Fundamentals of Category Management: Negotiations & Win/Win Paradigm Shift

Negotiating.  Palms sweaty. Heart racing. Adrenaline pumping. Negotiation is like a competition. It’s YOU versus THEM. Who will score the knockout and be the victor!

However this need not be the case and many argue that a paradigm shift in business is required for sustained, mutually beneficial negotiations.

Usually the words ‘mutually beneficial’ are not used simultaneously with the word ‘negotiation’ but the best principle to use is a WIN/WIN approach. But before we proceed, recall there are several outcomes:
Win/Lose – I win/you lose
Lose/Win – I capitulate & give up/You win
Win/Win – both winners
Lose/Lose – Both losers
No Deal – We walk away from deal.

Win/Win is the highest level of personal effectiveness. It says, you realize that you need to ‘make a buck’ as does the other. For example, don’t be a bully and crush your Vendor today. You may have better leverage  (ie work for a giant retailer) and beat the vendor down in cost, but win/lose or lose/win is myopic.  
Sustained relationship building is maintained by understanding everyone needs to profit. In such a way, long term relationships are forged and trust is achieved. Trust…. often lost in today’s competitive market; it needs to make a comeback not a knockout.


6 thoughts on “Fundamentals of Category Management: Negotiations & Win/Win Paradigm Shift

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