Nuances of effective negotiation

Often a sale will come down to a final negotiation when two or more parties aim to draw a body of communication to some form of conclusion.

In Australia, negotiating is frequently referred to as “haggling” and is not considered part of our laconic and laid back business culture.

I recently met with Morry Morgan, the co-owner of Clark Morgan, an Asia-based corporate training company. His new book, Selling Big to China delves into Morry’s 10 years of on-the-ground experience selling in China and also provides insights into Asian business culture.

What struck me most in Morry’s book was how culturally contrasting Eastern and Western cultures are when it comes to understanding and engaging in negotiations. For instance, in China, a discount is expected as part of the selling and buying process. In Australia asking for a discount is customarily met with a neck twitch and pursed lips, “Hmm… that’s the best I can do mate, sorry.”

Often a customer is lost, not because their request for a discount wasn’t met, but due to there being no attempt made by the salesperson to acknowledge the motive behind the request and to make the customer feel included in the buying process.

Morry also talks about the importance of fostering goodwill in negotiations, which derives from making a genuine attempt to negotiate a win/win outcome for both parties. I have a mantra: ‘How you leave a relationship is how you remember it’. Equally so, in China your goodwill is vital in establishing your long-term success and ongoing relationships with clients, and is measured as such. Make less now, gain more at a later date often applies.

Helping the other party to “save face” in negotiations is also fundamental in China. Conversely, in Australia there is little concession made in this area, with a winner takes all approach prevailing most of the time. I, for one, have been on both sides of that equation, so I can attest neither side of the fence is pleasant, particularly when you’re being bent over it!

In Australia, we have more of a short-term focus and modest insights into what constitutes effective negotiations. Moreover, scant regard for the other person saving face or the need to build goodwill. We have some catching up to do on our skills in these areas, particularly as our economy matures and becomes more intertwined in the Asian markets.

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Trent Leyshan is the founder and CEO of BOOM Sales! a leading sales training and sales development specialist. He is also the creator of The NAKED Salesman, BOOMOLOGY! RetroService, and the Empathy Selling Process.