- Prepare supporting data and arguments as well if needed.
- Don’t focus too much on money while negotiating the deal. This may not be a final negotiation with that customer. Try to build relationship in the negotiation process.
- Don’t be so stereotyped in the negotiation process. Try to give alternative options to the customer to gain the control on the situation.
- Never hurt ego feelings of the customer by using the sentences like ‘You are not honest’, ‘You seems to be not interested in the Product’. Even if you know the inside-information, don’t get into argumentative mode.
- Present confidence in your proposal and try to maintain the same confidence until the end of negotiation process.
- Know your opening more perfectly. You should be clear in what you are going to speak when you open a discussion with the customer. Be it the price or something else.
- Remember that you should move according to the customer moves in the negotiation process. It will help you close the deal within short span of time.
- Never give a change for an ethical dilemma in the negotiation process. Ethical dilemmas’ will put a full stop to the relationship.
Every individual has got his or her own style and behavior. Both these two factors influence negotiation process to a large extent. If an individual focuses on understanding his own style, he can easily identify his strengths and weaknesses. Improve listening skills and probing skills too. Stay away from the stereotypic nature as it will not work-out in the negotiation process. Follow takeaways for your next negotiation to come out with flying colors.