4 STEPS TO NEGOTIATE EFFECTIVELY

The word is something all of us are familiar with. Negotiation is used by everyone in their daily lives to be able to secure a good deal. There are different ways in which people negotiate. A strong negotiation skill is very important to be able to secure a good deal. In business and markets it plays the most important role in determining the reputation of the firm.
The FOUR steps of negotiation are as follows:
 PREPARATION:
Preparation includes knowing well about the other party. To know their strengths and weaknesses in order to secure a good deal. On the other hand it also means knowing exactly what we want. The goals and the things to obtain in the deal should be clear in our minds. The party’s conditions should be well understood and a reasonable price goal should be set. Make sure the deal is only with one party who is good enough to make the agreement.
 OPENING OFFER:
After both the parties have enough information the negotiation begins. The offer may be accepted or rejected.
The offer should be opened and questions should be asked. A proper image of the company and good personnel should be given the responsibility who can show high degree of expertise and listening can help find the leverage.
 BARGAIN:
The mast important step is bargaining where both the parties come to agree on a particular set of arrangements. A win-win solution is what should be aimed at to secure the deal. A list of items that can be traded should be ready and the options offered should not be more than three.
 CLOSING THE DEAL:
A final handshake helps to ensure a sense of trust and respect. The last step requires a good amount of creativity and the anticipation of the worst case scenarios. The next moves of the party should be carefully analysed. The deal should be formalised soon by a contract. Do not feel too relaxed before the contract has been signed by both the parties and you will be good to go.