Convert “No” into “Yes”- Negotiation Skills

A good negotiator is the one who comes up with a solution or an arrangement that is acceptable to both the parties. They look for a win-win situation where stakeholders are satisfied with the results. As easy as it may sound, in reality, you hear “No” more than you hear “Yes”.

In this article, I have summarized my learning and experiences of getting to a “Yes”.

The Value of Negotiation Skills

Without negotiation skills, you might end up giving more than what was required and your company will have to suffer a loss. That's why it is important to be a good negotiator. By learning negotiation skills, you can:

Gain a competitive advantage: Negotiation is not a game. So, this isn’t about determining a loser and a winner. It’s about making sure that your interests/goals lie with those of the client. A good negotiation always help to set the correct and reasonable expectations by limiting the inequalities between your company and the client.

Win the account with confidence: If a client is interested and you want to win this account - badly, you might agree to whatever client offers on the table. In such situations, if you can present your strengths and how it will help the clients to achieve their goals, you can negotiate and collaborate with the client.

Counter out of scope discussion: Don't afraid to tell a client that something is out of scope. Hiding anything from the client ruins the partnership later. In such situations -

• First, try to understand the client’s requirement. Ask open ended questions to understand what are the client’s goals.
• Provide alternatives (If available) which will help the client to achieve their goals,or,
• Inform the client clearly that at this point of time, this is out of scope. You’ll just take the hit on this one.
• Remember that confidence breeds respect, and mutual respect means you have a partnership.

Build relationships by managing conflict: Client conflict is inevitable. I will be sharing another article on “Managing client conflicts”. In one line, in case of a conflict, be an active listener, ask questions to understand the issue, empathize, propose a resolution, set a timeline, follow up and meet the timeline.

Outline the Client's BATNA: Negotiation is the act of balancing competition with cooperation to get a result where both parties are satisfied. And to do this, you need to know your client’s BATNA (Best Alternative To a Negotiated Agreement). Defining your client’s BATNA will help you determine what power you have in the negotiation, when the client would accept the negotiated contract, and when he would end negotiations.

To determine the client’s BATNA:

• If the client doesn’t sign the contract because you failed to concede to his terms, what will he do?
• Figure out a list of possible options, and create reasonable responses or points to counter the client’s decision.
• What are your limits for the negotiation?

Techniques for Negotiating Like a Pro

Preparation >> Active Listener >> Questions >> Trade Offs >> MESOs >> Contingent Contract >> Best Option   >> Urgency >> Implementation  >> Closing The Deal

Preparation:

• Know your products
• Outline and prepare on Client's BATNA
• Identify your key commitments

Practice being an active listener:

To be an active listener, you should maintain eye contact. When agreeing with points, acknowledge this with a “yes” or “I agree.” Don’t interrupt the speaker, but take the opportunity to paraphrase what the person has said, and repeat it to make sure you understand. Ask questions that prompt the speaker to clarify information.

Ask open-ended questions: Consider these two questions:

• What price would work for you?
• Why is this price seems too high? Is it because of the results you have seen in the past?

If you start with the second question, the dialogue about price becomes a way for you to emphasize the results your other clients have seen.

Always Trade, don’t just give in: In case of any unreasonable bargains, don't just give in to what clients want. You should always trade. Ex: If a client wants to reduce the price, you trade with reducing some services.

Present multiple equivalent offers simultaneously (MESOs). Always be prepared with multiple offers rather just one offer in hand. Just in case, the client doesn't like your offer, you will be able to present another offer simultaneously and so on. It will increase your chances to create win-win situations.

Try a contingent contract. If any of the parties promise something for later period of time, try proposing a contingent contract that will penalize the party for not keeping their promises and reward for early deliverable.

Be confident that you are the best option: If you did your job in qualifying the prospect, you know this client would benefit from working with your company. It might just be a matter of securing his confidence. Emphasize that you understand the client’s marketing challenges, have the experience they are looking for, and even offered a plan that was better than your competitors.

Emphasize the urgency: During the proposal phase, you should have determined how the timeline for the project would affect client's year-end or quarterly goals. Remind the client of the consequences on their business of delaying the project.

Plan for the implementation stage: Always set correct timelines and milestones. Setting up wrong expectations will negatively impact the partnership with the client.

Be gracious while closing the deal: The goal of negotiation is not to get everything you want. It's about how you communicate and cooperate with a client so that both groups enter a relationship on common grounds. The result is a stronger partnership.

• Emphasize the benefits to both parties
• Carefully introduce the consequences of not reaching agreement to both parties and losing what has been agreed so far
• Timing is Essential
• Take Care when making a Final Offer. Be sure that it is consistent with your brief.
• Ensure that all agreements are understood and accepted before finalization
• This should be well documented and signed at the close of the negotiations
• These should be then forwarded to both parties post negotiations

Being a good negotiator will always give an extra edge to your career. Kindly share your ideas and thoughts on the topic.