Good negotiation is how you can obtain an equitable result, either as a buyer or seller. Nobody is born with negotiation skills. However, there are tested ways of being a successful negotiator. Extensive analysis indicates that in both virtual and face-to-face bargaining, these negotiating strategies almost always work.
Bargaining is now a forgotten art. In reality, if we’re shocked by the price, instead of pointing it out, we try to cover it in order to save face. Negotiations have been a central part of life, for much of human history. For food, transportation, almost everything, you need to negotiate in one way or another. Period.
In both business and life, you are required to negotiate. This is why we have come up with the best tactics and tips for negotiation. Read on.
Why Do Negotiation Skills Matter?
Over the course of your life, learning a validated series of negotiation strategies will yield dividends. Strong negotiation abilities can be among the most desirable assets an individual can have.
For the following tasks, the bargaining process will come into play in your life:
- Purchasing and selling goods,
- Supervising real estate deals,
- Negotiating wages (from fixing a starting price to pushing for a better wage),
- Calculating the market worth of a product or service, and
- Addressing conflicts in social relations, including dispute resolution.
You should have a smart strategy if you are committed to being a better negotiator. Those which yield mutual benefit are the best negotiations. A reasonable, successful negotiation will lead to long-term partnerships where even more profitable transactions can be reached in the future.
Here are some negotiation strategies that can help you establish partnerships, maximize returns, and achieve deals that deliver better results for both sides:
Bid ahead of the other party
Be the one who makes the first bid. Seizing hold of the table is one of the best negotiation tactics to begin with.
- By setting the initial conditions of a deal, the strongest negotiators keep things under their control. They put a high valuation on their products and leave it to the other person to suggest a lower price.
- Research has found that when the seller sets the opening bid, final prices appear to be higher, and prices tend to be lower when first offered by the buyer.
- Whoever communicates first sets the rules of negotiation and will thereby lead the conversation towards fulfilling their underlying interests.
Use higher numbers
Use specific numbers instead of a range whenever you’re discussing money. You’re definitely going to get a cheaper offer if you sell a piece of an item and tell the customer that you’re hoping to get between $1000 to $1500 for it. This is because you have just told the other party how low they could go in their final bid.
Don’t give up the upper hand too fast. In your mind, you may know that you will consider $1000 as a potential result, but from the start, there is no reason to disclose that. Don’t be scared to say the price is $1500, and you might end up getting more than your expectations.
Last, but not the least
Dealmakers with a win-lose attitude tend to alienate partners and remove the potential for higher profits. But businesspeople who push for win-win results will open a lot of doors down the road, where both parties get what they want.
You might slide into cutthroat conduct that could harm your professional image if you treat your business partner like a scramble for achieving selfish benefits. Seek to be “allies” with the individuals you are negotiating with for sustained progress in running a company and there will be no one stopping you from achieving success.
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