When we advise our clients in negotiations, we often ask them how they will formulate a trading strategy. Most people respond that they will plan something before contacting their colleagues, for example by identifying the best alternative of each side to a negotiated agreement (BATNA) or by seeking the most important interests of the other party. But beyond that, they feel limited to how much they can prepare. What we hear most often is, “It depends on what the other party is doing.” If you run any function in-house, you can maintain quality and get a profit, your company may not have much to gain from a strategic partnership agreement. But there is almost always the possibility of either reducing the cost column or increasing the end result in each company, and strategic partners are useful in this regard. If there is a way for your business to improve, it is possible that there is a partner to help you. Make it a priority to end every trade negotiation meeting on a positive note by finding points on which all parties can agree. It could be difficult to enter positively into the next phase of negotiations if the previous negotiating session ended with arguments and without an agreement. Even if you agree on a small thing that is on your priority list, the positive feeling can move on to the next phase of negotiations. In most cases, cooperation is the key to the success of trade negotiations. You can`t work together if you can`t agree on every detail. Imagine that you have just reached an agreement.

You`re pretty happy with the deal, but you think you could have gotten more value out of it. By common opinion, you should stop talking about the deal with your opponent and keep doing so so as not to spoil the deal. On the other hand, Bazerman advises asking the other party if it would be willing to review the deal to see if it can be improved. Explain to your opponent that you are free to refuse a revised agreement if it does not improve both of your results. This type of post-billing statement can result in new sources of value that can be shared between you. It can also help generate a win-win contract if you didn`t have one before. Your success in developing your initial agreement may have created the confidence to explore the possibility of an even stronger business. Tactical negotiations can lock the parties into a zero-sum position, which is to gain as much value as possible from the other side. Well-designed strategies suppress the urge to react to movements or take preventive measures based on fears about the intentions of the other party. They lead to agreements that will maximize value for both parties. Let`s look at each of the five types of strategic partnership agreements.

Each party should move away from a transaction and feel that they have a good deal from which they benefit. To this end, both sides should offer certain concessions and make concessions on certain points in order to reach a mutually beneficial agreement. The art of negotiating is how to come to an agreement that makes everyone a little unhappy about certain items, while making them very happy or most of the items. However, reducing contractual risk requires planning and preparation. In contracts as in life, it won`t be possible to completely eliminate all risks – but the more informed and prepared you are if you negotiate the terms that make up your contract, the better you can prioritize your needs and come to an agreement that best protects your interests…