06 Jul Negotiation Tactics: How to Negotiate Well
Last week we looked at negative negotiation tactics; squeezing, advantage taking and lying (you can check that out HERE). In todays blog we will be looking at good negotiation tactics. These four tactics are things I have learnt along the way dealing with thousands of people and negotiating as both the buyer and the seller.
Here are four ways to negotiate well:
- Prepare before entering the battle. Before you start to negotiate, think through your plan. How much would you ideally like to buy / sell for? What is the absolute most you would pay? Or, if selling, what would be the absolute least you would be prepared to take? Knowing your limits ahead of time will prevent you making a decision in the heat of the moment, which later you may regret. When you are in the midst of negotiating it is very difficult to try and calculate figures and process your thoughts clearly. If you predetermine your numbers beforehand, you’ll be able to focus on the negotiating and you’ll be far less likely to agree on a deal you later regret. Spending a little time to plan beforehand has literally saved me thousands of dollars on deals many times over!
- Humor is a serious help. Negotiating can quickly become intense, which can often create a tension that could be cut with a knife! I understand negotiating is serious business, especially as it involves real money! But do not allow the experience to become too intense. This type of “stale-mate” tension will build a barrier between the two parties, like a cold war. The opposite happens when humor is used. Humor breaks down barriers and connects the two parties and builds trust. Humor or light heartedness will quickly break the ice and dispel that tense atmosphere. Humor relaxes all parties involved and can actually turn tense situations into pleasant ones. I often use humor during negotiating, with comments like; “I thought we were friends? Lets not fall out over $100!” (while negotiating a price up or down). Another example might be; “You’re offering me $12,000, and I want $15,000, let’s split the difference, how about $14,500?!“ In order to use this kind of light humor, you must first build rapport, which requires some small talk.
- Small talk has big impact. Rapport with the other person is key to good negotiation. Be sure to enter into small talk before discussing the item or it’s price. When you first meet the opposite party ask them questions about themselves; “where are you from?” or “how was your journey?” or “how did you spend your weekend?” etc. You can also talk about general things, like; the weather, the last sports game, etc. This “small talk” is a crucial part of negotiating as it connects both parties on common ground, hence making it easier to discuss the serious issue of price later on. We should avoid the temptation to skip over small talk and rapport building – it is time and energy well spent.
- Love thy neighbor. Treat people as you would like to be treated. Yes, even when it comes to negotiating! The Bible talks about this principle being the “Royal Law”. If we love our neighbor as ourselves we make sure all parties involved in the transaction are blessed and happy. Simple, yet profound. This doesn’t mean we pay the asking price for everything, as that would not be “loving ourselves”! We can still negotiate and strive to get a good deal while treating all involved with integrity and honesty. I have completed many deals where I knew I could get an even better deal if I kept negotiating, but instead I chose to stop at a fair price for all. It’s amazing how discerning people are. They quickly pick up on this type of behavior and, consciously or not, they start treating YOU the same way! Remember people are infinitely more valuable than any transaction, regardless of the size of the potential upside. Treating people right will always come back around to benefit you in the long run. You always get to reap what you sow!
Next time we will be looking at some practical negation tactics from a buyer’s standpoint.
If you would like to learn more about the art of negotiation and how to make extra money through buying and selling, then take a look at Ashley’s course, Trash To Treasure. You can learn more about Ashley at his website: click me!