Supply chain management is vital to the success of any business. Management leaders and executives must ensure supply chain continuity in order to retain and scale up their business. In many ways, business markets are like a battlefield, and in order to win the battle, it’s important to negotiate effectively when making deals with vendors. There are several things to consider when negotiating contracts with vendors in order to minimize costs and maximize profits. The following negotiation strategies will help you increase your profits, reduce your expenses, and maintain your relationships with suppliers. 

Bring New Value to Your Supplier

One of the best negotiating tools is the ability to bring value to your suppliers. You can negotiate a better deal if you become a strategic partner. You could bring new value to the supplier by acting as a gateway to new business. You can offer the supplier a market opportunity in exchange for price concessions. You could also offer a long-term contract or extended contract in exchange for price reductions. 

Understand Your Customer Needs

Understanding the needs of your customers and major stakeholders is an important negotiation skill. When you better understand what your customers want, you can try to look for opportunities to negotiate better deals. For example, it may sound great to offer free next-day delivery, but research may show that your customers are actually comfortable with 3-5 day shipping. Spend some time researching what your customers really want and what they might be willing to pay extra for, as this can help you negotiate better deals to increase profit margins. 

Understand What is Driving Your Suppliers

Research and figure out what business issues are driving your suppliers. Understanding their pressures can help you develop successful negotiation strategies. This can help you get a better idea of pricing trends, market conditions, constraints, or any other regulatory issues that might impact your suppliers. 

Work Toward a Mutually Positive Outcome

Win-win negotiations are the best way to build strong, lasting relationships, which is so important for suppliers and vendors. In a win-win negotiation, both parties compromise so each side gets something of value. Experienced negotiators understand the long-term benefits of this approach and how it leads to successful outcomes over time. 

Conflict is a part of life and people experience it all the time in their personal and professional lives. In the workplace, you are bringing together people from different backgrounds, geographical locations, cultural, and intellectual backgrounds, as well as differing viewpoints. Therefore, disagreements are bound to happen. Though it is a common occurrence, handling workplace conflict can be a bit of a challenge. It requires a delicate balance of assertiveness combined with professionalism. However, if left ignored, conflict in the workplace can be very costly. It could lead to company gossip, decreased morale, frustrated employees, and decreased productivity. It can even cause companies to lose good talent. That’s why good conflict resolution is vital to a successful workplace. Here are some helpful tips for managing and resolving workplace conflicts. 

Identify the source of the problem

The first step in resolving conflict is identifying the source of the problem. Understanding the cause will help you better resolve the issue and prevent it from happening again. You need to speak with the involved parties individually and gather as much information as possible. Ask questions until you feel like you have a complete understanding of the issues at hand. Encourage the involved parties to describe their issues using “I” statements rather than “you” statements, encouraging them to focus on their own specific issues instead of people. 

Be an attentive listener

Listen to what each person is saying rather than reacting. Allow the individual to speak freely about their feelings and issues without interrupting them. After the person has spoken, rephrase what they said to be sure you understood. Ask questions if needed in order to clarify their responses and take notes as needed. 

Refer to the employee handbook

Your employee handbook should be your first point of reference regarding the issues at hand. This handbook serves as a guide for employee behavior and clearly states the desired expectations of the company. If the employee has violated the code of conduct, it is critical that you make them aware of this violation and hold them accountable for their actions. Employees should all be well aware of the company guidelines as well as possible disciplinary action. 

Create a solution

As a leader, your role in resolving conflict is to identify employee needs and guide them to a fair solution that will satisfy all parties involved. You can brainstorm possible solutions with the involved parties  and discuss the pros and cons of each solution. You want to look for a win-win scenario that both parties can agree on. Give the employees a chance to agree and move forward. If they cannot do this, you may have to suggest an alternative that they must both agree to. 

Follow up

You should never assume the issue is completely resolved the minute you end the conversation. Rather, you need to check in regularly with the involved parties to ensure they are doing their part to meet the agreed upon goals. Keep an eye on the situation for a period of time and be ready to take necessary action if the situation does not resolve. 

Negotiation is a skill that takes plenty of practice to perfect and it’s not always easy. This can be especially true when the stakes are high. If you are in the process of finalizing a huge deal or hammering out the details of an important contract, you may even feel more pressure to get things right. High-stakes negotiations are often high-stress situations, so the more prepared you are to handle this type of situation, the greater your chances of success. If you are gearing up for a big negotiation, consider the following tips to help you enter the negotiation with confidence. 

