The art of negotiation is all about getting the most out of any given situation. If you`re not sure what the people on the other side of the deal are looking for, you`re missing out. Don`t throw away priceless advantages that you can use in your negotiations; research what the other party is looking to achieve, what their budget is, and understand their time constraints inside out.
Once you get this data, you`ll have a strong negotiating position that will make all the difference to the outcome. Here are a few useful, specific pointers on how you can do it.
Learn the time constraints of the other side, and use that to your advantage
When you attend negotiation training, you will see that time limitations define the pace of most deals. Typically, there will be one party with a tighter schedule than the other. These types of asymmetries are what seasoned sales negotiators use to their advantage.
You should learn the timescale the other party is working. Once you know what their timetable looks like, you`ll be able to plan when you need to slow things down. Slowing down negotiations may sound counterintuitive; however, classes on negotiation will teach you all about adding pressure through inaction.
If someone presents an offer, you`re not happy with, and you know they have an upcoming deadline, sit on it. Appearing to delay things by a day or two will help ratchet up the pressure on the other side. Eventually, they will come back with an improved deal, and you will be happy to sign a contract.
Understand their revenue so that you can always position yourself as the dominant player in negotiations
Take a look at online negotiation tutorials that are on offer if you want to see the importance of revenue. Revenue is pivotal in the world of business because it decides who the dominant players are.
Negotiation workshops will allow you to understand the process of leveraging your resources during negotiations. If you are the most significant player by revenue in your category, don`t be shy about pointing to this fact.
But, don`t go overboard and run the risk of appearing boastful or arrogant. Instead, what you should do is make it clear that your business is the dominant player. Doing so will tip the balance in your favor and it will all be thanks to your expert negotiating skills.
Once the client is aware that you hold most of the power, you will be able to extract a much better deal.
Leverage your network of contacts
How? Indirectly let the other party know that you have worked with some of their competitors. This point only works if it`s true — introducing false information during a negotiating is never a wise strategy to follow.
Every good negotiation training session will teach you that having a network of contacts is a necessity. These are the people that you frequently do business with, and whose skills and assets you can leverage.
If you`re negotiating with a new client, it can often be highly beneficial when you find you already do business with one of their competitors.
Your client will instantly understand that you hold a lot of cards, and will want to get you on their side. Straightaway you can extract information from them that you can then make use of during negotiations.
Host the Negotiations for Home Advantage
It`s not just sports teams that have home advantage when they host. Empirical evidence proves there`s a correlation between location and outcome. The host negotiators are more likely to obtain a favorable result than visitors.
Graham Brown and Markus Baer conducted a study to support the theory published in the Journal of Organizational Behavior and Human Decision Processes. The study proclaims that host negotiators can claim 60% to 160% greater value compared to the guest negotiators.
Negotiators tend to exude more confidence when working from their familiar offices. This confidence extends to when one side picks the venue and acts as the hosts, even if the location is not part of their regular offices.
The mere fact that the hosts determine location, timelines, and when to have breaks gives a confidence boost that translates to an advantage.
On the flip side, the guest side may feel a little bit intimidated and suffer a disadvantage in terms of loss of confidence.
Bring in the Competition
Negotiation workshops show how bringing in your portfolio of options can play a pivotal role in maximizing your advantage. The other side should know that you`re considering partnering with other players who may bring equal or better value.
When the other side thinks you`re committed to making a deal with only them, they might try to gain as much from you as they can.
But, when the other side is aware of your market options, they will strive to put forward a better deal right from the get-go.
Do Plenty of Research to Discover Their Red Lines
Every business has a red line they will not cross. Of course, nobody will come out and tell you what it is, but you should try to discover it.
If you do some in-depth research before negotiations take place, you`ll be on the front foot from day one. Courses on negotiation will always tell you about the importance of seizing the initiative — this is an example of doing so.
Never Let Anyone Talk Down the Value of Your Company and What It Offers
The final cornerstone of any successful negotiation strategy is to know your worth. Your worth is what will define how much you`re prepared to compromise to clinch a deal. Stick to your value in negotiations, use the information you have on the other party and you`re guaranteed to have an unfair business advantage.
Negotiating is all about gaining an upper hand so that you can get the best outcome possible for your company.
Those who are the most prepared avoid getting the short end of the deal.
Therefore, consider these tactics the next time you want to negotiate a business deal and help your company rise to success.
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