Email, Phone, or In-Person

Several subscribers and clients have asked me if it is okay to negotiate by email. The answer is ‘Yes’ and ‘No.’

Let me explain.

It is essential to recognize where you are in the negotiation process. During the preparation phase, the primary focus is on exchanging preliminary information, setting goals, prioritizing issues and the “Walkaways.” This will form the foundation of your negotiation strategy. A part of such information sharing is done by email.

Several American businesses require an irrevocable letter of credit, payable on sight and confirmed by a U.S. bank, before supplying goods to clients in certain foreign markets. It will save you time and money to share such policy by email, before proceeding with a face-to-face meeting.

In-person meetings are more productive when the negotiation is in the dialog phase. Body language and tone are important in assessing the power balance, picking up signals and evaluating packaging possibilities. However, body language and tone can be misinterpreted due to cultural differences. Therefore, it is much more important to listen and understand what is being actually said.

For strategic deals, I like to estimate the opportunity cost. A ‘Wishlist’ item gained or repackaged deal may pay off more than the cost of time and travel. Yet, holding a face-to-face meeting for every negotiation is impractical. This is even truer when there is an established business relationship.

Teleconference or video conference is also quite useful, especially if you are negotiating in teams. They give you an ability to exchange text messages with your team members as the meeting progresses. This can be useful to share signals of flexibility or advice on strategy. The major downside of phone and video conferencing is a loss of rapport. Trust and personal connection can be critical to difficult negotiations.

Most people are more open to sharing information off script over a cup of coffee. In my experience, the weaker the relationship you have with the other side, the more of an issue this becomes; Lean towards meeting in person when establishing (or fixing) essential relationships.

I am not going to tell you not to use email – it is quick, reliable and the method we now use for 90% of our business communication. It can also be a perfectly reasonable method to send a written proposal. However, I prefer meeting in person to build initial rapport, to explore needs and priorities, or to seek the other side’s response to my proposal – where a live conversation with follow-up questions is critical.

Even choosing your negotiation setting is all about tradeoffs.