Cost analysis is an important concept in business. It allows for specific breakdown of costs of a product or process. Both indirect and direct costs are factored in the process thus giving a comprehensive breakdown of the product. Cost analysis allows a manufacture to have a rough estimate of the cost of a product especially when the price quote cannot be assessed directly or when the procurement of the product cannot be compared with that of other products (Thomas, 2020) . Negotiation on the other hand is a strategic process in which two parties discuss an issue with the aim of coming into a common ground. In order for one to have a successful negotiation, planning and preparing is very critical. While entering into a negotiation, one should be very clear on what they want. Moreover, negotiation should also include researching the needs of the other party (The Sloan Brothers, 2019) .
In his article “Negotiation Skills- Ultimate Guide- Negotiation Techniques” Grant (2017) gives an insight on supermarket negotiation. Grant notes that negotiation is usually not a straightforward task. He notes that the “Win-Win” outcome of a negotiation is not always the end point in most negotiations. Instead, one is likely to meet clients who are not reciprocal, are not logical and honest. These clients are likely to push one to a “Win-Lose” situation whereby the loser is obviously not the client. Grant provides explanations as to why most buyers adopt an arrogant stand during negotiations especially with respect to supermarket negotiations. One main reason is the balance of power. He notes that some clients have more than one supplier and thus will shift to the other supplier at any given point. On the other hand, a supplier may be heavily reliant on the single buyer. This creates an imbalance of power.
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Grant also notes that most suppliers do not spend time planning for a negotiation. The buyers on the other hand spend most of their time doing their research. Ultimately, the winner is always the buyer. In this case, the buyer has factual information as a result of good preparation. In addition, suppliers also put the buyers on a pedestal. This way, they are able to get inside the heads of the buyers and manipulate their thoughts. Ultimately, they are able to scatter and destroy any plans the buyer had from the onset. Grant also introduces three negotiation techniques useful in supermarket negotiations. These include confrontational, collaborative and manipulative. He vouches for MBM Effective Negotiation Program which effectively teaches these negotiation techniques in relation to supermarket negotiations. Moreover, Grant also underscores the need for suppliers to plan ahead and prepare for supermarket negotiations. He notes that it is critical for the supplier to research on the possible tools that buyers are likely to deploy. The research enables the suppliers to be ready for any tactics the buyer is likely to use to destabilize them (Grant, 2017) .
The article also informs suppliers not to focus their negotiations wholesomely on money. This, he notes, brings the whole negotiation process to a deadlock. Interestingly, the buyers also lead the suppliers to the money issue. Therefore, the supplier should establish whether the buyer has interest in the growth of his business or in the intricacies of costing and production. All these should inform the negotiation process. More importantly, Grant notes that an effective negotiator should be able to understand and embrace human nature. A negotiator should be able to understand what human elements the other party adopts in the negotiation process. This understanding enables one to develop skills that will deal with the human elements of the other party (Grant, 2017) .
Andrew Grant is staff of “Making Business Matter” a company that train operators in the grocery industry in the United Kingdom. His article is not an academic one. It relies on his vast experience in commercial buying and marketing while interacting with some of the UK largest and respected retailers. He has also gained and developed his negotiation skills following his interaction with blue chip FMCG suppliers. His interest is mainly on supermarket negotiation (Grant, 2017) .
In the article “Six Surprising Negotiation Tactics That Get You The Best Deal”, Hedges (2013) outlines six strategies that are useful in the negotiation process. Hedge is an executive coach and a leadership development consultant. She has vast experience in the issues of leadership owing to her interaction with CEOs and senior leaders. She is also an author of “The Power of Presence and The Inspiration Code”. Therefore, her work relies both on academia and experience. She offers practical solutions to business issues such as negotiations. Hedge utilizes ideas from Adam Grant and Galinsky. Unlike in the article ““Negotiation Skills- Ultimate Guide- Negotiation Techniques” where Andrew Grant focusses on supermarket negotiations, Hedges gives a general view on negotiation tactics. Hedges notes the importance of trust in the negotiation process. She notes that this is important in creating a conducive negotiation environment. This mirrors what Andrew Grant says in his article on supermarket negotiations. He notes that one should be able to understand human elements and use them in the negotiation process. Trust is one human element that can be exploited in the negotiation process. Like Andrew Grant, Hedges also insists on the need for preparing for a negotiation. This provides facts necessary for the negotiation process. As a negotiator, one should be clear on what he/she wants from the negotiation. Unlike Andrew Grant, Hedges focusses more on the issue of price. She notes the importance of making the first offer. Making the first offer provides the anchor on which subsequent discussions are made. This goes off from traditional teaching that one should never make the first offer. She also points on the importance of re-anchoring; an idea she borrows from Grant. Re-anchoring helps in redirecting the negotiation process. A new offer is made.
References
Grant, A. (2017, June 15). Negotiation Skills – Ultimate Guide – Negotiation Techniques . Retrieved from Making Business Matter: https://www.makingbusinessmatter.co.uk/negotiation-skills-ultimate-guide/
Hedges, K. (2013). Six Surprising Negotiation Tactics That Get You The Best Deal. Forbes . https://www.forbes.com/sites/work-in-progress/2013/12/05/six-surprising-negotiation-tactics-that-get-you-the-best-deal/#31134b059765
The Sloan Brothers. (2019, September 15). 10 Techniques for Better Negotiation . Retrieved from StartupNation: https://startupnation.com/manage-your-business/10-techniques-for-better-negotiation/
Thomas. (2020). The Fundamentals of Price and Cost Analyses . Retrieved from Thomas: https://www.thomasnet.com/articles/engineering-consulting/price-cost-analysis/
