What are the negotiation strategies for optimizing your results?

1 Know your BATNA

BATNA stands for best alternative to a negotiated agreement. It is the option that you would choose if the negotiation fails or no deal is reached. Knowing your BATNA helps you determine your walk-away point and avoid accepting unfavorable terms. It also gives you leverage and confidence to negotiate better deals. To find your BATNA, you need to research the market, compare different vendors, and evaluate your needs and priorities.

2 Prepare your objectives and criteria

Before you enter a negotiation, you need to have a clear idea of what you want to achieve and how you will measure success. This means setting your objectives and criteria for the negotiation. Your objectives are the outcomes that you want to obtain, such as price, quality, delivery, or service. Your criteria are the standards that you use to evaluate the offers and proposals from the vendors, such as cost-benefit analysis, customer feedback, or warranty terms. Having your objectives and criteria ready helps you communicate your expectations, assess your options, and justify your decisions.

3 Build rapport and trust

Negotiation is not only about numbers and terms, but also about people and relationships. Building rapport and trust with your vendors can help you create a positive and cooperative atmosphere, where both parties are more willing to listen, understand, and compromise. To build rapport and trust, you need to show respect, empathy, and professionalism. You can also use small talk, humor, or compliments to break the ice and establish rapport. To show trust, you need to be honest, transparent, and consistent in your words and actions.

4 Use effective communication skills

Communication is the key to successful negotiation, and you must use effective communication skills to convey your message, persuade vendors, and resolve any conflicts or misunderstandings. Asking open-ended questions can help you gather information, clarify issues, or explore interests. Active listening is essential to understand the vendor's perspective, concerns, and needs. Paraphrasing or summarizing can confirm your understanding and show your attention. You should also use positive language to express your opinions, suggestions, or feedback. Emotional or aggressive language should be avoided as it can damage the relationship or escalate the conflict.

5 Be flexible and creative

Negotiation is not a zero-sum game, where one party wins and the other loses. Negotiation is a collaborative process, where both parties can find mutually beneficial solutions. To achieve this, you need to be flexible and creative in your approach. Being flexible means being willing to adjust your position, make concessions, or explore alternatives. Being creative means finding ways to add value, satisfy interests, or overcome obstacles. For example, you can offer discounts, free samples, or referrals in exchange for better terms, faster delivery, or longer contracts.

6 Follow up and review

The negotiation does not end when the agreement is signed. You need to follow up and review the performance and results of the deal. Following up means confirming the details, delivering on your promises, and maintaining contact with your vendors. Reviewing means evaluating the outcomes, measuring the satisfaction, and identifying the areas for improvement. Following up and review can help you ensure the quality and consistency of the deal, address any issues or problems, and strengthen the relationship with your vendors.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?