Negotiation is a process by which two persons or parties resolve conflicts and agree to lower their expectations to agree at a common point. This is a common worldwide process by which business men compromise on their conditions and avoid having a disagreement or dispute. When doing a business together, it’s very possible for both parties to expect their own advantages and want the other party to agree at their conditions. This sometimes creates a difficult situation where having these types of differences unable to do a business or make a deal. To overcome these circumstances people do negotiation to meet at a same point where they both lower their standards and compromise on same rules and regulations to make a successful transaction of money, goods or services.

As we have described the word “Negotiation”, now it’s very easy to understand the meaning of negotiation letter. This is a document which contains the terms and conditions to overcome the differences and make a business deal. There are various kinds of negotiation letters which are created according to the situation and needs. For example there is salary negotiation letter in which we negotiate our salary when applying for a new job or at the present job. This is a letter written by an employee to his supervisor or manager to increase his pay according to his capabilities or tasks he is doing at the job.

Here is preview of this Sample Negotiation Letter created using MS Word,

Negotiation Letter

Another type of negotiation letter is price negotiation letter in which when you want to purchase a product or hire someone for services, you negotiate the price or his fees to get the best items on minimum expenses. For example if a person wants to buy books, he does a survey in the market and prepares a price comparison list. After that he selects the best dealer and asks him to lower the prices. This can be done either by telling him that market price is comparatively lower than his or his goods don’t worth a high price like that. After that when you higher the price a little bit and he lowers the price a little, you both agree to a middle figure and seal the deal.

General guide lines to write a negotiation letter:

  • Have a polite and courteous attitude towards the other party because you are not the only one who is dealing but the other party is there too and it also has its own conditions. So it’s important to respect the other party and his terms in order to agree at a same point.
  • You have to admire the other party in the first part of the body of letter where you just make it clear that you are very lucky that you have found them and there is no one cheaper in the market as compared to them. By doing this you make the opponent think that you like him and really want to make the deal.
  • Now it’s time to explain your situations and circumstances either it’s financial or economical. At this point you tells the vendor that you don’t have that much funds to pay for such a high product and it’s important for you to lower the price or your department is not going to allow expenses more than a limit but you have to purchase the products which will be possible only if your seller decreases the prices.
  • In case of business negotiation, you discuss the terms and conditions you can compromise on and the terms of your opponent that you want him to compromise on. At this point you simply present some solutions to agree at the same point.
  • Here you discuss your past and future with that company such as; the deals you made in the past and the deals you are going to sign in the future. This will make the other party think that they have to satisfy you in order to secure their future with you. This is the same point where you gently discuss some aspects of not signing the deal and the damages that will occur in case you don’t sign the deal.
  • After that you just use a greeting like “Sincerely yours” or”Regards” and close the letter. At the end you write your full name and put your signature along with the date.

Here is download link for above mentioned Negotiation Letter,

Download Negotiation Letter

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