Business deal negotiation is a skill that everyone learns; although with varying degrees of success. It is something that is essential throughout life.
Negotiation is completed on a personal level many times a day. Every time you compromise on something you have in fact just completed a negotiation.
For a good business deal negotiation, business owners need to learn to master the skill of negotiation in order to successfully guide their company through the complex economic market and survive.
Best business deal negotiation tips you will ever need
Everyone has a different approach to negotiating and what works for one may not necessarily work for another person. Below are some guidelines that will assist in ensuring you become a successful negotiator:
#1.) Don’t make it personal
Generally, comments made in a negotiation are not intended personally. The purpose of the meeting is to find a mutually agreeable ground and being open and honest will assist in the process. Taking it personally will ensure emotions become involved and decrease the likelihood of a successful negotiation.
#2.) It is a negotiation!
The meeting is called a negotiation for a reason. Have your argument ready and put it forward when given the opportunity. This should be done with confidence but not aggressively. If you are not happy or do not agree with the offer, it is imperative to say so politely and repeat your own demands.
#3.) Research is very important
Before a meeting, you need to know everything you can about the other party and their potential demands and needs. The research will allow you to be fully aware of what you, your product or service is worth and who else might be interested in your product.
#4.) Don’t make the first move
If at all possible, do not provide any details of your offer first. You may find yourself losing out if you do so. The other party may be prepared to give you more or accept less than your offer.
The one who makes the first offer is creating the benchmark for the rest of the negotiation and could be playing right into the other party’s hands.
#5.) Inflate your offer
A first offer is just that. Your opponent will be expecting to counter it with a better offer for themselves. Therefore, never start a meeting with the offer you actually want or need.
Always go in higher or lower than you are prepared to accept (depending on what you are negotiating for). This gives you and your opponent room to manoeuvre.
#6.) There is no rush
If you need the deal signed and completed that day you will be under unnecessary pressure and will almost certainly take any deal rather than the one you could have got.
Being on the clock means you have already placed yourself at a huge disadvantage. This can be added to by the hasty negotiator who lowers an offer before their original offer has been replied to.
#7.) Studying and listening
Understanding the other party will increase your chances of giving them something they want or need. Asking a lot of questions and really listening to the replies will assist with this.
A negotiation is all about needs and desires. Needs are not really flexible and you should try to pander to these whilst negotiating much harder in respect of the desires.
#8.) Get something in return
A good negotiator never compromises on one issue without getting something back. Identifying your opponent’s needs will allow you to give them what they need whilst reducing their desires to improve your position. Give and take is an essential part of any negotiation.
#10.) Never see yourself as the decision maker
If your opponent believes you can make the decision they will pressure you into making one on the spot. This may leave you accepting a deal without considering all the implications.
You should always confirm that there’s someone else who will also make the decisions and that they cannot be present. This provides the get out clause to allow you time to think about any offer.
No matter how desperate the situation there must be a point where the deal is of no benefit to you and you have to be prepared to walk away. Ideally, research before the meeting will allow you the comfort of having a backup plan to walk away to.