Effective Negotiators Keep the Whole Package in Mind

Above all, effective negotiators have trained themselves to avoid the ever-open trap of price preoccupation. They keep the whole proposal in mind all the time, and keep it in their counterpart's thinking all the time as well.

The whole package includes:

• the product or service itself;

• particular functions or attributes;

• the benefits of those functions or attributes;

• the overall benefit or gain of using or investing in the service;

• the positive or negative impact of publicity surrounding their company or product range;

• quantity;

• delivery;

• payment options;

• clearance of existing stocks;

• maintenance and service;

• price and profit.

Price is last, because in their mind it is just one of many potential ingredients and not the pivotal point of the agreement. In the process of keeping the whole deal in mind they will ask for all concerns and all objections when any single point is raised. They will then say, 'Can I now take it that those represent all your concerns?'

One of my associates was trying to negotiate an increase in his daily fee of 5 per cent from a long-term client who had been using our staff for nearly three years (one day per week). The client was important to him and was understandably reluctant to pay more.

My colleague thought through the whole package and came up with a solution that delighted the client, but gave him not 5 per cent but around 20 per cent! How did he do it? He reduced his daily fee by £30, and asked in return for £75 commission for every tender enquiry generated. My colleague was totally safe, knowing he would average more than one tender enquiry per day worked, thus yielding him an average increase of 20 per cent. The client was delighted because the fee was now performance related. All that, simply by keeping the whole deal in mind.