HOW TO NEGOTIATE A ‘WIN-WIN’
If you are in the process of negotiating a property or business transaction, here are some guidelines that should help you determine whether you are striking a good deal.
- To begin with, you need to list all of your financial and psychological interests. At the end your interests are what is most important to you and form an outline for negotiation and deal making.
- Next, prioritize your interests. Some of them may be more important than others. It’s always easier to strike a deal if you’re able to narrow your list of interests.
Your interests translate as demands. - In narrowing your list of interests, place a dollar value on them if possible. There’s no point in holding fast on issues that may cost more than they’re worth.
- Remember that in any negotiation, you and the other party are sizing up each other. Holding fast on peripheral issues makes you look weak and may encourage the other party to increase his demands.
- Remember that while negotiation is interest based, it’s also a psychological process with each side trying to figure out the other’s top and bottom line.
- Each side’s top and bottom line falls within a “zone for potential agreement”. This zone moves from each side’s absolute minimum and achievable maximum. Win-win deals always fall somewhere in between though not necessarily in the middle especially if there is a significant power imbalance.
