Bargaining techniques are an important component of a successful negotiation. Knowing how to negotiate is one of the most useful skills as you work to create more value for your business. Whether you are bargaining with vendors for better pricing or trying to close a deal with a new customer, there are certain techniques that can help you achieve your goals. Bargaining is all about reaching a mutually beneficial solution between both parties and it can help to resolve conflict and build communication among parties. Consider the following bargaining techniques that have proven to be effective in any negotiation.
You have probably heard the expression, “You catch more bees with honey than with vinegar.” Keep this in mind when you sit down at the bargaining table. People will respond much better to an offer from a kind, friendly salesperson as opposed to one who is arrogant and demanding. Walk-in with a smile and keep things friendly. The more likable you are, the more likely you will be to close the deal.
Give Them a Reason to Bargain with You
Start the conversation by mentioning that you love supporting local businesses and that’s why you are looking forward to creating this relationship. Or perhaps you might mention that you are planning on purchasing more products in the future and you are hoping to do so with their company. The point is, people are far more likely to bargain with you if they have an incentive to do so. Look for a connection between you and your counterpart and think of something positive you can offer in return.
Make it Difficult to Say “No”
It’s easy for someone to say “no” if you simply sit down and ask for 15% off. However, it’s not quite as easy to say “no” if you say, ‘I really want to work with you guys and I know we would work well as a team, but your price is just a little out of my budget. Is there any way we can figure something out?” Don’t make it so easy for people to walk away or say “no.” Instead, give them a chance to try and come up with an alternative solution.
Make Them Feel Like Winners
Compromise is the key to a successful negotiation. You have to be willing to make concessions and be prepared to offer something of value in exchange for whatever it is you want. For example, you may be trying to get a customer to sign a 1-year contract with you but they are hesitant. So, you offer them the first month free if they agree to sign. In the end, you are getting what you want but you have made them feel like they got a great deal as well.
Be Willing to Walk Away
Think about the last time you were on a car lot. Chances are, you didn’t agree to pay the sticker price. You probably haggled with the salesman over the price and when he didn’t agree to your offer, you may have walked away. At this point, the salesman “pulled some strings” and was able to meet your request. Why? Because no one wants to lose the deal. You have to know your bottom line and be prepared to walk away. Not only can this end up earning you the deal (like the car salesman), but it will prevent you from making a bad deal as well.