Most modern negotiations occur using a variety of online and offline modes. Typically, there are complex issues to discuss that require a mixture of communication methods such as:
Email: Ideal for documenting discussion, sending reference information and making written proposals.
Online: Web meetings are useful for checking understanding, screen sharing, brainstorming options and involving multiple disparate parties.
Telephone: Telephone discussions help to maintain interpersonal contact, supports relationship building and helps maintain momentum in lengthy negotiation.
Face to face: In-person negotiation is often combined with all of the above and is useful when the discussion would benefit from the efficiency that a meeting can bring. For example, using body language to check intention and comprehension, or collaborative discussion using materials or sharing tools, that can often spark more creativity when it is hands-on.
Many of us are driven to negotiate in a particular format due to time constraints, travel or budget restrictions or availability of key personnel.
However, the format of negotiations can optimize the discussion and have an impact on the outcome of the deal. Therefore, it is wise to treat the choice of mode as a business case – you should seek approval to use the mode that gets the highest return on investment.
Similarly, some negotiation formats will disadvantage the buying organization and it would be foolhardy to actively choose such methods simply because of convenience.
At their office
Advantages to the Buyer
- Better access to key data and personnel
- Combine with cost data gathering
- Demonstration of respect
Disadvantages to the Buyer
- Personal discomfort associated with “being away from home”
At our office
Advantages to the Buyer
- Control the environment
- Save travel expense
Disadvantages to the Buyer
- Burden of provision of hospitality
- Full access to information and people
- More difficult to use confrontational tactics
Neutral venue
Advantages to the Buyer
- No perceived power imbalance
Disadvantages to the Buyer
- Cost
Remote (online) discussion
Advantages to the Buyer
- Enables an ongoing discussion over a period of time
- Fosters a decision-making environment
Disadvantages to the Buyer
- Unable to use and interpret non-verbal cues
Advantages to the Buyer
- A well-documented discussion that can be adapted to fit the time available
Disadvantages to the Buyer
- High likelihood of misaligned understanding, expectation and relationship values, particularly with a new supplier
Negotiation method is integral to the nature of each of these elements and deserves analysis and discussion with stakeholders before major negotiations begin.
