Video

OK, here's a thing for you to do, all by yourself.

In the video below, you're going to watch a negotiation. It's basically a tourist buying/being sold some plates: ignore the 'acting', it's not my forte. Watch it, then look at the points after it.

Firstly, think about these questions (and add some points in an edit):

  1. What's the model of negotiation here?
  2. How do the vendor and the buyer try to work out a price?
  3. How do they resolve their different prices?
  4. Is this a self-contained negotiation, or is it 'nested', i.e. are either person negotiating within the context of another negotiation?
  5. How would things have gone differently if this had been a shop in the UK?

So what?

Several things here are worth noting. Most generally, this is to remind you that we negotiate all the time: this is an obvious point to make, and this is a obvious example to demonstrate it, but it's easily forgotten. Only by appreciating that you're in a negotiation can you use any skills in negotiation that you've picked up.

Beyond this, I think it raises some other points to bear in mind when negotiating:

  • Negotiation tends to draw people in (in the video, the buyer soon forgets about trying to avoid entering negotiation, instead thinking about getting good deal). Likewise, as soon as negotiation begins, there is a logic to seeing it through to end. This is important, because sometimes the best option is to walk away. Remember that personal entanglements can work to your advantage, but can also leave you exposed (in later negotiations).
  • Always keep your objectives in sight. In complex negotiations, there will be a series of smaller deals to be made: do these serve the bigger purpose? Are they essential to your objectives, or can they be conceded to get another, more important point agreed in your favour?
  • Prepare. In the video, the buyer would have been better placed if he had gone around other shops to see what price they could offer and then use it as a bargaining tool.
  • Be (a bit) cynical. Ideally, everyone would put all their cards on the table, to allow for as rational and objective a negotiation as possible. However, have to recognise that this does not always happen. Are people telling you everything? Do need to give benefit of the doubt sometimes, but don’t get wool pulled over your eyes.
  • Attitude matters. Engage with the person with whom you're dealing, as it will make them more likely to want to resolve their differences with you in a harmonious fashion. Friendliness does not have to mean being weak. Note that this has to be more than just a skin-deep friendliness – if people feel you are smiling at them, while sticking in the knife, then this will prejudice later interaction.
  • Remember the context.