Let’s talk about negotiations and negotiating basics.
Almost everything we do in our day-to-day lives is a negotiation. From conversations with significant others to communicating with our children. Even day-to-day conversations with ourselves.
Whether we are buying or selling something, regardless of if it’s a personal or professional interaction, we are always negotiating.
Mastering the Art of Negotiation
The bottom line is, in business, it is absolutely critical to master the art of negotiation. Poor negotiations can possibly cripple your business just as quickly as it would if you lost a key customer.
While most negotiation strategies seem like common sense, it’s not uncommon for people to get caught up in the emotion of the moment and ignore their basic instincts.
You’ve heard the saying that there is no room for emotion in business. While this is partly true, I would prefer to say there is no room for unwarranted emotion in business. We are human and we have emotions. It is good to care about your business and about wanting to help someone with your services. It is unwarranted when desperation to make the sale creeps in, creating panicked and aggressive behavior. This usually leads to losing a sale. Unwarranted emotion, luck, magic, they have no place in successful negotiation. In order to be successful in negotiations, it takes a strong will, a lot of preparation and planning, homework, street-smarts, and unwavering discipline. These are the tools that will unleash your ability to get the best deal possible, under any circumstance, time and time again.
While experienced salespeople and negotiators will sometimes refer to their methods as, “the negotiating game” or “the sales dance”, it’s really a misnomer for a process in which the stakes are often extremely high.
Think about it. Many of you are solopreneurs, small business owners, and independent contractors. Your livelihood depends on whether or not you make a sale. You’ve got bills to pay, rent is due, mouths to feed.
The #1 Rule of Negotiating
I’m going to share with you one of the most important rules of negotiating.
Check your ego at the door and keep your eyes on the prize.
Keep your eyes on that big picture at all times. It’s all about filling a need with your product, service or solution. And, remember my number one rule about business: THERE IS NO ROOM FOR UNWARRANTED EMOTION IN BUSINESS.
Preparing to Negotiate
Let’s talk about preparation. Preparation is key. Know about the person or persons you’re negotiating with so that you can leverage your strengths and the other person’s weaknesses. If the other person is very experienced, that means they also have a history that could contain useful information. If at all possible, talk to business associates or other people who have dealt with this person before.
When I was in the army, we called this recon. We would never make a move until we “reconned” the land, terrain, or territory. We reconned our “enemy.”
Think about it, people have different personality styles. Different behavioral styles. Different processing styles. And they also develop patterns and certain styles that you may be able to use to your advantage.
If you are a buyer, make sure you are completely familiar with the product, service, or solution you will be negotiating. If the other party senses that you are weak in information or details, you may be a prime target for a negotiating strategy or technique designed to create anxiety or uncertainty and elicit unwarranted emotion. Now, remember what I said about that right?
Understanding the other person’s thought process, psychology, and mindset plays a crucial role in your ability to make the most of the other party’s lack of preparation and anticipate their next move.
Know this, in any negotiation, both parties have a price, goal, or target in mind before they ever even start.