Negotiating strategies

Negotiating strategies

1. Win-Win

   • Advantages
     • There are different options to close the deal
       • when you offer different products and metods to pay
     • when you offer some proposals you show flexibility
     • Exist a interest to understand the needs and wishes of other side
       • You can ask about the ideas of other side and know her interests
     • Both parts have odds for comply their interests
     • with a contingent agreement both can protect their goods
       • You put in the contract that is necessary contract an insurence
     • In the part of contract, both can specify the requirements to do the deal
       • when you send a container you establish the date and amount of submit
     • Both parts participate doing the contract and put clauses to reach an agreement
   • Disadvantages
     • you should sacrifice profits to comply the requiriments of the other part
       • Sometimes the other side request mods of submit or any discount per quantity
     • If you breach a clause, you would have a demand
       • If you don't send the complete product or don't pay on time, you will have problems with law
     • You can offer any proposal and continue without comply the expectatives of the other part
       • When you present differente options to close the deal and the other part wait other thing
     • there could be different objections to don't close the deal
     • you could lose the agreement, if you don't accept any terms

2. Lose-Lose

   • Advantages
     • It is satisfying to know that if you don't get something, the other person won't get it either.
     • can be kept undercover for a long time, it is a "passive-aggressive" style
     • Sometimes, both parties consider their losses to be less than or equal to those of the other party and eventually give way somewhere in between
   • Disadvantages
     • The disagreement on both sides make them want to harm the other regardless of anything
     • Negotiators don't get what they expected
     • Increases the probability of future conflicts
     • The discussion can take a long time and not in the end there is no winner
     • If both parties are unwilling to make concessions, they will be forced to face the consequences of failing to reach an agreement.
   • A couple divorces and they sell their properties at prices much lower than the original value for not wanting to leave them to the other person

3. Win-Lose

   • Advantages
     • May serve to turn the negotiation a conflict situation
     • Immediate negotiation
     • Win-lose often perceived as a powerful perspect
     • Very focused
     • Win-lose more appropriate for certain types of purchases i.e. transactional
   • Disvantages
     • Can serve to damage any posible long-term relationship.
     • Agreement is les likely to be reached as each side has made a public commintment to a particular position.
     • May leave the ‘losing’ party feeling resentful, seen as a dominant/aggressive position
     • Too much focus on achieving own objectives, could mean missing an opportunity
     • Less flexible
   • A wholesaler sells to a retailer
     • The retailer tries to buy at an acceptable price by trying to get them to sell at a lower price, but because the wholesaler's products are exclusive, he takes advantage of this exclusivity so as not to lower the price, but instead increases the value so that the retailer ends up buying his "exclusive" products