The critical goal of the Consequences of No Agreement (CNA) analysis is getting a clear picture of the It that you are selling and that the customer is buying, as well as what the competitor is offering. Then on a deal-by-deal basis, find the two or three items your company has that the competitor doesn't, given the client's needs in this deal.

Most buyers would define negotiation as that time when you are sitting across the table working through the terms and conditions of a buy. If you are waiting until that time, it’s too late. Let’s say that this is a typical buying cycle: you understand the buying criteria, do some data collection, you implement your buying process, and then the negotiation takes place… or does it?

If we know where and what most of the traps are in business negotiation, and we know they are fear driven, why do we keep reacting in the same way?  There are two key tactics used by 97% of buyers - mention an alternative and leverage it to start the bargaining.  This then creates three key problems:  commoditiztion pressure, price pressure and selling "value" and then falling back to negotiating price.  Value is a word we hear a lot these days.  It's supposed to denote something worthwhile, significant, tangible and durable.

We all negotiate something everyday, from huge, complex business deals to perhaps where to go to dinner with a group of friends, or bedtime with our child. Some of us feel much more confident than others and yet, there may be something more for all of us to learn.

We recently asked Brian Dietmeyer, President and CEO of Think! Inc. to talk to us about this exact question.  Listen to his thoughts and then tell us what you think!

Doing business in China is tougher than you think. Not only is the culture vastly different, but China's experience in manufacturing is still developing. It will be a few years before the majority of manufacturers are up to world standards. In the meantime, quality, contract laws, schedules and logistics must be closely monitored. As a result, the things Westerners must do to be successful are far different from dealing with American or European manufacturers. The best way to quickly come up to speed on these differences and how to handle them is to learn from the experience of others.

Companies often come to Think! facing a major negotiation hurdle.  Oftentimes, the hurdle is based on perception:  they are intimidated by negotiation, they misdiagnose power or they freeze when they encounter a tactic for which they are unprepared.  The problem is that when we're unprepared, we're much more likely to give in to perception versus reality.  Let's look at some of the traps that are keeping us unprepared or ill-equipped to deal with our buyers' tactics.

The first step in creating value through trading is the pre-work to understand what the ideal trading items are.  It is this pre-work, in fact, that actually enhances the value that is being negotiated in a deal versus simply shifting value from one party to another.  Creating value for trading is actually good for both sides.

For many years, we have been asking our global clients for the most common and most difficult verbal negotiation tactics they face every day.  Their buyer's comments many sound different, but they all have one thing in common.  Whether buyers are asking for a price discount, an extended warranty or some other concession, the message is loud and clear:  they want something, they want it now and they want it for free... or less!  From our research and from what we have observed, they are very likely to get it!