In Tough Economic Times You Should Avoid Making These 3 Critical Mistakes

Posted by naharazizi on Friday, October 28, 2011



Uncertainty dominates most people's minds. Staying positive in the current environment does not mean you have to stop listening to the news. Staying positive means you have to accept the new reality and to transform both their and your company access to business in the most difficult period since the Great Depression.

If you study the recent history, you will find that many companies not only survived the Great Depression, but actually improved during this period. You'll also learn that a key part of the success of companies that have survived and thrived is found in the way they communicate with all our stakeholders - employees, customers, shareholders, bankers, regulators, partners, etc.

During difficult times, the importance of accurate, targeted communication is enhanced. Bearing in mind that bargaining is nothing more than a specialized form of communication, knowledge of the negotiations is in the process, but an event that takes place when formal sit across the table to discuss the conditions of contract opens up a profound opportunity for you to not only protect the values​​, but actually create additional value within the company.

You and your company should avoid making any of the following three major errors in these negotiations are trying economic times.

1 Lowering your aspirations

Companies and people who thrived during the recent recession has focused on moving forward, regardless of market conditions. Do not make the mistake of lowering your aspirations as a result of what is happening around you. Success requires your full attention and requires ambitious goals -. And even more in tough economic times

Remember you do not negotiate with yourself. Do not make the mistake of lowering your aspirations, because you think that your colleagues will not be entertained by the level of its opening. Give your colleagues the opportunity to say no. Of course, you should be willing to make concessions if they say it does its job offer and it means you have to prepare the concession strategy where you have a clear picture of all the items you're willing to trade.

2 Using only a competitive strategy to negotiate or renegotiate the supply contracts

Do not make the mistake of thinking that a competitive approach to negotiation, where you are only interested in achieving their goals will result in the best deal for you. In tough times, vendors expect you to drive harder bargain and they will prepare a defense against a very assertive approach. Very often, their defense will underperform or just perform normally during the contract phase to ensure that you maximize the profits from the transactions. And during the phase of contract management professional buyers usually are not involved in managing relationships with suppliers, leaving open the possibility of arbitration.

During difficult times it becomes much more important to pursue more collaborative approach, where they also try to serve and meet some of the key medium and long term interests of its suppliers, not just focusing on their goals. You'll be surprised how creative suppliers can be if you feel that there is a trust in place and they are able to openly explore the creative possibilities with you.

Do not forget that you are far more likely to make concessions to people they like and trust than those who treat you with prezirom.Univerzalno the principle of reciprocity is alive and well in difficult times, -. Which means we go back to another form of behavior that indicate to us

So, go ahead, set the tone for cooperation relationships that you have with your key / strategic suppliers.

3 Neglecting to create organizational capability negotiation

Tough trading conditions provide an ideal opportunity and incentive to rethink the way you and your company dealing with suppliers, customers and other key stakeholders. Do not make the mistake of thinking that is a good negotiating skills are only found in individuals.

There are things you can do with relatively little effort to ensure that the results of your department, division or business negotiation efforts are equally enhanced by ensuring the application of business negotiations, best practices in accordance with the sale, purchase or other business processes your business environment.

To help you create the organizational skills of negotiation, I have created a review consists of 11 questions. After answering the 11 questions, you will immediately receive reports contrasting their responses to hundreds of answers to our database. Moreover, you will receive detailed recommendations based on your answers to help you create an organizational negotiation skills that will steady the ship in difficult times.