Situation analysis; what type of negotiation do think it will be?
What’s your relationship with the other party.
Be well-informed on the issue you’re going to negotiate. What do you need to know about the product, market price, quality, performance, different suppliers etc. In other words, do your homework, it will pay off.
What is it you don’t know about the other party, but would like to know. Make a list of questions.
What questions can you find the answers to before the negotiation and which of these questions do you have to take with you to the negotiation.
Do you expect any sensitive questions? Prepare your answers so you can answer honestly without giving away too much information.
What are your alternatives to a negotiated agreement and what is your reservation value?
What do you think is the other party’s best alternative to a negotiated agreement? What’s your assessment of the other party’s reservation value?
Assess the zone of a possible agreement.
What do you want to achieve? It’s important to have an optimistic but still realistic goal. Don´t forget that there is also a relationship dimension.
List what parameters should be discussed.
Make sure you feel comfortable with your goal and can stand behind it.
The other party’s goal and underlying interests.
What do you think is the other party’s optimistic goal?
Is there something that is especially important for the other party?
Who has the most to lose if an agreement isn’t reached.
Who has time on their side?
Arguments for your positions.
Come up with arguments for your suggestions and make sure they are logical and consistent with each other.
Which lines of argument will the other party have?
Should you make the opening bid or would you rather the other party did it?
What should your opening bid be?
What concessions can you make and in which areas?
How can you create more value?
List your questions and prepare your answers.
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