A 21-Point Negotiation Checklist

PurchTips - Edition # 204 May 18, 2010

By Charles Dominick, SPSM

Can A Negotiation Checklist Improve Your Results?

As we teach in our online course "Powerful Negotiation For Successful Buying," preparing for a negotiation is critical for success. Though not intended as a substitute for learning how to prepare or actually preparing, this checklist can guide your preparation for great results.

Identify the primary supplier to negotiate with.
Identify your second-best option in case you cannot reach agreement with your primary supplier.
Determine the format (i.e., face-to-face, phone, etc.) and location of your negotiation sessions.
Invite the primary supplier to negotiate and learn who the supplier's principal negotiator is.
Ensure/insist that the supplier assigns a negotiator with decision-making authority.
Assess your leverage over the supplier.
Determine your overall negotiation strategy (e.g., hardball, collaborative, etc.).
Identify all the terms that you will negotiate.
Set targets and least acceptable alternatives for each term.
Determine your negotiation tactics (e.g., threatening to use another supplier, emphasizing the benefits to the supplier of doing business with you, etc.).
Decide what to concede if necessary to reach agreement.
Develop a timeline for the negotiation process.
Identify the risks to achieving your terms, timeline, and other goals and plan to mitigate those risks.
Develop and share internally a communications plan stating who must be updated on negotiation progress and what information they must keep confidential.
Review notes from previous negotiations, courses, etc. for tips for success.
Anticipate your supplier's reaction to each tactic.
Create an agenda for the negotiation and practice.
Start the negotiation confidently.
Document agreements made and share with the supplier throughout the negotiation process to ensure that no misunderstandings later derail a negotiation in which you have invested much time.
Self-assess after each negotiation session and adjust strategy and tactics if necessary.
At the end of the negotiation, help the supplier feel positive about the new relationship rather than feeling like it lost the negotiation.

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