Negotiation Techniques:
The Power of Building Relationships in Negotiations
EXTRACTED FROM PODCAST EPISODE 1 - Tobias
In this podcast interview, Tobias shared an intriguing story about how he secured a fantastic meal deal for his group after a long hike. The key to his success?
Building a positive relationship with the restaurant staff and manager.
Tobias achieved this by asking questions, smiling, making jokes, and being cheeky in a non-awkward way. This story underscores a fundamental truth in negotiation:
“People like to do business with people they like.”
Â
Why Relationship Building Matters in Negotiations
Building a relationship during negotiations is more than just being friendly; it’s about creating a positive and collaborative atmosphere. Here’s why it’s crucial:
1. Trust and Rapport:
Trust is the bedrock of any successful negotiation. When the other party trusts you, they are more likely to believe that you have their best interests at heart. Building rapport through genuine interest and interaction can significantly enhance trust.
2. Increased Cooperation:
A good relationship encourages cooperation rather than competition. This can lead to more creative solutions that benefit both parties, known as win-win outcomes.
3. Better Communication:
When there’s a positive relationship, communication flows more freely. People are more open to sharing information and discussing issues candidly, which is essential for effective negotiation.
4. Enhanced Perception of Value:
Like in Tobias’s case, a strong relationship can change how your value is perceived. For the restaurant, having happy customers in a quiet period was more valuable than just the immediate financial gain.
Negotiation Technique Card
"Build Relationship"
Relationship-building is a powerful tool in negotiations. It can turn adversaries into allies, foster cooperation, and create lasting value.
However, it’s crucial to balance this with your negotiation objectives and to practice these skills diligently.
Enter the "Build Relationship" Negotiation Card which provides the perfect opportunity to hone this technique, ensuring we're prepared to build meaningful relationships and achieve our negotiation goals with practice!
Listen to the Podcast Episode 1 here.
More Negotiation Techniques
More opportunities to discover Negotiation Skills, Tactics, Techniques and Strategies to Practice here.
Ways to Build Relationships in Negotiations
1. Active Listening:
Show genuine interest in the other party’s needs, desires, and concerns. Listening more than you speak can provide valuable insights and make the other party feel valued.
2. Ask Open-Ended Questions:
This encourages dialogue and shows that you are interested in understanding their perspective. It can also uncover information that may be critical to reaching an agreement.
3. Use Positive Body Language:
Smile, maintain eye contact, and nod to show understanding and agreement. Positive body language can create a welcoming atmosphere.
4. Find Common Ground:
Look for shared interests or experiences to build a connection. This can be as simple as a mutual hobby or a shared goal for the negotiation.
5. Be Authentic:
People can sense insincerity. Be genuine in your interactions to build real trust and rapport.
6. Show Appreciation:
Acknowledge the other party’s efforts and contributions. This can be as simple as saying thank you or complimenting a good idea.
7. Use Humour:
Humour can be a powerful tool to break the ice and create a positive atmosphere. A well-timed joke or light-hearted comment can make the negotiation more enjoyable and reduce tension.
However, it’s crucial to be mindful of the context and the other party’s sense of humour to avoid missteps.
Dangers of Focusing Solely on Relationship Building
While building a relationship is vital, it’s important to strike a balance. Overemphasising relationship-building can lead to:
1. Neglecting Objectives:
You might become so focused on being liked that you forget your primary goals in the negotiation.
2. Manipulation Risks:
If the relationship feels forced or manipulative, it can backfire, causing distrust and resentment.
3. Emotional Attachment:
Becoming too emotionally attached can cloud your judgment and make it difficult to walk away from a bad deal.
Importance of Practicing at The Negotiation Club
At The Negotiation Club, we emphasise the practice of relationship-building techniques because theory alone is not enough. Here’s why practice is indispensable:
1. Developing Intuition:
Repeated practice helps you develop a natural feel for when and how to build relationships, making it second nature.
2. Building Confidence:
Practicing in a safe environment boosts your confidence to employ these techniques in real-world situations.
3. Receiving Feedback:
Constructive feedback from peers and trainers helps refine your approach, ensuring you can build relationships effectively without compromising your negotiation goals.
4. Adapting to Situations:
Practice allows you to adapt your techniques to different scenarios and personalities, enhancing your flexibility and effectiveness.
