Negotiation Analysis

What is negotiation analysis?

The tactics of proposing an offer and the perception of offers made by the other party determine how both parties engage each other and, as a consequence, the kind of agreement they will establish. It is important to gain a better understanding of the tactics and other factors that can potentially play a role in shaping that process through negotiation analysis.

A negotiation analysis will clarify:

  • The aspects of the relationship that could benefit both the company and the prospect.
  • The pricing difficulties and flexibilities.
  • The estimated company costs for resources, such as the time required for a salesperson to work on negotiation.
  • Who the other competitors are that are seeking business from target prospects.
  • The sustainability of a deal.
  • Whether it is in a company’s overall interest to negotiate with a specific prospect.

There are ten traits to think about when assessing negotiation style

Note: The following questions are only intended to provide insights into your negotiating style and do not calculate any results.

1. Goal

What is your/the prospect’s goal in the business negotiations: Is it a binding contract or the creation of a relationship?

Contract

Relationship

2. Attitudes:

What is your/the prospect’s attitude toward negotiation? Win-lose or Win-win?

Win-lose

Win-win

3. Personal Style

During the conversation, is your/the prospect’s personal style informal or formal?:

Informal

Formal

4. Communication

Do you think that your/the prospect’s communication style is direct (clear and definite proposals and answers) or indirect (vague, evasive answers)?

Direct

Indirect

5. Time Sensitivity

In the negotiation process, do you think that your/ the prospect’s sensitivity to time is high (they want to make a deal quickly) or low (negotiate slowly)?

High

Low

6. Emotionalism

During a negotiation, do you think that your/ the prospect’s emotionalism will be high (displaying the emotions) or low (hiding the emotions)?

High

Low

7. Agreement form

Do you/ does the prospect prefer agreements that are specific (detailed) or general?

Specific

General

8. Agreement Building

Do you/does the prospect view negotiation as bottom-up (reach agreement on details first) or top-down (begin with agreement on general principles)?

Bottom up

Top Down

9. Team Organisation

As a member of a team, do you/does the prospect prefer having one leader who has the authority to make decisions or making decisions by consensus?

One leader

Consensus

10. Risk Taking

In your opinion, is your/ the prospect’s tendency to take risks during negotiation high (for instance, an extremely high opening offer to sell) or low (being risk avoidant)?

High

Low