Market Breakdown: Using Your Negotiation Skills To Negotiate For Security

One can sense a great deal of uncertainty in the world financial markets wherever you go - for the first time - irrespective of geographical location.

Warren Buffet said that it is only when the tide goes out that you can see who is wearing no swimsuit. In other words, it is easy to be successful when the markets are booming; it is only in tough times that we can clearly distinguish quality & commitment.

How can you use your negotiation skills, negotiation training or purchasing training to sidestep losses in the current economic situation?

Use 'Loss Framing'

We are more motivated by avoiding loss than by achieving the very same gain. Kahneman & Tversky's Prospect Theory work describes how individuals will become risk seeking in an attempt to avoid a loss whilst they are likely to be risk averse when pursuing benefits. In the way that we negotiate, we can make the other side aware of the unique items that they stand to lose if they don't move in our direction and otherwise acquire if they do.

Create Alternatives

In times of difficulty it is very important to look at other options so as to strengthen our negotiation position. The ability to create options is important in the context of negotiation and the strength of alternatives to concluding a deal is the key driver of our negotiation power.

Usually we wait until we recognise that we are not going to make a deal before we begin to think about alternatives. We risk entering into unfavourable transaction and if we have not investigated all the alternatives. Similarly, thinking about the options available to your counterparty in the negotiation will give you a clear view of their relative position of strength in the negotiation. If they have strong options available then they will be more aggressive and if they don't, they will tend to be more accommodating.

Use Reciprocation

Reciprocation is one of the key principles of powerful persuasion skills, because we are prone to return to others the sort of behaviour that they demonstrate towards us. In times of difficulty it is vital that we perform in the interests of the other side if we would like them to act in ours. Use this principle to your benefit by acting first and using the principle of reciprocation. Be careful and make sure that you record the obligation with the other side.

Move from price to value

It is important to take the focus off price and concentrate on the Total Cost of Ownership. For all services, products and solutions that we buy or sell, there is always a trade off between value & price. If we only engage on the price, the best that we will do is to haggle and it is only when we study the entire lifecycle of the service, product or solution that we buy or sell, that we begin to uncover options for negotiation. Before you even state price in negotiation, evaluate your counterparty's long term strategic fit, capabilities, switching costs should they wish to change a business partner, financial steadiness and potential risks or negative consequences that may occur when your counterparty doesn't reach an agreement with you.

Don't forget that the magic in negotiation is found in the quality of your planning. In times of economic uncertainty it is key to dedicate adequate time to preparing for your negotiations.

Applying Negotiation Skills During The 5 Step Process To Ensuring Lucrative Transactions In China
In order to achieve success in your business negotiations in China, you will have to understand that as an outsider, doing business is completely different than what most people are familiar with.

Sales Coaching: Pros And Cons Of Training To Attract Buyers And Boost Your Business
In the global economy of today's world that encompasses both virtual and actual opportunities, there are so many kinds and numbers of businesses for a potential customer to choose from that a business owner must use every possible advantage to generate sales

Sales Education Used For Present Day's Business Condition
Sales coaching is a tool of modern day sales and was totally unnecessary in days gone by when people frequented local businesses in their small towns as a matter of course. Because of limited opportunities and means of travel, the local hardware store and grocery were usually the first choice for most people's needs

One Simple Negotiation Skills Method That Will Instantly Produce Improved Negotiation Outcomes
Research has proven that high objectives will constantly outdo low aspirations and if you therefore exaggerate your expectations at the negotiation table, you will continously influence your negotiation outcomes positively

Your Underdeveloped Business Negotiation Skills Ability Could Cause Critical Negotiation Interventions To Fail Due To Insufficient Preparation
The main reason to a profitable business negotiation result is the quality of your planning. If you don't plan, prepare to fail and expect to not reach your goals.

Sales Funnel: The Most Useful Plan To Create Results
I have outlined the most effective way, that I have discovered to set up my Sales Funnel for my MLM business. I lay out each step for you to easily follow.

2 Critical Factors Of A Successful In-House Negotiation Training System
Merely depending on the negotiation abilities of individuals is a familiar oversight businesses make. Developing a strong negotiation capability is contingent on critical factors: The negotiation strategy, process, the individual's skills and the supporting network.