Business Communication and Negotiation Part 2

What is a reasonable price? It should be based on the following criteria:

- A reasonable price is a price that reflects the common interests of both parties.

- Reasonable price is the price that can satisfy the long-term cooperation requirements of both parties.

- Reasonable price is the price where local benefits are subordinate to global benefits.

- Reasonable price is the price that is consistent between technical requirements and economic requirements. Quotation must be carefully prepared.

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2. Adjust requirements

After both sides have made their demands, there will inevitably be differences in the demands that both sides have made. Here, both sides need to discuss back and forth to adjust their interests appropriately. Usually, both sides want to maintain their position.

A negotiator who wants to effectively maintain his interests must first fully understand the basis of his counterpart's request, let him clearly state the structure of the request and the reasonableness of each component part, and then compare it with his own request to see where there is a gap between him and his counterpart and why there is such a gap.

* If the demands of both sides are reasonable, so the remaining gap is also reasonable, then we can point out this actual situation to the partner, and seek for each side to make corresponding concessions to reach a consensus.

* If the other party's request is reasonable, but we make a request that is a bit too high, we should consider whether we need to maintain our position or not, especially when the other party has discovered our unreasonable point and raised questions, we should proactively make concessions.

When you need to make concessions, you should follow these guidelines:

First, you need to let your partner feel that you are making an important concession. When you make a concession, you cannot make your partner understand that you are afraid of their pressure, nor should you make them think that your concession is hasty. Instead, you need to make them understand that your compromise is a sign of your sincere desire to cooperate. If your partner understands that, they may also make a corresponding concession.

Second, you should take an alternative of equal value in exchange for a change in the partner's position. That is, you can be willing to give up a benefit in one aspect as a price to pay in exchange for a benefit in another aspect of equal value. For example, two sisters are fighting over an orange. The older sister only wants to eat the orange segments, while the younger sister only wants the orange peel to cut into coins that she likes. But the two sides are arguing about who gets the whole orange. So why can't the older sister give up part of the orange peel in exchange for the whole orange segments?

Third, make concessions for concessions, not unilateral concessions. If after you have made an important concession and the other party does not make a concession in return, you usually cannot make another concession because negotiation is a cooperation between two parties.

* If your partner's request is more unreasonable than yours, you should clearly point out to them where the unreasonable part is with full evidence. Of course, to do that, you need to have persuasion skills.

To convince your partner to see your request correctly, you need to follow these points:

First, you need to keep the atmosphere harmonious and get rid of negative emotions.

Second, you need to pay attention to their opinions, don't interrupt them, don't rush to give your opinion. You need to understand their opinions thoroughly in every word, every action, and understand the true motives behind their words.

Third, summarize your partner's idea to see if you have fully understood it, for example, you could say: "As I understand it, what you mean is..., is that right?". Only after your partner answers "yes" should you proceed to the next step.

Fourth, express your ideas precisely and make your words convincing. When presenting, you should use simple, clear language, combined with non-verbal elements to express your feelings, emotions and sincerity. To make your words more weighty, you need to provide numbers and specific evidence, not just abstract words.

Fifth, you need to anticipate the questions your partner will ask you and be ready to answer them. To do this, you need to prepare thoroughly before negotiating. When answering questions, you need to be confident and decisive.

Sixth, don't let the other side lose face. In negotiations, you must make the other side make concessions step by step, while ensuring their dignity. You need to prepare steps for them to make concessions with honor and in peace.

* When there is a gap between interests and both sides persist in their positions, the negotiation will become tense. How to break through the tense situation will be presented in the next chapter.

3. Reach agreement and sign contract

Before both parties draft a contract for the entire negotiation process, they should review the content of the negotiation once more to finally confirm which aspects the two parties have reached an agreement on. For any issues that have not been agreed upon, is it necessary to conduct final discussion and compromise? When all are no longer in doubt, they can signal to each other to end the negotiation.

After everything has been agreed upon, the two parties proceed to sign the contract. However, if you do business with a foreign partner, you should take the right to draft the contract. This has several advantages: first, you are familiar with Vietnam's economic laws, so when you draft in English, you can make the agreement conform to Vietnam's laws; second, if there are any problems later, when you need to cite the provisions in the laws, you will be more proactive; third, taking our side as the drafter can make it easier for us, making the negotiation more favorable, avoiding the situation where too many amendments make the negotiation longer and more difficult; fourth, you can avoid the partner taking advantage of the opportunity to draft the contract to leave "pen" places that will deceive you; fifth, we draft the contract, so when the partner proposes amendments, it is beneficial to increase our bargaining power.

When drafting a contract, please note:

- The sentences must be clear and the words must be precise to avoid misunderstandings.

- When using a foreign language to draft a contract, both parties should confirm the meaning together, so that each word can accurately express the wishes of both parties.

- The contract terms must use the same terminology. This means that for the same event, only one identical term should be used, to avoid problems when enforcing the contract later.

- When presenting related terms or provisions that are referred to repeatedly, consistency must be ensured.

- The provisions in the contract must be specific and detailed, and should not be written in general.

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Once the contract has been drafted, both parties review the details, make amendments and additions.

about responsibilities, rights… Then, when there is no more doubt, the representatives of both sides can solemnly sign the contract amidst fresh flowers and joyful applause.

REVIEW QUESTIONS

7.1. When researching a partner, what do you need to find out?

7.2. Analyze the roles of the members of the negotiating team. What qualities do they need?

7.3. Is it necessary to set the negotiation goals as tight as possible? Why?

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7.4. When you need to make concessions, what should you pay attention to?

7.5. How should you proceed when persuading your partner?

7.6. Why should you reserve the right to draft the contract, what are the benefits?