Having a Negotiation Position (Free)

Lesson 1: Having a Negotiation Position

Everyone negotiates something every day. Negotiation is a basic means of getting what you want from others. It is back-and-forth communication designed to reach an agreement when you and the other side (customer or prospect) have some interests that are shared and others that may not be. The very best sales negotiators seek a mutually beneficial outcome, thus avoiding taking an unyielding position. They are able to divorce themselves emotionally from the process and focus on what both sides can accomplish together.

Successful sales negotiations have two parties who understand win-win outcomes and approach the negotiations from an abundance mentality versus a scarcity mentality. That is, both parties see an abundance of opportunity as opposed to a scarcity of opportunity before them. With this in mind, they are both willing to approach the table with an earnest desire to satisfy everyone’s needs as best as possible and do not see the solution as scrambling and competing for precious little. So, a successful negotiation begins with an attitude and understanding that both parties must win.

The Psychology of Sales Negotiation

Sales negotiation is the communication between two or more individuals or groups who meet with the intent of producing a cooperative agreement.  Each group may have conflicting interests or priorities and must shift position or change the threshold of acceptance to reach a mutually beneficial agreement. The single most important objective of an honestly negotiated agreement is to ensure each party feels they have won relative to their priority negotiation interest objectives.

Achievement of this objective requires that some basic psychological constraints and guidelines are followed during the process. These constraints and guidelines assume that the fundamentals of negotiation are in place – i.e., honesty, willingness, shared and conflicting interests, room to maneuver, and authority to maneuver.