In some companies and with some retailers, these negotiations are not given sufficient priority – or it is difficult to find the time to implement them professionally. The results then become meager.
With the right preparation and professionally completed, the annual negotiations are an incredibly good opportunity to ensure the company's strategic and competitive advantages. On the one hand, the turn of the year can be used to ensure significantly better earnings and conditions of competition, and on the other hand it can be used as an opportunity to make a number of changes in previous processes, behavioural patterns and calculations. A pro-active approach, where we set the agenda, produces significantly better results than a laissez-faire approach.
Negotiations are situational
There are not one or a few methods to ensure the optimal outcome in negotiations. The best approach, on the other hand, is to view negotiations as situational. This mindset reduces the risk of being surprised because the starting point is the actual situation in the market, the current situation of companies, the negotiators, etc.
Therefore, it is useful to work on four main factors that are part of a good and efficient negotiation process:
- Power – the balance of power between the parties of the negotiations
- Strategy and tactics – how to enter the negotiations and how to implement them
- Planning and preparation - track data, details and frameworks - with a clear plan
- Personality and behavior – what psychological profiles are included in the negotiations and what is the behavior in the process?
Brandculture has helped many organizations get ready for years of negotiations. This applies for example, to wholesalers, industrial and service companies and to retailers. The solution is always tailored so that tools and facilitation fit the situation. This will create the biggest improvement in results.
If you want to read more about Brandculture's strategic approach to negotiations, tap here and the tactical game, please press here.