Being in a small to medium sized business means you will be negotiating with a wide range of people – from individual customers to multinational corporations.
These are a few golden rules of negotiating which will help you close the best deal, no matter who you are dealing with.
Don’t negotiate unless you need to
When selling – sell to the value, sell to the problem and sell to the money. If you don’t need to negotiate, then don’t.
Build a rationale which focuses on the other side
You need to fully understand the interests and perspective of the other side to truly succeed in a negotiation. You should frame your offers in terms of how the deal will be of benefit to them, not just because it’s what you want. The more value the other side can see in the offer you are making, the more likely they will be to take it!
Look for mutually beneficial gains
Related to the above point – creative negotiation can lead to win-wins if you come up with some great solutions. Not every deal needs to have a winner and a loser.
Give multiple options
Offer alternatives, think about giving at least three different options or ways of doing things which all achieve the same goal.
It’s important to have confidence in the facts and yourself – don’t worry if you’re dealing with a big player, you need to be confident if you’re going to persuade them.
You need to have a bit of swagger if you want to persuade!
Make compelling arguments
Use story-telling and emotion if you have to, don’t just rely on the facts or data.
Don’t accept the first offer
There’s always a better offer, not necessarily with money – but a better deal. Don’t make the first offer if you can avoid it, play your cards close to your chest to gauge expectations and use all of the tips in this article to get the best possible outcome.
Negotiations in business don’t need to turn into a bartering war reminiscent of a fight for the price on a pair of sunglasses in Thailand. Every party, no matter how big or small, wants to get value out of a business deal and with a little bit of practice using these golden rules, you’ll be negotiating deals with ease. For advice from a business lawyer, contact LegalVision on 1300 544 755.