What are the key steps to negotiating effectively?
Negotiation
Perspectives from experts on the questions that matter to improve your negotiation skills.
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In any negotiation, both parties want to achieve the best possible outcome. However, they often have very different objectives, which can make the process challenging. The key to a successful negotiation is to find common ground and to build on that. Here are five key negotiation strategies that can help you achieve a successful outcome.
Define your objectives
Before you enter into a negotiation, it is important to know what you want to achieve. What are your objectives? What is your bottom line? Once you know your objectives, you can develop a negotiation strategy that will help you achieve them.
“What are [your] objective criteria? Are there financial criteria that you're going to look at? Perhaps NPV or ROI, or how much the deal is going to cost. Laying out these objective criteria and some of the assumptions you're making can help you be more fact-based in approaching the deal.”
—Mike Figliulo is a founder and managing director of thoughtLEADERS, LLC, a professional services training firm. He has over 25 years of management experience.
Listen more than you talk
Listening will help you understand the other party’s objectives and find common ground. It's a powerful relationship-building tool, and will help you build rapport and trust, essential for a successful negotiation.
Be prepared to compromise
In any negotiation, there will be some give and take. You may not get everything you want, but neither will the other party. Be prepared to compromise on some issues in order to reach an agreement.
“When you negotiate, do you trade or do you just fight them over the money? Try trading and think about what you can easily offer them…When you start thinking about it, pretty much everything is tradable. Mentions on websites, payment terms, where meetings are held. Plan ahead with a nice big list of tradables, and then explore lots of those when you're actually in the negotiation.”
—Chris Croft is an author, lecturer and a thought leader. He has over 40 years of management experience.
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Stay calm and constructive
Make sure you aren’t frowning or crossing your arms, as these cues can instill defensiveness and signal that you are upset, nervous, or even angry. Instead, be mindful about your tone, avoid signaling ultimatums or threats and strive for win-win solutions.
“To gain respect you need the right mix of assertive and friendly. Here are some tips to find that balance. Use smalltalk wisely. Build a connection and try to find something you can reference in a followup conversation. But don't go too far. Some negotiators are so eager to build rapport they offer unnecessary gifts or make concessions before talks even begin.”
—Dr. Carolyn Goerner is a professor at Kelley School of Business and the founder of Practical Paradigms.
Be flexible
Stay open to different outcomes and different ways of achieving your objectives. And be willing to revise your strategy if the negotiation is not going as planned.
“The egocentric bias causes us to overestimate what we deserve and underestimate what the other party should get. It comes from a failure to see the other person's perspective…It can keep you from accepting a fair offer and prompt you to make unreasonable demands. To work through it, make a special effort to find information unfavorable to your side, ask an independent third party to help you value your offerings, and actively practice empathy “
—Dr. Carolyn Goerner is a professor at Kelley School of Business and the founder of Practical Paradigms.
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How this article was made: An AI generated an initial answer to a question. The response was then fact checked, corrected, and amended by editor Anamaria Silic. Any errors or additions? Please let us know in the comments.
Vice President-Sales and Marketing l Quota Performer l Sales Leadership l Onboarding l Data Analytics l Fortune 100 Expertise
1 年The Client will always identify the single feature or point of value in the product/service you offer that is the driving force behind the decision to buy. As suggested, the money often isn't the key point, but rather how will you meet that need and exceed their expectation. Once the Client is confident that you are providing a valued product or service and deem success to be their total satisfaction, there will always be common ground and a firm foundation for successfully completing the negotiation and winning the business.
CEO of Badger Maps - Automating Busy Work for Outside Sales Reps to Save 10 Hours a Week
1 年One tip I have here is instead of asking questions in a negotiation use a "label." To do this, you matter of factly?state your customers state of mind. For example, you don't say "what objections do you have?", you say?"It looks like you have some objections." And that gets people talking and allows you to get?to the heart of what would really be valuable to the other person in the negotiation and what they are really motivated or afraid of, so you can figure out what a Win/Win situation looks like. I have a video that covered this concept in detail here: https://www.youtube.com/watch?v=QeUadyyUcjo&t=215s
Director Customer Experience ? Sales Ninja; Diversity Champion ?? "Do or Do Not, There is No Try" -Yoda??♀? My Slice mom?? #Orange; IU and Ball State offspring DC born and raised but now located in the Sunshine state
1 年BE HONEST. Always come from a place of authenticity. If you cannot meet a deliverable, cost, etc. always be transparent about it. It will save your potential clients time and in the end, they will respect you for it and hopefully give you another chance down the road OR find a way to make it work. A true partnership has to be one where both sides win and the "deal", whatever that is, is mutually beneficial-otherwise it is jsut a transaction.