In this article, we'll show you the different types of negotiation and which ones are best suited for you and your business. Check out our tips and how you can benefit from them!
There are several types of negotiation, and you can benefit from each one. Find out how here!
Types of negotiation: what are they and what do they consist of?
Negotiation can often be very complex and complicated, this is because you cannot always think in the same way. There are clashes of interests and possible conflicts that cause it to become tedious.
Negotiation is that process of exchanging ideas and interests, where some agree and others do not, so an agreement is tried to benefit both or more parties equally, and a commitment is made to comply with this agreement.
A negotiation is essential when seeking to create business agreements with other companies or organizations, in order to expand the company's field of action, or for an entrepreneur who needs financing to develop his product or improve the service he provides.
You need to be attentive to the circumstances to know which type of negotiation you should use, since there are several types and not all of them will be useful to you if the situation is not appropriate.
Trading Types
To achieve a satisfactory negotiation, many aspects must be taken into account, each one matters! Negotiating integrates psychological aspects such as body language, the necessary time, the personality and/or the power of the opponent, and the trust between the parties, which can make the negotiation somewhat difficult to carry out.
In this video we show you some common types of negotiation:
Collaborative negotiation or win-win
This type of negotiation is one where both or more parties collaborate with each other to reach an agreement where everyone benefits, perhaps some to a lesser extent than others, but profit is still obtained. The most advisable thing to do in negotiations is to always go with the intention of reaching this type of agreement, although also recognizing that it will not always be possible.
negotiation by compromise
Compromise negotiation refers to reaching an agreement where the parties do not necessarily benefit well, but it is enough for them to fulfill some of the objectives and interests they have. This type of agreement is usually reached for reasons of time, since it may represent an agreement that does not meet expectations, but serves to achieve a few objectives, instead of achieving none.
Negotiation by competition
The main thing in this case is to win the negotiation, to obtain all the benefits, regardless of whether the other party or parties have none. Normally this type of negotiation does not generate relations between the parties, so it is very unlikely that it will be negotiated again.
accommodative negotiation
It is used as a strategy to obtain benefits in the future. It consists of one of the parties involved taking the position of loser, in order to lead the negotiation to an agreement in which, later, they can take advantage.
Distributive trading
It consists of each of the parties arguing to obtain the greatest benefit from reaching an agreement, it being evident that if one wins something, the other loses it; it is not always possible to reach an agreement in this case, so it could lead to the next type of negotiation.
A bargain is a typical situation where this type of negotiation is observed, for example: you are the seller of a product, be it a laptop, at a negotiable price, and a person wants to buy the product from you. The buyer may seek to negotiate a lower price under any pretext, but lowering the price decreases your profit.
Avoidant or lose-lose negotiation
If there is the possibility that, if an agreement is reached, it will have more disadvantages than benefits, that is to say that agreeing may be counterproductive, in this case the agreement is avoided in order to be able, in the future, to dialogue again to try to reach a more satisfactory agreement for each of the parties.
Deal categories
The aforementioned types of negotiation can be classified into categories that will depend on different factors, and that is where you choose which of these types may be best for you to negotiate:
- Immediate negotiation: it consists of carrying out the agreement in the shortest possible time. This point does not take into account the interpersonal relationship of the parties involved, it only considers making a quick and satisfactory agreement.
- Progressive negotiation: this point takes into account the interpersonal relationship, in order to create an environment of trust between the parties before negotiating, which can lead the negotiation to a point where they have the greatest amount of benefits.
- Situational Negotiation: The key in this discussion is the circumstances. There are factors in the negotiation that are already known: weak points, skills, time, etc; This style allows you to alternate between the previous ones to negotiate in the most appropriate way in each situation.
Law of indirect effort
The fundamental basis of this technique is to obtain benefits indirectly; It can be implemented using empathy, trying to make the other party satisfied and feel more confident with you. The important thing is that you know how to treat the other party with gratitude so that it is more open to negotiation that will allow you to have benefits.
The intention of this technique is to find a way for the other person to agree to negotiate a mutually beneficial agreement; win win. It must be taken into account that the fact of applying this law does not guarantee that the other party wants an agreement that also benefits you, so you must take into account your interests and not give in to a counterproductive agreement; You must respect and enforce your limits.
Do you know how to negotiate?
Negotiating is a complex process: if you want to do it well, you must know how to negotiate.
Previously we showed you some types of negotiation that you can take advantage of if you manage to reach a good agreement, but it is not always possible to negotiate effectively. Sometimes, as much as you have a good idea or project and want to seek sponsorship, everything may go wrong even though you have implemented the correct type of negotiation.
Negotiating doesn't just come down to using good negotiating style, it also influences how well you as a negotiator perform. Therefore, we have for you a list of tips that will allow you to negotiate in the most satisfactory and profitable way possible:
El sense of humor is your ally
Since negotiations tend to be stressful, a good sense of humor will make for a better atmosphere.
Attitude!
You must have the vision of what you have in mind, be clear about your objectives and clearly state them.
Criteria and topics to be discussed
Set out at least five important conditions and criteria to deal with for you in the negotiation. If the other party cannot agree to your criteria, a negotiation between the two is likely to come to nothing.
Evita solve all problems in one session
Negotiating can be exhausting with few points to discuss; avoid trying to negotiate and resolve each point in a single session, they can be dealt with at other times.
No you will always achieve all your goals
You must understand this and take into account the priorities. If there are things that you can give up in the negotiation and it is necessary, it will be better to lose something that affects you less.
You have commitment
Reaching an agreement can make you have to give in to some criteria on certain occasions: set your limits and make concessions that do not affect you too much or are less important to you.
Date your time
Before reaching an agreement you should calmly think about your situation and decision; time is a friend of yours, not the other way around. If you are not sure of reaching that agreement, you can consult with other people; do not fall under pressure to sign a contract.
Negotiating can be a long and difficult process, but by knowing the types of negotiation and using these tips, you can reach the best deals.
Since you're interested in learning about the different types of negotiation and how to use them, you'll want to see our article on sales representatives , their roles, and their importance at the business level.
