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Negotiation Newsletter:

Win Win Negotiation Style

Khaled asked:

How do different personality types on the purchasing side affect the negotiation style and outcome? I`m working for a pharmaceutical company.

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In every negotiation, no matter if you buy or sell, solve conflicts or negotiate your salary there is always something lying behind the negotiation, something that motivates people to sit down at the same table to negotiate. In business and everyday life, each of us has something that drives us towards our desires, goals and aspirations. This drive makes us behave in a particular way, adapt particular poses and play different roles. What we want, why and how badly we want it creates and shapes our attitude towards negotiation. Typically speaking, personalities of negotiators are visible through observing their approach to negotiation. There are three main approaches:

  1. win-win
  2. win-lose
  3. lose-lose.

A win-lose attitude means a competitive approach to the negotiation/purchasing process. An example is when a buyer wants the lowest possible price even when a seller will lose money and conversely a seller wants to drive the price up because he is looking to maximize his profit. Competitive, driven people believe that knowledge is the power – which in fact it is – and they try to get as much information about you as possible whilst not revealing a lot about themselves. This approach will be supported with some manipulative and quite possibly dirty tactics. For people using this kind of orientation, relationship doesn’t matter. A substantive outcome is what counts.

The best possible and desirable situation is when the other side is eager to achieve a mutually satisfactory outcome – win- win. In this case, the other side will be willing to cooperate in order to gain some of his/her goals but also to let us achieve some of ours. There are always some issues in terms of price, quantity, delivery dates or guarantee but there is also a way to match and solve them through reasonable concessions and decisions. Of course, both parties must be willing to do this. If this spirit of mutual satisfaction is not in evidence, it will turn the negotiation into a lose-win or lose-lose competition. If we negotiate with a spirit of cooperation, we may even have a chance to create a value added solution that will benefit both parties more than was considered before the negotiation began.



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