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Learning how to negotiate and developing negotiation strategies to get better deals is a money saving tip that will leave more cash in your pocket for investing. And who doesn't want that?
Negotiating is a power play. If you want to play with the BIG DAWGS, then you need to learn the art of negotiating
In this blog post, I want to take a look at 6 crucial negotiating strategies that, if you employ them on a regular basis, you can come out as a winner in almost any negotiation you enter into.
I can sometimes, admittedly, get a little obsessives with it, but I may get more deals on items I purchase than anyone in America. Whether I'm buying groceries or I'm talking on the phone to my internet provider, I'm always seeking ways to get a deal. You wouldn't believe how often this works.
Here are 6 strategies to use when learning how to negotiate and when developing negotiation strategies to get better deals.
Table of Contents
"In business, and in life, you don't get what you deserve, you get what you negotiate" - Chester L. Karrass
1. Be Willing to Walk Away
You will usually find this one listed last, however, I think it's so important, that I decided to list it first.
If you can't walk away from a negotiation, you have absolutely no leverage and you are half-defeated before it starts. Don't act desperate and don't be desperate. Desperation is a sign of powerlessness.
The option to walk away from any negotiation is literally like having a super power. It's leverage that is in your back pocket that, if skillfully used, can give you a powerful advantage. Don't only be willing to walk away, but actually practice doing it from time to time.
2. Preparation
Prepare. Over prepare. Then prepare some more.
Study and determine a high, a low, must haves, and potential concessions. Be as ready as possible for the offers and the counters. Have as information as possible.
Know exactly what you aren't leaving the table without, exactly what you can live without, and go through all of the potential fulfillment and concession scenarios.
If this is a business negotiation, be sure to bring notes to the negotiation. Be as ready as possible for the offer and the counteroffers. The first strategy is to do your due diligence.
Check out the video 3 Tips to Negotiating from an FBI expert negotiator at the end of this blog post
3. Be Quiet
Always allow the other party to make the first offer. In any negotiation, silence is golden and patience is key. Let their offer sit, think on it, and then counter, if necessary. In a negotiation, the more you talk, the more you reveal too much and tip your hand, which, in turn, destroys your leverage.
Part of your leverage in negotiations is the fact that the other party doesn't quite know everything you are thinking. Avoid making the first offer at all cost. You can lose a lot by making the first offer!
If you are in a situation where you are forced to make the first offer, be sure to make an offer that is low (in your favor), but not disrespectfully low. What is disrespectfully low, this is your call.
4. Win-Win
Take inventory of the other parties needs, and always go for the win-win. Listen carefully and think of the other party as a partner, not an adversary. Get their name and use it often, and build some rapport. Meet the core of their needs, without going lower than your low. Two satisfied parties makes for a good night's sleep.
Be sure to do your homework, study who you are negotiating with, develop a genuine concern about what they need, and work to meet it. But in the process, be sure to meet your goals also. The better you are able to meet the needs of the other party, the closer you will come to meeting your own.
One of the best times to employ negotiation skills is when buying a used car.
Click Below to Get 5 Tips to Buy Good Used Cars
5. The "Ask"
Don't be afraid to "ASK" for what you want. Often times, when you ask, you will get it. If you are afraid to ask, you will likely come up short in every negotiation, unless the stars line up in your favor otherwise. Don't always count on that.
Always ask for more things then you want, and then appear to settle for the few things you are given. But be sure those few things you are given are actually the only things you really wanted in the first place.
In other words, a closed mouth never gets fed. Whether you are negotiating a sale of some kind, negotiating a salary, trying to get a bargain at the local thrift store, or embroiled in a high stakes million dollar negotiation with an overseas company for a high tech software application for your business, you need to be comfortable and confident with the "ask". I can't stress enough how important this is.
6. Be Ethical and Reasonable
Be honest and treat others with respect in any negotiation. If you create an environment where unreasonableness abounds, people will dig their heels in. That is a normal reaction. The way you make people feel tends to matter a lot in a negotiation.
You don't have to low ball, strike below the knees, or bamboozle the other party. Simply create an environment where the other party feels like they are being treated fairly and with respect. Get them on your side and they will always be more likely to acquiesce a little.
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