Know the Other Party’s Needs

Not only do you need to focus on your own goals, but you also need to be aware of what the other party is looking for as well. This might give you some leverage in the negotiation. Consider what you can offer that might address the other party’s needs and add value to your offer. You can find out background information by researching the company online, reading individual LinkedIn profiles, and also researching competitor pricing. Use all this information to help you navigate the direction of the negotiation. 

Know Your Differentiators

Consider what you or your company can offer that sets you apart from the competition. Use these differentiators to your advantage to make an offer that is enticing to the other party. 

Know Your End Goal

Establish a clear goal for what you want to accomplish from the negotiation. You want to focus on addressing issues that address the needs of the other party, build a relationship with the other side, and maximize your own outcome. Once you understand your objectives, you can lay down the breadcrumbs to lead a path to your desired outcome. 

Work Together Toward Creative Solutions

Oftentimes when negotiations fail, it’s because the parties failed to identify the needs of the others. It is important to listen and understand the needs and interests of both parties and look for solutions that will be mutually beneficial. Together, you want to create unique solutions that are valuable to everyone involved. 

Approach with Confidence

A large number of people are not comfortable with negotiations and lack the confidence to negotiate effectively. This lack of confidence may hold them back from achieving their goals. Negotiating may feel intimidating, especially when the stakes are high, but practice and preparation will help you build the confidence you need to walk in and own the conversation. To be  fearless negotiator you can do the following:

• Speak first and get the anchoring advantage
• Focus on their needs as well as your own
• Frame your offer using the right verbiage such as “benefit, improve, value, etc.” 
• Be flexible and leave room to concede
• Be clear and specific with your asks

Conflict is a part of life and people experience it all the time in their personal and  professional lives. In the workplace, you are bringing together people from different backgrounds, geographical locations, cultural, and intellectual backgrounds, as well as differing viewpoints. Therefore, disagreements are bound to happen. Though it is a common occurrence, handling workplace conflict can be a bit of a challenge. It requires a delicate balance of assertiveness combined with professionalism. However, if left ignored, conflict in the workplace can be very costly. It could lead to company gossip, decreased morale, frustrated employees, and decreased productivity. It can even cause companies to lose good talent. That’s why good conflict resolution is vital to a successful workplace. Here are some helpful tips for managing and resolving workplace conflicts. 

Identify the source of the problem

The first step in resolving conflict is identifying the source of the problem. Understanding the cause will help you better resolve the issue and prevent it from happening again. You need to speak with the involved parties individually and gather as much information as possible. Ask questions until you feel like you have a complete understanding of the issues at hand. Encourage the involved parties to describe their issues using “I” statements rather than “you” statements, encouraging them to focus on their own specific issues instead of people. 

Be an attentive listener

Listen to what each person is saying rather than reacting. Allow the individual to speak freely about their feelings and issues without interrupting them. After the person has spoken, rephrase what they said to be sure you understood. Ask questions if needed in order to clarify their responses and take notes as needed. 

Refer to the employee handbook

Your employee handbook should be your first point of reference regarding the issues at hand. This handbook serves as a guide for employee behavior and clearly states the desired expectations of the company. If the employee has violated the code of conduct, it is critical that you make them aware of this violation and hold them accountable for their actions. Employees should all be well aware of the company guidelines as well as possible disciplinary action. 

Create a solution

As a leader, your role in resolving conflict is to identify employee needs and guide them to a fair solution that will satisfy all parties involved. You can brainstorm possible solutions with the involved parties  and discuss the pros and cons of each solution. You want to look for a win-win scenario that both parties can agree on. Give the employees a chance to agree and move forward. If they cannot do this, you may have to suggest an alternative that they must both agree to. 

Follow up

You should never assume the issue is completely resolved the minute you end the conversation. Rather, you need to check in regularly with the involved parties to ensure they are doing their part to meet the agreed upon goals. Keep an eye on the situation for a period of time and be ready to take necessary action if the situation does not resolve. 

