What is Negotiation? (Introduction, Meaning, Definition)- AGM

What is Negotiation? Introduction, Meaning, Definition about Negotiation is trying to arrive at a win-win situation which comes down to finding a place where both parties that are a seller and the buyer believe that they are getting good value for money. All Good Transactions are based on the Principle of Win-Win. Generally, Buyers try to get the best value for money. Hence, they start by attempting to negotiate.

There is a difference between negotiation and haggling. Negotiation is a way where you find a winning proposition for both the party. It is where both the parties feel that they got a good deal and it turns into a long-term relationship, whereas Haggling ends up being perceived by both parties, as a losing proposition. It results in discontentment and sour relationships. For all future dealings, both parties remain permanently on guard.

The example of a Win-Win situation and Lose-Lose situation. The Seller and Buyer of any Goods where the sticker price is the starting point for both the parties. The Buyer asks, ‘What better can you do?’ and the Seller says, ‘That is the best I Can do’. They are both testing each other and now the process starts about who is getting to melt first. 

The Buyer Starts by either reducing the price or asking for accessories and the seller wants to hold on but gives in a little and the deal is close with mutual understanding. It is an example of the win-win situation.

On the other hand, the buyer Haggles and gets some more. The seller haggles and gives in a litter more and eventually they strike a bargain somewhere. After they have signed the contract and the goods are delivered, the buyer feels he could have squeezed the seller a litter more and the seller feels he gave away too much.

 Both parties end up dissatisfied. This is lose-lose. If this is the starting point, how long will this relationship last?

A good negotiation has some very clear ground rules.

1. Have Mutual Respect and also accept responsibility. 
2. No interruptions and Observe the verbal and non-verbal Language of the other party also Your own verbal and non-verbal signals should reflect a positive attitude.
3. Coming to agreements on the minor matter quickly and be assertive, not aggressive. Assertiveness means firmness with politeness, while aggressiveness is firmness without politeness.
4. Starting to build on your points of agreements and Handling one issue at a time. Stay focused on the topic, don’t go off-track. Keep asking questions to uncover that real concern without being interrogative.
5. Separating negotiable and non – negotiable items and Use hard arguments with soft words, not soft arguments and hard words while not arguing with that avoid the rude and loud behaviour.
6. Setting priorities while maintaining eye contact without staring. Eye contact shows confidence and trust whereas staring shows that you’re daring and challenging, Avoid Sarcasm and don’t blame anyone because that makes the environment tense immediately.

Conclusion: The Seller knows that Negotiation and haggling is a way of life and the buyer knows that if he doesn’t do Negotiation or haggle he will lose on a good deal or be cheated, In Negotiation we do not cheat the other party or outsmart each other, but in haggling both the party feels cheated and both look to outsmart each other.

 Now it depended on you which way you are doing business, if you do the business like haggling way and not negotiation way then you will keep looking for the next victim and the buyer will keep looking for new sources. None of them can build a lasting relationship.

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