What Is the Subordinating and Collaborative Style of Negotiation?

In contrast to other styles of negotiation? The subordinative style is characterised by regular capitulation to the other side. People adopting this style will offer concessions which are inappropriate which have not been asked for. We'll throw themselves on the mercy of their opponents, hoping that a sense of fair play will prevail, and they will come away from negotiation having lost, but with a sense of well-being and martyrdom. You can expect little game, either personally or for the negotiation from this style. You need to find a way of balancing out this pattern of behaviour if this is your natural inclination. You need to adjust your style of negotiation to ensure that you can get the most effective outcome for your clients.

A much more preferable style of negotiation is a collaborative style which exploits the strengths and weaknesses of both you and your opponent. The goal is agreement on both parties are willing to make concessions and achieve that goal. The trust each other and feel able to change their positions easily. They make offers are open about the limits of the matter is being negotiated and try to avoid a contest of wills. In a typical collaborative negotiation the parties focus on the problem, ignore the personalities and often surprised at the ease with which a solution is found. The benefits of adopting a collaborative approach include better coordination team efforts and more equitable distribution of risk and workload. Most people are able to contribute regardless of their position and consequently the participants listened more actively and understand each other's positions. This is why it is far more preferable to have a collaborative style of negotiation, even above a competitive one.


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The Six Vital Skills Needed When Negotiating

In your everyday life, you may find that your negotiating skills are frequently being used and called upon. In order for you to do this effectively, you'll need to have these six skills under your belt. These negotiating methods will help you to better understand the process more in depth, with hopes that whenever you decide to use these negotiating techniques, whether you're negotiating your salary for a new job offer or requesting a pay raise from your current employer, you'll get what you want.

Here are the six vital skills needed when negotiating:

1. Preparation. Preparation is the foundation to negotiating successfully. Keep in mind that, you could never be too overly prepared. When you undertake any negotiation, you'll need to give special attention to these three areas: yourself, the other person, and the market.

To prepare for yourself means, knowing who you are and what you want out of life. And to do this, you'll have to spend some time reflecting and planning. Once you have a clear plan and understanding of the direction you want to take, this will help to build up your confidence as you go into your negotiation. And because you've taken the time to examine what you want, it's now time to go forward and learn about the other person involved in the negotiating process.

Because there is usually someone else involved when negotiating, you'll have to do your homework and research what the other person is all about. Once you become familiar with the other person you're speaking with during the negotiations, you'll have the sense of comfort and ease as you begin negotiating.

The final part of your preparation stage is knowing the market. It's extremely important that you are aware of and have some good background information on your market.

2. Set limitations and goals. Set your goals by writing down what you want to achieve from the negotiation. Then, once you have your goals put in place, it's now time to put limitations on them. Putting limitations on your goals simply means asking yourself, at what point am I willing to walk away from the deal and close it somewhere else?

3. Listen. Learning to listen is one of the most important skills to have during your negotiations. Because the act of listening attentively will give you the opportunity to hear and receive some valuable information you need to make the right decisions when negotiating.

4. Communicate clearly. To communicate clearly, you'll have to make sure that your body language, tone of voice, actions, and words all say the same thing and send the identical message. Here, it's imperative that your actions and words line up with one another.

5. Take a break and pause for a moment. At any time, if you ever feel as though the negotiations are heating up, and you're emotions are running high, it's at this instant, you could take a break and pause for a moment. This moment of silence will probably help stop you from saying something you really did not mean during your negotiations.

6. Close the deal. Closing the deal is the end of the negotiating process, and it is where everything should come to a halt. It's also where the two sides come together in mutual agreement.

So, the next time you have to go through your own negotiation process, keep these six vital skills needed when negotiating in mind.


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Best Practices In Negotiation: Barter!

When most of us think about negotiating, we're presuming that money will be involved in the transaction.

For instance, if you want to buy a house, you'll fork over some cash, and not get away with asking, "Would you accept one red paperclip for it?"

