Chapter 2: Count the Cost

Great gain is to be had from negotiating, but only if the task is done effectively. There is a cost in terms of resolve, priorities, time, preparation, forward planning. At the heart of effective negotiation there has to be a calculation of what is involved and the price has to be paid, usually before the negotiation begins.

When I train I use the word COST as an acronym. It acts as a useful memory jog, reminding us of the four ingredients that represent the practical outworking of the cost involved: Commitment, Objective, Strategy, Tactics.

Commitment

Commitment to the negotiation process is required. This applies to negotiation as an overall process. It also applies specifically to a particular negotiation in hand. A half-hearted approach can never be effective in negotiation. There must be a serious commitment to achieving the result you want. If you are serious then you will be taken seriously; if you are casual then you will be taken casually.

In my experience, most business people do not have true commitment to the negotiation process. What typically happens is that negotiation gets the odd few moments, the remnants of our time. To be effective we need to settle the issue that negotiation is going to require predetermined amounts of time and resource.

Overall Commitment

We must determine overall what our business goals are, and determine what levels of profit, volume, price, saving or improvement we are aiming for. This requires thinking through the key areas.

Commitment to a Particular Negotiation in Hand

I was eating at an Indian restaurant as part of a group for which someone else had responsibility. During the process of ordering, one person said, 'Let's ask for a special deal before we order and try to get a good selection for £10 each.' The leader of the party was unsure. Essentially, he was uncomfortable with the suggestion, so a vague proposal was made, something like 'We would like 10 per cent discount, please.' There was no commitment in the request and the waiter said nothing. Nothing was agreed.

The approach was treated casually because that's exactly what it was. When the bill was presented at the end, there was no discount. When pressed, the waiter simply said that the manager was away and he had no authority to give a discount. The meal cost nearly £20 per head. It cost us all because there was no commitment to the negotiation. It was treated hopefully, casually, and therefore without authority.



How to Negotiate Effectively
How to Negotiate Effectively (Creating Success)
ISBN: 0749448202
EAN: 2147483647
Year: 2003
Pages: 111
Authors: David Oliver

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