The Art of Negotiation

Do you know the 12 Laws of Negotiation? If not, here is your crash course in effective strategies for successful negotiation.

Very few people are born negotiators although we use negotiation in many aspects of our lives – with our spouses or kids or even negotiating with a colleague on who should pick up the lunch tab. So, while you may have a handle on some of the basics, negotiation is an art that involves process and preparation.

It is important to know that negotiating is not about who wins or loses. In fact, the key to successful negotiation is finding the ideal solution that is beneficial for both parties and has the added benefit of strengthening the relationship with your clients.

Negotiation is defined as “a bargaining (give-and-take) process between two or more parties (each with its own aims, needs, and viewpoints) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict.”

Before you open negotiations with a client you should make sure you know and follow the “12 Laws of Negotiation”:

1. Know the limits of your negotiating authority. What are you empowered (allowed) to do?
2. Prior to the negotiation, define what for you constitutes a “win” for each party.
3. Identify your leverage points and those of your prospect.
4. Negotiate only after the prospect is sold on your product or service.
5. Focus the negotiation on value (defend price), deliverables, and terms and conditions.
6. Distinguish between the person and their position.
7. Be impartial to the prospect’s initial response – take your emotions out of the equation; avoid defensiveness or emotional reactions; respond rather than react.
8. Acknowledge the prospect’s position.
9. Understand the need behind the position – the whys behind the business issue (Why is this a priority now?) and understanding the whys behind the buyer need(s) (Why is getting these items important to the buyer)
10. Use trade-offs – When a contact requests anything of value, develop the value of the resource and then ask for something in return.
11. Use embellishments or compromises. Enhance items in categories other than the one where there is a difference. (For example, low cost deliverables that have high value could be added in to keep the price fixed.)
12. Be willing to walk away from the negotiation. Establish your walk away point and be prepared to follow through on it so that you don’t end up making a bad deal.

Effective negotiating is about understanding what is truly important to the buyer and enables a negotiation outcome that delivers the most value, without unnecessary concessions. This results in improved client relationships and margins.

Now that you have a handle on the 12 Laws of Negotiation, consistently implementing them will allow you to maximize the value of every meaningful negotiation by building relationships and accelerating the path to finding the ideal solution. Remember, negotiation is an art, so put these rules into practice and close those deals!

Scott Anschuetz is the CEO and Founder of Visualize, inc, and provides businesses with a proven and repeatable structure for increasing revenue.

Learn more at www.visualize.com