Top 10 Negotiation Techniques

Ten Negotiation Techniques:

1. Prepare - Without proper preparation you will lose. First make sure you understand your objective and set your goals. Next try to understand what it is that the opposing party wants. Also get help from experts, such as an accountant, attorney or other subject matter expert.
2. Timing – Timing is important in any negotiation. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. Beware of pushing too hard.
3. No Room for Egos – It doesn’t matter who was responsible for a deal conclusion. The best negotiators make the other party feel it was their idea.
4. Listen – Encourage the other side to talk first. Whoever mentions numbers first, loses. It’s generally better to wait and let the other person go first. It also gives you an idea of what their position is before you speak.
5. Ask for the sale – A paradigm of sales people and it applies to negotiations as well. If you don’t ask, you don’t know if it will be accepted. If there is something you want, ask. Calculate your highest reasonable price and ask it. You’ll be surprised. Sometimes a highball request gets accepted. You won’t know unless you try, but be reasonable.
6. Anticipate compromise – Expect to give concessions. The other party should expect the same. Don’t accept the first offer as there is usually a little bit more in reserve. Plan what you are willing to give up and come up with alternative offers beforehand. This goes hand in hand with #1 – Prepare.
7. Get to a Commitment – Offer a commitment and ask for the same in return. It could be as simple as “I will review the numbers tonight. Tomorrow I will give you my valuation, then we’ll talk terms.” Be timely, and offer a timeline.
8. Its not your problem – “My dad is sick.”, “I have high expenses.” Don’t internalize their problems. Remember this is business. You create a valuation and if it doesn’t meet it don’t let the other party rationalize for you.
9. Don’t compromise your values – If negotiations transcend your boundaries, let it go or you’ll be asking yourself later “was it worth my soul?”
10. Confirm Commitments – Confirm expectations at the end of each meeting and recap any deliverables by all parties. Remember negotiations need to be concrete to move forward.