There is no question that negotiation skills are highly sought after in the business world. In today’s increasingly competitive market, the ability to negotiate well is more valued than ever before. That’s’ because businesses rely on successful negotiators to close deals that will improve their bottom line. So, how can you improve your negotiation skills in order to close better deals? The following strategies can help you master the art of negotiation in order to strike the best deals. 

Do Your Homework

Before sitting down at the bargaining table, you need to do your research to find out as much as you can about the person and the company that you are dealing with. Familiarize yourself with their products or service, the industry and their competitors, as well as their strengths and weaknesses. You also want to find out what their interests are and what pain points they may have. When you know their hot button issues, you can better formulate an appropriate response. You should also review similar deals they have completed as well as offerings and pricing from competitors. 

Aim for a Win-Win Situation

The most successful business deals are those that are mutually beneficial for both parties. It is ideal for everyone to leave the table feeling like a winner. Ask yourself: What do I want and what does my counterpart want? Then, propose a deal that addresses the needs of both sides. 

Actively Listen

The best negotiators understand the importance of listening. The ones who do all the talking and try to control the conversation often frustrate and even irritate the other side. In contrast, great negotiators are the ones who truly listen and seek to understand the perspective of the other side. Refrain from talking too much and instead, try to learn what is important to the other side.

Know Where You Can Compromise

Negotiations are about give and take and compromise is inevitable. However, there may be times when you need the deal more than your negotiating partner and vice versa. Be realistic about this and don’t let your pride get in the way. Prior to the negotiation, decide what you need to make the deal happen and what you are willing to compromise and create a strategic plan using this information. 

Have a Plan B

Not every negotiation has a quick and easy outcome. There are times when things may not go as planned so it’s important to have a plan B in your back pocket. You should always prepare a BATNA prior to any negotiation, though you would never share this with your counterpart. If they know you have an alternative plan, they will know how much they can push you. 

Be Polite and Courteous

Nobody wants to do business with someone who is rude or abrasive. Keep in mind that you may have to do business with this person again in the future so it’s always best to remain polite and courteous. Establishing a good long-term relationship should be one of your goals in the negotiation, as this is more likely to result in a successful deal. 

Trying to reach a consensus when everyone has differing opinions may seem like an impossible task. However, when you create a space where everyone can respectfully share their viewpoint, you can work toward a consensus in no time. This is an important skill for groups who need to work together to create solutions, address issues, or meet objectives. Here are some helpful strategies for building consensus within your group. 

1. Make sure everyone is included.

Inclusion is one of the most important requirements for building consensus. Everyone who is part of the discussion, should be involved in the process. No one should ever be excluded or left out. Rather, each person should be given the opportunity to share their ideas and viewpoints. 

2. Encourage participation. 

Not only should every person be included in the discussion, but every person should be encouraged to participate. Ask each person to share their opinions and suggestions so that each person has an equal opportunity to be heard. This ensures that everyone has equal stake in the final decision. 

3. Set expectations for the discussion. 

One person should be designated as the facilitator and this person should set the expectations for the group. Start by identifying your goal for the meeting. Next, make sure everyone understands that they are to listen and be respectful of everyone else’s ideas, regardless of their own opinion. Finally, make it known that everyone’s input is valued the same. No one’s input is weighed more or less than anyone else’s. Each member has the same opportunity to amend, veto, or block ideas. Everyone involved is expected to collaborate and build on each other’s ideas in order to reach a solution that will satisfy the entire group. 

4. Explain the benefits of reaching a consensus.

If everyone in the group understands the benefits of negotiating an agreement, they are more likely to buy into the idea. Some of the benefits include:

• Better decisions that address multiple concerns
• Better group relationships
• Strong levels of cooperation because everyone was involved in the decision

5. Create an outline of what needs to be decided. 

You need to set clear objectives so everyone knows exactly what decisions need to be made. It’s also important to discuss why the issue is being raised in the first place and the upside of reaching a solution. This ensures that everyone is on the same page about the goals of the negotiation. 

Whether you are seeking a raise or a promotion, employers often use counter offers in an effort to retain high-value employees that might otherwise leave to go to another company. If your employer offers you a counter offer, you may be wondering how to best handle the situation and evaluate your options. Successful counter offers can result in increased salary, better perks, or even a better job position. Here we will discuss some tips and strategies for handling a counter offer from your employer. 

