Can you evaluate how win/loss can impact and influence the negotiation process. How can a buyer establish a position in a negotiation like this?

What is the win/lose approach? It means that while one side wins the other loses .

Influence of this approach in the negotiation process:  If it appears that negotiations will have only win/lose settlement possibilities and that a party's needs will not be met as a result of participation, parties will be reluctant to enter into dialogue.

Win-Lose bargaining is probably the most familiar form of negotiating that is undertaken.  Individuals decide what they want, then each side takes up an extreme position, such as asking the other side for much more than they expect to get.

How a buyer can establish his bargaining position in in such negotiation?

As a buyer you should:

1.  Set your target point--solution that would meet all your interests and result in complete success for you. 

 2.  Make target point into opening position.

 3.  Set your bottom line or resistance point.

4.  Consider possible targets and bottom lines of other negotiators.

5. Consider a range of positions between your target point and bottom line.

6.    Decide if any of your positions meets the interests or needs of the other negotiators.

 7.  Decide when you will move from one position to another. 

8.  Order the issues to be negotiated into a logical (and beneficial) sequence.

9.  Open with an easy issue.

10. Open with a position close to your target point.

11.    Allow other side to explain their opening position.

12.    If appropriate, move to other positions that offer other negotiator(s) more benefits.

13.    Compromise on benefits and losses where appropriate.

14.  Look for how positions can be modified to meet all negotiators' interests.

15.  Formalize agreements in writing.

 

 

Win/lose is good for one-time bargains. If you want to establish a connection for future - you have to be more creative.

Part 1 How does win lose impact and influence the negotiation process.

• My view is negotiations are a zero sum game. What i win my oponent loses. What i lose my oponent gains. Before negotiations start i need to know what it is i want to win and how much. I also need to decide what i am prepared to give up and how much.
• The outcome of negotiation should not influence the process. The process is the mechanism to orchestrate the negotiated solution. Particularly when the parties are hostile, the focus should be on proactive control keeping discussions on track, de personalised to stop people taking things personally and include a skilled mediator/ chair who recognises when to change the subject or give time out eg have a coffee.
• when arguing your case the issues of bias are applied eg start at the most optimistic outcome, provide data to support and seek to influence acceptance by early offers.

2 nd part of question. How does a buyer estalish his bargaining position in these negotiations.

• We have a saying about product delivery performance, There are 3 product drivers of which you can only ever get 2 at one time. The drivers are:
  • Price
  • Quality and
  • Time
• If you want a quality product on time then you need to be prepared to pay the Price.
• if you want a good price on time then you need to be prepared to deal with quality issues.
• If you want a high quality product at a good price then you need to be parepared to wait longer.

My view in relation to the negotiation starting position i would start at the price that is my most optimistic like an ambit. Price alone will not benefit the buyer if the quality is substandard or delivery is delayed /late. in this case if you win with the price debate you may lose with the quality or the timeliness.  Your negotiations are multi faceted, and you need to understand all the issues that maybe affected by your success. A good price doesnt help if you cant get products on the self when you need them. Eg winter clothes on time in winter, in lieu of summer storage.  

You do not have to use a particular negotiation style to become a successful negotiator, but your chances of success will improve when you adopt som basic bargaining rules followed by win/win negotiators. Several surveys have shown that many Government contract negotiators do not understand the importance of negotiation preparation. They rate it far down on a list of factors that affect negotiation success. The strong correlation between expectations and performance should come as no surprise because it affects many facets of our lives. Norman Vincent Peale focused on the importance of a good attitude in his book, The Power of Positive Thinking. In other words, you have a better chance at success if you think you will do well. Conversely, if you think that you will not succeed you will generally do poorly. This theme is constantly demonstrated in everyday life. For example, sports coaches motivate team performance by emphasizing that the team can win if it plays up to its potential. Can you imagine what would happen if instead the coach said, “They are bigger and stronger than you are, so just go out there and try not to get hurt?”