The Art of Negotitation by Clive Rich

January 26, 2015

Clive Rich, a past Associate at Bluebox Corporate Finance, is a market-leading negotiator who has brokered deals with global companies from Apple and Yahoo to Tesco and Simon Cowell. He is the author of The Yes Book: The Art Of Better Negotiation. Below we summerise a few important points on negotiating.

“Negotiating forms a fundamental part of creating value in a business sales process and it is so often overlooked.  Researching the people you’re negotiating with is crucial, whether it’s a company or your next-door neighbour. Spend time finding out who you’re dealing with, then moderate your behaviour accordingly. There are observable types we all recognise – for example, the big picture thinker, the detail fiend. Try tuning into their wavelength, rather than just doing what you always do.

Everybody is naturally good at some parts of the process, and oblivious to others. Some are brilliant at preparing and hopeless at bargaining, some are brilliant listeners but can’t bid for toffee, and some are good at creating harmony but all at sea when facing a tough guy. Knowing how to read people is vital and that’s counterintuitive for some negotiators, because we all have a tendency to be stuck on broadcast, to be focused on what we want and on price and logistics.

A good question to ask the person you’re negotiating with is: “Why do you want that?” People are usually asking for something for an emotional reason, rather than a purely financial one. They might want a certain sum because it makes them feel reassured, or it could be for something practical or because they fear going into debt. If you open up that emotional agenda, you create more options for doing a deal than if you get stuck in your fixed positions.
I did research with YouGov. It revealed Britain loses £9m an hour from inefficient negotiation, so clearly there’s a need to do it better.

How to be a winner at work

Put yourself second if you are negotiating on pay, it’s vital that you express what you want in terms of the other person’s needs, not your own. Again, it comes down to research. Find out what the boss really needs and use that. Don’t go in and say, “I want X amount, because I think I deserve it/I’ve been working too much overtime.” Instead, say, “I need X salary because that will enable me to apply myself fully to the project you want me to do/will help the whole department get stronger and compete for resources within the company.”

Have other options

You’re never as desperate when you’re in the haggle if you’ve got a plan B. Think about what options you still have if you don’t get what you want – it gives you confidence.

Don’t talk yourself down before you even start

Ask for what you really want.  A lot of people think, “OK, I was going to ask for 100, but the other side will be really cross with me, so I’ll ask for 60 and see how I get on.” You’ve already given away 40% without the other side doing anything.

Set a time frame for a decision

If I think it’ll take 20 minutes and you think it’ll take six months, we already have a mismatch. Don’t be scared to come back to the person if they don’t honour this, and say: “We did agree we’d settle this by…and give a time”

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