MERCANTILE NEGOTIATION: WHAT IT IS, IMPORTANCE AND SKILLS - DUDAS - 2025

The commercial negotiation is the term used in business to an agreement. It means reaching a fair agreement, obtaining the maximum return at the lowest possible cost granted by the person at the other end of the agreement.

It is the process by which two parties with different agendas agree on the price of a commercial transaction in which they participate. It is marked by the communication of the interests of each party and what they expect from the agreement.

Source: pixabay.com

Negotiation means finding points of agreement on each other's list of demands and thus getting more space for both of you. A negotiation becomes successful when each side agrees with the needs of the other.

The arrangement usually occurs only if both parties find that the arrangement is of some benefit to them, that is, if the arrangement is mutually beneficial. This is a standard feature in all business negotiations.

A negotiation goes awry if only one party takes all the benefits. That is, it reflects the poor negotiating skills of the losing team.

Importance

Negotiation skills are essential to keeping a business running. Only through active business negotiations can you get the most out of your adversary and ensure that you are not taken advantage of. Good negotiation means good business.

Get profitable deal from suppliers

With mercantile negotiations, lower costs of raw materials and products can be negotiated. This, in turn, will increase revenue and increase business profits.

Prepare a future relationship

It is an obligation that both parties have granted. Therefore, it constitutes the basis for resolving any dispute or conflict that arises in a commercial relationship.

Get good contracts for the company

Good contacts guarantee and protect the rights of the parties involved. Plus, it stands the test of time without generating any disinterest or conflict.

Protect intellectual rights

Before closing a deal, the two parties should clarify on the ownership of intellectual property rights so that no case of copyright infringement arises in the coming days.

Most important and difficult part of doing business

Negotiations involve influencing the other person's decisions to suit your own. It is not an easy task. Plus, it has the potential to make or break a business.

It can go quickly in any direction. Therefore, it is important not to lose ground when finalizing a deal.

Skills in commercial negotiation

The negotiator has to have specific skills in order to reach an excellent agreement. The audacity of a good negotiator allows you to get the most out of a proposal.

You have to work in the broader interests of the company. Some of the skills that need to be developed to participate in a commercial negotiation are the following.

Communication

If you don't have prodigious communication skills, you can't survive on the battlefield for long. If the negotiator lacks communication skills, the person will most likely allow the other party to get the biggest piece of the pie.

Furthermore, it is not possible to convey your ideas and goals without effective communication. A healthy and friendly conversation has to perspire between the two parties for a quick and mutually beneficial agreement.

A gap in communication or a lack of clarity can lead to even acute disputes.

Trust

While talking to an adversary to come to an agreement, it is important to appear confident and self-confident. It has a subtle psychological impact on the people watching. To get someone to buy a proposal you have to sell it with conviction and confidence.

Also, speaking gracefully has an advantage. If the negotiator has to look up words, it will appear that he lacks confidence. As a result, the people who participate in the agreement may not feel comfortable committing to the agreement.

Charisma

It may not be possible to convince someone to make a deal, but it is possible to win their heart and favor. The logic is pure and simple.

If you can create a good impression on the opponent's mind, you can probably also influence their decision and make them respond to the requirements.

Think on the go

Negotiations happen spontaneously. There is no one way to do them. You can always think and do your homework. However, when on site things may not go exactly as planned.

Since you are representing the company on your own, you have to be on alert. Practice may not pay off if you don't improvise.

Tactics have to be continually changed according to the need of the moment and as progress is made. This is crucial, as the weight of the business rests on the shoulders of the person negotiating on behalf of the entire organization.

Think ahead

The person conducting the negotiations should always be a few steps ahead. It is essential for the person to have a vision of the future of the company and how important the current deal is to it.

You must know in depth your own business and that of others, as well as the plans to carry out the mission.

It is necessary to be clear about what you want to achieve with the agreement and also how important it is to achieve it. In this way, you can create the changes you want to bring.

Contingency plans should be devised in case things don't go according to plan. In planning, the negotiator can thus decide the strategies to follow.

While this may seem contrary to the impromptu part of negotiations as mentioned above, the fact remains that a successful negotiation is a bit of both.

Conduct

Another thing that is common to all successful negotiators is their behavior: their behavior towards their opponent. The goal of negotiations is to win what is needed respectfully, without getting into disputes or conflicts.

Successful negotiators maintain a friendly disposition and, at least in the initial moments of their conversation, focus more on things that are agreed upon. Another thing to remember is to discuss things in the order of their importance.

References

1. Hughes Global Education (2019). Why is Commercial Negotiation Skills Important in The Modern Business Environment? Taken from: hugheseducation.com.
2. James Chen (2018). Commercial Trader. Investopedia. Taken from: investopedia.com.
3. Target Jobs (2019). Commercial Negotiation: Area of ​​Work. Taken from: targetjobs.co.uk.
4. Hilda López (2014). Commercial negotiation. Commercial Law. Taken from: derechomercantilunivia.wordpress.com.
5. Wikipedia, the free encyclopedia (2019). Bargaining. Taken from: en.wikipedia.org.