How do you negotiate with customers and partners?

1 Know your objectives and priorities

Before you enter a negotiation, you need to have a clear idea of what you want to achieve and what you are willing to compromise on. You also need to understand your customer's or partner's objectives and priorities, and how they relate to yours. This will help you identify common ground and potential trade-offs, as well as avoid unrealistic or unreasonable demands. You can use various tools, such as SWOT analysis, stakeholder mapping, or value proposition canvas, to prepare for your negotiation.

2 Communicate clearly and actively

Communication is essential for successful negotiation. You need to express your needs, expectations, and concerns in a clear and respectful way, and listen to your customer's or partner's perspective. You also need to ask open-ended questions, clarify any assumptions or ambiguities, and summarize key points and agreements. Communication is not only about words, but also about body language, tone, and gestures. You should use positive and confident communication styles, such as eye contact, nodding, smiling, and mirroring, to build rapport and trust.

3 Focus on interests, not positions

A common mistake in negotiation is to focus on positions, or what each party wants, rather than interests, or why they want it. This can lead to a win-lose situation, where one party has to give up something to satisfy the other. Instead, you should focus on interests, or the underlying needs, motivations, and values of each party. This will help you find win-win solutions, where both parties benefit from the outcome. You can use techniques such as the 5 whys, the iceberg model, or the circle of influence, to uncover the interests behind the positions.

4 Be creative and flexible

Negotiation is not a rigid or linear process, but a dynamic and creative one. You need to be open to different options and alternatives, and willing to adapt to changing circumstances and new information. You also need to be flexible in your approach, and use different negotiation strategies, such as collaborative, competitive, or accommodating, depending on the situation and the relationship. You can use tools such as brainstorming, scenario planning, or option generation, to generate and evaluate different solutions.

5 Manage emotions and conflicts

Negotiation can be stressful and emotional, especially when there are disagreements, tensions, or conflicts. You need to manage your own emotions and reactions, and avoid getting angry, defensive, or frustrated. You also need to manage the emotions and conflicts of your customer or partner, and avoid escalating or ignoring them. You should use empathy, active listening, and constructive feedback, to acknowledge and address the emotional aspects of the negotiation. You should also use conflict resolution skills, such as mediation, negotiation, or arbitration, to resolve any disputes or impasses.

6 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?