A Reader’s Submission:

Hi,
I just wanted to tell you that your Offer has CHANGED MY LIFE! It made me stop and think about the way I go into Negotiations (especially Business.) I am so very thankful to have found this website and knowledge. I can’t even express how much your advice helped me to be a successful negotiator. Thank you, Thank you, Thank you!! You are truely amazing! For anyone who doesn’t believe in buying your offer they are silly. I was like them, Sceptical at first. Then I thought, I’ve blown money on so many things that never benefited me, whats a little more, after all its UNDER $5.00! And looking back, the best money I’ve spent in a long time. I just wanted to express my gratitude.

Thanks,
Robyn Petrude.

Negotiate a BUDGET.

How you plan to spend money may decide whether you, your business or your school wins funding or not. A detailed budget must be submitted when requesting grant funds, after which months of negotiating can ensue. Negotiating a budget is just as important for a one-time event as for an ongoing activity.

  • Gather your data. When negotiating a budget, you must create an organized plan for the use for every penny of the money you are seeking. Have a written plan with at least one copy for yourself and a copy for the funding organization. Be prepared to justify your budget verbally or in a written presentation.

  •  Summarize why you need the exact amount for which you have applied. Explain which parts of your program will suffer if you receive less than you requested. If you obtained funding for similar programs in the past, make sure the successes of those programs are part of your application.

  •  Keep changes to a minimum. You may have to renegotiate parts of your proposed budget during the funding process. Changes made too quickly or unnecessarily can give the impression you are not sincere about your original plan.
  •   Review policies applying to budget negotiations with your grant-funding organization. Many organizations have very specific processes that must be adhered to when budgeting. Failure to follow these steps can result in rejection.

    By Charlotte Johnson, eHow Contributor

  • Negotiate a Settlement for Medical Debt!

    Medical bills can easily run into the thousands of dollars. If you don’t have insurance or your coverage is limited, you may find yourself buried in debt if you have an accident or suffer a serious illness. Many people don’t realize that doctors or hospitals may be able to negotiate the amount of your medical debt or the payment plan to make it more manageable for your budget. The negotiation process is not difficult if you speak to the right person and make a reasonable settlement offer.

    Determine whether you need to negotiate a reduction in the overall debt amount, a payment schedule, or both. Sometimes you can pay the full amount of the medical debt, but you just need some time to do it. Sometimes the amount is so large that it would be virtually impossible to pay it in full. Know exactly what you need to make the situation manageable before you start negotiations.

    Contact the doctor’s office or hospital before your medical debt is turned over to a collection agency. Once the debt is turned over to an outside collector, the doctor or hospital can only expect to receive a fraction of the amount billed. Rather than taking that step, the billing party might be willing to compromise and collect a smaller amount from you that will still be higher than what could be expected from a professional collector.

    Make sure you are speaking with someone who has the power to do negotiations and give approval to a settlement. When you’re talking to a hospital, you may need to speak with a supervisor rather than a billing clerk. When you’re dealing with a doctor’s office, you might need to talk to the office manager or the doctor herself. Don’t waste your time talking to someone who cannot say “yes” to a settlement.

    Lay out your offer and express your willingness to put it into writing. Be specific about the lump-sum settlement or payment plan you are offering. If you are willing to sign a contract, it will show your good faith. Make sure the billing party agrees to sign it, too; in this way the doctor or the hospital is also bound to the agreement.

    By Barb Nefer, eHow Contributor

    Getting your Best Deal: Negotiating with an Airline Company

    We all know that air passengers pay different fares, even if on the same flight. We also know that leisure passengers generally pay less than business travelers. But many do not know that many business travelers can also get discounts. It all depends on travel volume, destinations and class of service. If your company is growing and sending staff afield particularly to international destinations, here is a process to negotiate the best deal with an airline.

