How to Negotiate Better In Any Situation
Negotiating is a skill that can help you do both: save money and earn money; sometimes, even lots of it.
Not many of us negotiate, even when we know that we should, owing to multiple reasons. Some of us are afraid of losing the opportunity at hand, while some fear being rejected or judged. While the former is a rational fear, the latter are not. We often give in to irrational fears and talk ourselves out of making the right move.
We can overcome this trepidation by making 2 easy-to-implement changes in the way we approach Negotiation:
- Identify irrational fears and find a realistic ground.
- Learn and Practice a harmonial approach to negotiation that focuses on shared interests.
This article will be your friend and guide while you take the road less travelled. We will share simple and interesting tips that will tell you how to negotiate effectively and beneficially.
How Do You Start Negotiating?
Negotiation is an art that can be understood, learnt and mastered, with time. It’s always your style of negotiation that will either make or break your game, so let’s get started with the basics of it.
Setting your ”anchor” as the first offer is a simple and effective way to not just begin negotiating but also to make the process play by your rules. An anchor is a value you set for the product you are buying or selling, and it quoickstarts the negotiation. Anchors are important as they influence the rest of the negotiation.
Let’s say, you are considering buying a pre-used violin priced at $500 and get talking with the seller. Setting your anchor at $100 may seem daft but you may be successful, if you play right. The seller might think of your terms to be absurd and will hence lower his price little by little to motivate you. For the seller anything above $100 is a win compared to what he gets by keeping the violin to himself. On the other hand, anything below $500 is a win for you. Eventually, you will both find a mutually beneficial ground that you agree to.
This is what is implied by the term ‘mutually beneficial outcome’. Now, this conversation would not have been possible if you didn’t buck up and set the ball rolling first. Most of us hate going first, but research shows that the final price is typically higher , when the seller makes the first offer.
7 Tips To Negotiate Better
It doesn’t matter if you’re trying to get your boss to give you a better assignment or just trying to get the best deal on a used car at the dealership, your approach to the negotiation can make or break you. Here are some ways you can walk away from any negotiation as a winner.
Begin by asking what you want
As I mentioned previously, it’s important that you swallow your fears and step into the process head on. Half of the world’s battles have been won by people who mustered the courage to ask for what they wanted.
Buck yourself up
We often get afraid of competition. We worry that there are 10 other candidates being interviewed or 10 other companies lining up for a contract, and so, we lower our demands eventually. Do a background verification to check if those fears bear on your unfounded concerns and worries. Most importantly, don’t forget your worth.
Understand what the other party/person wants
After putting across your demands, you should take some time to wait and listen to what the other person or party wants. By listening so, you will know of their interests and ideas. You will be able to pivot your strategy accordingly. You will be able to estimate where their flexibility lies.
Let’s say, the company you’re trying to partner with has a fixed quote of pricing and is not budging. You will change your strategy suitably and talk them into a long-term contract that satisfies them and will also be your consistent source of revenue for long periods.
Do your Background Check
The key is to prepare, prepare and prepare. Brainstorm creative solutions in advance and get ready for all the questions and possible challenges. Preparation gives you the information and scope you need to get what you want out of others.
Ask Questions
Listening to them and posing questions can be of vital importance when you negotiate. This gives the other person or party a chance to explain and defend their standpoint. If they cannot defend their views, you have successfully shifted the power balance a bit onto your side.
If your Manager tells you that he doesn’t see you as a right fit for the promotion, you can ask him to describe the ideal attributes of the person he desires to promote. With that additional information, you can show him why and how you fit the desired qualities and are a good choice for the role.
Give importance to shared goals
While you try to negotiate better and harder, keep in mind the shared goals and interests rather than portraying a ‘me vs you’ attitude. This will reduce the risk of a failed negotiation. For example, you can remind your boss that your promotion shall not only make you feel appreciated, but will also be a reminder of your commitment and dedication to the company.
Keep Calm
One of the biggest mistakes you could make is losing your calm while negotiating with a powerful person. They could give you threats or warnings, but it is important that you stand your ground and don’t lose your cool in such situations, Do not divert from what you have to achieve from the meeting. Direct your strategy towards your goals, and not towards the other person’s behavior.
All of us negotiate almost everyday in many situations, and often, these tiny incidents just go unnoticed. Developing the knack for negotiation needs a little practice and patience. You can certainly overcome your reluctance and take a leap of faith. We’re here to help you with that. So, there you go! You have our 7 tips to help you build and sharpen your negotiation skills from scratch. Use them well to pivot the game in your favor and win huge!
