Many people believe that negotiations are “all or nothing,” and that there has to be one winner and one loser. Nothing could be further from the truth. While the goal of negotiation is most certainly getting what you want, the fact is that the best deals (the ones that stick) incorporate terms and ideas from both parties.
- Ask for a Deal on Multiple Items. …
- Point Out Defects. …
- Show Disinterest. …
- Be Assertive. …
- Be Willing to Walk Away. …
- Show Hesitation. …
- Be Comfortable With Silence. …
- Make Them Set the Price.
How to Negotiate (or, “The Art of Dealmaking”) | Tim Ferriss
What is deal negotiation?
Deal negotiation is when two or more groups bargain or make a trade-off to reach an agreement. Negotiation is how you discuss an offer or terms of an agreement, and a deal refers to the offer that you or the other party is making. Negotiation can occur often within the workplace, such as while negotiating your salary or contract terms with a hiring manager. A career in business may involve completing many negotiation deals. For example, you could negotiate the price of a good or service. Another example is to settle a dispute between your company and another business.
24 strategies and tactics for negotiating deals
Here is a list of 24 negotiation strategies and tactics that you may consider using:
1. Know your priorities
Understanding your priorities refers to knowing what end goal you want to receive from the negotiation. Its important to know your priorities before the negotiation starts so youre fully prepared. This helps you make informed decisions when making a trade-off.
2. Know the value of the trade
It can be a good idea to know the value of the trade, which means you know the stakes of the offer and how much its worth. For example, if you want to lower the price of a resource with the owner of a production firm, you might want to know how much their products cost so you can appropriately barter. Research the value of your trade before you begin to negotiate.
3. Look at other options
Looking at your other options means researching to see if there are other people who can offer you a similar good or service at a lower price. For instance, if you have a job offer, you might look to see if other companies have similar positions that have better pay rates or benefits. You can research your options before negotiating with someone to see if you have the best deal.
4. Select the right person
Selecting the right person refers to communicating with someone who has the authority to give you a good deal. If you barter with a manager or supervisor, they might be able to offer you a more impressive deal than an assistant. Try to ask who youre negotiating with, and when possible, ask to talk to someone who holds a higher position.
5. Understand the negotiator
Before you negotiate, try to understand the person. This can include observing and learning about them before addressing them. This can help you better determine the end result of the negotiation. To do this, you might have a separate conversation with the negotiator before the negotiation meeting.
6. Build rapport
Building rapport means becoming acquainted with someone to gain their trust. For example, when you meet with the people youre negotiating with, you might want to first establish a relationship with them by getting to know them. Consider introducing yourself to the other party and spending a few moments talking with them before negotiating.
7. Dress professionally
Dressing professionally means that you look experienced and well-kept. This can help you convey that you have high regard for the negotiation, which may help the other party take you more seriously. You can dress formally by wearing clean clothes without rips or tears and by following your companys dress code.
8. Bring a coworker
If you can, try to bring a coworker with you when you negotiate. This is valuable because they can help you strategize and secure a better offer. Before you do this, ask the people youre negotiating with if its okay to bring another person. If they agree, ask a coworker who knows about the deal and feels confident about their abilities to help you.
9. Switch the lineup
If there are multiple people on each side of the negotiation, try switching your lineup. This means that you take turns discussing and bartering. Doing this can help you be more successful while making a deal. This is because a new voice and perspective may help change the minds of the other party.
10. Show that youre paying attention
Paying attention to someone means that youre actively listening to them. Its important to show that youre paying attention so that the negotiator knows that youre showing respect and engaging with them in a courteous manner. Use your body language to show that youre paying attention by maintaining eye contact with the other speaker.
11. Bring a mobile device
Having a mobile device, such as a phone, laptop or tablet can help you support your claims. For example, if you tell the other party that another company is offering a lower price for a service than they are, you can use your mobile device to prove that to them. Keep your notes on your mobile device so you have easy access to them during your negotiation.
