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4 Tips for a Successful Negotiation Meeting

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February 25, 2022

Having a killer negotiation proposal is only half the battle when entering a contract negotiation.  One of the most important things you need to do to become an expert negotiator is pre-prepare. Preparation is the area of the negotiation process where you have complete control over the outcome, so making the most of your time before entering the meeting room is key to your success. 

Prepare a SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. The purpose of analyzing each of these factors is to identify leverage points. If you can discover the strengths and weaknesses of both your firm and the counterparty's, you can identify areas for opportunity, growth, and financial gain. 

However, don't just focus on the positives. Having an insight into the weaknesses of your business is the best way to improve, and understanding your vendor's weaknesses helps you identify areas to target while negotiating.

Analyze Your Perspective

When entering into the negotiation process, it's easy to think too much about the counterparty and not enough about your own perspective. While it's extremely important to have a firm understanding of your potential new supplier, it's equally important to iron out your own viewpoint. That way, you know exactly what you're aiming for. 

You should also consider what to do if the sale falls through. Having a backup plan will save you time and stress in the event that your negotiation is unsuccessful. To best understand your own stance, ask yourself these questions:

  • What do I want out of this negotiation?

  • What are my vulnerabilities?

  • What is my reservation point?

  • What should I do if the sale falls through?

Separate the People From the Problems

Negotiating a new contract can be a difficult process that sometimes leads to tension between parties. However, business negotiations should never become personal. While it's important that each party gets their point across and discusses the issues they have, separating the people from the problems is essential in maintaining good working relationships. Taking personal emotions away from the negotiation table not only allows you to see the proposal more clearly but also enables faster decisions. 

Effective Contract Presentation

Once you've established your stance, researched the counterparty, and prepared questions for the vendor, the final element of planning should be contract presentation. How your contract appears, its format, and how it flows directly affect the outcome of your negotiation. So, make sure to keep your contract looking streamlined and professional. One way to do this is to use an easy PDF compressor. 

When the Negotiation Is Unsuccessful

Even with extensive preparation, you can't always bring out all your desired outcomes, and some negotiations will be unsuccessful. However, an unsuccessful negotiation isn't always a bad thing. 

Typically, negotiations fail because the deal isn't right or the vendor doesn't suit your business. It's sometimes a good thing to walk away and find a new vendor to partner with. 

How Your Local Chamber of Commerce Can Help

Extensive planning is essential to get your ideal solution. It can also help avoid unwanted results such as losing the sale or losing money.  

To find out more about how you can achieve your desired outcome in negotiation, join your local chamber of commerce.