Bargaining Vs Negotiating

Building relationships is the MOST important thing you can ever do in business. Whether it’s creating partnerships that last for years or making referrals that benefit everyone, relationships are the foundation for which all successful brands are built on.

So it always amazes me when savvy business owners fall down at the first hurdle because they could only see a short term reward. They weren’t able to run the full marathon because all they were focused on was money. They saw only what they wanted instead of what could be shared.

I’m talking about bargaining vs negotiating and there’s a clear line between the two. Read on to find out why negotiating is always better than bargaining and how it’ll put you in a better position to build valuable relationships.

What’s the difference between bargaining and negotiating??

Bargaining is only about price and there’s no room for anything else. More often than not, only one person gets to win in that relationship and being on the winning side is the priority.

Negotiating is about reaching a mutually beneficial agreement. It’s finding ways for both parties to get value and create a win-win situation. In the immortal words of Sam L Jackson in The Negotiator it’s “never say no, don’t, won’t or can’t. It eliminates options.”?

Why is it better to negotiate than bargain??

Negotiating is a two-way street and when done right, it provides these benefits:

• Helps both parties feel valued and motivated in the project that’s going to be completed
• Creates a framework for delivering high-quality solutions?
• Gives everyone involved a clear idea of what’s expected and a path towards continued growth
• Stops problems and conflicts from happening in the future

How to negotiate like a pro?

Now that you know what the benefits of negotiating are, here’s a few tips on how to turn a business relationship into a thriving partnership:

Keep an open mind?

When going into a negotiation, always keep an open mind and remember that there will be compromises. If you truly believe there’s a good deal on the table and see the value then don’t overthink it.?

Part of being open is also focusing on the other person’s perspective. Anticipating someone else’s needs is at the heart of all successful negotiation and it’s about helping them feel satisfied.?

It’s the case of one hand washing the other and in turn they’ll be more inclined to satisfy your needs.?

Shut up and listen?

“We have two ears and one mouth, therefore we should listen twice as much as we speak.”

Zeno, the founder of Stoicism, said this and it’s true for life as it is for negotiation. Think of yourself as a detective. Your job is to keep asking questions and then shut up while the other party tells you what they’re looking for.?

The kind of questions that are worth asking are always open-ended. Questions that can’t be answered with yes or no.?

It’s not all about the price?

Come into a negotiation with a clear idea of the value and price of your services, but don’t make that the heart of a conversation. Sometimes potential clients may be working to a budget and there may be other benefits to partnering with a business that goes beyond money.?

An analogy I like to use in this situation is going out to eat. You go to a restaurant, have great food and awesome service and your bill comes at the end. You pay the money and you also pay a tip for the service.

This is acceptable practice in hospitality but it doesn’t work like that in the business world. It goes back to my point about being open minded and being prepared for not always getting the deal you want.?

In that case, it’s fine to look for other ways to see how you can gain value from the relationship.

And it’s okay to walk away too. Don’t devalue yourself if there is no value to be gained.

Focus on the other side’s position, not yours?

It’s human nature to tell yourself a story about why you need to make a deal. I’ve done it. You’ve done it. So much of what we do is motivated by self-talk and if you keep telling yourself a certain story then you’re doing yourself a disservice.

Instead of thinking about the pressure on yourself, ask what kind of pressure the other party is feeling. No matter how calm someone is on the surface, there will always be problems and concerns that aren’t talked about.

Reframing this pressure will help to increase your negotiating power and give you the ability to make the other party feel at ease. Focus on showing how you can solve their problems and the value you bring to the table.?

Focus on what you can control?

How you speak. How you listen. How you ask questions. How you react. These are the things that are in your control during a negotiation.?

Everything else is noise. Either you’ll reach a place where you and the other negotiator are happy to move forward or you won’t.?