Publishing details
HARRIMAN HOUSE LTD
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Copyright © 2012 Harriman House
First published in Great Britain in 2012
The right of Chloe Askwith to be identified as the Author has been asserted in accordance with the Copyright, Design and Patents Act 1988.
ISBN: 9781908003416
British Library Cataloguing in Publication Data | A CIP catalogue record for this book can be obtained from the British Library.
All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publisher. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published without the prior written consent of the Publisher.
No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading material in this book can be accepted by the Publisher or by the Author.
About the Author
CHLOE ASKWITH is an experienced negotiator and working mother. Chloe has worked for over 15 years in film and television both buying and selling across Europe the Middle East and Africa. She has experience of working with large corporations and small start-up companies with deals from a few hundred pounds to many millions. While having a large amount of negotiating experience, Chloe also understands the needs of start-up businesses first-hand.
Introduction
BEING ABLE TO negotiate well, and understanding how deals are done, is an essential skill for business owners, particularly those starting a new business. Not only will it have a direct and positive effect on your bottom line and all-important cash flow, i f you feel you are representing yourself well you will have more self-confidence, and that ultimately means running a better business.
I have been working in the media industry for over 15 years, negotiating rights for film and television. During this time I have been a buyer and a seller, and I have been fortunate enough to work with clients from every territory across Europe, the Middle East and Africa on deals ranging from a few hundred dollars to many millions.
This has given me a great perspective on the ins and outs of successful negotiation – that’s what I aim to share with you through this book. I hope you find it useful.
Please get in touch with any questions, and visit my website for more information: www.negotiationcafe.com.
1. What is Negotiation?
WHAT DOES THE word negotiation conjure up for you?
It makes me think of Denzel Washington in a darkened smoky room, of tense hostage situations – or lengthy peace talks. It also comes across as a word that definitely belongs in large, unfriendly boardrooms.
I have been working in the world of negotiation for many years, and have come to understand that it is really a way of communicating where there are some set rules. And instead of being something reserved for specialists, it is a skill that can be learned, and is relevant and useful to all of us. If you have a small business, or are considering starting one, there is a huge value in learning how to negotiate properly.
Negotiating between two people is finding an agreement that both are happy with. This is not just about setting a price. It is more than that. It is putting in time and effort to make sure that you and the person or company you are dealing with would be more than happy to come back and do it all again. As so many books and courses put it, you are looking for a ‘win-win’ situation.
By working through this book you will be finding solutions to make people happy. Some negotiators are naturally good at doing this as they can think widely and find creative ways to problem solve. Others can work through some basic steps to get to the right agreement. It is a way of thinking and working that you can very easily pick up.
In this book I am going to show you:
how you can benefit from negotiating
the preparation you need to do before you start discussions
how to get started, with a step by step guide to how to get a good deal
what to expect when negotiating
how to continue by maintaining strong relationships with your clients
tips on language to use, what to wear and what to do in meetings.
2. How Will You Benefit?
IF YOU ARE going to be successful at getting your own way (that’s essentially where we are going here), you need to be clear about what you can get out of the whole process. It’s essential for both motivating and directing your efforts.
Save money
There are many ways to get yourself the right deal. It all depends what your needs are and finding out what is important to your supplier. By helping them you could, firstly, save yourself money.
Spending some time building a good relationship with your supplier is one key to this. Talk to them and find out when they need to complete their sales for the year. Do they have targets to hit? If you help them to get to the right number will they give you a good deal? Making a large order to get a volume discount is a classic variant of this.
You could also save yourself money by getting a supplier’s agreement to spread your payments, thus helping your cash flow and avoiding an overdraft.
Lastly, you could save by setting prices with your supplier for the next deal, when prices would otherwise rise.
Feel confident
Knowing how to negotiate also means a confidence boost. If you are well-prepared and have a set of rules to follow in striking deals, you will feel much more assured when you go into a meeting – even in a large boardroom on your own . . .
When you have achieved your goals, and both you and your clients are happy – that is a really good feeling! Closing a good deal, whether buying or selling, where everyone is happy makes life more pleasant. It feels good to do a good job.
Make friends
Effective negotiation means building, not burning, bridges. A definition of a good deal is when no one leaves the negotiations either feeling ripped-off or regretful in any way. Both parties need to feel like they could go through it again.
Building relationships with people gives you and your business security. You may even find more business by getting to know your customers and suppliers better. And by building on your relationships with suppliers you will get to know more about all aspects of your business and the chains that feed into it: this could help you run things more efficiently or spot the next big opportunity in your niche.
QUICK TIP: Make sure you send Christmas cards (or e-cards) to as many people in your supplier’s