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Effective negotiations occur when each party understands the other's interests and through collaboration, both parties reach a mutually acceptable solution. Collaboration, not competitiveness, accommodation, or compromise is the key to building long-term relationships and optimizing results.
Negotiation begins when there is a counter offer made to the original proposal. The counter offer changes one of the variables: price, deliverables, terms or conditions. As shown in the graphic below, every negotiation occurs within a defined range that considers the previously listed variables. Within this range an acceptable solution must be found. Otherwise, one party, or both, will walk-away from the proposal. The negotiation ends with no agreement reached.
Understanding your customer's category goals, strategies and tactics prepares you to match your proposal to their needs. By following Delta's negotiating process, you will be prepared to avoid the walk-away position and achieve win/win results.
