The phases of negotiations

Nearly all negotiations are characterized by 4 phases - preparation, opening, bargaining and closing. In large scale negotiations each of these phases are normally tackled sequentially., However, in smaller scale negotiations it is quite common for these phases to merge - possibly into a single unstructured process. Where this is the case, a good understanding of the logic that underpins the four phase approach can guide you, even when you are negotiating smaller deals.

Preparation involves information gathering - knowing the state of the market, being aware of the supply and demand status, being aware of any current or imminent discounts and special offers and so on.

The opening phase of a negotiation involves both sides presenting their starting positions to one another. It usually represents the single most important opportunity to influence the other side.

In the bargaining phase your aim is to narrow the gap between the two initial positions and to persuade the other side that your case is so strong that they must accept less than they had planned. In order to do this you should use clearly thought out, planned and logical debate.

The closing of a negotiation represents the opportunity to capitalize on all of the work done in the earlier phases. The research that you’ve done in the preparation phase, combined with all of the information that you’ve gained since should guide you in the closing phase.