Ep. 36 Fireside Chat: The Art of Strategic Negotiation for Building Relationships and Winning Outcomes

Business Breaks - All Things Business

Episode Summary:

Section 1: Applying Negotiation Tactics in Business
- The speaker emphasizes that negotiating tactics used in business can also be applied in marketing.
- They caution against unethical tactics like bait and switch and stress the importance of building trust and establishing relationships in negotiations.

Section 2: Everyday Opportunities for Negotiation
- The speaker advises practicing negotiation skills and recognizing everyday opportunities for negotiation.
- Learning through trial and error is important for those who do not have the opportunity to learn from more experienced negotiators.

Section 3: Recognizing Effective Negotiation Strategies
- The speaker suggests paying attention to what works and what doesn't in negotiations to avoid making the same mistakes in future negotiations.
- Developing strong negotiation skills can have long-term benefits in one's career.

Section 4: Potential Drawbacks in Property Contract Negotiations
- Suppliers may drop prices on property contracts, but they may also drop quality, value, and time.
- There is often a disconnect between the requester and the buyer in large companies when it comes to the specifications of the work.
- Suppliers may quote based on their interpretation of the specifications, which can lead to price adjustments or reduced value.

Section 5: Fraudulent Reviews and Collusion in Negotiations
- Fraudulent reviews and collusion can occur, with suppliers not delivering all components or delivering lower quality than paid for.
- Collusion may involve adding unnecessary requirements to favor a preferred supplier.

Section 6: Understanding the Other Party's Motivations in Negotiations
- Recognising and understanding what the other party wants is crucial in negotiations.
- Offering something other than money can be effective, such as recognition or involvement in another project.
- Being genuine and following through on promises is essential in maintaining good relationships.
- Not all negotiations involve money, understanding the other party's motivations is important.

Section 7: Importance of Legal Advice and Contract Terms in Negotiations
- The speaker emphasizes the importance of obtaining legal advice during negotiations, even if the relationship with the other party seems positive.
- Having a standard contract template can be helpful, but it still needs to be reviewed by someone with legal expertise if the other party insists on using their own template.
- The speaker warns that legal language in contracts may not align with common understanding, and it is crucial to understand the terms.

Section 8: Focus on Strategic Areas in Negotiations
- It is important to focus on strategic areas rather than tactical areas during negotiations to build a relationship with the other party and avoid confrontations.
- Focusing solely on the transactional piece can result in getting lost in the details and missing the bigger picture.
- It is crucial to consider the motivations and long-term plans of the other party during negotiations.

Section 9: Partnerships, Competitors, and Outsourcing
- The example of Giant Bicycles is mentioned to illustrate the importance of strategic thinking in negotiations.
- They discuss the balance between gaining advantages and not constantly giving concessions in negotiations.
- Highlights the need for protecting oneself while growing a reputation in the long term.
- They advise being specific about which customers to focus on in negotiations and not deviating too far from core competencies.

Section 10: Dealing with Confrontational and Aggressive Negotiators
- The speaker discusses negotiating with someone who is trying to be greedy and take all the benefits for themselves.
- They emphasize the importance of understanding the other party's motivations in negotiations.

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