  • 1 Analyze your company’s previous 12-month travel. List each trip including passenger name, city pair traveled, class of service and fare paid.
  • 2 Contact your company’s travel decision-makers and forecast travel needs for the next 12 months using the criteria outlined in Step One. Summarize the findings to include total fare cost, number of trips and number of trips for most traveled city pairs. Highlight international destinations, particularly travel in business class.
  • 3 Survey company travelers and travel decision-makers (including financial department) to determine relative importance of airline services, e.g. connections versus nonstops, rule waivers, flyer club memberships, fee waivers, class of service upgrades, frequent flyer points, etc.
  • 4 Review airline route systems and analyze your company’s travel needs versus the route systems offered. Determine the best two airlines.
  • 5 Contact the airline corporate sales department, provide your anticipated air travel needs and request a bid.
  • 6 If your company’s projected air travel needs meet minimum revenue criteria, the airline may bid on the business. Be prepared to guarantee a travel purchase minimum and to designate the airline as “preferred” to all company travelers.
  • 7 In exchange for guaranteed revenue, the airline may offer guaranteed or discounted fares, or a travel rebate. Other items such as special “rule-waived” fares, upgrades or flyer club memberships may be placed on the table.
  • 8 Select the airline that best serves company needs, noting cost, flight frequency and use of traveler time.

  • By Jeff Fulton, eHow Contributor

     

    Adjusting Your Negotiation Approach

    The situation you’re in should shape your approach to negotiating. Here are some situations that will impact your negotiation approach.

    Goods vs. Services. When buying goods, you can generally take a more tenacious approach to negotiation. With services, negotiating can be a bit trickier, particularly when you are negotiating with the person who will ultimately be providing the services such as a consultant, accountant, graphic designer, or similar professional. These individuals tend to take pride in the work they perform and view your attempts at negotiating a better price as a devaluation of their work. They may respond by providing services that demonstrate that “you get what you pay for” instead of giving you their best efforts. So take a firm but diplomatic approach when negotiating with service providers.

    Custom Orders vs. Mass Production. When you place a second order for mass produced goods, you probably won’t be able to negotiate a much better price than you negotiated for your first order. However, with custom-made goods, you do have a little leverage. On the first order, the supplier probably built 100% of its non-recurring costs (e.g., process design, set up, production instructions, etc.) into the fee you paid. If you end up placing an unplanned second order, the supplier has already recouped its non-recurring costs and, thus, your unit price should be lower than it was on your first order.

    Technically Committed vs. Technically Uncommitted. Let’s face it. When other people in your organization have worked with a supplier to determine the technical specifications for what they are going to buy and only one supplier can comply with them, there is little leverage that you have in negotiation. So, when other people interact with potential suppliers, your negotiation power depends not so much on how you communicate with the supplier, but moreso on how you prepare your internal team. Everyone responsible for the technical decisions should be advised of these things:

    1. No one should share a supplier or specification selection with suppliers until a purchase order is issued.
    2. The less certainty a supplier has about getting the business will translate into more price flexibility.
    3. Your approach is not necessarily designed to choose the lowest cost supplier but rather to ensure the lowest possible cost for the preferred specifications backed up by compliant supplier performance.

    4. 

    PurchTips – Edition # 140 November 27, 2007

    By Charles Dominick, SPSM

    Five Intervention Strategies in Negotiation

    To advance negotiations or to bring them to a close, it is often necessary to intervene in a strategic manner, either as an outside party to resolve the situation for the principal parties or as one of the principals. Five interventions that can achieve the negotiation’s goals are to compete with the other parties, to compromise, to accommodate, to avoid the issues or to collaborate.

    1. Compete with the Other Parties

      • Competing with the other parties is an appropriate strategy when a quick resolution is required for a simple and straight-forward problem. It can also be used when the necessary solution is unpopular and cooperation from the other parties is unlikely. Proposals to achieve goals are presented in competition to the proposals of the other parties in an either/or scenario. Typical examples are cost-cutting or staff reductions. The strategy is characterized by high assertiveness, a lack of cooperation and a quick termination of the negotiations.

      Compromise with the Other Parties

      • A compromising approach is an appropriate strategy when all parties are of similar importance and all parties have some power to influence the outcome. It is characterized by bargaining and trading. While the final solution typically has the approval of all concerned, it does not give clear and optimal results for complex problems. It can be used to achieve a temporary solution quickly while a more permanent solution is being considered and prepared.

      Accommodate the Other Parties

      • Accommodation is a strategy which is characterized by high levels of cooperation. It is appropriate when the goals of the other parties are acceptable or when the other parties themselves are of strategic importance. It should also be used when achieving a particular goal is of great importanct to the other parties and when a key factor in the negotiations is to preserve future relations. The result is that present goals are sacrificed for future gains.

