Negotiation is rampant everywhere & it’s not complicated
Negotiation, employed in diverse manner in our daily lives, is used from conflict resolution to bargaining for a favorable home price, and from attempting to reduce the price of a used car to asking for a pay hike. Besides, the situations for negotiations have become commonplace whether it’s going out for lunch or splitting the bill after lunch. “Natural negotiation” has become part of our daily lives where it isn’t mandatory to impose our views. It isn’t necessary to burn bridges or kick up a ruckus while negotiating. Negotiation need not be inevitably tough. On the contrary, negotiation is easy.
Understand the key to negotiation
The key to the entire negotiation process hinges on accomplishing a fine balance between what you want and what you get without neglecting or cheating the other person’s wants. Seemingly simple, this task can, however, pose an immense challenge, at times. Your negotiation strategy involves staying flexible enough to get your wants without being too rigid during the process. Most often, when you’re too rigid in the negotiation process, you hurt the other person’s interests adversely.
Acknowledge that it’s essential to negotiate
Don’t visualize negotiation as something that’s sleazy or awkward. Instead, you should visualize the negotiation process as a friendly conversation. Besides, never treat negotiation as an argument. We all negotiate at one time or the other — whether we like it or not. Likewise, if you despise negotiation, you’ll end up losing. Hence, don’t ignore negotiation altogether.
Very few people actively create circumstances that are extremely harmful to you. However, all people will promote their own interests. Whenever there’s a mismatch between their best interests and yours, you’ll lose. That’s the precise reason why you’ve got to be prepared and willing to negotiate — to serve your own interests.
Don’t be unduly bothered about the price tag
Rather than worrying about the price tag, you should stay focused on the price you’re willing to pay. Fundamental Economics says that an item is worth as much as a person is willing to shell out for it. Fair enough. Besides, during every business or personal transaction, there’s an agreement that takes place between a seller and a buyer. There’s absolutely nothing erroneous, immoral, or dishonorable about requesting or bargaining for a lower price.
Determine what’s agreeable to you
It’s impossible to plan all your negotiations ahead of time. Nevertheless, you can avoid making a senseless mistake by deciding beforehand where — or, at what point — exactly you’re going to back out of the negotiation process. Know all your options. What’s the market price of this model of car? How much is the property really worth? Remember these three critical aspects of the negotiation process:
• Do your homework — always.
• Bring proof to sustain your negotiation strategy.
• It’s not difficult. You can do it.
Understand that the manner of your entry will set the pace
To negotiate advantageously, you shouldn’t slump through a doorway sporting an angry scowl on your face. On the other hand, you should hold your head high, and your face should light up with a smile as you make your entry. A positive vibe is extremely essential to start any negotiation process — small or big.
Address the person you’re negotiating with by his/her name
This is elementary, but many people forget the vital role this minor aspect plays. You can get a better deal by employing this simple trick.
To negotiate successfully, listen more & speak less
Listening — a skill that’s grossly underrated during negotiations — does two things simultaneously. It not only causes the other party to feel admired and respected, but also builds trust between both the negotiating parties. Listening ensures that what you hear is absolutely right. During important negotiations, it’s mandatory that you repeat what you hear. This activity, known as mirroring, makes up the most essential part of the negotiation process.
Create a shared discussion & avoid an argument
As the negotiation unfolds, employ the word “We” to highlight the fact that you’re in the negotiation process together. For instance, you could start by saying, “You know, $1000 is an excellent starting point. We need to discuss the details.”
Inquire about the other choices on offer
In the present day competitive business environment, all places invariably offer steep discounts, secondary options, reduced rates, and diverse alternatives that you can choose. Unless you ask, nobody is going to inform you of all the options that exist. Typically, there are several methods to fix a problem.
Always negotiate each item individually
When you’re purchasing numerous items, you should negotiate the price of each item individually. Examine each item and explore alternative options or discounts. After finishing the full list, negotiate for a group discount. If you’re good at bargaining, you can even “demand” a group discount when you run up a huge bill.
When looking for bargains, ask open-ended questions
You should avoid asking, “Is there any discount?” The stock reply will be, “No.” Instead, you should ask, “What’s the discount for…” as this necessitates a definite answer.
Avail the hefty cash discount that retailers offer
In big or bulk purchases, making the full payment — in cash — automatically entitles you for a hefty cash discount. Besides, a full payment saves the business enterprise the hassle of contacting you for future payments. Hence, when you make cash payments, you’re automatically empowered to negotiate for a reasonable discount.
Avoid offering an ultimatum
No person reacts favorably when he/she is told what to do. Hence, if you’re keen on negotiating prudently, avoid making statements like:
• This is my best offer.
• You can either take it or drop out of it.
• I demand 25% off.
Placing a high premium on price alone is disrespectful
You eliminate the human element in the negotiation process when you say, “What’s the best price you’ll pay?” or “What’s the least price you’re willing to offer?” You should respect the other person who’s sitting across the table, speaking on the other end of the telephone line, or standing on the other side of the retail store counter.
Avoid being vague; ask specifically for what you want
The world is replete with good people who’re too busy to notice or figure out what you’re looking for. Customarily, salespeople are willing to help you. Notwithstanding, you’ve to indicate to them what exactly you’re seeking. Avoid beating around the bush. Instead, you should resort to asking for a discount straightaway. You’ll be amazed by how often you end up getting a better deal than you were looking for initially.
Complete the negotiation process by asking for it in writing
Don’t just take an individual’s word about the offer for a new price, a fabulous discount, or any other financial benefit. Take the terms of the offer in writing to avoid future negotiations for the same offer. Getting the offer in writing just makes it easier for everyone.
Pursue a “Win-Win” outcome for both
During the negotiation process, you shouldn’t get so involved in getting what you want that you ignore the other person’s interests. Most often, the “win-win” negotiators accomplish highest success. For instance, children value independence highly. Nevertheless, as long as they’re dependent on their parents for their basic living necessities, they cannot demand absolute non-interference of their parents.
This situation can be resolved in a “Win-Win” outcome for both when the parents say, “to prevent our interference in your life anymore — you’ve got to do…”. This ensures that parents get their way and children get their way too. Ideally, a “Win-Win” outcome is the best way to negotiate.