Negotiating a contract can be challenging, especially when you face a tough or unreasonable counterpart. You may feel stuck, frustrated, or even tempted to give up. But don't despair. There are some effective strategies that can help you turn the tables and get what you want in a negotiation. Here are six of them.
One of the key principles of negotiation is to understand the underlying interests of both parties, not just their positions. A position is what someone says they want, while an interest is why they want it. For example, if your counterpart demands a higher price, their interest may be to increase their profit margin, to cover their costs, or to impress their boss. By identifying their interests, you can explore ways to satisfy them without compromising your own goals. You can ask open-ended questions, listen actively, and observe their behavior.
To shift the negotiation dynamics in your favor, consider reframing the conversation, emphasizing the value you bring, and leveraging strategic concessions to incentivize cooperation from the other party. Additionally, actively listening to their concerns and finding common ground can help build rapport and facilitate mutually beneficial agreements.
Getting what you want out of contract negotiations involves careful preparation, effective communication, and strategic negotiation tactics. Here are some steps you can take to increase your chances of achieving your desired outcomes: Know Your Goals: Clearly define your objectives and priorities before entering into negotiations. Understand what you want to achieve from the contract and what terms are most important to you. Research and Preparation: Conduct thorough research on the other party, their interests, market standards, and industry benchmarks. Understand their needs, constraints, and potential alternatives. Prepare compelling arguments and evidence to support your positions.
Probing using open ended questions is a good way to find out what the other party needs. And why. Some of the best negotiators I know are also the best listeners!
It really all depends on why the negotiations are stuck. I agree with shift the dynamics, change your approach and otherwise keep a level head and try nudging things in the proper direction. If you are dealing with someone who is just plain stubborn, sometimes it's all about who will be the nice guy and who will be the "bad" guy. I will admit, sometimes when they are stubborn, there is more going on than meets the eye. Then, you have to try to figure out the hidden agenda.
Focus on understanding the underlying interests and motivations of the other party. Listen actively to uncover their priorities, concerns, and values, rather than just their stated demands. Use this information to propose creative solutions that address their interests while also satisfying your own objectives. By demonstrating empathy and finding mutually beneficial outcomes, you can effectively influence the negotiation in your favor.
Another principle of negotiation is to create value before claiming it. This means expanding the pie of possible outcomes before dividing it. You can do this by generating multiple options, trading off issues, and adding issues that are low-cost for you but high-value for them. For example, if you are negotiating a software contract, you can offer additional features, training, or support that are easy for you to provide but valuable for your counterpart. By creating value, you can make the negotiation more collaborative and less competitive.
In my client portfolio, adding value with, say marketing and product placement is a massive added bonus. Helping to pay costs towards photography of product images that you both can use and add to socials is great start.
Brainstorm alternative solutions or concessions that could satisfy both parties' needs. Having a range of options increases flexibility. Use relevant data, market trends, or industry benchmarks to support your arguments and bolster your position. Knowledge is power in negotiations, so leverage information strategically to influence the discussion. Create Urgency: Introduce a sense of urgency or deadlines to motivate the other party to reach a resolution. Limited-time offers or impending consequences can spur action and encourage concessions. Build Rapport: Strengthen the relationship with the other party by building rapport and finding common ground. Trust and goodwill can facilitate smoother negotiations.
As a realtor, leader I find myself in deadlocked negotiations more often than not. Creating value is how I swing negotiations in my favor. In most cases I prefer to approach tougher negotiations by focusing on common ground, identifying areas of agreement, building on them. In other cases, I’ve found taking breaks to think things through, being creative and sometimes reframing the issue to focus more on the positive.
Sometimes, you may encounter a counterpart who is stubborn, irrational, or dishonest. They may refuse to budge from their position, make unrealistic demands, or lie about their alternatives. In such cases, you can use objective criteria to support your arguments and challenge theirs. Objective criteria are external standards that are fair, legitimate, and independent. They can include market prices, industry benchmarks, expert opinions, or legal precedents. For example, if your counterpart asks for a price that is way above the market average, you can show them data from credible sources that prove otherwise.
Usage of objective criteria should be done very meticulously in order to ensure that criteria works in your favor and not against. Whenever planning to use objective criteria ensure to justify the usage of the same in your current situation politely rather than imposing the facts on them to ensure that it actually helps in turning the tables for own good.
