A critical negotiation skill in your business negotiations is how you go about deciding your objectives.
I would like to share with you 3 important points that we cover in our negotiation skills training courses to consider when you are getting ready for your negotiations.
1. What is the absolutely best result for you in this negotiation?
What would a fantastic transaction (one that you would be delighted to agree to) look like?
We call this your aspiration base - in other words, the level at which you will aspire to close the transaction.
You should be aware that it is vital in your negotiation to always ask for a little more than you expect to receive. This means that you should always have an aspiration base that is higher than your targeted objective. By asking for a little more than you would like to receive you enable yourself to make a concession to your counterpart in return for a counter concession.
On the upside, you may just get what you regard to be fantastic if you ask for it! Don't fall into the trap of making decisions on behalf of your counterpart by saying to yourself they will not consider that .Take note that I am not suggesting that you make extreme requests - extreme demands are highly risky and dependent on the cultural context within which you are negotiating.
2. What is the absolutely minimum acceptable outcome for you in this negotiation?
At what point will you decide to stop or suspend your discussions?
If you do not decide on a specific stage at which it will no longer be feasible or desirable for you to close a transaction, then you may become vulnerable to reaching an agreement that you will not be able to live with. This is critical to do as you could easily become emotionally committed to reaching agreement at all cost because you may think that your personal reputation is at stake.
3. What do you think are the aspirations and minimum acceptable agreement levels for your counterpart?
It is also vital that you contemplate the aspirations and minimum acceptable deal levels from your counterparts viewpoint. This will never be an exact science but through proper planning and research of supporting information you may be able to get a good idea of what kind of deal is the standard in your industry or type of negotiation.
By considering the aspirations and minimum acceptable agreement levels from your counterparts perspective, you will be able to identify the bargaining range. Knowing the agreement range or zone of possible agreement (ZOPA) will help you to see if a transaction is possible or not.
Most negotiation training programmes will teach you that the agreement range is defined as the area of overlap between your minimum acceptable deal level and the minimum acceptable deal levels of your counterpart.
Remember that 99 percent of your success in negotiation is dependent on the quality of your preparation. You should spend at least as much time planning for negotiations as you expect to be busy negotiating. If you expect to be in negotiations for an hour, then you should spend at least the same time in preparations.
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