Preparation and planning are the most important parts of any negotiation. In fact, over 80% of negotiation outcomes are set before the negotiation takes place. Being prepared is extremely important, and why we created our very own negotiation plan template here at Nickel & Dime Decade.
This negotiation plan template is the same one I use before large supplier negotiations. If it’s good enough for Purchasing Managers to use it, it should fit the needs of the more casual negotiator.
What are you waiting for? Let’s dive in! Download the Negotiation Plan Template and I’ll walk you through how it’s best used.
The Template
Okay, so now that you have the template, you might be wondering what to do with it. I filled out an example negotiation for buying a used Subaru on the second tab. We’ll use this to walk through each aspect of the template.
Before we get started on the excel columns, it’s important to note what each row contains. Every row is a negotiation point that either you or your opponent can use to leverage their desired outcome. Each row then goes into detail on the desired outcome of the point, and how we would like to approach it. You’ll learn more about negotiation points in the details section.
Now On To the Details…
Category
This section is the category that the negotiation point falls into. In larger negotiations, several points tend to fall under the same category. This section organizes the different points into similar buckets. Categories can be utilized to make sure you address everything that can be grouped at the same time so nothing gets left out.
Negotiation Points
The most important column of them all, this is what you are negotiating over. This column is used to summarize what we or the opponent are going after. The cell should briefly explain the topic to aligned your team with what is being addressed.
In this example, our first point is that we found a similar model at a much lower cost at a different dealer. Note that this is only one sentence and gives us a high-level overview of what the negotiation topic is. More details will be found in neighboring cells.
Opposition Position
It is always important to note what the opponent is thinking and where they stand on the negotiation point. This will affect how you address the point. Use this to anticipate what the opponent will use as an argument and plan your approach accordingly.
To achieve an optimal outcome of your negotiation, it is important to try and satisfy the opponent’s needs as well as your own. Writing this out can show if a middle ground can be reached.
On negotiation points that the opponent has, you need to clearly lay out the argument they have in a clear concise sentence. You need to know how to defend your side.
In our example, the dealer clearly doesn’t want to lower the price of our soon-to-be Subaru. We’ll have to see if we can persuade him otherwise…
Opposition Ambition
Ambition cells are monetary fields. Meaning only a cash value should be implemented into the cell. This is your opponent’s best-case scenario for the point.
For our used car negotiation, two of the opponent’s ambitions are flat. This means they would like the price to stay stable based on the first two negotiation points. The last point is how the dealer wants to get more money out of the purchase, and his ambition is shown accordingly.
Our Position
This is where you stand on the negotiation point. Your position should be a short concise statement that lets your team (or you at a later date) know what is going on.
In all three of our examples, the message on where we stand in the negotiation is clear.
Our Ambition
Your ambition should be the best-case scenario for a monetary gain during the negotiation. Feel free to put as much money as you want to save or make here. After all, you should strive for the highest amount of gain, so don’t cut yourself short.
The biggest weakness of many negotiators is not asking for enough. Knowing your opponent’s stance will also help fluff up this number as well. They may be willing to give more than you originally thought. So, make sure to do your research ahead of time.
We even went above the $2,000 that the benchmark showed in our example for our ambition.
Priority
The Priority cell is simple and color-coded for topics that should be prioritized during the negotiation. You want to prioritize the items that have the highest monetary gain or are easy to implement.
The simple structure here is green for high priority, yellow for medium, and red for low.
Our Wants
Our wants are our goals or desired outcomes for the negotiation.
If the template were a murder case, our wants would be the motive.
Why are we here, and why are we negotiating this topic? This is a very important cell, as it may differ from our opening position or our overall position on the topic. Sometimes we negotiate a point to see how our opponent reacts. This cell highlights our desired outcome.
Opening Position
The opening position is the first punch you throw during the negotiation. You should open with at least your total ambition, if not more. Feel free to start in extremes. This is meant to test the waters on where the opponent lies.
In this cell, give a clear and concise statement on how you would like to open the negotiation. If it helps, try writing a few sentences out in a separate word document on the exact wording you would like to use. Make sure you’re comfortable with the position before the negotiation starts, as this may play a large role in the direction it takes.
Gives
Okay, so they shot down your opening position. Now what? The gives cell should show where you would be able to compromise with your opponent.
Be cautious not to give everything up at once. Have yours gives cell to display the amount you would be willing to give in portions. Fall back on these if the negotiation is not going your way.
Breakpoint
The point of no return. The breakpoint represents where the negotiation is no longer worth your time, and you need to walk away.
Your Breakpoint needs to be clearly laid out, so you don’t end up making an inadequate deal. Use this cell to show when you will pack it in and walk away from the negotiation altogether.
Stick with the breakpoint during the negotiation. It can be easy to give in little bits and not notice you crossed the point of no return.
That caps it off for our Negotiation Plan Template. This can be used from multi-million-dollar contract negotiations to getting a better deal on your cable bill. Use it as you will, and if you have any good negotiation stories feel free to leave them in the comments below!
