Business negotiation - positional negotiation

There are as many methods of negotiation as there are contracts to be negotiated. Choosing one particular one depends on many factors. In a previous post, we outlined characteristics of international negotiations. In the following we will outline the issue of positional negotiation.

Positional bargaining - characteristics

Negotiations Positioning is a distinctive method of interviewing. They involve starting the talks by presenting starting positions, i.e. positions that set maximum expectations. Then, through negotiation talks, the parties bargain by nailing down the proposals given earlier. This type of negotiation is generally used for low-complexity contracts and is usually observed in seller-buyer relationships. The aim of the action in positional negotiation, is to gain as much advantage for oneself as possible. On the Eveneum® Negotiation Compass, they are referred to as Bargaining or Bargaining for a deal.

Conduct of positional negotiations

In positional negotiations, there is a certain pattern of activities that determine the next steps of the talks. These do not always result in an agreement. Indeed, there are times when neither party gives in and the negotiations break down.

The course of positional negotiations is as follows:

Proposal - the proposal made by a party, which is usually excessive and even extreme for party 2

Analysis - party 2, having heard the proposal of party 1, shall examine it

Counter-proposal - having reviewed party 1's proposal, party 2 makes a counterproposal. This is usually understated, sometimes as extreme as the level of overstatement of party 1's proposal

Evaluation - party 1 evaluates the counter-proposal of the other party. After this stage, an agreement may be reached, negotiations may break down or talks may continue through the exchange of mutual proposals.

By way of the above steps, there is a gradual reaching of a midpoint designed to bring the proposals of both parties as close as possible. When several parameters are combined, concessions on one parameter may combine with an increase in expectations on another parameter.

In positional negotiation, the other party is put in the position of a rival or opponent from the outset, which can give the feeling of negotiating using a win-lose strategy. Therefore, an experienced negotiator, even when playing hardball, should aim to build the partner's SATISFACTION.

With a long-term relationship in mind, positional negotiation is not recommended. Better results then come from the subsequent negotiation behaviours defined on the Eveneum® Negotiation Compass as: Relationship Building or Value Building.

Negotiation training allow participants not only to learn about the individual negotiation techniques, but also teach them to differentiate between contracts and counterparties, in terms of the negotiation methods used. Therefore, this type of investment is important for the further development of any business, whether you are negotiating on your own behalf or the team is leading the negotiations on behalf of our company.