      Avoid the Issues

      • Avoidance of the issues is an appropriate strategic response when it is clear that the issues involved will not be resolved at the negotiations or when it is clear that any possible outcome would not be acceptable. The strategy is characterized by a lack of cooperation and a lack of assertiveness. It is essentially a non-negotiation and results in a quick termination without any resolution, an outcome which is the goal of the particular strategy.

      Collaborate with the Other Parties

      • Collaboration is an appropriate strategy for addressing complicated issues that require new, creative solutions in which all parties can achieve their goals. It is characterized by high cooperation and high assertiveness as each party presents its goals. Each party will also expect to have its goals treated with consideration and to have them reflected in the final outcome.

        While the other strategies can be practiced successfully by one side, collaboration requires that all parties participate sincerely. Collaboration is therefore more difficult to achieve and it takes much longer to reach the required consensus. Collaboration is nevertheless often attempted as a strategic option. It is the only strategy which guarantees a win-win situation for all parties and has an optimal chance of providing the best solution.

    By Bert Markgraf, eHow Contributor

    Negotiation Steps for Everyday Life

  • Plan

    • Plan your strategy ahead of time whenever possible.

    Assess the Situation

    • Learn what you can about the issues being negotiated. Understand the point of views and positions of the people you are negotiating with.

    Build Relationship

    • Build a rapport with the individual you are negotiating with. Assess how cooperative the individual will be in reaching an agreement.

    Be Flexible

    • Negotiation is a give-and-take process, so be prepared to be flexible. Know what concessions you are willing to make.

    Bargain

    • As you work to come to an agreement, place more focus on the issue rather than the differing positions.

    Compromise

    • Always look for an acceptable compromise that is mutually beneficial or acceptable to all parties.

      By Cheryl Washington, eHow Contributor

  • Positive Thinking = Positive Negotiating

    Can you think back to a day that everything went right? Were you in a good mood and a positive person to be around? Negotiations can benefit enormous amounts from walking in with a positive attitude. Like anything, it is way more enjoyable when people are being optimistic and not pessimistic. Before your next negotiation take a minute and think about all the good things that will come from the new agreement. Think of how you will grow as a person and how you are benefitting someone/ something. Taking a couple minutes to think about these things will get you in a positive mood. You will go into the negotiation thinking about the good coming out of it instead of the bad (things that you have to give and take on.) This will make your negotiation run smoothly and will set a good example of the type of person you are. Networking is a huge part in the workforce today and setting a good example of yourself is always a great idea! This being said, still have goals that you want to achieve in the negotiation and come out feeling good about the compromise you have made. So, next time you are about to walk into a negotiation, take a couple minutes: collect your optimistic thoughts, put a smile on and let your personality shine!

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    How to Develop Negotiation Skills

    1- Plan ahead. Most good negotiators go into a meeting know what they want and knowing some possibilities that the other side may want. Make sure you are well informed on the whole situation and have a plan set out to help get what you want.

    2- Consider your options. Know that the chances of you getting exactly what you want are slim. Have other back up ideas prepared so you can still get what you want, just in a different way.

    3- Look for places of common ground. There are some things that are usually agreed on first. If you make a point to prove the things you both want it gives you the upper hand and makes you look like you are wanting to cooperate not just take, take, take.

    4- Address issues in order of importance. A good negoitator has any diffefrent issues they want to look at and take into consideration. When the negotiation begins based on the things that both parties do not agree on, make sure you go through the issues from most important to least important. Most people get tired, or lazier as the negotiation goes on and you want to make sure that the most important things get done correctly and to your benefit at the beginning (when you have your most confidence and power!)

    5- Know what the other side wants. Research what could be some possible wants for the other party. After that listen to what they have to say. You know what you want, so it will be easier to compromise if you can fully understand where the other party is coming from, while keeping yourself in mind. If possible set out an action plan before the negotiation of possibilities that may arise.

    6- Be willing to compromise. When you go into a negotiation the chances of you getting exactly what you want are slim. Realize that you can compromise without losing what you want. It is possible to have a win- win situation.

    7- Watch your behavior. Do not go into a negotiation being aggressive or cocky. This will usually put up a wall between the two parties. Watch your body language and the tone and volume of your voice. All of these things play a huge role in how well a negotiation goes. If it helps do some role play into a mirror before the negotiation. This way you will see how you come accross to the other party.

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