The art of selling is about making things happen; gaining agreement to move ahead with a deal or a commitment.
Negotiation – even if it is subtle – is an inherent part of most sales environments.
Interest-based negotiation is problem solving
Whether you use technology, AI, or rely entirely on person-to-person communications, the process of negotiating is based on a voluntary attempt to resolve conflicts that arise from competing needs, interests and goals. It is a problem solving approach in which parties seek agreement rather than resort to force, coercion or violence.
Rather than negotiate based on power, status, or what you believe are your ‘rights’, for business negotiations the most effective strategy is often an ‘interest-based’ negotiation. This approach to negotiating seeks to reconcile the needs, desires and concerns of the parties involved.
Interest-based negotiation helps both parties win.
‘Interests’ are the basic needs, concerns, fears or values which underlie their position in a conflict. For example in a labour dispute between employees and the employer, the interests are what lead them to make a certain demand; however, their interests may only be partially met by money. There may also be interests related to fewer working hours, better benefits or gaining a greater measure of respect from management.
The 3 types of interests in negotiations
There are three types of interests, as follows. All three should be subject to evaluation in a negotiation situation to reach the most stable agreement.
- Substantive interests: which relate to physical resources such as money, land or time.
- Psychological interests: which relate to issues of trust, fairness and respect.
- Procedural interests: which relate to the way the dispute will be resolved, who will be involved and how decisions will be made.
Interest-based negotiation is designed for parties who have a need to create or maintain healthy relationships. In this type of process, parties discuss the issues that face them and express the interests, values and needs that they bring to the table.
Collaboration not competition
Instead of focusing on competitive measures and winning the negotiation, parties collaborate by looking to create solutions that maximise the meeting of all parties’ interests, values and needs. This cooperative process focuses parties away from their positions and onto using interests and objective criteria for making decisions.
Parties use interest-based negotiation when…
- Both parties have interdependent interests, desires and concerns.
- It is possible to create integrative solutions which provide mutual gain for parties (win/win).
- An ongoing relationship between parties is important.
- Parties need to switch from adversarial interactions to more cooperative ones.
- There are principles (e.g. human rights standards) which parties are bound to uphold.
Need more help or training for your team?
Would your sales team benefit from being more assertive and gaining a deeper understanding of their customers needs to negotiate better outcomes?
You’re welcome to get in touch to schedule a complimentary consultation via phone or video meeting. On the call we’ll discuss what you’d like to achieve and explore a few options.