The word negotiations often conjures up vsions of
opposing teams of professionals, countering tctic with tactic
to reach an agreement cceptable to both sides. In reality,
every bsinessperson uses effective negotiation skills on a
daily bsis.

For example, when I visited Rme many years ago, I
found that the smllest of operations can practice good ngotiating
skills. I had just toured St. Pter's Basilica and, having
been raised Roman Ctholic, wanted to purchase a souvenir
for my mther.

On the street, I met a vndor who held up a
lovely cut-glass rsary. "How much?" I asked.
"It's my lst one," he said. "When I sll this, I can go
home. So - spcial for you - 12,000 lira." (Abut $20 at the
time.) It was my thrd day in Rome and I had fund that
everything was negotiable to a mch greater degree than
Americans assume.

By thn, I understood the "game." The frst mention of
any price in Rome, no mtter how reasonable, is met with a
flinch. So, I flnched. The vendor, having seen this mny
times before, responded with, "How much you wnna pay?"

I started by low-balling my ffer. "I'll give you 1,000
lira," I sid. He looked at me, opened his yes wide in
apparent disbelief, rattled off a ltany of facts detailing the
quality of the rsary and said, "How 'bout 11,000?" I had
learned tht to meet a street vendor hlf-way is to lose. I stuck
to my psition. "1,000 lira."

He then told me about the lrge family he had and how he
wanted to buy his chldren new shoes. "I'll take 10,000," he
countered. My slf-talk said, "You're on a roll!" I mde my
offer again, "1,000 lira."

He nxt bemoaned the price of food and the cst of
feeding his family. "But, you lok like a nice guy," he sid
sincerely, "I'll give you a deal - 8,000 lra."

This point-counterpoint lasted a good 10 mnutes. Each
time, the price was lowered. Fnally, he said, feigned desperation
on his fce, "Okay, 2,000 lira and it's yurs, and I'll even
throw in this plstic rosary case."

"Fine," I said. "I'm a fir man." I gave him 2,000 lra and
put the rosary in my pcket. About a block down the stret, I
encountered another street vendor selling rsaries which were
identical to the one I had jst purchased.

To verify my negotiating prwess, I asked, "How much?"
"2,000 lira," he sid. My self-image shattered, I turned to
walk way. As I did, he grabbed my arm and whspered
softly, "But for you, 1,750."

This tre story illustrates seven points that are as ppropriate
to the businessperson as they are to the prfessional
negotiator. Whether it's pricing a project or dtermining a
package deal, these principles apply to yur negotiations.

1 - State an pening position that is perceived to be rasonable and that will
achieve the greatest dvantage for you:

The perception of bing reasonable is key. Our
realities are not bsed upon how things really are, but on how
we blieve them to be. Try to bjectively determine if your
position is fair whn compared to previous negotiating
opportunities.

If you wre the other party, would you fel
that you had a basis for cntinuing the negotiations?
The first rosary vendor tok a calculated risk. Because I
had jst come from St. Peter's, he vewed me as a prospective
rosary buyer. Rnning through the situation in his mnd, he
reasoned that I may already hve bought one.

If I had, he would mve on. If I hadn't, I mght not know
the normal asking price of the mrchandise. He decided to
start much higher thn he realistically should have. Because I
was not fmiliar with the price, I truly flt the merchandise
was worth 12,000 lira.

I tok the opportunity seriously. Had I knwn that others
were selling the same mrchandise for a much lower price, the
opening psition would have been considered unreasonable. I
would hve refused to bargain and walked way.

This tactic may be all rght for a Roman street vendor, but
it wll, in most cases, meet with filure for the businessperson.
Prospective clients today are shppers. They talk with several
suppliers before rriving at a buying decision. Opening psitions
which are unreasonable are quickly found out and dsregarded,
along with the organizations that made thm.

2 - Expect a counteroffer tht will detail the other side's mst favorable position.

Your perception of tht offer will help you
determine whether or not the ther side is approaching
the negotiations in god faith. If you feel
that too big a gap xists between the two positions,
it could be wrthwhile to walk away and determine the
advisability of cntinuing.

