7 Keys of Successful Negotiation

If you’re in business for yourself you’ll need to negotiate. Probably every day. Maybe even every hour. Whether it’s with your suppliers, customers or team members, negotiating is a part of what you do. Negotiation is similar to sales in the sense that some people seem to have “it”; a natural flair that makes them great at it. But even if you don’t feel that you’re one of those people, it doesn’t mean you can’t be great at negotiating. Like everything, it is down to part talent, part skill. So let’s take a look at the skills part.

We’re focusing here on 7 basics that are fundamental to achieving success in a negotiation.

Know what you want

Before you start any kind of negotiating, you need to know specifically what you want to walk away from it with. Know which parameters are important to you, and which ones you are willing to compromise on.

Come prepared

Before you find yourself negotiating with someone, do your research! Search, dig and scour through any information you can find, that will help you understand the person or company that you’re negotiating with, what the deal is about and what may be obvious stumbling blocks in the negotiation. The better prepared you are, the easier it will go, and the better outcome you’ll get.

Ask – Listen

By far, the biggest and most important part of negotiating is to listen to the person you are negotiating with. Listening becomes even more powerful, if you’ve prepared some well crafted questions. By listening actively, the person you’re negotiating with will tell you everything you need to know about what’s important to them, what they want out of the negotiation and how they perceive their own position in the negotiation. All of these are crucial for you to know in order to be able to make the best deal you possibly can.

Be nice

This may seem like an odd piece of advice to give for negotiating, but it’s true. It is very common for people to feel a bit anxious about being in negotiating situations, so chances are there’s at least one person around the table that’s feeling this way. Be kind and friendly in your approach. The best results aren’t achieved if you’re bullying the other person in to agreeing with you. If you’re in it for the long run, getting the other person to feel comfortable negotiating with you will take you a long way towards getting them to accommodate your needs in the negotiation.

Negotiatate on different parameters

The best and most effective negotiations happen when the parties negotiate on different parameters. What do we mean by this? Well, imagine a situation where you and a supplier are negotiation over a delivery of some kind, and you are both negotiating solely on price. Your supplier wants you to pay £50, you want to pay £40. In a negotiation like this, it is very difficult to move anywhere, and it’s very difficult to find a place where you both walk away with a good deal.

Now imagine the same situation, but instead of both of you negotiating on the same parameter (price), you are now negotiating on different parameters. Your supplier wants you to pay £50 for the delivery. You tell them you find this to be too high, and want to see it lowered. But if they insist on £50 you want to add an extra widget to what you’re buying (you’re now using the quality parameter), you want it delivered within 2 days instead of 5 days (using the time parameter), or you will only take the delivery at this price on consignment, and pay for the items as you sell them (using the cash flow parameter).

By negotiating on different parameters, instead of the same one, there can be endless solutions to the same negotiating situation, and the chances of both of you walking away with a deal that works, is much higher.

Win:win

The aim of any negotiation should be to find a solution that leaves both of you feeling satisfied. Even if you have the upper hand in a negotiation, don’t neglect the needs of the other side and make sure that they leave the negotiating table satisfied. If you’re in business for the long haul, having good working relationships will take you a long way. Not to mention the fact that there’s no telling whether next time around the tables are turned, and you’re in a weaker negotiating position. So view your negotiation as part of a long term business relationship, and stay focused on finding a solution that works for both of you.

Leave emotion at the door

A negotiation is a business dealing, so treat it that way. There is never a reason to threaten, shout, or in any other way get emotional in a negotiation. If you are sitting across from someone who is erratic or short-tempered, try countering it with questions like “how did you arrive at that figure?” instead of “what are you thinking?!”. Or try something even more effective: silence. Silence can be an incredibly powerful technique to force the other side to keep talking, which will usually result in them revising their position a bit, or telling you information that is useful to you in the negotiation.

Where do you go from here?

The next time you’re negotiating, try running through these 7 points as you prepare for the negotiation. The most importantthing is to make it your own. Apply each of the points to your own personality and style, so that it doesn’t just become something you read somewhere, but a genuine and believable part of how you present yourself in business dealings.