Why We Have Been Negotiating The Wrong Way

Before we start to dive into What isn’t negotiation – one needs to understand that what is the difference between negotiation and bargaining. Negotiation is a process whereas bargaining is an activity.

I have observed 2 main types of mindsets in negotiation. One mindset is of a taker mentality, the goal of the taker is to reap as much benefit he/she possibly can from the other party without considering the other party's position. The other is of a giver mentality, who is ready to comprise his/her position due to either position, power, relationship or future expectation from the other party. The difference between these two mindsets is the difference between long-term and short-term thinking. In this article, I will discuss what isn’t negotiation so that we can start correcting our perception about negotiation.

Negotiation is not a win-loose or loose-win situation. One may win in short term, but it is human nature to dislike being treated unfairly. If the other party finds out that they have been cheated then most likely the other party may never be involved with business again. In addition to this, you may never know what damages could the other party do to your business reputation.

Negotiation isn’t demonstrating the superiority of your product, service and reputation. Often in negotiation parties go too far bragging about their product, service and business reputation that they forget the main purpose of the negotiation. Another drawback of demonstrating superiority is that you may miss critical information about the market, product or service because of your attitude. With demonstrating superiority also comes aggressiveness, people often utter statements like, “look if you want the deal then this is what we want otherwise go find it somewhere else.” This aggression in the business world is not good, because you never know if the person who you consider is not worthy of your business may, in the long run, be the only supplier that provides that product in the market and can charge you the price on his/her term.

Lastly, negotiation isn’t a problem identification and price reduction process. Negotiation does not mean that you have to dig and find all possible faults in the other party’s product or service. Obvious flaws and loopholes are important to identify, but it has to be balanced by the positive aspect and considered in light of the company’s future vision, mission and plan.?

So finally, negotiation is a communication and problem-solving process between two or more people in which they consider alternatives to arrive at?a mutually agreeable?solution. We should always plan before any negotiation, the bigger the negotiation – the detailed the planning should be.

About The Writer

Mr. Tanzeel Raza is the Co-Founder of Meaningful Lives, a seasoned Corporate Trainer, HR Professional & Fitness Trainer with over 5 years of experience in training corporates & transforming lives in?Australia.

Tanzeel has had the privilege to work with top global organizations including “HUDSON GLOBAL RESOURCE”. He moved to Pakistan in August 2019 and creating impact in Pakistan Corporate through purpose driven, goal oriented and Meaningful training and programs since then.

He has completed MBA from CQ University (Australia) and is an ACCA Affiliate. He is certified from SIM Institute Pakistan and California Institute of Behavioural Neurosciences & Psychology as a Public Speaker and Voice Consultant. He is also a certified Fitness and Boxing Trainer from (Australian College of Sports and Fitness).