12. Have a budget
If your negotiation deal revolves around purchasing, buying or loaning something, attend the meeting with a budget. Doing so allows you to reference how much youre willing to spend or sell something for so youre prepared when they ask you for a price. Calculate your numbers or expenses before the negotiation and consult with your company when creating the budget.
13. Use specific numbers
When making an offer, use specific numbers. For example, you might offer $550 instead of providing a range, such as between $500 and $600 dollars. If you give them a range, theyre more likely to choose the lower amount, which could result in a loss of profits. It can be a good idea to come to the negotiation meeting prepared with a specific number beforehand.
14. Make multiple offers
Another tactic involves making the other party multiple offers. This may increase the likelihood that they accept an offer because they have multiple from which to choose. Communicate with your company executives beforehand to ensure that theyre okay with making multiple offers and having the offers ready before the meeting.
15. Set a deadline
As youre negotiating, set a deadline for your offer, meaning that you give your offer an expiration. If they dont take your offer by the deadline, the deal is no longer available. Having a deadline can help make your negotiating partner decide quicker, and it can make them more serious about the decision.
16. Convey your desired tone
You can use your tone to convey a variety of emotions, such as assertion or disinterest. Assertion can show that youre confident in your negotiation skills. Disinterest shows the other party that youre not desperate to make a deal, which may help keep the conditions of the deal reasonable. Be mindful of how you speak because this can help you set the right attitude or mood for the meeting.
17. Take a break
Taking a break refers to pausing during the negotiation meeting. This allows both sides of the negotiation to regroup and assess the situation. If you take a break, you could think of new strategies to increase your chances of making a deal. A break can be as long or as short as needed, and you can use that time to rethink how you want to approach the situation.
18. Know when to stop
If you reach a point where neither side can agree or concede, you may need to stop the negotiation. Thank the other side for their time and consideration and tell them youre no longer interested. To know when to stop, ask yourself if the deal is worth losing or if you can afford to agree to their terms.
19. Embrace silence
During a negotiation, it can be beneficial for you to remain silent while the other person discusses their terms. This shows to them youre listening, and it also makes it challenging for them to know what youre thinking, which can give you an advantage. They might even lower the initial starting price because they dont know your plan.
20. Ask them to name the price
If youre trying to purchase a good or service, try to get the other party to name the first price. If you set the price first, they can gauge how much youre willing to spend on the item, which can increase their selling price. If they ask you first, you can politely decline to answer.
21. Use a counteroffer
A counteroffer is when you respond to the other teams offer with a counter that changes the terms so they benefit you. For example, if they offer to buy a product from you for $100, you can make a counteroffer of $150. Try to make your counteroffers realistic so that the negotiators are more likely to accept.
22. Try for a win-win situation
A win-win situation is when a deal benefits both parties. For example, if youre negotiating the terms of your paid time off, accepting a compromise that satisfies both you and your employers needs is a win-win situation. Ask yourself how you can get what you want while satisfying the other team and make a proposal that addresses both of those needs.
23. Take your time
When negotiating, take your time during the process to consider your options. Taking your time allows you to make a decision thats as smart and well-informed as possible. To achieve this, make sure you give yourself and the other side enough time for the negotiation to not pressure any decision-making.
24. Be polite
To build strong and lasting relationships with the other team, try to be courteous and polite to them during the meeting. You can still be confident and make an impressive offer while being kind. Allow the other side plenty of time to speak and treat them with respect in order to show that you value their time and participation.
What are the 5 stages of negotiation?
- Prepare, Probe, and Propose. When starting any new project, including negotiation efforts, it is important to lay the foundation first. …
- Define Ground Rules and Exchange Information. …
- Clarification. …
- Bargaining and Problem Solving. …
- Conclude and Implement.
What are the 4 types of negotiations?
What is negotiate pricing?
What are some examples of negotiation?
- Negotiating with a customer over the price and terms of a sale.
- Negotiating a legal settlement with an opposing attorney.
- Negotiating service or supply agreements with vendors.
- Mediating with students on lesson plan goals.