Repricing ? How To Break Deadlocks In Business Negotiation?

How to Break Deadlocks in Business Negotiation?

Deadlocks can arise for a number of reasons. How do you handle dead locks?

We can change a topic for a while, and when the atmosphere isn?t so tight, we can return to our original topic. When a negotiation is trapped in a deadlock, both of the two sides are still trying to find out some methods to solve the problem, but neither of them can find the right way to continue their negotiation. At this moment, you can change one of the elements to change the motive power of negotiation, and then you can create new turning point.

Besides the changing of the amount of money, you can do something others, like these followings:

1. Change the member of your delegation. Most willingly the lawyers would like to say:? I must appear in court this afternoon, so my partner will take my place to continue the negotiation. ?The ?court? may possibly be a tennis court. However, this is one of the ways to change the member of a delegation.

2. Change the time of negotiation. Suggest that go on your negotiation after lunch or dinner. A period of time for a stoppage can help both sides to readjust part of their subordinate principles.

3. To mitigate the pressure of your opponents? and show your compromise, you can let the member who would provoke the other side leave.

4. Talk about your opponents? custom, a tidbit, or an interesting story to ameliorate the tense atmosphere.

5. Find out the possibility to changes on financial affairs. For example, enlarge loans, reduce earnest money of order; or adjust the condition of payment; all of these are enough to change the motive power.

6. Discuss ways of risk-sharing with other side .If you accept the obligation which may become unpleasant will cause their attention.

7. Try to change the atmosphere in the conference room. If the focal point which can benefit both sides is sank to low key, trying to make it be more competitive. If the negotiation is hard to control, trying to open more channels to reach two-sides winning.

8. If you agree to accept arbitration when there is any contravention afterwards, your opponents may neglect divergence on suggestions.

9. If the benefit brought by the implement of the success of cooperation is larger than the break of a negotiation caused by insist on original principles, then give suitable concession is the right tactic that you should take.

In order to give a concession which can satisfy both sides, you should know clearly the bottom line of yours and pursue that of your opponents?, then through continuous push and resistance to enlarge the agreement area, the deadlock might be broke successfully.?

Tips of successful negotiations

Successful negotiations The perfect negotiator Set up your goals and plan your negotiation time Genuinely communicate your own strengths Pick the right moment Be fair and objective

????????Negotiation is actually a process of managing a series of short-term deadlocks. We declare a negotiation ?deadlocked?, however, when it appears that there is no reasonable expectation for enough further movement on either side to bridge the remaining gap between the parties. If, however, you determine that you still wish to see the negotiation continue, there are a number of steps that you can take to accomplish this. These include such things as changing issues, trying to find agreements in principle, caucusing, adjourning but not ending the negotiating session, bringing in other parties, developing new information, moving to a more informal setting, and many others. As part of planning for negotiation, it is essential to think about the situation which would occur if the negotiations failed to achieve agreement.

1. Why do deadlocks arise?

Deadlock or stalemate can arise for a number of reasons, including the following:

Both parties have widely divergent objectives. One party mistakes firmness for rigidity and will not make concessions even to keep the negotiation ?alive?.

As a deliberate tactic during a negotiation to force the other party to reconsider his position and make concessions.

2. How to break deadlocks?

Go back to information gathering Discover the barriers to effective negotiating Agree not to agree Highlight the consequences of failure Try a proposed solution Call in an outside party

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Flexibly Break Deadlocks

1. Seeking similarity from differences

When we are involved?in the deadlocks, we can try every possible means to find similarities while committing small differences. Maybe the most successful one was Premier Zhou Enlai?s famous speech in the first Asia-Africa conference.

2. Advantages and disadvantages analyses

Analyze why there are deadlocks, especially the reasons that block our smooth negotiation, which will cause losses to both parts. Actually, before the deadlocks, the two must have had harmonious communications, and maybe both have compromised for the success of the deal. Then we can retrospect the achievement that we have had and expect for the future to remind the counterpart that the success is around the corner as long as we both compromise and take more pains.

3.?Humoring the Embarrassment

Humorous expressions do work when dealing with embarrassment during the negotiations.

4.?Avoiding the Low-tide

It requires us be cautious about the occasion when there would be a deadlock, thus we can predict and express it before its real appearing. In addition, this method can be employed when both are arguing about one point and getting nowhere at all. We can suggest talking about something else that can be easily got through.

5.?Making Concessions.

We need to concede in the society in order to live, let alone when it is concerned with negotiating in business. In other words, in the case of deadlocks, we are supposed to adjust our respective objections and make concessions rationally to make the negotiation continue.

6.?Summarizing and Adjourning

When the negotiation reaches a point where both think we have had got to the limit of compromising, it is wise for both to pause to summarize the main problem. The best way to outline is to emphasize the agreement that both have achieved. On top of that, we should not use too many words, or we will be considered to be nervous.

