Price may be an obvious component, but it is worthwhile to consider other items, too-items that might make the agreement much more attractive both to yourself and to the other side. Delivery schedules, duration of contract, product or service upgrades, cancellation clauses, contingency plans, transportation services, complimentary room nights, and many other options all have some value to those negotiation a contract. Such side issues may be researched and introduced as part of a food contract, conference booking, or union contract that you are preparing to negotiate.
Consider also whether any of the issues you have considered might be broken down into multiple components or subissues. For the conference-booking negotiation, for example, you might normally consider the room-block guarantee as a single item (i.e., so many rooms reserved until such-and-such a date). In fact, breaking the room reservations down by percentages multiple deadlines (e.g., 50 percent by one date, 75 percent by another date) might open avenues for mutually beneficial arrangements.
You should anticipate as many issues as possible for the negotiation. By doing so, you will better informed and thus feel comfortable and confident when negotiating. Also the more issues you can introduced, the more likely it becomes that creative solutions will arise, as those are often built by packaging or trading off multiple issues. Creative solutions often make it easier to discover an agreement that both parties like.
By adding items to the negotiations agenda, you increase your chance of discovering some issue that you value more than the other party, and discovering other issues that the other party values more than you. Trading off such differently valued issues dramatically increase the value of the agreement to you without costing the other party. Moreover, if you know what issues the other party highly values that you value less, you can use those issues to get concessions on issues that are important to you.
Imagine that you are a food and beverage director of a hotel seeking a dry-goods supplier and that you have written a request for bids from potential vendors. You have considered your storage capacity and specified every-other-week delivery in your request for bids. Now suppose you receive a bid from Alpha Dry Goods, which has another customer in town to whom they deliver once every three weeks. Alpha’s quote for biweekly delivery might be mediocre, but it turns out that they could save you substantial money on triweekly delivery. They could save you so much money, in fact, that you consider changing your storage arrangement to accommodate their every-three-week delivery schedule. If you had been unwilling to negotiate the delivery schedule, you might never have discovered that opportunity. By adding delivery schedule to the agenda, you were able to discover an issue that improved the business potential for both parties. In this example, you are able to secure a lower overall price in return for a concession on delivery schedule.
In general, the more issues you can put on the table (within reason), the better off you are.
Another reason to consider and discuss many issues in a negotiation is that it minimizes the chance of misunderstanding in the final contract. For any issues that is not discussed, the parties risk the possibility of making different assumptions. For example, the “standard frills” that accompany a banquet may not be known by the person purchasing the banquet.
Price may be an obvious component, but it is worthwhile to consider other items, too-items that might make the agreement much more attractive both to yourself and to the other side. Delivery schedules, duration of contract, product or service upgrades, cancellation clauses, contingency plans, transportation services, complimentary room nights, and many other options all have some value to those negotiation a contract. Such side issues may be researched and introduced as part of a food contract, conference booking, or union contract that you are preparing to negotiate. Consider also whether any of the issues you have considered might be broken down into multiple components or subissues. For the conference-booking negotiation, for example, you might normally consider the room-block guarantee as a single item (i.e., so many rooms reserved until such-and-such a date). In fact, breaking the room reservations down by percentages multiple deadlines (e.g., 50 percent by one date, 75 percent by another date) might open avenues for mutually beneficial arrangements. You should anticipate as many issues as possible for the negotiation. By doing so, you will better informed and thus feel comfortable and confident when negotiating. Also the more issues you can introduced, the more likely it becomes that creative solutions will arise, as those are often built by packaging or trading off multiple issues. Creative solutions often make it easier to discover an agreement that both parties like. By adding items to the negotiations agenda, you increase your chance of discovering some issue that you value more than the other party, and discovering other issues that the other party values more than you. Trading off such differently valued issues dramatically increase the value of the agreement to you without costing the other party. Moreover, if you know what issues the other party highly values that you value less, you can use those issues to get concessions on issues that are important to you. Imagine that you are a food and beverage director of a hotel seeking a dry-goods supplier and that you have written a request for bids from potential vendors. You have considered your storage capacity and specified every-other-week delivery in your request for bids. Now suppose you receive a bid from Alpha Dry Goods, which has another customer in town to whom they deliver once every three weeks. Alpha’s quote for biweekly delivery might be mediocre, but it turns out that they could save you substantial money on triweekly delivery. They could save you so much money, in fact, that you consider changing your storage arrangement to accommodate their every-three-week delivery schedule. If you had been unwilling to negotiate the delivery schedule, you might never have discovered that opportunity. By adding delivery schedule to the agenda, you were able to discover an issue that improved the business potential for both parties. In this example, you are able to secure a lower overall price in return for a concession on delivery schedule. In general, the more issues you can put on the table (within reason), the better off you are. Another reason to consider and discuss many issues in a negotiation is that it minimizes the chance of misunderstanding in the final contract. For any issues that is not discussed, the parties risk the possibility of making different assumptions. For example, the “standard frills” that accompany a banquet may not be known by the person purchasing the banquet.
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