How to Negotiate Effectively (Creating Success)

We must stop seeing price as the key issue. The most common mistake made by inexperienced negotiators is a default preoccupation with price. We must learn a change of mindset where we don't think price and where we do think negotiable variable. In other words, our minds need to be full of all the variables surrounding each potential deal. Best of all are the ones cheap to us and valuable to the buyer.

Find Areas for Negotiable Variables

We have seen their importance but now we have to come up with some. How do we go about determining where our negotiable variables lie? How do we determine them and evaluate their relative worth? The checklist below is a helpful starting point:

• The product or service itself - ask yourself: How could it be changed? What elements can be added or removed? What are the implications to the other party in terms of cost, longevity, quality, etc?

• What specific functions or attributes does it have - do they vary with different applications or in different markets?

• The impact of promotion or publicity that surrounds it.

• Expenditure. Think through implications of the manner of payment: credit terms or direct debits; discounts; progress payments and pre-payments.

• Volume. Think through implications of packaging, storage, insurance. Who pays for what?

• Quality. What does quality mean and to whom? Can you substantiate cost additions or reductions for varying levels of quality? Can you quantify what variations mean to your counterpart - what they might be worth to them?

• Delivery arrangements (amounts, locations, frequency).

• Maintenance, service or after-sales care.

• Guarantees or warranties.