We all know, I think, that there is nothing more important for a business to negotiate and close a deal. Negotiation is an important skill for anyone to master, to get what they want. Most people are uncomfortable in negotiating the things they want. But, those who do negotiate are successful and happier.
What’s the worst that could happen when you negotiate? Things remain the same. At best, you can get more than what you need.
So, be confident and negotiate for a good deal always. You have nothing to lose.
Here is the basic breakdown to help you negotiate better and close deals.
What Do You Want?
Think of it as the maximum value that you would like to achieve in this negotiation. One of the most obvious variables in any negotiation is to get the maximum. Understand your leverage in a deal and use it to your advantage. You can be ambitious but be realistic as well when negotiating. Also, It’s good to aim for a win-win situation rather than focusing to get what you want alone to have better deal.
Try and understand the people on the other side of your table. Find what value that they would settle for while making a good deal. Negotiations can soon get emotional. Guard yourself with logic and provide the negotiators with reasons why you want the value you choose. Some might get scared and walk away from the deal if your expectations are not within their range. Therefore, let them know that you are willing to negotiate on the offer.
What Can You Settle for?
Think of it as the minimum value that you would like to achieve in this negotiation. Some negotiated deals can look great on day one but proved to be less worthy in hindsight. An entrepreneur or the deal makers should always find the minimal value that they can settle for in a deal. In negotiations you might actually settle for way less than what you expected if you are not prepared. Before you start to negotiate look for a value that you can settle which acts as a bare minimum and you can’t settle for anything less.
For example, you might need an order that is very important for your business. If you closed the deal for less than what you expected can make you incur losses or lose interest in the work done for the client. For the sake of better relationships between the customer and clients, it is important to negotiate and settle on the deal that makes it sustainable.
Have a Backup Deal
Negotiation is about cooperation and compromises as well. If you don’t find the minimal value that you are looking for, have a backup deal that you can negotiate on. If the client finds a service more expensive, provide them with add-ons for the same price or give a breakup of service where you can reduce cost for a different package of the service. By having a backup deal, you can have a new opportunity to negotiate another deal.
Learn to Say No
If the negotiation does not go in your favor and you can’t find the minimal value to settle, Walk away from the negotiation. Learning to say no is the hardest part in building your negotiation skills. It is an absolute necessary to say no and walk away from deals that you don’t find any value. The involved parties in the negotiation will clearly understand the message you sent that there is no value in it for you to accept the deal.
Walking away from a deal is sometime used as a strategy to bait a better deal. Remember it’s a double edged sword. You could lose the deal itself, if the others don’t find value that they had hoped to find. So, don’t be too greedy when you negotiate. Good deals happen on better negotiation and trust, so stop any untrustworthy behavior that can derail negotiations and trust. Businesses and entrepreneurs today are where they are because of their ability to say no in negotiations.