There’s a lot of bad advice out there regarding the best way to approach a negotiation. That’s because so many negotiators see it as a competition or a battle. With this approach, though you may win the immediate deal, you can damage long-term relationships, which leads to diminished results long term. There is a better way to master the art of negotiations. Here are some tips that can help you close the best possible deal.
Value the other person. In order to negotiate effectively, you need to understand the other person, their wants, needs, motivations and emotions. This is a critical step. Ask questions, and let them know that you care about finding out about them. Try to connect on a human level. If you can establish some level of bond, then you are much more likely to get the information you need.
Share your vision. Refusing to communicate with the other person will get you nowhere. Walking out of a negotiation is a good way to end up with no deal. Instead, keep talking even when it seems that you aren’t making much progress. A good way to do this is to create a vision and share it. For instance, “Our primary goal is to keep our customers happy, by (blank). ” Share your vision, and try to find out theirs, too.
Deal with emotion. When people get emotional (on either side of a negotiation) it can cause things to break down. Emotions get in the way of logical thinking. They cause people to behave less rationally than they otherwise would. If you find yourself getting emotional, then try to lower that emotional level. Take a break, do some deep breathing, and try to regain your composure. If the other person is getting emotional, then try to calm them by listening, asking questions, empathizing or apologizing.
Be honest. If you are lying to people, they are apt to find out. It may not be right now, but they could find out later. This damages your relationship and ability to work together in the future. It also diminishes your credibility, which is important for you in future business dealings. Lying or cheating in an attempt to get a short term gain is not worth the risk. Instead, stay honest, and conduct the negotiation with integrity.
Proceed a step at a time. Any negotiation where you’re trying to solve enormous problems in one step is going to be very difficult and likely to fail. The issues are so complex, with so many different conflicting agendas and motivations, that it is extremely difficult to reach a satisfactory conclusion. An easier approach is to break the large negotiation down into small steps. Tackle just one little piece of the problem at a time. Try to get buy-in from both parties at each step of the way. It may take a long time to get through everything, but you have a better chance of success.
Remember your goals. When you enter a negotiation, you should have a clear understanding of what your goal is. During the course of a negotiation, it is sometimes easy for people to lose sight of that overall goal, and get caught up in the details. Keep bringing yourself back to the larger goal. Make sure that the steps you are taking are moving you in that direction. Ask yourself the following questions: what do I want to get from this deal? Am I willing to make concessions? Is a win-win solution going to satisfy my needs?
Not every negotiation will end in your favor, yet it’s important to master the art of negotiations by building a relationship. Sometimes good connections can be a lot more important than winning a bigger share of the pie.
There’s no exact recipe that will tell you how to win negotiations. It’s a matter of skill, and that can only be achieved if you practice. Whether you’re a CEO, business owner, manager, salesperson or entrepreneur, it’s really important to have one thing in mind: negotiations can go bad. Ergo, if an offer cannot possibly bring any benefit to you and your business, it’s ok to say “no” and walk away.
What have been your experiences negotiating? Has it something that’s come natural or has it taken a lot of work to get to where you are? Let us know by leaving a comment below, connecting with us on Facebook or Google+, or tweeting us @123Print.
Author Bio: Jefferey Morgan has a lot of experience in writing about businesses and negotiations. Aside from writing, he loves to swim and play with his pets!