When you are dealing with member’s contributions, decisions can be extremely difficult. Perhaps a fellow church leader wants to spend most of the money on church renovation; you think the money would be best spent buying new church materials, and your church financial advisor recommends using the money to buy church accounting software. Here are three techniques that can help you negotiate more effectively when you find yourself in these types of situations:
Technique 1 (Know your reservation point before beginning negotiations)
A reservation point is as low or as high as you are willing to go. The classic sales example helps illustrate what a reservation point is. Let’s say that you are planning on buying new church accounting software. The most you are willing to spend is 200 dollars (this is your reservation point; anything above this and you will walk away). If you walk into negotiations with this reservation point in mind, you are less likely to compromise and buy really expensive church accounting software.
Right now you might be thinking that compromise is a good thing and we shouldn’t try to avoid it at all costs. You are absolutely correct. The idea is that the reservation point is the most you are willing to compromise. Compromising is good, but buying church accounting software for thousands of dollars is probably not in the best interest of your members.
Technique 2 (Focus on interests and not positions)
To explain this technique, we go back to our church accounting software example. The salesperson may come to you and initially offer the software for $299. He will even smile at you and say this is as low as he is willing to go. His offer of $299 is his position; however, his real interest may be very different than his position. In his mind he may actually be thinking that he will go as low as $180. The $180 is what he truly wants and thus his interest.
In our example if you are able to find each other’s real interests than you will have a zone from $180 to $200 where the church accounting software transaction will take place. However, if true interests are not found, then you and the salesperson both lose.
Technique 3 (Remember your interests aren’t always conflicting)
We always walk into negotiations thinking that the other person wants the exact opposite of what we want. In short we treat life as a zero-sum game. This leads us to withhold important information when negotiating. The truth is your interests won’t always be conflicting. Both parties may find themselves better off by sharing information rather than withholding it.
The best of luck next time you find yourself trying to buy church accounting software or whatever it may be!
Kimberlie is a mother, author, and accountant. Come find out all about church accounting software including free church accounting software.
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