We tend to negotiate with most things in life. Being able to negotiate well, can make a big difference in business as well as our own lives. Simply asking for something extra can help make the deal better. If you don’t swing the bat, you can never hit a home run. Listed are seven tips that can help you be a better negotiator.
1) Never act too interested
Play the reluctant buyer or seller. Always give the impression you are willing to walk away from the deal. This puts pressure on the other guy in thinking that they need to come down to your terms or else you’ll walk.
2) Don’t get emotional
Think with your head not your heart or ego. Stay calm and think things through. Do what is right and not what you “feel” you should do. Don’t get angry or distraught and you’ll do much better that way. If the other guy gets upset, stay calm and stay the course.
3) Know the market demand
If you know the market, you then have a good idea of what the demand is for that item. Whether the product or service is in high or low demand puts you in a better position to negotiate on that product or service.
4) Never make the first offer
Always let the other guy go first. If they go first, they might offer more than what you were going to ask for or they might ask for less than what you were going to offer. Either way, you come out ahead because you get a feel for where the other guy is. You’ll be surprised how many times this happens.
5) Never Accept their first offer
Yes, you read that correctly! Always ask for more, even if their first offer is higher than what you were originally going to ask for. You’ll get more out of them by using this technique. When you ask for more they may try to talk you down from the higher offer, so you look like you are making a concession and the other person will feel like they are winning the negotiation. This also helps ensure you are getting their best offer.
6) Set precedents
By comparing your offer to historical offers, this sets a precedent and helps justify your offer and make it harder for them to move you off your offer. For example, telling them a similar house in their neighborhood sold for “x” recently and that’s why your offer is where it’s at. This puts you in a stronger negotiating position.
7) Let them think you’re not the final decision maker
Once you get it down to the final offer, let them know you need to talk it over with your boss, wife, or partner, before you can decide. This in turn can put pressure on them to make an even better offer to get the deal done now, so you don’t walk away! They don’t want to wait, so they may make additional concessions. If not, it at least gives you extra time to think about it.
Ultimately, the best deal is when the negotiations is a win/win for both parties. When that happens, both parties are happy and will likely do additional business together in the future.
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