Negotiation is a key factor in the success of any professional career. You may have to negotiate for a better salary, to win clients over or to get key stakeholders on board with your business plans. In any profession from banking to law, negotiations are part of daily life.
For businessmen and women, it is essential and important to know how to negotiate within different settings and cultures. Businesses succeed by creating a way to make profits and proving it with a plan. A business strategy usually involves different groups of people specializing in different areas of communication, finance, accounting, economics, software development, and more. Diversified teams that work together to create quality models of exemplary companies are a key factor in a successful business.
A thriving business often requires its employees to understand negotiation skills in order to accumulate successful deals. For a business to be financially successful, they often require some kind of loan from a bank or investors. When doing so a business will want to gain the maximum investment/loan with the lowest rate of interest. Not everyone is a born negotiator, some businesses turn to negotiation training to ensure that future negotiations are as fruitful as possible.
One of the most important skills to have in order to become an effective negotiator is the ability to listen. In any business negotiation, you must come prepared with questions and possible answers to the questions. Always be prepared for what may be expected at the meeting. The best idea is to research background information on the person and firm that you are dealing with to ensure a solid basis of communication. Many negotiations are not domestic, so always have a positive attitude, and be professional when entering a business negotiation. A lack of professionalism and becoming too relaxed can send negative signals to others and make it seem as if the business plan or company is not of any interest to them. Understanding what both sides stand to gain from the negotiation outcome is a good idea.
It is important to be prepared and understand business communication and negotiation, part of this is to bring a written document that is professionally drafted. This will not only show your dedication to the project but will also help you ensure you remember every point of your negotiation. You are not guaranteed to complete every negotiation, but this proves a confident attitude towards the other party.
There is always a chance that the negotiations don’t favour any of the parties. This is a perfect time to remember preparedness and understand that it is okay to walk away from these negotiations and be proud not to have sold someone short.
Most importantly, if the negotiation is successful it is important to make sure the communication is clear, direct, and professional. Both companies must have a thorough understanding of how the other conducts business practice, especially in varying cultures. This specifically applies to international negotiations, because business practices vary around the world. Being aware of countries differing business practices will allow one to prove readiness and positive outcomes will arise.
5 essential things everyone should know about negotiation:
1. You Can Negotiate On Anything
All is fair in war, love and negation. You can negotiate cars, homes, stores, you can pretty much negotiate on anything. We tend to see price tags and presume that the offer is final, which is not always the case. At the very minimum, you should always ask the clerk if they have any coupons available or if any other discounts apply.
2. Ask to Speak With a Manager or Owner
Most shop assistants do not essentially care if you make a purchase as they are most likely getting a wage, with no compensation structure. Thus, the best thing would be to find the shop owner, manager or someone that is the highest point of authority. This is harder to do in global companies, but in smaller retailers, you should defiantly try and find the person who most cares about making sales.
3. Keep your Options Open
The strength of your negotiating position relies on alternative deals. As a buyer, you should not fixate on a single product. Always shop around and keep your options open. As a seller, you should always be prepared to seek more potential buyers.
4. Don’t Make the First Offer and Don’t Negotiate with Yourself
You should never want to make the first offer, regardless of being the buyer or the seller. Why? Because the other party may offer a price that is a much better deal than what you initially had in mind. If you’re buying, consider the starting point to be the list price, but make it clear that the price is too high. From there, ask the seller if there is any flexibility and force the seller to offer you a lower price. It is only at that point you should make your first offer.
5. Use Silence and Time as a Tactic
Never respond too quickly to an offer. Pausing or even suspending negotiations can convey that you’re not desperate to close the deal and that you have other options. Silence can force a surprising amount of pressure on the other party as well.