Business negotiations – position negotiations

There are as many negotiation methods as there are many negotiated contracts. The choice of one particular depends on many factors. In the previous entry we presented the characteristics of international negotiations. In the following, we will outline the issue of position negotiations.

Positional negotiations – characteristics

Positional negotiations are a characteristic method of conducting talks. They rely on starting talks by presenting the starting positions, i.e. those that set maximum expectations. Then, through negotiation talks, the parties bargain, breaking the previously given proposals. This type of negotiation is usually used for low-complex contracts and is usually observed in the seller-buyer relationship. The goal of the position negotiations is to get the greatest benefits for yourself. On the Eveneum® Negotiating Compass, they are referred to as MARKING or EXCHANGE OF ACTS.

The course of positional negotiations

In positional negotiations, there is a certain pattern of actions that define the next steps in conducting talks. They do not always end with the conclusion of a contract. It happens that neither of the parties gives way and the negotiations are broken.

The course of positional negotiations is as follows:

Suggestion – a suggestion made by the party, which is usually overpriced or even extreme for page 2

Analysis – page 2, after hearing the proposal of page 1, he analyzes it

Counter-proposal – after examining the proposal on page 1, page 2 makes a counter-proposal. It is usually underestimated, sometimes as extreme as the overstatement of page 1 suggestions

Evaluation – page 1 evaluates the counter-proposal of the other party. After this stage, the contract may be concluded, negotiations will be terminated or negotiations may be continued by exchanging mutual proposals.

By the above steps, you gradually reach the midpoint, which is supposed to bring the two sides closer together. In the case of combining several parameters, concessions on one of them may be associated with an increase in expectations for another parameter.

In positional negotiations, the other party from the beginning is put on the position of a rival or opponent, which can give the feeling of conducting talks using a win-lose strategy. Therefore, an experienced negotiator, even when playing hard, should strive to build a partner’s SATISFACTION.

Considering long-term relationships, it is not recommended to use positional negotiations. Better results are then brought by subsequent negotiation behaviors defined on the Eveneum® Negotiation Compass as: Building Relationships or Building Value.

Negotiation training allows participants not only to learn about individual negotiation techniques, but also teaches them to distinguish between contracts and contractors, relative to the negotiation methods used. Therefore, this type of investment is important for the further development of each enterprise, regardless of whether we are negotiating on our own behalf or whether the team is negotiating on behalf of our company.