Kathy Baerg’s clients asked her for a discount on her services she explained to him that as her travel expenses were already included in the price, he was saving more than the discount he’d requested. “He was happy with that information and accepted my price,” says Baerg. “It didn't change anything for me regarding my price, but it gave more value to my client.”
The key to good negotiation, she says, is learning to listen and let the counterparty have their say without being interrupted. “This allows you to gather all the information that you need to weaken their argument,” she says. “If you avoid interrupting them, and can hold your nerve, some clients start to backpedal and don't really want that discount any more.”recalls his negotiations with the U.K. National Lottery operator Camelot’s procurement team and being hammered on price.
CEO Chris Ganje said: “Close to completing all of the project deliverables, our partner suddenly indicated that no introductions would be made and that they would be presenting all of the results themselves. They did, however, promise to give us due recognition and credit.” They had a choice; capitulate and complete the work, or walk away and sour what was a critical relationship for the brand at that time. Ganje says: “I told them that having face time with the client was non-negotiable and that we would walk away if they reneged on our original agreement. Our partner backtracked and the outcome turned out positive for all parties.
What does good look like and, more important, what’s a bad deal that we need to walk away from? “Unless the negotiating team understands the parameters of negotiation, they are likely to fail,” he says. “Ensure that everyone understands and agrees on the desired outcome before the negotiation starts.”We all see risk in different ways and as a result, people react to low risk or low importance issues, while allowing higher impact subjects to drift.
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