Key tactics pros use for negotiation
Negotiation comes in many forms. It can be a simple discussion at home whether to have a Chinese or Indian takeaway. Or, it can be significantly more high powered and concern a new client, supplier or even a takeover bid. Negotiation is a fact of everyday life and something that we all do, many times a day, without realizing it.
Everyone can benefit from adopting the right tactics to be successful in all negotiations. There are many approaches which simply do not work. Some of the best procedures to adopt are as follows:
Sharing is caring, even in negotiations
Negotiation is often seen as similar to playing a game of chess. You don’t want your opponent to see your hand too early as it may tip the balance in your favor. There is some truth to this but research has shown that it can be a very effective tactic to let some information slip. The information need not be concerning the negotiation you are currently engaged in. It could be something much more personal. By sharing information early in the process you are setting a precedent which the other party will follow. You have shown you trust them and they will return the favor.
Get your priorities straight
It is normal to enter a negotiation with a set order of priorities. You know what is important to you and often a deal is out of the question if your priorities are not met. In fact, research has shown that leaving all the options on the table can lead to far more scope when it comes to trading off your priorities against the other party’s. If price is important in a deal and the other party cannot reach your price then you may be able to trade against delivery costs or some other requirement.
Price and walk away
To enter a negotiation you must know both the lowest price you can accept and the price you would like. This information must be based on facts. This puts you in a strong position as you can back up your requests and reduce the chance of agreeing to an unprofitable offer. Knowing your limits is essential. If a certain deal doesn’t benefit you or your business, then could try to renegotiate. If renegotiations are not possible and the final price offered is too low, then it’s ok to decline and move one. Rather than end up with unfavorable deal, it best to end up with no deal at all.
Many negotiators circle round issues for hours waiting for someone to make the first offer. In fact, you should jump in with your offer at the earliest opportunity. This ensures you are setting the benchmark for the negotiations. The discussions will then be on the basis of the figures you have used rather than a set which are nowhere near your own. It is acceptable to go as high as possible at this stage. Higher bids tend to make other people think of quality where lower bids obtain a response of what is wrong with the deal.
Low counter offers
If your first offer is simply not acceptable then you should counter with an offer very close to the first one. This tells the other party that you are looking to negotiate around the same figure and a huge reduction is just not possible. Countering with a low offer will simply tell your opponent that you were just trying your luck and you may well accept lower.
Even if the first offer meets your criteria you should go back with a counter offer. On the plus side you may achieve some additional benefits and you will know you got the best offer possible. It will also allow the other party to feel that they have not given anything away too easily and they will be satisfied with the result. This makes a good beginning to any relationship and research has shown that satisfaction during negotiations will result in a stronger and longer lasting partnership.
Even the most experienced negotiators make mistakes. In this niche, it’s not about winning more or finishing first, but about building partnerships and professional relationships with people who can help your business thrive.
By William Taylor and TheGapPartnership.com!