The idea of negotiating can be intimidating and it’s something not everyone is experienced with. However, successful negotiation is a necessary part of any business and it’s a skill that should be mastered. The secret to successful negotiations is creating a deal that your counterpart just can’t refuse. Here are a few tips for how you can negotiate a deal that is too good to lose.
Do Your Research
In order for your negotiation to be effective, you must first be armed with the right information. Come to the negotiation with as much information about your counterpart as you can get. For example, if you are negotiating salary, have an idea of what similar positions in your area are getting paid. If you are negotiating with a client, find out what their needs and budget are prior to the negotiation. The more information you can gather the better deal you will be able to create.
Find the Need
Whenever two people are negotiating, one thing is for sure: they are both looking to gain something from the deal. Find out what your counterpart’s needs are and play to that. This is also known as their pressure points. Clearly your counterpart has a need (they need your product, they need to hire someone for the position, they need your services) and it’s up to you to discover what that need is and provide a solution. This means you will have to listen carefully during the negotiation to discover what exactly they are looking for. When you can propose a great solution to their need, it becomes hard for them to walk away from the deal.
Being patient is very difficult for negotiators because we all want to walk away knowing the deal is done. However, the best negotiators know not to rush the process. If you rush the deal, you are more likely to make mistakes and leave money on the table. Your patience can give you an advantage because you no longer look desperate. In fact, the other party might be so eager to reach a deal that they are willing to make concessions in order to get there.
Focus on Their Pressure, Not Yours
As stated before, the deal you are negotiating should be presented in a way that provides your counterpart with the solution they need while also giving you the price you want. All too often, however, the negotiator gets so focused on closing the deal that they put all the pressure on themselves. Instead, remember that your counterpart is coming to you because they have a need. Therefore, the pressure is on them to find a solution. When you focus on their pressure instead of your own, you become more powerful in the negotiation. Your job is to find their pressure and exploit it in order to create a deal they can’t refuse.
Show Them How Their Needs Will Be Met
Successful negotiators always look at things from the other side’s perspective. Instead of trying to win the negotiation, create a deal that will fully satisfy the needs of the other party. When you show them just how much your solution is going to satisfy their needs, they will be more inclined to make concessions in order to work the deal.