7.?Multiple Choices

In order to ease the embarrassment, we can offer our counterparts many choices. Although it is probable that they will not choose any of the case, it is effective in the practice.

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8.?Uncompromising Stand

As a matter of fact, it is not always a good choice to make concessions, particularly when we are confronted with some ridiculous and meaningless arguments. At this time, we need to take an uncompromising stand definitely.

9.?Off-table Moderation

Generally speaking, there are two ways. One is mutual contacts out of the formal negotiation. The other is that we can invite a go-between who must have professional knowledge and high status, nay, someone with much knowledge, powerful in this field.

However, nothing is immutable. We must learn a lesson from each negotiation, no matter it is successful or not. Absolutely, we must know where our blocks are. Besides, we need to be alert with ourselves during each negotiation:

Don?t get personal. Control your emotions. Don?t talk out of school. If you discuss your deal in elevators, you have definitely pushed the ?down? button. It is a small world and the walls have ears. Don?t be afraid to take a risk. Don?t be bluffed by artificial deadlines of ?final offers?. Don?t attribute more strength to the other side than it possesses.

Here I would like to share with you something about how to conduct a successful negotiation first:
from http://www.qgm.qld.gov.au/bpguides/negoti/cond.html there are some key techniques for successful negotiation together with practical hints for each stage of the negotiation process provided.
1. Opening
??? It is desirable to establish control and set the tone from the opening moment of the negotiation. It is important to enter the room confidently and to exchange pleasantries in a relaxed and confident manner. Turn off your mobile phone. Have your right hand free for shaking hands and your business cards ready to exchange. Think about seating arrangements. Remember, you are aiming to start the negotiations off in a positive climate.

2. Exploring issues and inventing options

This is the stage where the parties form an understanding of each other?s positions and the interests behind those positions. This stage allows identification of areas where mutually compatible interests exist. Identifying areas with potential for mutual benefit is an essential skill in this stage of negotiation. There are several techniques for attempting to identify the other party?s negotiating interests and the potential for mutual benefit from satisfying these interests. These techniques include:
?-empathizing with the other party ? try to imagine the issues from their perspective;
?-asking questions that demonstrate your interest in understanding the other party?s position;
?-considering possible reasons why the other party has not made a decision along the lines that you would like;

?-analyzing the short and long term consequences for the other party agreeing to the type of decision that you are asking them to agree to.
??? Areas of potential mutual interest should then be explored together, with both parties generating options that might work and putting these on the table for discussion.
??? The choice and sequence of issues for discussion is an important element of the negotiation. It is usually wise to start with an issue that is not too important so that you can afford to make a concession and thereby show readiness to compromise. The next issue should also not be too important. This gives you the opportunity to see whether the other party will offer a reciprocal concession or is interested in playing a competitive style. Next, deal with the major issues on which you will look for serious concessions from the other party. By this stage, both parties have made an investment of time, effort and money in the negotiation and will feel some commitment to thrashing out the issues until an agreement is reached. Follow the major issues with minor ones and finish with a minor issue on which you can afford to give a concession as a final gesture towards closing the deal.

3. Making offers

At some points, clarifying interests and inventing options for mutual benefit must develop into the making of an offer. Once an issue has been thoroughly explored, be prepared to make an offer. However, making an offer too soon can make the other side feel that they are being pressured.
??? Suppliers will typically start with the highest defensible offer on each item and purchasers should respond with the lowest defensible offer.
??? Offers should be put clearly and firmly and without any hint of apology. Initial offers are very important because they create an impression of the sincerity and the realism of each party?s position. Often, the initial demand will become the anchor for the negotiation ? the central point around which the negotiation proceeds. This can be a disadvantage if the opening offer is pitched too low or too high. When deciding what to offer, keep in mind the following points:

You have other alternatives ? your BATNA (Best Alternative to a Negotiated Agreement).

Know what your other alternatives actually are (including your BATNA). Develop not only your BATNA, but also your second best alternative, third best and so on. The more options you have, the easier it is to negotiate a good agreement or walk away happy that you are not losing anything by doing so.

Develop an understanding of the other party?s BATNA. You should have developed this information during the planning and preparation phase of your negotiation. If you did not, then you should call a pause to the negotiation and do it now.

Stick to your limits. Developing limits is not much use if you constantly break them. At the resistance point, let the other party know that they are getting close to your limit and that soon your best option will be to walk away and follow your BATNA.

In this context, it is hard to beat the advice contained in the Kenny Rogers song, The Gambler, which says: ?You have got to know when to hold ?em, know when to fold ?em, know when to walk away, and know when to run.?

