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Navigating Negotiations

Life is full of negotiations, whether they are part of discussions, agreements, arguments or even fights. Some are large, such as signing a new client, securing a lease or purchasing a home, and some are small, such as extending a warranty, authorizing vacation time or working out a payment plan.

Large or small or personal- or business-related, we face negotiations daily. The more negotiations we complete, and the more we prepare for them, the happier we will be with the outcome.

Following are some tips to help you get what you need, and maybe even what you want, from your negotiations:

Before the Negotiation

The result of your negotiation is directly related to what you do before any discussion occurs. Planning ahead is invaluable. Before you approach the negotiation table, have a clear idea of what you need and what you want from the resulting agreement.

Compose a list of exactly what you're willing and not willing to accept. Include items that you must have, the "deal breakers." Also list items that you would like to have, but that you'd give up in return for something else. And list items that you'd be willing to give up without receiving anything in return.

Finally, determine ahead of time if you'd be willing to delay any part of the agreement, financial or otherwise, until a later date.

For instance, would you consider a payment plan if the overall purchase price is increased, or is having the money upfront more important to you? Are you prepared to postpone negotiations and delay a deal if the agreement doesn't satisfy you, or do you need a signed contract soon? If so, what concessions might you make?

As you make your list, you might consider bluffing. You might be tempted to tell the other party that you won't make concessions or that something is non-negotiable when, in fact, you are willing to compromise.

Sometimes bluffing will work to your advantage, but be careful. Don't bluff unless you can back it up. The point is to secure the deal, not to "win." Also, if you earn a reputation as someone who bluffs all the time or who walks away from deals, future negotiations will prove progressively more difficult.

During the Negotiation

The physical aspects of a negotiation can have a subliminal effect on the participants, and thus the outcome of the process. Something as simple as the furniture can have an impact on the resulting agreement.

For example, if each party sits on opposite sides of a table, the initial tone is adversarial; it's "us against them." And in some instances, this might work to your benefit. For example, if you have six people in the meeting and the other side only has one or two and you want to convey the feeling of power and authority, this scenario might work best for you.

However, if your goal is to form an agreement with a potential partner, you probably want a more teamlike atmosphere. In this case, a circular table might work better.

Finally, if you plan to sign a contract with a client then sit on the same side of the table; this conveys the feeling of being side by side. Or perhaps forgo the table completely and sit in a more relaxed atmosphere such as on chairs or a couch.

After the Negotiation

After the negotiations have ended and you have secured your agreement, celebrate! Then take some time to review what happened. Look at both the process and the outcome and analyze what pleases you and what you can improve.

Did both sides win? Does this deal benefit both parties? Is this an agreement that you can expand in the future?

After a successful negotiation, neither party will feel that they got everything they wanted. The best case scenario is to have both sides walk away feeling that they got what they needed and some of what they wanted.

You want the other party to feel good about the negotiation because you will most likely need to work with them in the future, and you want to be on good terms.

Even if you don't work with this particular party in the future, you always want to have the reputation of being a fair and professional negotiator.

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