You're navigating pricing disputes in agribusiness deals. How can you find common ground with stakeholders?

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In one of the poultry projects I managed in Sudan, we faced a significant pricing dispute with a key supplier of feed additives. The first step we took was to deeply understand the needs and concerns of both parties. We organized a meeting where we listened to their perspective and shared ours. We discovered that the supplier was struggling with increased raw material costs, while we were focused on maintaining our profit margins amid rising operational costs. Understanding each other’s needs laid the foundation for constructive dialogue.

Navigating pricing disputes in agribusiness requires a deep understanding of stakeholders' needs. By thoroughly exploring the concerns of farmers, distributors, and retailers, one can identify common ground and potential areas for compromise. For example, farmers might need to cover their costs, distributors might seek higher margins, and retailers might aim to stay competitive. Addressing these needs empathetically can lead to a fair agreement that satisfies all parties involved. Such an approach not only resolves disputes but also fosters long-term relationships and mutual trust among stakeholders.

To address the pricing dispute effectively, we analyzed the market dynamics affecting both parties. We gathered data on feed additive prices, supply chain issues, and market trends. This information helped us understand the external factors influencing the supplier’s pricing and provided us with leverage in our negotiations. For example, we highlighted alternative suppliers and market prices to illustrate that our request for price adjustments was reasonable given the current market conditions.

Muito interessante abordar o tópico “valor” ao mercado agrícola. Assim como em qualquer outro mercado, todo produto ou serviço deverá oferecer valor. Muitas vezes, existe uma preocupação enorme na venda, com estratégias agressivas de vendas. Ocorre que o produto ou serviço que não gerar valor ao consumidor, não retornará no longo prazo, uma vez que não se estabeleceu confiabilidade do cliente e, consequentemente, não criou fidelidade. Com isso, o produto ou serviço tem que gerar valor. Dessa forma, o papel do vendedor não se limita em vender, mas sim, orientar o consumidor, e em alguns casos inclusive, assumindo que não pode ajudá-lo com seu produto ou serviço. Mais vale confiança e retorno futuro desse cliente, do que uma simples venda.

We then focused on our value proposition. We emphasized the long-term business relationship and the volume of business we brought to the supplier. We showcased how our partnership had been mutually beneficial and how maintaining competitive prices would ensure continued growth for both parties. For instance, we highlighted past successes, such as increased sales and market expansion, that were a result of our collaboration.

Uma coisa que deve ser destacada é a relação ganha-ganha. Qualquer relação, tanto em âmbito de negócios ou não, exige que as parte administrem expectativas e interesses entre elas, afim de gerar valor à ambas as partes. O contrário disso, desperta a reclusão de uma das partes como reação natural de proteção. Lidar com a outra parte do negócio como adversária, sendo mais agressivo nas tratativas, pode gerar a sensação de que uma parte está tentando enganar ou induzir a erro. Uma vez que uma das partes já não sente mais conforto na negociação, a possibilidade de não haver negócio é quase certa, e não é isso que se busca.

Negotiation played a crucial role in resolving the pricing dispute. We employed various negotiation techniques, such as seeking win-win solutions and being willing to compromise. We proposed a phased approach to price adjustments, where we agreed to a slight increase now with a review in six months, depending on market conditions. This approach showed flexibility and a willingness to work together, which helped in reaching an agreement.