The 7 dos and don'ts of
Effective Negotiation
Used with permission from
the HP Small & Medium Business Center
In this economy,
being able to close important deals and negotiate better
prices and terms is more essential than ever. But if you’re
worried that being a good negotiator means having to fight
dirty, you’re wrong – a negotiation should be an opportunity
for give and take that results in a win-win situation for
the participants involved. Learning how to negotiate
effectively can help you achieve these winning results while
strengthening business relationships.
Start improving
your negotiation skills with these dos and don’ts:
Don’t appear
needy.
People can smell desperation. This will weaken your position
and allow opponents to get you to make too large a
concession or give too deep a discount.
Don’t take
it personally.
Getting your emotions involved will cloud your ability to
make sound arguments and judgments. To keep yourself from
losing your cool, think of yourself as a professional deal
maker who will not be personally affected by the outcome of
the negotiation. Take your emotions out of the equation.
Be prepared
to walk away.
Being able to say “no” and mean it ensures you don’t end up
making a bad deal. Before going into negotiations – and
before your emotions and the heat of the moment become part
of the mix – set your walk-away point. Then if the terms
offered do not match up to your expectations, walk away.
This not only strengthens your position, it will also win
you some respect.
Don’t force
it.
By dragging out negotiations that are going nowhere, you’re
wasting time and causing a lot of frustration. By pressuring
your opponents to make an agreement they don’t want or can’t
afford to make, you’re creating bad feelings that could lead
to mistrust and a wary working relationship. Remember, it’s
about give and take, and when neither party is willing to
budge, the negotiation is over.
Further, like
many things in life, it’s beneficial to:
Do your
research.
Good negotiators come prepared. They find out what their
opponent’s needs and wants are and what competitors can
offer. They anticipate objections so they can counter them
with arguments or other concessions.
Practice,
practice, practice.
Like anything else, getting good at negotiating requires
practice. Develop your confidence by practicing whenever you
have the chance, whether it’s at a flea market or at home
with your family members. Get used to negotiating in your
daily life.
Ask for it.
Many people dislike negotiating because they feel
embarrassed or scared asking for things they want. But if
you don’t ask for something, you’ll rarely, if ever, get it.
In fact, you may be pleasantly surprised by what you can get
if you ask for it. If the answer is “no,” then you have a
starting point for your negotiations.
Those who are
good at negotiating usually enjoy it. So don’t dread or fear
negotiations. See it as a fun exchange, a battle of skills,
practice grounds for future negotiations, and more
importantly, as a way to build up the client-vendor
relationship and win terms, prices and deals that are
advantageous for you and your business. |