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Conducting a Negotiation - Part III

Making a proposal:

Making a proposal is fundamentals all negotiation. It is vital to decide early on in the planning process whether you wish to speak first, or to respond to the proposal from the opposition.  This decision is crucial part of negotiating strategy.

Keeping options open:

Leave yourself plenty of room for maneuver when presenting your case.  Do not make brash statements that suggest that your position is immovable-make your proposals hypothetical to leave scope for both sides to make concessions at any time. Likewise, do not try to pin down the other party to a fixed position too soon they need room for maneuver, too. Avoid forcing them into making promises at an early stage of the proceedings, since this reduces their options when you come to make concessions later.

Timing a proposal:

The outcome of all negotiations depends on the presenting and discussing of proposals made by all parties concerned. These will be expanded and compromised upon until an agreement is reached. There are advantages in letting the other party make the opening proposal since you may find that there is less distance between their demands and yours than you suspected. If this is the case, adjust your own strategy accordingly. If you decide to make the opening proposal, it will be generally regarded as unrealistic, so make your initial demands greater than you expect to receiver, and offer less than you expect to give. If you open with an offer less than you think is genuinely fair, there is a danger that the other party will interpret it as being very different from your actual requirements.