negotiation processSay you want to buy a used car, dispute an unfair credit card charge, or score backstage passes to one of your favorite bands.  What skills are you going to use?  Looks like you are going to need to know a little bit about the negotiation process and the steps needed to execute a successful negotiation.

Knowing how to negotiate can come in handy in all types of different situations.  Whether you are working in business or doing daily errands, the negotiation process is going to be the same.  In this post we are going to go over an 8 step negotiation process that combines some of the most effective and efficient approaches to negotiation to ensure that you come to a favorable end agreement.

Steps of the Negotiation Process

Step 1: Prepare – The first step in the negotiation process is to ensure that everyone is ready the actual negotiation.  Before you begin negotiation walk through the steps in your mind of what you are going to do, and think of different situations that may occur and how you are going to handle them.  If you need to, do some research beforehand.  For instance, if you are preparing to buy a washer and dryer, you may want to read some reviews online or check out some price points of models that are available to see how low you can negotiate your price.

Step 2: Open— In the opening stage of the process, you will identify your needs with the other party.

Stage 3:  Exchange Views—Some people can refer to this as the “arguing” stage, but it is more appropriate to say that you are simply exchanging views with the other party.  In such instances as a collaborative negotiation, the arguments may be gentle and polite, so it all depends on the situation the negotiation is taking place.

Stage 4:  Explore— In the exploration stage, usually no agreements have been made other than early positioning.  Both sides have established what they want, and now they can both move forward to reach an agreement.

Step 5:  Signal—The phase of signaling in the negotiation process is when both parties let it be known that they are ready to move forward with their position.  Signaling indicates the willingness to negotiate certain terms.

Step 6:  Package – In this stage, the negotiation has not yet been finalized, and both parties may still be determining and dealing with various possibilities.  It is important to keep a feeling of openness so that it will be easier to consider different options and exchanges without having either party feeling tied down to a decision yet.

Step 7:  Close – The closing portion of the negotiation process signals that you are moving towards a complete solution and getting ready to close the final deal.

Step 8:  Keep your word – The final phase of the negotiation process deals with sustaining your terms of agreement.  In sustaining your agreement, you ensure that the commitment stays closed and each party adheres to what they promised.  Make sure both parties keep their promises and are ready to renegotiate if need be.  Here are some techniques to use in the negotiation process to ensure that both parties sustain their agreements:

These will differ depending on the type and form of negotiation that you are executing.

negotiation processUseful Negotiation Skills

Good interpersonal skills are essential and useful for effective negotiations in both formal situations, in less formal or one-to-one negotiations.  Let’s take a look at some skills that you may want to whip out when dealing with negotiating.

Tip For Successful Negotiations

Start Negotiating Successfully

The negotiation process can be a tiring one.  It is important to keep yourself in good spirits at all times.  This will also help your other party trust your judgments and attain good vibes from your side.  Try adopting a sense of humor as well.  For more help on how to be a significant negotiator, enroll in this course to help strengthen and develop your negotiation skills.

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