Types of business negotiations
Posted: Sun Dec 22, 2024 8:42 am
Business conversations and negotiations can be divided into two types: positional bargaining and discussion of the parties' interests. What is the difference? First, let's look at the terms:
The position is formed by the statements of the negotiators. For example, "We need to get a result by December 30."
Interest is the negotiator's specific desire. For taiwan whatsapp example: "We want to get the result by December 30th to complete the director's task and receive the annual bonus."
Now let's take a closer look at the types of business negotiations themselves.
Positional bargaining
This type of negotiation involves each party understanding the position of their opponents and discussing their views on solving the problem.
There are two forms of business negotiations:
Soft – allows you to work out an agreement and maintain friendly relations. In some cases, this can lead to less than effective solutions, when negotiators make concessions to reach a compromise.
Rigid – each side insists on its position, without listening to the opinion of the opponent.
Let's consider a discussion of the rental price of a property, when the person wishing to rent it asks to reduce the cost, and the landlord has already voiced his position. The parties have the opportunity to come to an understanding by agreeing to concessions, or not to reach an agreement at all.
The optimal strategy for conducting positional negotiations involves a balance between the above formats. Or, to be more precise, it is the desire to achieve the desired result without losing friendly relations with the opponent.
The problem with business negotiations in the style of positional bargaining is that each interlocutor stubbornly stands his ground. Let's take a situation where both parties are sure that they are right. Elena is right: 60,000 rubles is an acceptable price for an average design project. But Evgeny is also right: 90,000 is an adequate price for a job well done by an employee of his company. If they continue negotiations in the same spirit, they are unlikely to come to a mutually positive decision.
Positional bargaining is an ineffective negotiating policy. The best way out is to conduct a dialogue based on interests. We will explain why below.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
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5 Key Metrics to Increase Profits by 220%
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The position is formed by the statements of the negotiators. For example, "We need to get a result by December 30."
Interest is the negotiator's specific desire. For taiwan whatsapp example: "We want to get the result by December 30th to complete the director's task and receive the annual bonus."
Now let's take a closer look at the types of business negotiations themselves.
Positional bargaining
This type of negotiation involves each party understanding the position of their opponents and discussing their views on solving the problem.
There are two forms of business negotiations:
Soft – allows you to work out an agreement and maintain friendly relations. In some cases, this can lead to less than effective solutions, when negotiators make concessions to reach a compromise.
Rigid – each side insists on its position, without listening to the opinion of the opponent.
Let's consider a discussion of the rental price of a property, when the person wishing to rent it asks to reduce the cost, and the landlord has already voiced his position. The parties have the opportunity to come to an understanding by agreeing to concessions, or not to reach an agreement at all.
The optimal strategy for conducting positional negotiations involves a balance between the above formats. Or, to be more precise, it is the desire to achieve the desired result without losing friendly relations with the opponent.
The problem with business negotiations in the style of positional bargaining is that each interlocutor stubbornly stands his ground. Let's take a situation where both parties are sure that they are right. Elena is right: 60,000 rubles is an acceptable price for an average design project. But Evgeny is also right: 90,000 is an adequate price for a job well done by an employee of his company. If they continue negotiations in the same spirit, they are unlikely to come to a mutually positive decision.
Positional bargaining is an ineffective negotiating policy. The best way out is to conduct a dialogue based on interests. We will explain why below.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
Advertising Channels Efficiency Calculator: Optimize Your Budget and Increase ROI by 70%
A Killer Commercial Proposal Template That Increases Conversion to Deals by 60%
We have prepared all the documents and templates with formulas for you. And yes, it is FREE: