Here is a story about a good and a bad business negotiation:
Some few short years ago, there were two businesses that were interested in working
together. The first one-Business A-was a software company that had a great software
that would be of great use by Marketing professionals and hence wanted to partner with
an established company that deals with Marketers-call it Business B. So, Business A
had a new software they wanted to promote and Business B had a large customer base
of practicing Marketers that might be interested in the software.
The first negotiation between the two did not go well. Business A, represented by an all-
knowing over bearing lady representative was very aggressive, demanding unfettered
access Business B’s customer list ‘since they are offering a great opportunity for
Business B’s customers’. Business B was taken aback by the demands and felt like
Business A was not willing to listen to their concerns. The negotiation ended in a
stalemate, with neither party willing to compromise.
In contrast, the second negotiation between Business A and Business C, a different
marketing firm, went much more smoothly. With lessons learnt from first interaction,
Business A’s representative was much more reserved and presented their software to
Business C. Business C and their top management listened attentively and asked
thoughtful questions during the presentation. They negotiated a fair commission rate,
and Business A gave Business C exclusive access to their software for a limited time.
The negotiation ended with both parties feeling satisfied and optimistic about the deal.
The difference between the two negotiations was in the approach. Software company’s
aggressive demands in the first negotiation put Marketing firm B immediately on the
defensive and of course pushed them to the point of being unwilling to work together. In
the second negotiation, software company was more collaborative and open to
compromise, which allowed them to build a positive relationship with Business C.
In the end, software company’s partnership with Business C was successful and they
were able to promote their product to a wider audience. The failed negotiation with
Business B was a missed opportunity that could have been avoided if software
company had taken a more collaborative approach.
5 Tips to Business Negotiation
The story shared above provides some valuable lessons on how to approach business
negotiation in a productive and effective way. Here are some key takeaways:
1. Listen actively:
In both of the negotiations, the marketing firms wanted to learn more
about the product being offered. By listening attentively and asking thoughtful questions,
they were able to gain a better understanding of the benefits of the product and how it
might fit into their business vision or operations.
2. Communicate clearly:
When presenting a product or proposal, it is important to
communicate its benefits and features in a clear and concise way. Be prepared to
answer questions and provide more information as needed.
3. Be collaborative:
Negotiation is a give-and-take process, so it is important to be open to
compromise and finding a mutually beneficial agreement. Demanding too much or being
too inflexible can put the other party on the defensive and lead to a breakdown in negotiations.
4. Build a relationship:
Business partnerships are built on trust and mutual respect. By
approaching negotiations in a respectful and collaborative way, you can build a positive
relationship with the other party, which can lead to future opportunities for collaboration.Click here to learn more about building relationships.
5. Be willing to walk away:
Sometimes, negotiations simply do not work out. It is important
to be willing to walk away from a negotiation that is not going anywhere, rather than
forcing or accepting a bad deal. Desperation can lead to very bad regretful outcomes,
sometimes. You can save time and resources in the long run if you are willing to walk
away as you leave the door open for future opportunities.
By keeping these principles in mind, you can approach business negotiations in a
productive and effective way that leads to positive outcomes for all parties involved.
Author
With a passion for web development and digital marketing, George Munyui brings a unique blend of creativity and technical expertise to the digital world. As the mastermind behind this website, George Munyui thrives on crafting innovative solutions that drive online success. Whether it’s designing captivating web experiences or executing strategic marketing campaigns, George Munyui combines creativity with practical skills to deliver outstanding results. When not immersed in code or marketing strategies, George Munyui is always exploring new trends and technologies to stay ahead in the ever-evolving digital landscape.
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