BUSINESS ENGLISH

NEGOTIATION (page 1)


WHAT IS NEGOTIATION?
Negotiation is a discussion intended to produce an agreement.

DEFINE YOUR POSITION
Defining your position is an important first step in a negotiation. You need to define your position before the meeting.

1. Decide what you want.

2. Decide what you are willing to compromise.

3. Decide what you can afford to lose.

4. Decide what your bottom line* is.

*Your bottom line is the least you are willing to accept in the negotiation.


NEGOTIATE A DEAL
Imagine that you have been offered a contract to write a book in your special field. You are confident. You have already written a book, so you are experienced and you and the publishing company both know you can do it.

The publishing company offers you $18,000.

HOW WILL YOU NEGOTIATE?
1. What do you want?

You want $25,000.
2. What are you willing to compromise?

You would consider taking $15,000 plus an ongoing percentage of sales. However, if they won't give you a percentage of sales, you won't go below $25,000.
3. What can you afford to lose?

You will lose some cash in hand for the promise of a percentage of sales.
4. What is your bottom line?

If they won't give you $25,000 and they won't give you $15,000 and a percentage of sales, you will walk away from the contract.

AMBIT CLAIM
One common negotiating technique is an ambit claim. For example in the situation above the publisher may offer $15,000 but they are really prepared to go higher. You may want $25,000, but you ask for $32,000 and you are prepared to go lower! You negotiate and you reach agreement somewhere in the middle. In the end you are both happy and both feel that you did well in the negotiation!

QUOTE
' In business, you don't get what you deserve, you get what you negotiate!'
What do you think? Is this statement true?