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Know How 2 Negotiate 1. True. Do your homework. Before you get to the negotiating table, know as much as possible about your opponent. When preparing, put yourself in your opponent’s head. They will have predetermined a few acceptable outcomes. Try to determine what they want and what they’ll accept . Know their weaknesses. Know your own goals and weaknesses too. If your opponent is well-prepared, they will have spent some time figuring you out. 2. True. The first offer is usually the most important. It is the benchmark by which all subsequent offers will be judged and compared. Experts advise against being timid on your first move. On your first offer go bold, but realistic . 3. False. Know your ultimate goals before you start. Be realistic, but flexible, with a range of acceptable outcomes. Predetermine your “give aways.” Those are minor items and positions you can concede which make the opposing party feel they have gained something. Keep in mind that sometimes opponents want things that don’t cost money, like recognition for a job well done, a new job title, an apology, an invitation, or a faster delivery date. 4. True. Body movements and speech patterns can be clues to what your opponent is thinking and feeling. Experts say that things like head nods, leaning in, and maintaining eye contact indicate interest and agreement. On the other hand, leaning back, frowning or looking away may mean your opponent isn’t interested, is annoyed, distrustful, or even bored! A change in a tone of voice can indicate tension. Watch your own body movements – don’t let them give away your thoughts and feelings. 5. True, with some exceptions. Experts generally advise against the walk out. However, there are occasions when it’s OK. For example, if your opponent’s proposals are illegal or unethical, or if the negotiation becomes a series of personal insults and attacks. The walk out is also acceptable when your opponent puts forth a “take- it-or-leave it” position, and simply will not negotiate. Also, if you find out the opposing party does not have the authority or the means to do the deal, it’s OK to walk. (To avoid this problem, always ask your opponent to confirm, up front, or even before the meeting, that they are fully authorized to commit to an agreement.) In very public, high-profile negotiations, such as union contract negotiations, walk outs are fairly common. It’s mainly for dramatic effect and publicity. Otherwise, a walk out is not a normal or acceptable tactic. 6. False. The devil is in the details! Before leaving the table, make sure the specifics of any agreement are covered, or you may find out later that you really didn’t reach an agreement at all. Confirm exact amounts, dates, times, methods of payment or performance, etc. Remember, you are creating agreement that may be looked to for many years to guide interactions between the parties. Anticipate the types of problems that are likely to arise and plan how they will be handled. PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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