In any type of business one must always be ready to deal with other people. It can be as simple as explaining the situation. For example, someone offered a house for sale at $40,000 and the other party explained:
"I’m sorry, the only houses I buy are purchased at wholesale."
"Oh," said the seller almost instantly. "Then you can have it for only $27,900"
That sounds incredible, doesn’t it? Yet it frequently happens just that way.
Negotiation is a big part of the business world. Since the negotiation process cannot be avoided, the business professional must equip himself with proper skills and presentation techniques in order to survive in business.
Communication skills are a necessity. As my favorite aunt says:
"Suffering in Silence is for fools who can’t communicate." The best negotiation tool you can have is enhanced communication skills.
When you want to be heard, you have got to speak up. The only way to get a better deal is to ask for it. One gets what one wants based solely on the ability to persuade others, and that takes negotiation, not luck. This is true especially in the worlds of business and finance, which are full of concerns about deals and agreements with prospective customers.
One must be fully aware that all the information involved in the deal must be true, honest and aboveboard. Misleading information must be avoided at all costs; otherwise, any of the parties involved might enter the contract with a different deal in mind. If such is the case, the best you can expect to happen is that it will certainly lead to confusion and the whole negotiation process could crumble before the deal is done.
All statements must be fair and free of errors. Misleading information and ambiguous terms must be avoided. Word meanings, phrases, and sentences, even whole paragraphs, should all be clear and understandable.
Mutual understanding can only be attained through effective communication. Lay everything out clearly for the client. Both parties must be able to fully understand what the contract states. You cannot expect any contract to be entered into by a business professional until after they have become convinced that the contract provides a favorable deal for them.
To achieve a successful negotiation, you must possess fairness and honesty. The client believes that all statements coming out of the salesman’s mouth are considered as binding. If it becomes obvious that his words are misleading, the salesman will lose his credibility. When this happens then it would almost certainly result in prospect walking out on the deal.
As you begin to negotiate, try to observe the situation from every perspective. You should always strive to anticipate every possible outcome -- whether it is favorable to you or not. This attitude will strengthen your negotiation and help you to come up with an agreement that will satisfy both parties.
In every negotiation learn to stand your ground better and show how confident you are in the outcome you are seeking. While it is okay to have emotions, don’t let them overcome your ability to think clearly. When that happens you will probably end up accepting a less than fair deal.
Learn to listen well because that shows your sincerity. Stay open to every suggestion and recommendation that might lead to your benefit. Being flexible will help you reach a successful agreement.
Don’t be afraid to offer innovative solutions during the negotiation if you believe they will pave the way to a common goal. Innovative solutions (sometimes mistakenly called compromises) can be very significant in closing a deal. Offer them firmly in order to meet the needs and wants of both parties.
Since this is your first deal let me caution you against a common failing among inexperienced negotiators... There is an all too human urge, when the pressure suddenly ends to gush out further, unnecessary alternatives and concessions. Be ready for that urge to strike; bite your tongue, shut your mouth.
Once your goal is achieved, close the negotiation and make the deal final.
Click HERE for more information that can help you Negotiate like a Champion. Lin Stone has authored seven books and hundreds of articles. Click HERE for Lin’s latest stories and articles.
