Ten Tips for Successful Negotiating
Every business field demands solid negotiation techniques to benefit from a good deal and achieve success. For some people, successful negotiations mean ending up with the bigger share of the bargain, while for others, a win-win solution is equally acceptable. Prior to starting the process, make sure to check out the following 10 tips for successful negotiations.
One – Preparation is mandatory
It’s very important to take all the time you need to prepare yourself for the negotiation. You have to be familiar with the situation, but also with your counterpart’s scenario. Perform a thorough research and gather as much data as possible regarding your opponent. Try to investigate their motivations, as well as why they need your products/services. Expect the unexpected, and you’ll see that preparation is key to every negotiation.
Two – Know your limits
To avoid accepting a solution that won’t bring useful results, you have to know how much you’re willing to compromise, and when you should walk away. Note that it’s very important to turn your back on the deal if you think it cannot benefit you and your business.
Three – Be honest with your counterpart
Keep in mind that you’re a professional, so you have to behave professionally. Be honest and direct with the other party, because this will bring you a better outcome. Don’t propose surreal terms and try to be truthful with your competitor. In the end, even a win-win deal can save the day.
Four – Let your counterpart to make the first offer
Allowing your counterpart to make the first offer gives you the possibility to see exactly how the other party values your products/services. Sometimes you can even realize that they have impracticable hopes when it comes to the price of your goods or services. Anyway, if you let the other side makes the opening offer, you will enjoy important advantages.
Five – Establish an initial price that is favorable to you, but also reasonable
Your initial price will probably be lowered during the negotiation process. If you propose a higher price, you will lose less. Of course, this doesn’t mean that you can come up with a price that’s way overstated, because this will determine your counterpart to walk away.
Six – Don’t start a war!
In case your first proposal is rejected, you have the possibility to suggest a revised one. If your second proposal is also rejected, maybe you should turn your back on the deal. However, it depends on the situation and on the importance of the deal for your company. If you truly think that a third offer can change the situation, you can present it, but keep in mind that if you make too many compromises, your counterpart might think that you’re desperate to make a deal, and will try to take advantage.
Seven – Don’t let the other party see that you desperately need the deal
There will be situations when certain contracts will be extremely important for the success of your company; hence, you will need to reach an agreement. However, you can’t unveil this to the other party, because it will give them a great power and numerous advantages. Showing desperation will bring nothing more than a really bad deal!
Eight– Reduce the price wisely
If you have no other option but to reduce the price of your proposed deal, keep in mind that you also have to reduce its value somehow. Lower the amount of the products or the quality, but don’t reduce only the price.
Nine – Avoid being over-friendly
Obviously, pleasantries and other things like that take place when a negotiation starts and ends, but since you’re doing business; you have to concentrate on your goals. You may not like your counterpart, but you can’t let your emotions influence the negotiation process; healthy business relationships are based on reciprocal esteem and understanding, not feelings that are over-friendly.
Ten – Listen attentively and cautiously
It’s very important to pay attention to your counterparts. It will make you look like a professional, and will also allow you to be aware of all crucial details, and seize certain opportunities. Put everything in writing, make sure your clients agree to all the terms and conditions, and sign the contract.