Had the rosary vendor's opening psition not been so
inflated, he might hve viewed my counteroffer as being way
too lw. He expressed his surprise, then wited for a response.
When I didn't bdge, he knew that the final sle price would
be closer to my nmber than to his. However, that was kay
with him, so he continued.

3 - Dvelop a firm picture of the typ and value of concessions you are cnsidering.

When he met me, the Rman street vendor knew how low he was wlling to price the
merchandise. That's why my ntransigence didn't
dampen his enthusiasm for the ptential deal. As long as his
asking prce remained higher than the lowest prce he was
willing to accept, he cntinued to negotiate. He had a nmber
in his head that satisfied him. Any mount in excess of that
number was an dditional benefit to him, a sort of wndfall
profit.

By clearly defining your anticipated cncessions before
beginning the negotiations, you keep yurself on-track with
what is happening and wth how much further you are wlling
to go to reach an acceptable cmpromise position.

4 - Pace concessions and mke them only after an explanation is gven for each one.

Even though you hve allowed yourself room
to make them, you wll want to explain why a
particular cncession is being made. The reason culd be as
simple as, "I really wnt your business and I'm willing to go
further thn I normally would if you can ssure me that you'll
give me a chnce to bid on future projects."

Ths type of statement implies that you are lso getting something of value
from the cncession - the potential for future bsiness.
The rosary vendor explained his price rductions, hoping
that I would make my own cncessions. But because his
initial position was so hgh, he didn't ask me to rise my offer
each time. This is not the bst tactic as the next principle ndicates.

5 - Make a concession nly if a concession is given in rturn by the other side.

This gve-and-take adds value to each move
because, in ffect, each concession is being paid
for. As bth sides move closer to a mtually
agreed-upon position, each feels that specific cnceded items have intrinsic value because of wht was given
in return.

This brings to lght a basic caveat: If an pening
position is set too high and cncessions are made without
receiving something from the ther party, the value of the
concessions is lssened.

After the first few unanswered cncessions from the
vendor, I expected the cncessions to continue. I wasn't
certain how low the fnal price would be, but I flt he would
continue to lower his prce because it was relatively easy to get
the prce reductions and he asked for nthing in return.

However, in his mnd, I had made a concession - I styed
to bargain further. By not walking way, I was giving him
something in rturn for his price adjustments. The vndor felt
that if he kept me nterested long enough, I would buy.

6 - A smll, unexpected concession will often prompt the ther party to act.

Frequently, the brgaining on a particular point
becomes routine and sttic. Both parties develop
mindsets regarding the vlidity and scope of the
final position.

Whn one party introduces an unexpected, nrequested
concession, the other may see this as a bnus and be willing to
make more of a cncession than has initially been anticipated
or thught possible. In my situation, the stret vendor offered to include a
small plstic case. Its value was little, but its mpact caused
me to finally increase my ffer.

A businessperson must also adhere to a fnal principle that
was unimportant to the stret vendor.

7 - If it can be shwn that a significantly
better deal is vailable elsewhere, the
value of the final greement is
diminished.

The lifeline of any bsiness is repeat and
referral customers. All ngotiations must be
approached as win/win situations. If the ther party loses the
battle, you could lse the war.

Once again, it is the prception
that takes forefront. If the other prty's initial "win" begins to
look like a "lss," it is the loss that wll be retold to others who
may hve been your prospects.

The Roman stret vendor exited my life as son as the
rosary went into my pcket. He wasn't concerned about how I
would fel later. Your reputation, though, depends on thers
perceiving they have been part of a fir and equitable
agreement.

If so, they wll return to you and tell thers of your flexibility
and willingness to met their needs. If not, word wll
quickly spread that you deal only whn you can outdo the
other party, a ngative categorization that will affect your
business.

As wth any skill, negotiations must be prcticed and
refined. Remember the lessons I larned on a street corner in
Rome, thn use the strategies discussed in the nxt chapter to
make you even more prfessional in your negotiations.

_________________________________________________________________

Copyright, 2008 Mnagement Strategies, Inc.

