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PART ONE
Questions 1 – 8
l Look at the statements below and at the five extracts on the opposite page from an article giving advice to self-employed consultants about negotiating fees for their services.
l Which book (A, B, C,D or E) dose each statement 1 –8 refer to ?
l For each statement ! – 8, make one letter (A, B, C,D or E) on your Answer Sheet .
l You will need to use some of these letters more than once .
Example :
0 Lack of self-confidence will put you at a disadvantage in a negotiation .
0A B C D E
1 Trying to negotiate is only worthwhile if there is the prospect of success.
2 The best result of negotiation is when both parties have a sense of satisfaction.
3 Accepting a lower fee might have benefits in the future.
4 It is important to know how much other people are charging for similar work.
5 You should ask for a fee in excess of what you expect to get.
6 Offer the other party incentives to agree to your fee.
7 Other people’s reactions to you are influenced by your body language.
8 It may become obvious that you have come to regret a deal you have made.
A
You’re in danger of selling yourself short if you don’t know where the goalposts are, especially when you’re negotiating with a new client. Research the market and find out the going rate. You can do this by networking contacts or talking to small business advisers. Alternatively, ask the competition. Of course your rivals may not tell you, but there’s no harm in asking. Another prerequisite is learning to recognize when there’s scope for negotiation, because without it, you can waste a great deal of time and energy.
B
Know the amount you would really like, slightly above what you think they will offer and above what you’d be happy to settle for. Also, know your trade-offs. Create a wish list of all the things you’d like to receive if you lived in a perfect world. That way, if the other side want you to move from your preferred or opening position on an issue to a position nearer the bottom line, you can move in exchange for something from your wish list.
C
People who are nervous about negotiating over money often let fear tell them they’re no good at these discussions and not worth the fee. You literally can’t afford the luxury of a single negotiating thought. Stand up when making negotiating phone calls: it will make you fell more powerful. If you’re face to face, make steady eye contact, keep your head up and your hands still – these all suggest assertiveness, rather than aggressiveness or passivity, and you’ll be surprised at how much this affects the way that you come across in the negotiation.
D
You have to know the price below which it would be uneconomical for you to do a job. This could vary from job to job - you may be prepared to do some cheaper in the hope that they’ll lead to better things. But don’t be talked below your bottom line and end up working for nothing. After all, in the long term, there’s little point in agreeing to something that you’re not happy with: you’re likely to feel resentful, and this might even come across in your behaviour.
E
When negotiating money, there may be non-financial factors you can throw into the mix. For example, why not say, ‘If you pay me such and such, I’ll include a report on the company for you’. Plan these extras beforehand. Make sure that they won’t take forever to do, but are things of value to the other side. This way, you can achieve the ideal outcome: you appear to accept compromise when in fact you’ve got everything you wanted, and they’ll think they got the better of the deal.
