Negotiating isn’t extraordinary, of course. It’s something that most of us do many times each day, whether formally or informally, in our business or personal lives.
Some of us are natural negotiators, while others struggle. However, negotiating isn’t simply a question of enforcing our will to get what we want.
Sometimes you get more than you expected; sometimes you have to settle for less than you wanted
Negotiating involves trying to reach agreement. Sometimes you get more than you expected; sometimes you have to settle for less than you wanted. Negotiating is about finding a solution that’s acceptable to both parties, which is why some negotiations take so long or why they ultimately prove fruitless.
So, what’s the key to getting better results when negotiating?
1 Be well-prepared
Proper preparation is key. You must know what you want from the negotiation, what your alternatives are and what you’ll concede if asked. You also should try to understand what the other party wants, what they’d give up and what their other options are. Ahead of the negotiation, practice answering any questions you’re likely to be asked and make sure you can back up all claims you’ll make, because it could strengthen your negotiating position.
What works in some cases may not work in others, so take time to decide the right approach
2 Use the right negotiating strategy
Good knowledge of the other party can enable you to know how best to approach the negotiation. Your strategy will be slightly or entirely different for different people and situations. What works in some cases may not work in others, so take time to decide the right approach to take in each instance.
3 Choose the right time and place
You need somewhere free of interruptions, where both parties can talk openly. Make sure there’s enough time for the negotiation, so that deadline can’t be used against you. Very early on, explain what you hope to achieve, but don’t reveal concessions you’re prepared to make, because these must be negotiated.
4 Believe in yourself
Lack of confidence will undermine you when negotiating. If you’ve prepared well, know what you want and have a sound strategy, you should feel confident. Also make sure that your appearance and body language is right. Be firm but fair when negotiating. Speak clearly and with authority, but remain open to questions and comments.
Don’t issue ultimatums or allow things to get heated. Stay cool and don’t take things too personally
5 Stay calm and keep it friendly
Negotiations should be friendly, with both sides professional, polite and respectful. The tone shouldn’t be adversarial – aim to build bridges not walls. Don’t issue ultimatums or allow things to get heated. Stay cool and don’t take things too personally – even if the other party is rude or overly dominant. Smile and stay focused.
6 Be a good listener
You must carefully consider the other person’s point of view if you’re to reach an agreement. Don’t talk at or over them, instead, seek to create and sustain a good conversation. Also be patient, because negotiating can take time, especially when matters are complex or the stakes are high. During the conversation, if you don’t understand any points, seek clarification.
Don’t allow yourself to be bullied into revealing your bottom line too early on
7 Be prepared for negotiating tactics
Experienced negotiators employ various tactics, especially when buying or selling. Be prepared for someone to play tough, but don’t allow it to affect your confidence or determination. Don’t allow yourself to be bullied into revealing your bottom line too early on. There should be some room to negotiate on the other party’s opening offer.
8 Concede ground when necessary
But ask for something in return. So, if they want a cheaper price, agree only if they buy more from you. If they want more credit, try to ask for a higher price. Where possible, avoid giving concessions unless you get something in return. And never appear desperate, because it can weaken your position severely.
Drive a hard bargain, but remember – the deal must be fair for both parties, if the relationship is to last
9 Seek concessions when possible
If you feel you’re in strong position and close to agreement, try asking for concessions, but only if they offer real value for your business. If you’re buying, by all means drive a hard bargain, but remember – the deal must be fair for both parties, if the relationship is to last.
10 Walk away if you can’t agree
No deal really is probably better than a bad deal. If you want to consider an offer, ask for more time. If no agreement looks likely after there has been sufficient time to talk, politely end the negotiations and part on good terms. They might later make more concessions to rekindle your interest. If you can’t come to an agreement that works for your business – explore other available options.
• Blog written by Dead Good Content founder, Mark Williams.
