Business Negotiation Doesn’t Have to be Hard: Read these 7 Tips
Negotiation is essential in business. Even if you hate the idea of negotiating or do your best to avoid the whole process it is a skill which you will need in order to become successful. Many negotiations will make you feel overwhelmed; you may even see yourself as David against Goliath. However, it is possible to tackle any negotiation and for both parties to be happy with the result. The following tips will enable you to get the right result:
- Focus on making a good first impression
Research has shown that the first five minutes of any meeting can decide how the whole process will end. In the first five minutes you should be looking to assess the mood of your opponent and adopt the same mood. You need to come across as likeable so that the other party will listen to your arguments. The easiest way of achieving this is by talking and letting him see a little insight into you personally. Connecting with the other party on a personal and emotional level will make both parties more inclined to find a mutually beneficial outcome.
- Start high
The first offer is very rarely accepted and it is imperative to start higher than you want or need to get. The higher the initial figure the more your opponent will focus on the worth of these figures; this should leave you plenty of room to maneuver. A high starting point will also allow you to come down a little and let the other party think they have come away with the better deal.
- Make the first offer and prove your determination
As with starting high an offer on the table becomes the anchor point. This is the starting point to which all discussion will centre around. If you have made the first offer, and gone high, you are likely to obtain a better than expected outcome. It also shows the other party that you are confident – whether this relates to a product or to your own worth and this will help prevent them from attempting to walk all over you.
- Negotiate with passion
Emotions do have a place in negotiation. A heated argument is not an acceptable tactic and will invariably lead to the failure of the negotiation. However, letting the other party know you are happy with an offer by smiling or frowning if not. Showing emotion in the right manner will ensure your opponent reconsiders their offer, particularly as it will show you are passionate about the subject.
- Stay energized with coffee!
Studies have shown that the more caffeine you consume the less likely you are to change your position. This is one way to ensure you do not easily give in to their demands. This should result in a better offer than you may otherwise have accepted.
An important tactic in any negotiation is too subtly point out that time is running out. By advertising the offer is only on the table for a limited time you will place pressure on the other party. It is human nature to want what you cannot have and this is true in any negotiation. If you threaten to take it away they will want it.
- Back up your claims with solid data
Data can be used to back up your argument. Whenever possible you should do plenty of research and amass as much data as possible. The more proven data you have the harder it will be for the other party to argue with you. The data must be factual correct and from a good source or the negotiation will be detracted into the quality of the information. An abundance of data shows the other party that you have done your homework and know what you are talking about. The data supplied may even address many of their concerns and make the whole process simpler.
As you can see, business negotiations are not that hard when you know what you’re doing. The key to landing the best deal is to enter meetings prepared. Be ready to face all kinds of challenging situations, and don’t run away from a win-win. Believe it or not, sometimes win-wins are a lot better than no deal; of course, this doesn’t mean that every deal is a good deal. In special circumstances, walking away may prove beneficial.
By Davis Miller and TheGapPartnership.com!