Instead of focussing on emotional points of view, orientate yourself on measurable facts and clear standards. Identify common, acceptable criteria. Present objective data and analyses to support your position. Avoid subjective arguments and emphasise statistics, research results or comparative data for transparency and comprehensibility. If there are differences of opinion, neutral third parties or external experts can be consulted to bring in objective criteria. This creates an impartial basis for overcoming deadlocked situations. The use of objective criteria promotes fairness and rationality, facilitates the path to resolving deadlocks in an impasse and enables constructive progress in the negotiation.
Your BATNA, or best alternative to a negotiated agreement, is your fallback option if the negotiation fails. It is the most favorable outcome you can achieve without the cooperation of your counterpart. Having a strong BATNA can increase your bargaining power and confidence in a negotiation. You can leverage your BATNA by improving it before the negotiation, communicating it to your counterpart during the negotiation, and comparing it to their offer at the end of the negotiation. For example, if you are negotiating a job offer, you can improve your BATNA by applying to other companies, communicate it by mentioning that you have other options, and compare it by evaluating the benefits and drawbacks of each offer.
Identify realistic alternatives and evaluate them carefully. Present your BATNA not as a threat, but as a rational option if no agreement is reached. This creates transparency and shows your well thought-out preparation. Emphasise the positive aspects of your BATNA without exerting pressure. Show that you favour a win-win solution, but at the same time are prepared to consider alternatives. Skilful use of your BATNA can focus on pragmatic solutions while protecting your interests, which can often pave the way to a constructive agreement in deadlocked negotiations.
Emotions can have a significant impact on the outcome of a negotiation. They can influence your perception, judgment, and behavior, as well as those of your counterpart. While some emotions can be positive and constructive, such as enthusiasm and empathy, others can be negative and destructive, such as anger and fear. You can manage emotions in a negotiation by preparing yourself mentally and emotionally, expressing your emotions appropriately and respectfully, and acknowledging and addressing your counterpart's emotions.
Stay Calm and Confident: Maintain composure and confidence throughout the negotiation process. Emotions can cloud judgment and derail progress, so strive to remain calm and focused on your objectives. Be Willing to Walk Away: Know your limits and be prepared to walk away if the terms are not favorable. Demonstrating a willingness to walk away can convey strength and encourage the other party to make concessions to keep the deal alive. Seek Win-Win Solutions: Aim for mutually beneficial outcomes that address the interests of both parties. Collaborative problem-solving fosters goodwill and lays the foundation for future negotiations.
Rapport is the quality of connection and trust between you and your counterpart in a negotiation. It can affect how you communicate, cooperate, and resolve conflicts. Building rapport can help you turn the tables and get what you want in a negotiation by creating a positive atmosphere, reducing tension, and increasing openness. You can build rapport by finding common ground, showing genuine interest, using humor, and mirroring body language.
Negotiations can be complex and time consuming. In case of disagreements on major points, negotiations can also be frustrating. My suggestion: Maintain patience and persistence. Think out of the box and try to come up with a new and creative solution.
One of the things I've found helpful is to excuse yourself and take a bathroom break, when you return sometimes the tension calms itself and you can then pitch your points of view with better reception.
Document all relevant information, viewpoints and developments objectively. Analyse the reasons for the impasse and identify possible solutions and alternatives. Outline the progress to date in the report and emphasise positive aspects as well as the cooperation to date. Such a report serves as a basis for further discussions and decisions to get deadlocked negotiations moving again.
Building rapport with the counterparty is the most underrated tactic to actually turn the tables in your favor during a contract negotiation as this helps in creating a feeling of trust and mutual understanding with them. Even if the counterparty is too adamant, trying to build a rapport helps in reducing the tension between the counterparties which may lead to a fruitful negotiation. Building rapport includes agreeing to a few situations which in your understanding can be agreed to, brining negotiation to a middle ground by explaining you situation as well, discussing the industry trends pertaining to the subject matter or putting forth personal touch by discussing any anecdote on the matter.
Often when you see complex negotiations stall, they are hallmarked by the complexity of the journey walked. When things are getting difficult (and often highly technical) it serves to step back, breathe, and simplify. What do we want to achieve together as an objective? What outcomes can support that objective? How can we best manage uncertainty? What represents a positive outcome for both parties? In simplifying, move from the I to the we and reorientate towards what unites rather than divides. Use that foundation as a basis to simply walk the discussion forwards. The writing should embody the desired outcome...not define the outcome to be negotiated.
Leverage Information: Use relevant data, market trends, or industry benchmarks to support your arguments and bolster your position. Knowledge is power in negotiations, so leverage information strategically to influence the discussion. Create Urgency: Introduce a sense of urgency or deadlines to motivate the other party to reach a resolution. Limited-time offers or impending consequences can spur action and encourage concessions.