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Articles
Six Keys to Negotiating Success
by Bob Gibson
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We don't have a choice as to whether or not we negotiate. Our
choice is whether we do it well or poorly. We're involved in negotiations
every day as we sell products, services, ideas and ourselves.
Supervisors negotiate with employees to motivate them. Employees negotiate for raises
and promotions. Parents negotiate with children to get them to
do their chores. Husbands and wives negotiate each time they decide
how to spend the weekend or their tax refund.
These six keys to negotiating
success, though
focused on the sales process, can be applied to any form of business
or personal negotiating:
1) Remember negotiations is an ongoing
process, not an event.
These relationships need to be nurtured over time. Often the
outcome is determined way before the two parties sit down at
the table.
2) Avoid a subservient
mentality. Most people sell themselves
short because they don't recognize the personal power they possess.
You must believe the prospect needs what you're selling at least
as much as you need the sale. Check your body language, tone
of voice and word choices when you make your presentation.
3) Prepare to negotiate. Information is power. Research the
history of the account, problems in the past, past profit margins
and personal "hot buttons" of the decision maker.
The more you know about the situation and the decision maker,
the better your negotiating position is.
4) Determine the best and worst-case scenario for you and for
the prospect before the negotiations begin. This may include
range of price, delivery time and payment options. By projecting
each party's highest and lowest expectations for a deal to take
place, you'll often find that a compromise can be made within
the area that overlaps.
5) Build value to increase your negotiating position. Set yourself
apart from the competition by integrating your business process
with the prospect's. Find out how their business works from
the inside. For example, change the way you package or deliver
your products or services to make it more convenient or profitable
for the prospect. Businesses add value when they offer prospects
a one-stop shopping concept (i.e., the financial planner who
can bring in a trusted accountant or lawyer as a consultant
when necessary or a printing firm that keeps graphic designers
on call).
Once working with the business, keep track of every incident
that adds value, such as special requests you fulfill. Make
that known by bringing a written list to the next negotiating
session. The more value you communicate, the more likely you'll
be considered a better choice over your competitors.
6) Expect reciprocity. When you give something away, or concede
on an element in the negotiations, always ask for something
in return. Otherwise, you're training the other party to continue
to want more while reducing the value of what you're conceding.
By keeping that balance, you'll soon be perceived as an equal
in the process. That's a crucial element to negotiating success.
Bob Gibson is a negotiation strategist and the president
of San Francisco-based Negotiation Resources
He may be reached at 800-572-8005.
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