How can you be a confident negotiator, get the price you want that feels valuable, and be happy about the transaction?
In a growing world where prices are continually fixed, negotiators and ones who can do so successfully are hard to find.
The truth of the matter is that while most people don’t want to negotiate and will avoid doing it whenever they can, this leads to a tremendous opportunity for those who do know how to negotiate.
The following are the 5 negotiation tips and the one negotiation hack you need to know:
1. Research and set an ideal outcome with a plan to get there
Before you do your negotiation have your research done and know what the market is for the item that you are looking to buy or sell. When you have this figure in mind then you need to plan out the likely ways that your outcome is likely to come to fruition.
Negotiations are rarely going to go according to plan, but you need to set a worse case scenario plan. What is the most you will pay for an item or the least you are willing to settle for in letting an item go?
Then you also need to do the same for the best-case scenario. What is the lowest price that you can pay for the item or what is most that you can get for the item you are selling?
When you have the best-case scenario you can direct your mind better in what you want to accomplish. The worst-case scenario will show you what you need to avoid and how to be better directed towards a more favorable outcome.
2. Don’t take the negotiations personally
The biggest resistance people have to negotiations that they might be unaware of is their unwillingness to take out the personal aspect out of the negotiation. They see it as a friendship and aim for a person to like them better than to achieve their goal.
People like others more who they respect. It is more challenging to respect someone who is willing to compromise themselves and what they want in favor of being liked. In the same vein, it is hard to not respect someone who goes for what they want.
Take the personal aspect of the negotiation out of the equation. Focus on what you want and do what it takes to get there. Most negotiations can be totally friendly, but they are actually more challenging to engage in if you are worrying what everyone thinks of you.
3. Bid to the extremes
It doesn’t matter who states the first price. You should be well versed in what this product is worth, the market for such an item, and you should have an ambitious figure in mind for your first offer.
Whether it is bidding low when you are buying or setting a high price when selling, you are giving yourself more room to negotiate by setting an extreme figure that your counterpart has to accept or adjust for.
Going too far at an extreme has the potential to drive a deal maker away, but there are always more people to deal with. Making sure you set firm your initial standards will at the very worst show the person you are doing business with that you are for real.
4. Aim for counter offers
If the potential deal has come together with only one offer and acceptance, then it is very likely that you could have done better in your negotiations. Upon your first offer, your counterpart should always give a counter offer.
If they immediately accept instead, then you know you could have offered lower or higher depending on your side of the deal.
Remember, most people want to get out of a negotiation as soon as possible. They are worried about upsetting others and don’t want to feel the pressure of the event. Go back with a few well-planned counter offers and you will wear your fellow dealmaker down and get exactly the right price that you were looking for.
5. Honesty first
Commonly there is a lot of negotiation advice that is deceitful or deceptive and this will only inhibit your negotiation skills, strategies, and success as a negotiator.
While you may get a quick win, it is more important that you develop the skills and can have long standing positive and fruitful business relationships.
For these reasons, if you are the one in charge don’t act like you have someone else making the ultimate decision. This is dishonest and deceitful. Own your negotiation. Don’t tell someone else, “This is the lowest I can go.” This leads to limitations and most people are more likely to do deals with people who are more flexible.
And finally, the one negotiation hack you need to know:
When you are negotiating as the buyer of an item, right before you present your initial offer you need to say something negative about the item up for purchase.
“I like this car, but the tires look bald and will definitely need to be replaced soon. Will you take $5,000?”
You include the negative phrase because it is psychological in nature.
People are motivated by the fear of loss more than the pleasure of gain. When you include a phrase such as the above you give the seller fear and the pleasure of the sale becoming completed right after.
Most times this hack compels a seller to move the item right then, but if they don’t it gives you an extra edge in your negotiations as well.
Being a good communicator and negotiating what you want is a key to life. If you can’t negotiate, you will be worse off in your relationships, your career, and your life.
How would you be able to have a balanced relationship if you couldn’t negotiate the responsibilities in such partnership?
Use the preceding advice and take your skills of negotiation to the next level. By continuing to practice you will soon feel yourself becoming a fine dealmaker.
Featured photo credit: Robert Owen-Wahl via pixabay.com