Negotiation tactics are very important for the business’s success. One must hone the skills of negotiation to build the company at a higher level. Many businesses miss out to recognize the importance of negotiation skills for any further deals to make. It might be a small business, startups, big firms, individual contractor, all need to develop this skill to have a win-win situation between two parties.
“The most difficult thing in any negotiation, almost, is making sure that you strip it of the emotion and deal with the facts. And there was a considerable challenge to that here and understandably so.” - Howard Baker
To be a good negotiator, one must try to step into the shoes of other business owners and you will know that almost everything involves negotiation. And in business, sometimes you are a buyer and sometimes you are a seller. So, knowing the technique of negotiation make you survive in the market.
Negotiation Skills Entrepreneurs Should Know
Here are 8 negotiation techniques that will make your business more efficient and you will succeed as a confident negotiator.
As a first step, we must be prepared by making in-depth research of the dealer. When you know the inside and outside of the parties involved, it will be helpful for you to make proper negotiations. This holds good even if you are at the other end of the table and want to buy the products or service. The main thing is to have a good idea about the dealer and be clear of what you want out of the arrangements. Without the preparation and research, if you sit for the negotiation, you are half-lost. So make a good research of the party and know their strengths and weaknesses.
Have patience and listen to the party
Some of the negotiators talk too much endlessly and does not make a good deal. This is the worst kind of negotiation, be patient, listen to the party, understand their needs and make a wise arrangement. A good listener is a good negotiator. Dominating the conversation will not fetch you any information, so listen attentively.
No egos and have balanced emotions
Be confident enough as you have done your background research on the party and most importantly have a check on your ego. When are free from your ego and emotions, you can then think objectively and make a flexible deal. To be a successful negotiator, one must think well even in a stressful situation and find common grounds. During the arguments be neutral and control your thoughts and emotions. Don’t be rigid in your arguments, have a calm mind and think productively which helps both of you. ‘Keep the negotiation professional’.
Ask right questions
Spend some time asking questions to the dealer. This may give you some useful information which helps in negotiations. Don’t be afraid of asking questions as nobody knows everything. According to the deal, you can ask some relevant questions to the dealer:
- What is the best pricing you can offer?
- How can you assure me that your product or service suits me?
- Who are your competitors and how best is your product compared to them?
- What is the time period of our deal?
- What is the benefit of our deals?
When you are negotiating, have faith and compassion. It is commonly observed that in negotiations we tend to become defensive as we wish to make the best deal in our favour. But if each other know their strengths and weaknesses, it will be easy to come to a win-win situation. Feel comfortable to set the deal and think optimistically rather than turning off the deal. In this case, both can have mutual benefits.
Make several offers
Instead of one offer, make several offers till the party is satisfied. Make two or more offers, so that the party gets more options to accept the negotiation. If a lot of confusion arises between both of you, you can even contact a third person to have a perfect deal. This will not only make the negotiation easy but also gives a creative solution.
Walk away if the negotiation fails
The negotiation will be succeeded if you have a positive mindset. Don’t think negatively during the negotiation. Always stay neutral. You tend to close the deal if the party does not accept your negotiations and has a lot of negativities during the arrangements. Always know that you will make hundreds of negotiations in the future. And keep the space open for many opportunities. Don’t force the party to make a deal that does not have any benefits to you.
Close the deal with confirmation
At the end of the deal, know how to end the negotiation. It is important to make a recap of the whole arrangement though the negotiation has succeeded or failed. If the deal happened so is a success confirm it and make appropriate follow-ups through emails or letters. Do not leave behind any confusion.
Negotiations are part and parcel of any type of business. Negotiating is a kind of CHESS, you should be wise enough to answer instantly at the right time. For this to happen you should have made proper preparation and have the skill to present everything well. It is also important to stick to your own principles so you don’t compromise on the deal. Be ready to give concessions but do not go low. If you know the technique of striking a bargain then don’t think of perfections.
How to keep the negotiation professional?
Always have a good and optimistic arrangement with the party. Choose the right words and be strong in making the deal. If the deal is professional then the relationship between you and the dealer can be taken forward.
What is negotiation?
Negotiation is a strategic deal that resolves an issue that will be acceptable to both parties. It finds the common ground and benefits each other.