Mastering the Art of Negotiation | SevenFifty Daily (2024)

Negotiating is a critical part of doing business in the alcoholic beverage industry, and it can be hard to get right. But with preparation, practice, and confidence, you can become a skilled negotiator, according to panelists at the Women of the Vine & Spirits Global Symposium in Napa, California, this week. Moderated by Michelle Hodges, a Ste. Michelle Wine Estates sales manager for Tennessee and Kentucky, the panel included four pro negotiators: Kirsty Cringan, CFO at Trinchero Family Estates; Melissa Linehan, general manager of spirits for the continental division at Pernod Ricard, USA; Barkley J. Stuart, executive vice president and director of government affairs at Southern Glazer’s Wine & Spirits; and Katherine Wojcik, director of beverage programs for Kimpton Hotels & Restaurants.

Preparing for the Negotiation

As a starting point, research the client you’re negotiating with, and sketch out your goals for the meeting. “I research the company and look at their brand values and how their products are made,” Wojcik says. “Are they pertinent to environmental and social responsibility? It’s really important for us to be able to match brand values.” Kimpton has a noted commitment to environmental issues, so it will decline to do business with other companies that fail to meet its rigorous standards, she says.

To prepare for the meeting, work through various scenarios that may play out, says Linehan, of Pernod Ricard. “I practice on my children and my husband,” she says. Linehan described a scenario earlier in her career when she was negotiating for a brand and the man she was negotiating with said he wouldn’t continue unless she left the room. Fortunately, Linehan’s male boss stood up and said, “If she’s not here, we will leave.” Though her boss did the right thing, Linehan was rattled because she hadn’t expected such a scenario. “Now,” she says, “I never ever go into a negotiation without role-playing first.”

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But more crucial than anything is walking into a negotiation with confidence. “And that takes time to build,” says Linehan. “We as women tend to think, ‘I don’t deserve to be here or I’m not going to win this one.’ But know that you wouldn’t be in that room if you didn’t deserve to be in that room.”

Forging a Successful Relationship

Target negotiations as a win-win for both sides. “I like the metaphor of a negotiation being more like a puzzle than a game or match,” says Stuart, from Southern Glazer’s. “It’s about finding the right fit.” Additionally, says Wojcik, keep in mind that sometimes, in the middle of the negotiation, your needs and wants can change.

Stuart also suggests the 70/30 rule in negotiations, where you listen for 70 percent of the time and talk only 30 percent of the time. “The more you can listen, the more control you have over the dynamic,” says Stuart. “In many instances it works quite well to say less. As salespeople, that’s hard. We have a sales pitch and we want to pitch it to you.” He encourages bringing materials to present and asking questions, while taking care not to dominate the conversation.

Hodges asked panelists how they deal with awkward silences during a negotiation. Trinchero’s Cringan says she’s very aware of body language during those pauses. “Don’t lean back. Still be active,” she says. “You’re anticipating a response so you don’t want to feel like you’re not part of the conversation.” Alternatively, she suggests having a prop—a bottle of water, for example. Then you can take a drink until the moment passes.

Be aware that gender expectations—and biases—can also come into play during a negotiation. Cringan told of a time when she was leading a negotiation, but the male negotiator from the opposing company refused to address her directly. “It’s very tough in this situation—tough to not take it personally,” says Cringan. She tried to keep eye contact, but he spoke only to her male colleagues. Cringan’s colleagues helped resolve the situation by directing questions back to her to answer.

Rooting Out Your Own Biases

Research shows that women aren’t as likely to negotiate their salaries. One survey revealed that 57 percent of male MBAs negotiated their salary where only 7 percent of female MBAs did. But women need to negotiate as hard as men to get to salary parity. “You deserve to make as much as your male counterparts,” Linehan says. “But you have to ask for it. Nothing frustrates me more as a hiring manager when I see the pay gap and I can’t figure out how they got there. Why didn’t these women ask?”

Linehan herself overcame this fear after being coached by a male colleague. “He said, ‘Do not take this job if you’re going to get anything less than X.’ I remember shaking on my way to the interview. But he was chirping in my ear, and I asked for it—and I got it.”

Mastering the Art of Negotiation | SevenFifty Daily (2)

Dispatch

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Hannah Wallace writes about food, wine, sustainable agriculture, health, and travel for CivilEats.com, Inc., Food & Wine, Vogue, Portland Monthly, and the New York Times.