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4. Offering concessions

A concession is a revision of a previous position that has been held and justified. Making concessions is essential in reaching a negotiated agreement. The challenge when making a concession is to make a concession on a particular point without creating the perception of weakness and developing the expectation that other points will be readily conceded. Making a concession raises the following issues.
When should the concession be offered? Make the other party work for the concession, and encourage the other party to offer the first concession. Do not offer a concession without specific pressure from the other party. If a concession is offered without pressure being applied, it is probably not worth much to the party offering the concession.
How much should be offered? The concession you make need not match the one offered to you, but it must not be disproportionately small. Always value the concession from the other party?s point of view. Try to identify items that are cheap for the Government to give but are of real value to the other party.
What should be offered in return? Concessions should be traded and should not be made without a return. Do not give concessions lightly.
Always pair concessions. For example, ?If we agree to extend the deadline for delivery, would you be able to offer better payment terms?? Offer a concession that the supplier would like to receive, not one that you want to give! Always value the concession in the hands of the supplier ? what is it worth to them to receive this concession. Some things that are cheap for you to give, such as access to key decision makers, access to information or minor process streamlining for example, can be very valuable indeed to a supplier.

5. Reaching closure

In a practical sense, a negotiation closes when the parties agree on enough of the terms and details and are ready to formulate the agreement. In a legal sense, a negotiation closes when the parties have reached agreement on all the points under negotiation and have entered into a legally enforceable agreement with each other. This agreement is usually evidenced in writing.
The most effective way to close the negotiation is to simply ask the supplier whether they will agree to the current terms. The initial response will often be no, but by asking for closure the supplier has been sensitized to the need for closure. A negotiation cannot be effectively closed whilst the supplier still holds objections to some of the current terms. These objections must be identified and legitimate objections dealt with. This is easier in a climate of trust where there is willingness to work through the legitimate objections until both parties are satisfied. Failure to address and resolve objections will lead to deadlock, not closure.
Addressing objections might involve:
?-avoiding arguments over the objection;
?-treating all objections as reasonable and logical, even if it seems superficial to you. (This courtesy places the supplier under an obligation to accord the same respect to your objections);
?-rephrasing and repeating the objection. (This is an opportunity to check that you have understood the objection, and shows that you were paying attention to what they said. It also provides an opportunity for the supplier to tell you how they would like to see the objection resolved);
?-finding any hidden objections. (Sometimes the expressed objection is not the real one. Use a question like ?I think that there may be other concerns that are bothering you at this stage. What are these concerns??)
When it seems that closure is drawing near, it may be useful to consider offering the other party something small but of value to them as a sweetener to reach closure. It is crucial to be clear that this is a final gesture and that there will be no further concessions. Such a gesture can often break through any last minute hesitation about reaching closure. The supplier will leave the negotiation feeling satisfied and fairly treated, a situation that can pay high dividends during the implementation phase of your arrangement.
During the closing stages of a negotiation, never forget that reaching agreement is in fact only the beginning of your relationship with the supplier. You will have to work together productively to implement the agreement. Be sure that your actions at this stage do not make it impossible to have a sound working relationship with the supplier.

6. Documentation

There are essentially two types of documents involved in negotiation:
Contracts

Most government purchasing negotiations require a written contract or other formal written documentation. However, a written contract is not essential for the agreement to be legally enforceable.
Minutes and Records

It is good practice to keep written records of all negotiation meetings. Negotiations can move along at a very fast pace and it is easy to lose track of what concessions were offered by whom and what follow up actions need to be taken.
Proper record keeping is also an important part of ensuring proper accountability for the negotiation process. Negotiation records may be needed if the deal is subjected to external scrutiny.
Important!Ensure that any post-offer negotiations or interviews with suppliers do not result in late offers of late amended offers being accepted outside of the terms of the offer documents. Interviews of post-offer negotiations with suppliers should be conducted with at least two officers present (either physically or on a conference phone call) and the outcome adequately recorded and, where practicable, counter-signed or faxed and formally acknowledged by the supplier?s representative(s). These procedures are sensible precautions to protect all parties.

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Seeking concessions while preparing for a rebound.

1. Chasing the maximum profit is priority.

2. Making friends is inferiority.

Usually, the reason for deadlock is the disagreement. Both of us don?t want to meet in a half way. In such a condition, I would call for a break, coffee or having a walk outside is OK to make the tense atmosphere relax. We can talk about something else, weather or families. It shows my sincere nest and through my talking, partner could know more about me in order to establish a good beginning base on trust and respect. During our talking, I could revel ?unwittingly? that I have some negotiation another day with company which is a rival to the partner. What I imply is, if I lost you, I have some other choices. I am sure the partner would consider my proposal again. All of these are good for us in the coming negotiation.

1. Be aware of the allocation of the interest between seller and buyer.

2. Master the culture background and habit of people; communicate enough with your partner before negotiation.

3. To retreat rememberbut next time it?s their turn (long term partner).

4. Preparation for the both sides of the situation before head.

Source: http://repricing.com/uncategorized/how-to-break-deadlocks-in-business-negotiation/

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