You have two major elements to consider during a negotiation – chances and risks. Each of them must be properly evaluated by thinking about all the potential scenarios.
Identify your potential benefits during a negotiation
It is very important to consider the importance of a good deal or convention after a tough negotiation. What kind of benefits do you gain? Do you need more or higher concessions? How efficient can a long term agreement become? Keep in mind that every deal will generate more chances in the long run. For instance, you might negotiate with the local manager of a large store chain in order to implement one of your products. In this case, I believe that such an opening can lead the way to the entire chain. Some other examples might include popularity, notoriety or long term partnerships.
The potential risks you take during a negotiation
Every kind of negotiation will hide some dangers. Ask yourself a few questions.
- What happens if you cannot reach to an agreement?
- Is your opponent trustworthy?
Consider the problems that may arise if you cannot seal a deal. If you negotiate with a whole chain and not just one store, you also endanger the collaboration with other units from the same chain. Even if you reach to an agreement, an untrustworthy partner might make this whole collaboration useless. What do you do if they cannot pay?