Mastering the Art of Negotiation | SevenFifty Daily (2024)

FAQs

What is the 70 30 rule in negotiation? ›

Follow the 70/30 Rule – listen 70 percent of the time, and talk only 30 percent of the time. Encourage the other negotiator to talk by asking lots of open-ended questions – questions that can't be answered with a simple "yes" or "no."

How to learn the art of negotiation? ›

5 Key Tips To Learn The Art Of Negotiation
  1. Prepare Yourself Before Hand. Negotiation preparation is easy to ignore but yet the most significant stage. ...
  2. Establish The Relationship. ...
  3. Focus On The Win-Win Situation. ...
  4. Look For Implicit Signs. ...
  5. Leverage An Expert. ...
  6. Final Note:
May 25, 2023

What does a negotiator do on a daily basis? ›

Some common responsibilities for negotiators include: Study their counterparts and cases that are similar to their own to use during negotiation. Evaluate the contract or situation for best possible outcomes. Meet with clients to determine their ideal outcomes.

What is the golden rule of negotiation? ›

The first Golden Rule is essential to success in any negotiation: Information Is Power—So Get It! It's critical to ask questions and get as much relevant information as you can throughout the negotiation process. You need sufficient information to set aggressive, realistic goals and to evaluate the other side's goals.

What is the 80 20 rule in negotiation? ›

Most people succeed or fail in a negotiation based on how well-prepared they are (or are not!). We adhere to the 80/20 rule – 80% of negotiation is preparation and 20% is the actual negotiation with the other party.

What are the five 5 rules of negotiation? ›

  • Information is Power — So Get It! Self-described "expert" lawyer-negotiators often enter negotiations with arguments intended to persuade the other side of the legitimacy of their positions. ...
  • Maximize Your Leverage. ...
  • Employ "Fair" Objective Criteria. ...
  • Design an Offer-Concession Strategy. ...
  • 5 Control the Agenda.

What is the #1 trait of a good negotiator? ›

#1: Not Averse to Conflict

Every negotiation has an element of conflict. However, it's human nature for people to shy away from conflict, or try to lessen the conflict by giving in or capitulating to the other party.

What a negotiator should not do? ›

Some common pitfalls are:
  • Poor Planning. Successful negotiators make detailed plans. ...
  • Thinking the Pie is Fixed. Usually it's not. ...
  • Failing to Pay Attention to Your Opponent. ...
  • Assuming That Cross-Cultural Negotiations are Just Like “Local” Negotiations. ...
  • Paying Too Much Attention to Anchors. ...
  • Caving in Too Quickly. ...
  • Don't Gloat.

What is the behavior of a good negotiator? ›

A good negotiator is Curious – They will ask good, probing questions of the other party. They will seek to find out what their opposition wants to achieve, test assumptions, determine if there are constraints or concerns, and work out where priorities lie.

What are the 3 C's of negotiation? ›

There are three major strategies for negotiating: compromising, competing and collaborating. Compromise is a must when you are in a relationship where you truly value equality in the outcome, a sort of “split-the-difference” approach where nobody wins- but nobody loses either.

What is the rule number 1 in negotiation? ›

Rule 1 – Don't (unless you need to)

Conflict - if there is no conflict don't negotiate. If you're a salesman sell high. If you're a buyer then buy on price.

What are the 4 C's of negotiation? ›

The 4 C negotiation strategy is an approach that aims to create a solid and lasting customer relationship while maximizing the results of a commercial negotiation. This method is based on four essential pillars to conduct an effective negotiation: Contact, Know, Convince, Conclude.

What is the 70-30 strategy? ›

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income.

What is the 70-30 rule for clients? ›

The (70 : 30) Square Rule says when you are having an initial context discussion with a client, client should be speaking 70% of the time, and consultant should be speaking 30% of the time. And when the consultant is speaking, 70% of that 30% should be asking questions.

What is the 70/30 rule? ›

The mistake most people make is assuming they must be out of debt before they start investing. In doing so, they miss out on the number one key to success in investing: TIME. (See Time, Return Resources) The 70/30 Rule is simple: Live on 70% of your income, save 20%, and give 10% to your Church, or favorite charity.

What is the 70-30 principle? ›

The 70-30 Principle is about defaulting to action but leaving 30 percent for space to optimize the things you do. This is actually a lesson that hit me really hard a few months ago. Despite being aware of the positive impact of decluttering physical and other things in my life, it still found a way to sneak up on me.

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