Negotiations
Training
Business
Negotiations in Mexico:
Negotiating with
Mexican Counterparts
The signing
of the North American Free Trade Agreement ushered in a great deal
of new business opportunities
for United States-based companies looking to conduct business in
Mexico and Canada. These opportunities have opened up new markets
to American products, increased operating
efficiency and enabled all three signatories to become an effective
trading bloc.
With the signing
of NAFTA came the realization for many businesses that they were
ill-equipped to deal with their Mexican counterparts. Today, typical
American businessmen used to negotiating
in corporate offices in cities like Manhattan or Chicago are
now learning how to adapt
to negotiations in Mexico City or Monterrey. Standard negotiations
training in the United States certainly helps but there are
many variations and nuances that need to be known and understood.
Listed below are several major negotiations
tips that will help you when dealing with Mexican businessmen:
* Relationships
are Key - Just like many European and other South American countries,
business relationships are very important. Take the time to cultivate
a relationship with your
counterparts before trying to move forward too quickly. Your
counterparts will want to get to know you and appreciate someone
who is willing
to respond in kind. Once a relationship is established, your
business dealing and negotiations will go smoother.
* Get Ready
for a Slower Pace - Business negotiations in Mexico tent to operate
at a slower pace. Discussions may be more prolonged and decisions
may be drawn out and, at times, arduous. Negotiations that may normally
require one or two trips in the U.S. may necessitate multiple trips
to Mexico.
* Flexibility
is Important - Mexican businessmen are more apt to be flexible
and come up with creative
ideas and solutions during a negotiation. They are less likely
to want to stick to hard and fast rules. This is good as it will
enable both parties to work together to work through tough negotiations.
* Appealing
to Emotions - Since many decisions are made based on relationships
and subjective criteria, oftentimes, emotional
appeals can be quite effective. Help them receive personal satisfaction
from a negotiation as achievement an honor is important in Mexican
culture.
* Be
Prepared to Bargain - A great deal of give and take will take
place during a negotiation with both sides asking for more or trying
to work out more favorable details. This is customary and to be
expected. Some may see it as the "Nibbling" tactic but
it is a typical aspect of negotiations in Mexico.
* Indirect Answers
are Common - Indirect
answers are quite common and there are times when a "maybe"
or "perhaps" may truly mean no. You'll have to become
accustomed to this reality. You will need to learn to read through
this type of communication and at times use it yourself. If you
aren't receiving as direct an answer as you like, avoid pushing
too hard.
* Negotiating
with the Top - Generally, those involved in a negotiation may
be at all levels. However, decisions tend to come from the top.
Keep this in mind as the people who may be at the
negotiating table may or may not have authority to make a final
decision. Once you have come to terms on a specific item or issue,
draft up a final contract, letter of understanding or other document
to confirm your agreement.
|
