negotiation techniques for sales, contracts, debts, buying, selling and training

negotiation techniques for sales, contracts, debts, buying, selling and training

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These negotiation techniques are primarily for sales, but apply also to other negotiations, such as debt negotiation, contracts negotiating, buying negotiations, salary and employment contracts negotiations, and to an extent all other negotiating situations. Negotiation is vital for an organization's overall effectiveness. Organizational effectiveness is a product of activities within a system - internal and external. Negotiation is critical to establishing the internal system (structure, people, functions, plans, measures, etc), and the organization's relationship to the external system (markets, suppliers, technology, etc). Negotiation is also critical to optimising the performance of activities internally and externally (principally through communication, by people).

Good sales negotiation - the rules of which feature below - can easily add 10% to sales revenues, which arguably goes straight to the bottom line as incremental profit. Good purchasing negotiation can easily save 10% of the cost of bought in products and services, which again arguably goes straight to the bottom line as extra profit. Good negotiation by managers in dealing with staff can easily reduce staff turnover by 5-10%, which reduces recruitment and training costs by at least the same %, as well as improving quality, consistency and competitive advantage, which for many companies is the difference between ultimate success and failure. Good negotiation by executives with regulatory and planning authorities enables opening new markets, developing new technologies, and the choice of where the business operates and is based, all of which individually can make the difference between a business succeeding or failing.

Successful debt negotiation with creditors enables a business to continue trading. Failure to negotiate debts often leads to business closure. See the notes on debt negotiation for business creditors and personal debts such as credit cards, in the debt negotiation article below.

Salary negotiation affects individuals and organizations, and good negotiation skills on both sides produce positive outcomes for all. See also the tips on asking for a salary rise, and dealing with salary increase requests on the pay rise page.

These negotiation techniques deal mainly with sales negotiation and are written from the point of view of the 'seller'. If you are 'buying', or want to know how buyers tend to behave look at the note alongside the headings. Sales negotiation is an increasingly important part of the sales process. Negotiation starts when buyer and seller are conditionally committed to the sale (not sooner if you are the sales person; the sooner the better if you are the buyer). Negotiation generally results in a price compromise between seller and buyer - ie., the seller reduces and the buyer increases from their starting positions. Clever buyers will attempt to negotiate before giving any kind of buying commitment. Clever sales people will resist this. Here are the rules of sales negotiating, which imply also the rules for successful negotiating when buying.
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