Question

Negotiations play a central role in the selling profession. Describe three​ (3) factors of the formal negotiation process involved in a negotiation strategy that is​ "win-win."

Answer 1

The 3 factors of the formal negotiation process that are involved in a win-win negotiation strategy include:

1. The negotiation should not be based on a single issue

The negotiation for selling should not be based on one issue only. In many cases, it has been found that the seller and the buyer do not agree on the price of the product and the entire negotiation keeps on hovering on this very issue only until it fails. Negotiation based on a single issue can make for a lose-win strategy but not for win-win selling strategy. Because there are no other building blocks (sparing 1) for the negotiation to be successful, it is not likely to produce the desired outcomes for the seller.

For instance, a customer would say that he is getting an identical product for the lesser price. But the seller would emphasize the quality aspects of his offering and may not budge price. This would not lead to a sale at the end of the negotiation. What the seller can do is to lower the price somewhat (meet in the middle) so that the deal remains profitable and also appeases the customer. Apart from the price, the seller should also put other building blocks into the negotiation process, and detail the customer about the positive aspects of the brand, warranty associated with the product, and after-sales support offered by the company among others. The cumulative effect of the additional building blocks, and lowering of price in response to the demand of the customer will lead to a win-win negotiation and can provide for successful selling. It is important for a seller to follow the example of the juggler (who juggles multiple balls) to be a winner at negotiations.

2. The seller should recognize that the other party/ counterpart has different goals

A seller should recognize the party or counterpart with which he is negotiating the deal is likely to have different goals than himself. For instance, the seller may be having a goal of selling laptop and to meet the sales target that has been assigned to him by his boss. On the other hand. the buyer would be looking to gain other benefits from the product that he is purchasing. He might have to use it at his workplace for making presentations, for carrying out other task and job responsibilities, and would have been authorized to make the purchase by his own boss. in the example here, While a seller may think that buying the laptop at a low cost may be the primary goal of the other party, the reality may be different.

3. The seller should not assume that he knows the goals of the buyer/the other party/ counterpart

The seller and the negotiator should not assume that he knows the goals of the other party counterpart or buyer. Negotiations that are not based on reliable information cause error which can be fatal for the winnability of negotiation. While the buyer may denote explicitly that price is a major issue and sole for him, he may also be having the implicit goals like making a good presentation through the use of a good quality laptop possessing the right/exclusive features, gaining the praise of the boss by making the purchase of a good machine. or making a reliable purchase that offers to him more peace of mind because of the warranties involved. Therefore there can be a number of goals of the counterpart or the other party, which include the explicit as well as the implicit goals.

Therefore for a win-win selling negotiation, it Important that the seller uses multiple building blocks, recognizes that the goals of buyer/ counterpart are different than his own, and does not assume that he is aware of these goals. From here on, the seller can bring all the necessary elements, offerings, and information to the negotiation table that can provide for a win-win selling negotiation. Multiple building blocks will make the offering more lucrative and alluring for the buyer. Also, assumptions may not allow the seller to detail to the buyer many of the features and aspects of the product which may be necessary for making the sale and may be crucial for the buyer to attain his implicit goals. Hence the seller should refrain from making assumptions.