NegotiationA process of identifying the conditions, debating over deals, arranging benefits and agreeing terms.The things those are traded in a deal are referred as variables. These are:<ul><li>Price </li><li>Discount</li><li>Contracts</li><li>Documentation</li><li>Service</li><li>Terms</li><li>Conditions</li><li>Timings</li><li>Schedules</li></ul>

FUNDAMENTALS OF NEGOTIATION

There are four things that increase influence of a party in negotiation.1) Promise of reward: You can provide something other side wants, so they have to listen.2) Threat of Punishment: The apparent intention not to provide something the other side wants.3) Legitimacy: Factual evidence, something clearly weighing in the argument.4) Bogeys: Something fielded specifically to give you an upper edge.

POWER TO INFLUENCE

There is one more major source of power- 'Confidence'If the other side believes that it is dealing with someone confident, organised and competent, it becomes less certain of its position.Confidence comes from preperation, a structured approach, knowledge and belief on oneself.In some merely harsh cases even if you don't feel the confidence, you can fake it, but don't overdo it.

POWER TO INFLUENCE CONT‘D

1] AIM HIGHAim for the best deal. It is easy to trade down, but it is difficult to trade up. For this, devide the variables into 3 parts:The must (what must be taken from the table in any condition), The ideals(what you intend to achieve from the ideal deal), The losses (what you can lose for the deal).Good negotiators keep all 3 kinds of variables in their desk.

FOUR ESSENTIALS OF NEGOTIATION

2] GET THE OTHER SIDE'S 'SHOPPING LIST'How much can you intelligently infer or anticipate about the views of other side.The more you know about other side, the better you can do.Preparation, Experience and Questioning are three aspects that can help you to see through other side.

3] KEEP THE WHOLE PACKAGE IN MINDNever ever underestimate the complexity of process of negotiation.It is the interrelationship between all the elements that makes negotiation work. You need to keep all the elements in mind all the time.

4] KEEP SEARCHING FOR VARIABLESRemain flexible while making any deals. Do not wear your plan or initial intentions like a straight-jacket. Basic goals are crucial but changes occur. Adopt to those changes.Good negotiators are quick-witted and quick on their feets.

1. Never Give Concession: Trade It ReluctantlyThe first part of rule is important because the number of variables is finite and you want your share.The second part is also crucial because perception is as important as fact. We must be seen to be driving a hard bargain.

TRADING CONCESSION

2. Optimise Your ConcessionBuild up the value and significance of anything you offer to trade by:<ul><li>Stressing the cost to you (financial or any other)</li><li>Exaggerating (credibly), that is not to overstate it</li><li>Referring to a major problem you are facing while trading</li><li>Implying that it is an exceptional concession</li></ul>

3. Minimise Their ConcessionReduce the value the other party puts on anything offered to you:<ul><li>Do not overdo the thanks. Use a dismissive 'thanks' instead a profuse 'Thank you so much'.</li><li>While mentioning your profit, devide it into smaller units rather than quoting the total figure.</li><li>Treat concession as granted. Treat them as if they were always a foregone conclusion.</li></ul>

A quickly assimilated, comprehensive guide to the negotiation process. Covers the fundamentals of negotiation, preparation, essential techniques, managing the process, and interpersonal behavior.

The Negotiator's Pocketbook

Yash Gavai