Coming to an Agreement in Negotiation

Once you have come to a final agreement, it is important that you have it down in writing along with both parties' signature: this is not always possible or practical. Before it is signed, or formally ordered, it is wise not to say anything about the terms agreed because your next sentence could break the agreement: the best sales-people never over sell - well, not until they have to!

If it is a sale/purchase that you are making, then officially, it isn't a sale until you/they have actually ordered the product/service. Usually, this will be an Order Form (we have one in our free business software). In most other negotiations, one party sending a letter and fax to the other in which the agreement is outlined (to a sufficient degree) will form a legal basis.

If the other party then amends the conditions in the agreement in writing to you, those amended terms then become part of the agreement, UNLESS you disagree in writing, and so on…


Summary

We use negotiation in everything we do but you have to be sure that it is done in the best way possible to achieve maximum benefit. The most important part is planning: preparing well will give you an advantage when negotiating.

Only use the knowledge and experience you need to achieve your objective: having the business owner negotiating the supply of pencils is over-kill, and leaves you little room to power-bargain with the same supply company when you want them to supply you with, say, colour photo-copiers.

Have confidence and be sure that you can keep control at all times. Aim highly, but don't underestimate the opposition. They too may have just read the same advice. If you're selling something, be persuasive and offer some incentive to keep the customer interested.

Don't close an agreement until you are happy. This could be difficult if you have been put in a 'corner' but this would perhaps be an effect of poor preparation.