Negotiations become complicated because of some real problems. Two parties are on different pages. They often don’t have a holistic understanding of what the other party wants. There is substantial inhibition that prevents free and fair discussion, consideration and rational rebuttal. Negotiation has to be a planned approach. It cannot be random or situational. The best negotiators in the world are some of the best planners too. Here are some simple yet effective negotiation techniques that will be of immense help for professionals cutting across industries.
1) Listen to your client.
Listen to your client, customer, partner, associate or anyone who you are trying to negotiate with. Most people are so focused on what they want and how they want the whole transaction to pan out that they do not hear what the other party is saying. More importantly, one doesn’t listen to the other party. It is necessary to not just hear but listen so one can understand what the other party is saying or hinting at. Often, people will consciously and subconsciously imply what they want, what they are looking for and what they would not want to deal with. These implications can be easily used to one’s advantage.
2) Be informed.
Always know as much as you can about your counterpart or the other party before you head for the negotiation. The more you understand your counterpart, the easier it will be to find the leverage that will help you to close a good deal. Find their weakness, how much they need what you are offering, if they are checking out a multitude of options other than what you have and if they have made up their mind to deal with you but subject to a better offer. Fear of loss often comes in the way of negotiating a good deal. Most salespeople and managers are afraid of standing their ground because of this fear. More awareness and better understanding of the counterpart will be of help in such cases.
3) Follow the principles of negotiation.
There are three principles to a great negotiation. Do not be afraid to make the first offer and be flexible as long as you are not breaking your bottom line. Do not shy away from delving into extensive discussions, even to share details why the pricing is such and provide all information to the other party to help them make a decision in your favor. Do not be afraid to walk away from the negotiation holding onto your offer without showing signs of yielding.