Bad Negotiation Habits: Break Them Today!
PurchTips edition #210
Do You Have Any Of These Bad Negotiation Habits?
Bad Habit #1: Not Sharing Information. When negotiating, some buyers withhold information from suppliers. For example, a supplier may ask about the size of your budget. Some buyers refuse to share that, thinking that the supplier will inflate its prices to capture every bit of that budget money.
While you and your supplier may have a few opposing interests, the goal is for you to work together as partners - not opponents - at some point. This means that it may benefit you to share certain information at some point in the negotiation.
If a supplier knew the budget constraints you have, it may be able to recommend and/or customize a solution that works optimally for the amount of money you have available. Without knowledge of your constraints, your supplier is left guessing and may end up proposing a solution that is too expensive or not optimal for the budget you have.
Bad Habit #2: Overusing The Word "Honest." Some people use the word "honest" as a "filler" in their conversations. "Honestly, I never thought about that" and "To be honest with you, we don't have enough money to pay that much" are two examples of how "honest" is commonly used.
But when prefacing a statement with a "disclaimer of honesty," the other person may think that other things you've said were not honest. Trust is important in negotiation for a supplier to know that you will stand by your commitments when they improve their terms for you. Disclaimers of honesty don't build trust, they degrade it.
So, if you catch yourself about to use a disclaimer of honesty, use the word "frank" or "frankly" instead. For example, "To be frank with you, your price is substantially higher than we're able to pay."
For Bad Habit #3, go to http://tinyurl.com/284nqha.
Do You Want a More Rewarding Procurement Career?
Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.
Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM® Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!
Need Better Performance From Your Procurement Team?
Are you a procurement leader whose team isn't achieving the results you know are possible? Maybe it's not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.
You need a performance improvement plan that's easy to implement and quick to produce results. The NLPA can help.
Download our whitepaper "The Procurement Leader's Guide To A More Successful Team." You'll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.
Are You Getting The Most Out of Your NLPA Membership?
Members of the NLPA get more than just articles like this by email. As a member, you also get access to:
- The Procurement Training & Certification Starter Kit
- The latest Purchasing & Supply Management Salaries Report
- Leading-Edge Supply Management™ magazine
- Members-only webinars 10x per year
- And more!
If you haven't been taking advantage of these benefits, why not log in and start now?
Copyright 2010. This article is the property of Next Level Purchasing and may not be copied or republished in any form without the express written consent of Next Level Purchasing.
Click here to request republishing permission.