A contract takes place when two parties reach an agreement for a business venture. But before this agreement can be arrived at, a lot of times takes place for negotiating the deal.
Mostly cultural elements create road blocks and they may haggle over price. These days increasingly we are seeing a difference in the nature of this buyer and seller relationship. Globally speaking buyers expectations are changing about their suppliers.
All these are giving rise to new behavioral patterns which are emerging now where the purchaser tries to persuade his supplier to provide and not vice versa. The perspectives of the buyer and seller changes at each stage of the sales process with no convergence of perspectives but with a lot of divergence.
Suppliers are usually long standing and established players in the market who have relationships with their clients that may extend over many and many years. The expectations of buyer and seller on either side may be different. But if they work together in a relationship that is close and harmonious, there won’t be much material differences.
Established suppliers with relationships that are long standing and institutionalized will meet their clients’ needs in terms of investment and adaptations which are non contractual. This is known as adaptive behavior in marketing. It requires a proactive approach which looks at a payback period as ongoing within a relationship. This may also be referred to as the concept of reverse marketing.
Negotiations required in such marketing techniques are entirely subjective and situations are understood through perceptions. Yet the most common mistake made is to accept the very first offer made without attempting the beat the price down in anyway. This means you will have to pay more than you would otherwise have done. Before going for negotiations you should be aware of your mandate and your time limits.
Do not be in a hurry to conclude the negotiations. Gain leverage instead by holding something back for later negotiations as revealing all or making early concessions may be viewed as your weakness. Also beware of the communication used as there can be strategic misrepresentation and a low trust level. The idea is to be proactive and not over reactive. You should not be complacent or complaining.
Finally make sure whatever has been agreed after a tough round of negotiation is verbally written down in detail and at the earliest. Negotiation is often considered as a conflict resolution tool and hence uses intimidation tactics and uses time constraints in forcing a deadlock over negotiations.
To be a negotiator you have to steadfast, credible and resolute, whether you have the role of bidding low as a buyer or selling high as a supplier. Finally never ever resort to the usage of bad language, how high the temper may rise.
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