I often say that negotiation is as much an art as it is a science. The cold hard facts will take you quite a way during your discussions, but when it comes time to close the deal, being able to artfully craft language or structure a financial arrangement will go a long way in securing optimal results.
A big part of this art is finding ways to frame your proposals in their best light – in other words, how to spin a deal to secure buy-ins…both internally and with your negotiation counterpart.
I know, I know, the very word ‘spin’ has a lot of negative connotations, but rest assured, there’s nothing shady about this practice – it’s simply a matter of learning to recognize and embrace other people’s perspectives.
When preparing a proposal, there are three questions to ask yourself:
What am I saying?
How will it be heard?
Where are my opportunities to change that interpretation?
Here are some examples of how these questions can be applied:
External Negotiations
Your firm is working on a contract to sell your customized boxes to a local firm. This is a big contract, and you know that the annual usage is quite high – this could be great for your sales figures! But to secure that revenue, you want 100% of the market share for those boxes – big, or small.
1) What am I saying?
“I want to be the exclusive supplier of boxes for your firm.”
2) How will it be heard?
“You’ll have no choice but to buy from me. You’ll lose the ability to shop around and you’re putting all your eggs in one basket.”
3) Where are my opportunities to change that interpretation?
“An exclusive contract is a great way to secure supply and guarantee you’ll never be without a box.” (No more shipment delays!)
“The deal we’re offering is very competitive on the market, so there’s no need to change vendors” (Saves me time in going out on quotes)
“A 100% market share deal with us guarantees you capacity. Even if another customer knocks on our door, you’ll be sure to get your orders.” (I like being at the top of the priority list)
In this case, by framing your proposal in terms of a secured supply, guaranteed capacity, and market competitive deal, you’re able to avoid your counterpart’s feeling of panic at the idea of an exclusive relationship. As a bonus, all of your statements will help them when they pitch the deal to their seniors and secure a signature on the contract.
Internal Negotiations
Congrats! You’ve just completed negotiations with a vendor on a contract. All of the language looks great, your legal team is thrilled and all that remains is to gain approval from the Vice-President. One small catch – as a part of the deal you’ll be agreeing to a 3% cost increase.
1) What am I saying?
“We’re agreeing to pay the vendor a 3% price increase this year as a part of the contract.”
2) How will it be heard?
“I”m not saving any money, costs are going up and all I’m getting for it is a stack of signed papers.”
3) Where are my opportunities to change that interpretation?
“The vendor initially asked for a 10% increase, but after conducting research we found that the market would support at most a 5% increase.” (3% is a great deal)
“Over the last 10 years, annual increases with this vendor have averaged 8%.” (We’re dodging a bullet by agreeing to 3%)
“In exchange for the 3% increase we’re receiving expedited shipping and next year, no price increase.” (Give-and-take is the name of the game)
See how those questions helped overcome potential push-back to your negotiation proposals? The key is in identifying how your counterpart or colleague will be interpreting the information, and then pulling on other aspects of the negotiation process or the deal itself in order to shift their response. Of course, your ability to frame proposals is only as strong as your underlying understanding of the deal at hand, and relies heavily on your credibility as a negotiator. Avoid telling fibs, or exagerating facts in order to achieve your frame…it’s better to find yourself back at the table finding another solution than it is to risk your reputation.
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Have a tricky proposal you’d like help framing? Share it in the comments below.
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Devon Smiley is a Negotiation Consultant, and is passionate about helping businesses achieve best possible results in their procurement contracts. For more information on how a Negotiation Consultant can help you visit What is Negotiation Consulting? or get in touch at devon@informedstyle.com
Filed under: Making It Work Tagged: business tips, Corporate, negotiation, Negotiation Consulting