Know Why You are Considering a New Job

If you have been given a counter offer, the first thing you should do is determine what prompted you to seek a new position in the first place. Are you disappointed with your current boss or co-workers? Are you unhappy with your company altogether? Are you looking to climb the ranks to a higher position? If you want more money or a better position, is this something you can get from your current employer? If you are unhappy with your current position will this counter offer solve the problem? Remember to consider all circumstances surrounding the offer, not just the money. 

Consider the Total Compensation

There is more to a compensation package than just the base salary. Check to see if your counter offer includes additional perks such as a bonus or equity in the company. Furthermore, does it include additional benefits like added vacation, flex scheduling, gym membership, or any other special perks. Compare this entire compensation package with that of your other job offer to figure out what is most important to you. 

Does This Offer Put You on a Solid Track?

If you accept this counter offer will it put you on a solid track to advance your career? You can find this out by speaking with your employer and asking questions about your role within the company. You can inquire about how this new position will impact your career and help you continue on a management track. 

Review the Details of the Offer

Find out exactly what is entailed if you accept the counter offer. What will your roles and responsibilities be? Will you have new hours or job duties? It is important to understand what will be expected of you if you accept the offer so you are aware of any new responsibilities that you would be assuming. You want to make sure this is a good fit with your lifestyle. 

Listen to Your Inner Voice

You have probably been told at some point in your life to “trust your intuition” and this certainly applies when applying for a new job. After you have carefully considered the pros and cons of the counter offer, it’s time to listen to your inner voice to figure out which way you are leaning. If you ignore those subtle concerns, you may end up regretting it in the future. On the other hand, if you fail to follow your instinct out of fear, you may miss out on a great opportunity. 

Whether you are trying to increase your salary, propose a new solution for your company, or settle a high-profile business deal, strong negotiation skills are a must in today’s business world. That said, negotiation is an art form that takes time to master. Most business owners and entrepreneurs would admit that it took quite a bit of trial and error to develop a successful negotiation strategy. The problem with this approach, however, is that even a single failed negotiation can be detrimental to your company. That’s why it is so important for business owners, managers, and employees alike to pay close attention to the do’s and don’ts of negotiation. 

Do’s

1.Do prepare.

One of the most important negotiation strategies is preparation. Prior to the negotiation, take time to research the person with whom you will be speaking, the organization they work for as well as general information about the industry, and also competitors and deals they have made in the past. A lack of preparation can cost you time, money, and credibility.

2. Do set goals.

It is important to clarify your goals and objectives before you begin negotiations. You want to have a clear understanding of your desired outcomes. This will help you plan and prepare a proper negotiation strategy. In addition to understanding your own goals, it is also important to understand the goals and desired outcomes of your counterpart so you can aim toward a win-win solution.

3. Do know your bottom line. 

Before entering into any negotiation you need to clearly define your bottom line. Once you do, you have to promise yourself that you will not stray from it, regardless of the pressure you feel from the other side. Setting a bottom line will allow you to know when to step back and when to push forward in a negotiation. 

4. Do listen to others. 

One of the most important things a successful negotiator can do is listen. When you are eager to strike a deal, it can be tempting to do all the talking. However, the most effective negotiators follow the 80/20 rules: Listen 80% of the time and talk 20% of the time.

5. Do use a friendly approach.

When it comes to business negotiations, courtesy and friendliness goes a long way. Take the time to make a little small talk and find common ground with the other party. Smile and be polite and respectful when someone else is speaking. This will lead to smoother negotiations and a better outcome for everyone involved. 

Don’ts

1. Don’t let your emotions get the best of you.

Business negotiations should never be taken personally. Therefore, you should never let your emotions dictate your approach or behavior. Stay calm and friendly, even if the other person is not. Don’t be afraid to take breaks if necessary to calm tensions in the room. 

2. Don’t be intimidated.

Some people rely on intimidation tactics to get their way in a negotiation. Don’t allow yourself to be intimidated by someone who makes threats, raises their voice, or tries to bully you. Stay calm and request for substantive data that will support their claims. 

3. Don’t give something away without getting something in return. 

Negotiations often involve concessions but this is bi-lateral. Make sure that any time you make a concession that your counterpart reciprocates. 

4. Don’t make unreasonable demands.

It’s important to remember that negotiations require give and take so you can’t have an “all-or-nothing” attitude. The best negotiators understand the importance of focusing on a mutually beneficial solution. 