Yet, this is exactly what a fellow did, not in one step but a sequence. He bartered a single, red paperclip for a house!

Kyle MacDonald is a Canadian blogger who pulled this off, and you can read all about his exploits at Wikipedia by searching "one red paperclip" or his name.

It's a fascinating story, but my purpose here is to use it to illustrate a much larger principle. Bartering is a Best Practice In Negotiation, one that is not used often enough.

Who barters, and why?

My Dad was a radio station executive and he also produced a little TV. Typically, the companies he worked with arranged what he called, "Trade-outs."

They would trade unsold radio and TV commercial time for whatever they could use, for which otherwise they'd have to fork over cash. My Dad drove a hot black-on-black Mustang GT that was part of one of those exchanges.

Early in my consulting practice, I was engaged by a cell phone company. The contract I negotiated provided cash, two cell phones, and thousands of dollars worth of air time.

They "owned" the air time, had an excess capacity of it, just as the radio and TV stations had too much time on their hands, literally.

Trade-outs with airlines, hotels, and cruise lines are especially attractive-to them-for the same reason. Unsold seats and accommodations are a total loss.

You cannot sell yesterday's unsold airline seat. If unoccupied, it was a 100% revenue loss.

So, carriers and others that have "perishable" inventory have a keen interest in getting SOMETHING in exchange for what they are unlikely to sell for cash.

True, you might have to stand-by to enjoy some of your bartered tickets, unless you bargain for "positive space," but it is an inconvenience worth the bother. If you don't get on the 2 o'clock flight, you'll probably get on the 5 o'clock.

I prefer "Half-cash, Half-trade"deals, where I'm earning at least some cash money along with perks. From the cash portion, I retire my direct costs and make at least a slight profit.

The bartered bit provides a sweetener, an enhancement.

Sometimes, using the lure of a partial trade-out, you can close deals that you would miss, otherwise. Plus, if you don't want to cut your prices, by using a partial trade you can effectively deliver your goods and services "for less," without earning less.

There are various ratios that you can establish, which are themselves subject to negotiation. For instance I traded some seats in a seminar I was conducting to an airline company that gave me a five-to-one payback on the retail value of the seats.

For $1,500 worth of tuition, I received $7,500 worth of positive-space airline tickets.

A good deal for everyone! For those that advocate striking win + win bargains, I can think of no other type that does it as well as bartering, again, making this a "Best Practice In Negotiation."

Dr. Gary S. Goodman has helped countless people to grow rich, based on his original ideas, techniques, and advice.

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Negotiation Tactics - How to Cut Off Your Competition With Shut-Down Moves

If you are facing negotiations with a lot of same-side-of-the-table competition, like it happens usually in auctions, you will need to find effective ways to cut off your competition. One of tactics that is available for you is the shut-down move.

A shut-down move is a negotiation strategy that prematurely cuts off the competition on your side of the table. The goal is to effectively shut down the negotiation and thereby avoid competition.

How do you exercise a shut-down move? All you have to do is submit an offer under a condition that, in fact, eliminates competition. For example you could set a timeframe for acceptance of your offer. That way, the other party is forced to decide on the spot and has no time for shopping around.

Another option would be to agree on negotiating under the condition that for a certain time frame you have exclusivity. That would eliminate competition at least for a certain period of time which gives you a significant advantage, especially if the other party has to conclude the contract as soon as possible.

The important thing is to make an offer under any condition that eliminates or at least reduces the competition on your side of the table.

However, there are several factors that are important for a shut-down move to be effective:

Your offer must be properly timed; you´ll have to make your offer when it is still the best option for the other party and the other party is in doubt whether there will be a better option in the future. Because if the other party has reason to believe that it will receive a better offer, it will simply reject your offer.

Furthermore, a shut-down move must be coupled with a credible threat that worsens the situation of the other party in case they reject your offer. If the threat is not credible, then, once again, the other party will simply reject your offer.

Executed correctly, the shut-down move can be a powerful weapon against your competition that can help you close a favorable deal successfully.


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