Five Tips For Better Negotiation

Negotiation is commonplace in business, and chances are that once you've negotiated with one party, it won't be the last time you'll see them again. That's why negotiating aggressively, as if it's something that you have to win and they have to lose, probably won't work in the long run. Here are a few methods and tips on negotiation that can ensure it's not about trampling on the other party, but about building a relationship of honesty, openness, trust, and above all - where both sides see it as win-win.

1. Understand their side of the story

Many people make the mistake of entering negotiation proceedings with one thing in mind: what they want out of it. This is counter-productive in the end, especially if the other party is thinking exactly the same thing!

Since you are more than likely operating in a similar sphere of business, and your role as negotiator is probably very similar to what the person across the desk does in their job, one of the first and most effective ways to build trust is to share common ground. It may be that some things that you thought weren't up for negotiation actually are, and vice versa. If you don't listen to the other party first, you aren't actually seeing where you really stand.

2. Be aware of third parties affected or who can alter the scenario

This is often missed out as part of the negotiation proceedings. Usually, we are not acting alone when we negotiate, we're doing it on behalf of a team or an entire business. Therefore you have boundaries in place that you know you must respect because it's what the external forces would want.

For example, if you negotiate a large order just because the other party is willing to buy it and it would make you a profit, consider if that order can actually be filled, or if you were given limits for a reason. There is nothing wrong in negotiation to go away and come back later once you've clarified a point with someone who could affect the entire agreement later.

3. Use verbal and non-verbal techniques

Flattery gets you everywhere, you might think, but may of us only rehearse what we're going to say, not how we're going to say it. If you try to be friendly but don't smile and have your arms folded, and don't look at the other party, do you think this fosters trust and honesty in their view of you? Probably not. You may be nervous, but you should apply skills you already know about body language, eye contact and non-verbal cues. It's very similar to giving a presentation - you need to come across as best you possibly can.

4. Go into the negotiation knowing what your compromises are

This may surprise you. Compromise? What compromise? If you go into a meeting thinking you're going to get your own way 100% of the time, you're in danger of bullying rather than negotiating! Always know where you will draw the line - a bit like going into an auction knowing you'll be bidding against someone, but also knowing what your absolute top limit is. If you don't plan this before you enter the negotiation scenario, you risk giving up more than you bargained for and more than you should have. Accept that compromise will usually always be part of the proceeding, but know where to stop.

5. Set a deadline and a time line

Both parties should set a mutually agreeable deadline for the negotiations to cease. Many people rush through negotiation, thinking it has to be completed there and then in a face to face meeting. That's usually not the case, with many negotiations taking weeks, or in the case of some large company dealings, months. However, there must be a deadline, no matter how long - because the temptation can be to go around and around forever in a form of stalemate limbo. With an end in sight, it also helps to apply gentle pressure to both parties to get the job done. And with these tips in hand before you start, you will, won't you?