5. Don’t underestimate your worth.

Never underestimate what you and your organization have to offer your counterpart. Write down a list of awards, accomplishments, achievements, or strengths before going into the negotiation and keep these in mind as you advocate for yourself and your company.

You may have heard that you need to leave your emotions at the door when you are negotiating, but don’t be fooled. Emotions can and do have a powerful effect on your thinking and behaviors during a negotiation, which is why it is important to maintain a positive attitude. Successful negotiation requires positive energy. The attitude in which you enter a negotiation plays an important role in determining the outcome of the negotiation, and positive energy increases your confidence and creates more positive results. After all, your disposition is your choice. Some people freeze in the winter while others ski. In the end it’s all about attitude and a positive attitude will undoubtedly lead to more successful negotiations. 

The Benefits of Positivity

A positive attitude is a mental state that expects the best to happen. When you believe things will turn out well, they usually do. Here are a few other benefits if positive attitudes:

Positivity allows for constructive thinking. 

A positive attitude enables you to think outside the box and come up with different solutions because you believe you can find them. Not only do you think things will work out well, but you actively seek out constructive ways to execute your solutions. 

Positive thinking leads to creativity. 

Ideal solutions are not always easy to find but for those who are positive, they aren’t afraid to try new things and look for unique solutions. 

Positivity equates to confidence.

A negotiator with a positive attitude is less likely to make mistakes because they feel empowered. Negativity, on the other hand, narrows one’s focus and tends to fog their ability to make sound decisions. 

How to Develop a Positive Attitude

Before a negotiation begins, you should focus on getting your mind positively charged. You can do this by going over the negotiation in your mind and thinking about positive outcomes. Pay close attention to what thoughts are entering your mind and stand guard against negative thinking. 

In addition to your mind, you want to physically take charge of your body by eating a healthy meal before negotiating, practicing some relaxation and breathing techniques, and wearing a smile to trigger positive emotions. It never hurts to laugh a little too! Having a positive attitude is so important because it can create more positive results. In the end, attitude is a little thing that makes a big difference. 

In today’s complex and competitive world, it’s more important than ever to develop superior negotiation skills that foster strong relationships. Parties may not always reach their desired outcomes, but successful negotiations involve the same basic principles: preparation, persistence, and patience. No matter what industry you’re in, the ability to negotiate effectively is one of the most valuable skills, and it begins with these three principles.

Preparation

Negotiations begin well before you sit down at the table. The difference between a successful and unsuccessful negotiation often lies in the quality of the parties’ preparation. Negotiators often fail to adequately prepare for their discussion, and therefore fail to reach an agreement. During the preparation period, it’s essential to understand the fundamentals of why you are negotiating and what is motivating you and your counterpart. Consider key objectives and priorities for both sides as well as any weaknesses that you hope to improve. You also want to be informed about all parties involved.

The more you know about all sides of the negotiation, the better your chances of finding a good solution. Finally, keep your eye on the prize and know exactly what you hope to gain and how you plan to achieve it. Prepare possible concessions ahead of time, plan for what the other party might say, and determine your BATNA. Over 80% of a negotiation’s outcome is determined in the pre-negotiation phase, highlighting the importance of being properly prepared.

Persistence

Most children are not trained negotiators, yet they often manage to get what they want. Why? Children have a unique ability to persist. They ask you the same questions over and over and in different ways until they break you down and finally get what they want. This same principle can be applied to negotiating. Negotiators who are persistent have the ability to move the needle in their direction because they simply don’t give up. They realize that just because someone says “no” it doesn’t necessarily mean that’s the end of the conversation.

Persistence starts with believing in what you are selling and sharing this enthusiasm with the other party. Speak positive truths and continuously remind yourself and the other party why your product or service is valuable. Ultimately, the ability to persist can lead to long-term success!

Patience

We have all been told at some point to be a little more patient. As it turns out, patience is a key element to a successful negotiation. Patience equals time, and more time may lead to better negotiation outcomes. It takes time to understand what is being offered and the risks that might be involved. With time, you can determine those strengths and weaknesses and make a more informed decision. Patience accomplishes a number of things:

• Gather more information
• Lowers the other party’s expectations
• Leads to concessions
• Allows for realistic assessment 

With patience, all parties can take time to resolve their differences and overcome any obstacles.