How to understand reciprocity during negotiations?

How to understand reciprocity during negotiations?

In Business to Business negotiations, reciprocity is a common business tactic. It works both ways: a seller buys your products or services and in return expects this from you: “we buy from you, so you have to buy from us.”

This situation can be uncomfortable. These business relationships can even become a game.

Reciprocity in trade negotiations

happens a lot, but nobody talks about it. In this situation, you need to learn to be diplomatic while keeping in mind that you should always act in the best interests of your business. Here are our tips:

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• Keep the same direction

You want to be collaborative while standing up for your business, so make sure you get the best value out of the products you buy.

In general, buyers don't like reciprocity so much. Some salespeople with a “cowboy” profile are trying to lobby for it. However, this requires finesse in the negotiation so that everyone is satisfied or at least not make anyone unhappy with the negotiation.

• Do your homework

Before you start, see if reciprocity can be addressed during the negotiation. Also, check if your business already has business relationships with the company you want to negotiate with. In this case, find out about the relationships that have been maintained, whether they are good or not. To summarize, do an analysis of the company in front of you, in order to anticipate the issues that may be addressed during the negotiation.

• Be proactive

If reciprocity comes up on the table, address it and confront it.

Do not try to get around the subject that should be dealt with with top management. Whether or not there is an existing business relationship, feel free to share your information.

Your Purchasing Director can thus have a telephone conversation with the supplier. The aim is to have the right people on the phone. They must be impartial people who can talk about reciprocity while remaining rational.

The interest is that everyone benefits from this new business. It is understandable that sometimes some people lose or win, but the worst situation occurs when a party wins or loses the case but no one knows why.

• Analyze the merits of reciprocity

A good negotiation can be a good opportunity to consider, or reconsider, reciprocity and see if it deserves it. Think of it as a new encounter between two people who know each other but have not yet become friends. You still have to work on the relationship, and analyze it to see the value of doing business. If the challenge is worth it, you must then involve the right people in your organization to put them in contact with their colleagues at the supplier.

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