The coronavirus pandemic has either made your business thrive or struggle. Ironically, companies at both ends of this spectrum will have to face similar negotiation issues with their customers, suppliers, and home life. How you navigate these issues will either help your thriving business continue to flourish or your struggling business begin to grow again.
The first thing to know is that all conflicts, disagreements, and disputes are opportunities to negotiate. However, negotiating isn’t always the best way to resolve a conflict — nor is it the only way. Here are a few things to test out before you try to negotiate.
Persuasion
Before doing anything, try to get the other person to see things your way through persuasion. Making well-constructed, convincing arguments using compelling language may enable you to resolve a conflict quickly without having to sacrifice anything. However, persuasion has a limited window of effectiveness–if you’re not rapidly moving the other party to your point of view, and you’re repeating yourself or even pleading with the other side, persuasion is not working and it’s time to try a different approach.
Problem-solve
Oftentimes, conflicts are simply problems missing a solution. There’s nothing more collaborative than two parties coming together to solve a problem. In fact, problem-solving can build trust, not to mention a sense of “we’re in this together.” However, problem-solving only works when both parties see the problem the same way. When they don’t, both parties will be attempting to solve different problems.
If persuasion or problem-solving don’t work, it’s time to consider negotiating. You may be asking yourself, “Why not start with negotiating?” The simple answer is that negotiation is a trading activity that comes at a cost. You’ll have to trade something (hopefully of low value to you) in exchange for something you want (hopefully of high value to you).
It will also create a precedent with the other party: they will think that the items currently of trade may also be items of trade in the future. Having said that, the cost of negotiating is often much lower than allowing a conflict to remain unresolved or coming to a deadlock. While some people think everything is negotiable, that’s simply not true. However, there are certain circumstances in which negotiating is appropriate and should be considered.
When someone wants to change the deal or wants a better deal
We all have agreements in place with our customers and/or suppliers, whether they’re written or verbal. When any of your customers or suppliers seeks to change those agreements, that’s a time to negotiate. For example, think about the customer who wants to delay your contracted services. They need something from you — a delay. In order to give them that, you must let them change the terms of your contract.
Instead of just giving in and making the change with the hope of preserving the relationship, consider this: “What do I need to make that change happen?” In other words, what do you need to trade to make that request worth your while? It could be a contract extension, prepayment of services, or just a referral to more business. The point being, if they want a better deal, think about what you need in order to give them that deal, and use it to better your position as well.
When an external factor disrupts the relationship
The COVID-19 crisis has been the mother of all external disruptions. As such, every business and businessperson has been impacted in some way. In these circumstances, opportunities exist to make strong relationships stronger, or bad relationships better. In other words, now is the time to either double-down or hit the reset button.
When there’s a disruption that impacts everyone, the rules change. Consider this: your contract was based on normal circumstances. Now that those circumstances have changed, it’s worth revisiting that contract to determine what else needs to change in order to deal with the new normal. Now the question becomes, “What are you willing to trade and what do you need in return to make that adjustment?”
When there’s a complaint
Whether you have a complaint about someone or someone complained about you, there’s an opportunity to negotiate an outcome. Let’s assume that you have a complaint about someone else. Whining and needless fist-pounding will not get you very far, but a proposal will. Instead of showing up with nothing but your complaint, arrive with something you want in return to make your complaint go away. In other words, think about what you need to make it better — and ask for it. That’s a negotiation.
If you caused a complaint, listen to the issue and be empathetic. Then ask the question, “What can I do to make it better?” Statistically, most people will either ask for it to be made right (usually a no-cost proposition to you) or for something of very little cost to you (like a discount on a future order). Rarely do people ask for more than what’s reasonable. And if they do? That means they’re looking for a better deal, and it’s time to negotiate.
When they say “no.”
This is a lesson from our kids. When you tell your kids “no,” do they stop asking? Of course not. After all, did you stop when you were a kid? Kids do not fear “no.” In fact, they look at it as the start of the negotiation, and so should you. When someone says “no,” your job is to find out why. Discover the reasons, motivations, and constraints behind the declined offer. Then it’s time to look for points of entry where you can trade something of lower value to you for something that will eliminate the obstacle causing them to say “no.” That’s what we did as kids and that’s what we should do now.
Conflicts can be resolved quickly through negotiation. Recognize when it’s appropriate to negotiate and be ready. Just know your limits because, at some point, a bad deal is a bad deal. However, if you’re prepared and you know your limits, then no matter the state of your business during this pandemic, you can make it better with skillful negotiation.
Find a Home-Based Business to Start-Up. Hundreds of Listings.
