Negotiations Training

Dealing with Each Other Over the Phone:
Telephone Negotiations

It's another day at the office for Tonya Water. As puts the final touches on a trip report for a recent visit to Yummy Foods in Kissimmee, Florida, her phone rings...

Tonya: Tonya Water, Redi-Tite Packaging. Can I help you?

Greta: Tonya, it's Greta Wannadeal at Crack-O Crackers. Do you have a sec?

Tonya: Sure thing. What's up, Greta?

Greta: We need to talk about renegotiating our supply contract for Funny Farm Cracker boxes and displays.

Tonya: Uh... oh... really!?

Tonya thought it was going to be just another day at the office until Greta dropped an unexpected call on her lap. Greta has seen that Wrappex has been discounting their packaging and wants Redi-Tite to follow suit. Being the instigator of a negotiation, Greta just found herself in a very strong position of power while Tonya is clearly at a disadvantage. What to do...

First off, Tonya just learned the first rule of negotiations. If you're not initiating the call or setting it as a scheduled event, don't take part. Greta effectively caught Tonya by surprise. Tonya should make the right move by stopping the negotiation and asking Greta if they can schedule a call because she is about to be on another call or her cat just died or whatever. She simply needs to step back so that Greta can't use her unfair advantage to get the best of Redi-Tite.

Once Tonya and Greta can set a time to talk, each side will be able to negotiate from more even ground as scheduled calls remove unfair advantages. They also offer other benefits. In general, telephone-based negotiations tend to be shorter and less drawn out. There is also less time between exchanges as parties can either verify information while on the phone (via the Internet, by placing another call or pulling someone in the office) and follow-up discussions can quickly be set up as they take far less time. Furthermore, telephone negotiations can take care of smaller, less-important negotiations that don't require as much face-to-face time.

There are times, though, when telephone negotiations can provide more detrimental than beneficial. We've all seen people lose focus on conference calls while they check e-mails or surf the web. With face-to-face negotiations, each party must focus. Telephone negotiations allow room for some slacking to take place and that can lead to bad results. Furthermore, not having the time to truly sit down and has out various items, telephone negotiations are sometimes more prone to errors and omissions. As discussed earlier, those who are caught by surprise stand to lose the most. Often, rather than turning down the other party, many fall into the trap of negotiating without any preparation. We don't have to tell you how deadly this can be. Lastly, when you negotiate over the telephone, you remove the benefit of literally seeing the other person. Imagine making a proposal and hearing nothing but silence on the other side of the line. The other person may be nodding their head in agreement but slowly thinking of a proper approach. Not knowing this, the first person may interpret the silence as disagreement. When you negotiate over the phone, you lose the ability to give and receive non-verbal cues.

Ultimately, there is a time and a place for telephone negotiations. The best time is a scheduled one. Don't get caught off guard when the other party is looking to get the best of you. Avoid overly complex negotiations over the telephone and be sure to stay focused when talking or listening to the other party. A bit of caution can go a long way.