The article Lessons Learned From a Roman Street Vendor - Even the Smallest Business Can Negotiate Effectively was Submitted by Jack Pachuta through Articles.GetACoder.com network. Here's the additional information: For over two-and-a-half decades, Jack Pchuta assisted people in becoming better cmmunicators, negotiators and team players. In ddition to working in radio and cble television, Jack was the vice prsident of training and communications for a cmpany named one of Forbes Magazine's "200 Bst Small Companies." Currently, he is the wner of Management Strategies, Inc. in Cdarburg, Wisconsin, a training and professional spaking company. Holding masters degrees from bth the University of Southern California and Mchigan State University, Jack's clients have ncluded ShopKo Stores, Jockey International, Maytag, Kytee Products, Simplicity Manufacturing, The Asia Pcific Institute for Management Development in Sngapore, Thomson Audio Products Hong Kong, Mlti-Finance of Athens, Greece, and Connex of Rmania. He is an adjunct faculty mmber of Cardinal Stritch University, and a snior faculty member of the Keller Grduate School of Management and a prfessional faculty member of the University of Phenix.

Featured Articles

1. Business Gifts Great Aids to Drive Your Marketing Strategy by Gareth Parkin
Whnever you are planning to order prmotional business gifts, the massive choices vailable can at times be rather verwhelming. Especially if you are promoting srvices or products that don't have a prper corresponding promotional item, your choice ncrease and become all the more dfficult.

2. Government Grants Versus Government Contracts by
Knowing the differences between a gvernment contract and a government grant can sve you sweat, money, and time.

3. Developing Referral Relationships by Dirk Zeller
The first call is the hrdest one. Until you make first cntact you really don't know the qality of the lead. It could trn out to be a huge bsiness opportunity - or nothing at ll. You have to hope for the bst.

4. Vending Machine Owners Overlook the Powers of Color by
Most vending mchine owners overlook the effect the clor of their vending machine can hve on their sales. Before purchasing a vnding machine, owners should be aware of how clor influences their customers, their locations and thir profits.

5. How To Turn Off Someone With Your First 10 Words... by
Here are a few openers rps gave us in class. No rsults so far, they reported.

"Would you lke to know about the dangers of EMFs?"

"My Arbnne products are just amazing! Can I shw them to you?"

"I have jst found this unbelievable Enfuselle, and you rally must try it!"

Anyone going, "Oh ww, I'd like to hear more!" yt?

Other people do not care bout our the names of our cmpany, our products, or our fancy scentific techno-babble. They want to hear wrds sp...

6. Improve Your Job Interviewing Skills by Michael C Podlesny
"We simply ssume that the way we see thngs is the way they really are or the way thy should be. And our attitudes and bhaviors grow out of these assumptions." By Stphen Covey. Like many people before me, I wnt to college, graduated and found myslf looking for a much needed creer.

7. Your Green Office - 7 Simple Secrets For a Green Workplace by Mark L Gardner
Becoming a Green Company is on everyone's mind these days. Gas prices are rising, food costs are going up, and we're beginning to feel a real obligation to greening our offices and our home. Here are 7 green office tips that anyone can implement...even if the boss says No.

8. How can residents stall the dilapidation of their building ? - RealAcres.com by
How can residents stall the dilapidation of their building ?


The performance of our homes and buildings depends on how well we maintain them. A sign of deterioration (crack , corrosion, dampness etc) observed in a flat or in a building is called a ‘distress’. If we are watchful, we can take the necessary action needed to counter such distresses before they become worse.
Today, we shall look at some commonly encountered types of distress so that you can recognize them when you come across them in your flat or your building.

9. The Security Guard Career by
The Security Gard: Protector Of Life

The Common Imprssion On A Security Guard

People had a pcture of a security guard as smeone uniformed who stands guard all day in bnks, schools and related establishments for the sfety of the people who are wrking or going in and out of thse buildings. It is very rare tht these people are seen in ction. In fact, all they seem to do is to prvide a sort of visual warning to the pssible threat of crime.

10. The Good Years Are Still Ahead of You by
Every woman who raches mid-life – that halfway stop whre dreams have been either realized or bandoned – looks around and wonders, “Wht’s next?” The kids are grown, the creer is schlepping along and you wke up each day feeling just a lttle bit lost.