Personal Development – The Art of Negotiation
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
When people hear the word ‘negotiate’ they generally think of money. However, negotiation isn’t just about money. Instead, it can be about products, advertising or even employee relations. There are many things someone should be focused on and not all of them include money. In fact, negotiators who only worry about money do so at their own detriment.
When negotiating, don’t just focus on the price tag. Instead, you should be focusing on coming to an agreement where both parties walk away satisfied, if not happy. When negotiating, you should be focused on;
- Getting a fair price
- Establishing and maintaining a relationship
- Gaining the goodwill of another company
- Managing your company’s reputation
In order to cover all these bases, the negotiation should be a conversation and not simply a numbers exchange. There are many ways to accomplish this, and they mainly involve preparation. The most important work that you’re doing should occur before you ever walk into the boardroom or pick up the phone.
Art of Negotiation (Source: blog.tarleyrobinson.com)
Start by deciding who has the leverage in a certain deal. Who needs an agreement to go through more? This can significantly change how you reach an agreement with the other side. If all the leverage is on their side of the table, you will need to look for your own strengths. If it is on your side, your job might be easier.
Next, prepare two sets of points or arguments. You should have one prepared for your position and one prepared for their position. Know what arguments they are going to bring up before they do, so you can counter those arguments or concede when necessary. In addition, they will likely be preparing counters to your arguments, so you need to be prepared for them.
When you start the negotiation, let the person who has the most leverage speak first. If it’s you, don’t be afraid to start. If not, you’re better off letting the other side lead the way. That way they can set the tone for the negotiation and you might be able to gain leverage of your own.
Next, keep the other side talking. If they ask for a concession of some kind, make them tell you why they need or want that concession. When their presenting their arguments, you might be able to gather more information that will help you work out a compromise.
Finally, never be afraid to walk away. You should never walk into a negotiation when making a deal is your only option. Instead, you need to have a plan B, so you won’t be desperate to make a deal. If you must make a deal, the other side will know and they will use this to their advantage. You have probably heard it said that ‘the best time to go car shopping is when you don’t need a car’. This is 100% true. If you absolutely must have a car, then the salesperson will be able to tell and you’ll end up paying a higher amount overall than someone who wasn’t afraid to walk away.
A good negotiation should end with all parties walking away happy. Most people you will be dealing with will be people you’ll have to deal with again in the future. As this is the case, you don’t want to burn any bridges by playing hardball unnecessarily. In addition, you don’t want to appear weak or timid, as you’ll continue to get bad deals in the future. Instead, approach any negotiation with confidence by doing the right amount of preparation before you ever get started.
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To Your Success,
Andrew Shin
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