You know everything is negotiable as long as people have the charm and persuasion to make things happen their way. In sines, there is a pressure to get the most out of relationships and get the most value possible out of deals. Understanding the art of negotiation will increase the chance of a favorable outcome for the company.
Being prepared is the most important part of negotiating well. Going in without a plan and thinking it will be like the movies where characters simply wing it will only backfire. It is important to know the audience, what they want, and what questions they could ask. Understand what is driving the party the company is negotiating against where their priorities lie.
Having a response custom tailored for the audience is very helpful in negotiation. Like the previous point, figure out what type of people the company is dealing with and speak in a language the recognize. This is how to push their buttons. There are four kind of basic people to deal with when negotiating.
First is the formal, precise individual who is analytical and needs mass data before a decision can be made. Second is the purposeful, demanding person who is more competitive and intuitive. Third are the caring, relaxed, and patient people who do not rush things. Fourth are the persuasive people who are warm, expressive, and sociable.
Adapting the approach is easier when the businessman understands the different categories of people. The first person needs lots of information. The second just want a summary. The third and fourth types need stories or diagrams. The person negotiating needs to understand themselves as well so they do not butt heads with people of their own kind.
Believe it or not, listening is an important negotiation factor. Conduct an initial face-to-face meeting before going into specifics. At this meeting, ask the other party what they want out of the negotiation. The more the negotiator says, the more they will give away. This gives the other negotiating party leverage.
Confidence and being mentally prepared before initial meetings is key. 55% of how people communicate is through body language. If the negotiator feels subordinate, the other party will pick up on it and use it against them in negotiation.
Understand that everyone negotiating needs each other. Know the value of the offer and how it helps the other party. This will give enough confidence to clear the head and be in control, taking the lead in questioning.
Avoid being a salesperson. Discussion is key to negotiation as it is how parties reach a mutually agreeable outcome. Instead of saying how much the company can do for the other party, discuss what the company does and offers and ask how it can help the party. Identifying things that are low cost to the company is important to have prepared in case of a trade-off.
Do not be afraid to take a break during negotiations. This time is often needed to collect thoughts and get the negotiator's head back in the game. This time is also used to reconsider the offers on the table. The only time this is not okay is if the negotiator is on an absolute fixed deadline.