You see, something is only worth what someone else is willing to pay for it, no matter what anyone says or demands. Be careful then how you set the price for your goods/services. To sell, people would only pay you what they are willing and think the product is worth. To this end, whether you are selling or buying, you would want the best deal possible.
Furthermore, as the old saying goes, “In business you don’t get what you deserve; you get what you negotiate.” So, let dig in and find out how to better negotiate.
1. Never forget: Everything is negotiable.
Every price was set by someone and can therefore be changed by someone. This does not mean that they will be changed, but it does mean that there is always a chance. Don’t feel intimidated. The key is to ask.
People are so afraid of hearing “No” that they often don’t even try. You have nothing to lose by just asking! Someone once said, “A closed mouth won’t get fed.” Open your mouth! Say something if negotiations aren’t going the way you’d like. You will be amazed at how quick people are to improve the terms for you if you ask.
2. People always seek to get the things they want with the least possible expenditure of effort.
You cannot consciously choose a harder way to accomplish something if an easier way is available to you to accomplish the same result.
All human beings are inherently lazy in that they follow the path of least resistance to get whatever it is they want. Laziness is normal, natural and inherent in all human action. It is the driving force behind many negotiations. Ask: How can you position your offerings in such a way that your customers perceive your products or services to be the easiest way for them to get the benefits you offer?
3. People always strive to get the very most for the very least in any exchange of time or money.
The desire for more is automatic and instinctive and applies to all human needs, wants and desires. This desire for more is another way of saying that everyone is inherently greedy. Your customers are continually seeking for more in every purchase decision. How could you increase the perceived value of dealing with you in the eyes of your customer?
4. People act to get the very most of the things they want the fastest and easiest way possible
Everyone in the world is driven in every conceivable way to seek the fastest and easiest way to get the things they want, right now without concern for the long-term consequences of their actions. Study your business. Look at your products and services, your sales and marketing. How could you make your business offerings faster, easier and cheaper for your customers?
5. You can always get a better deal if you know how.
You never need to settle for less or feel dissatisfied with the result of any negotiation. There is almost always a way that you can get better terms or prices, whether you are buying or selling. Your job is to find that way.
If you want a better deal, ask for it. You may imply that you can do better somewhere else. There is nothing that causes a seller’s price to drop faster than for you to tell him that you can get the same item cheaper from another source. This shocks him and shakes his self-confidence. He immediately feels that he is going to lose the deal and often cuts the price quickly. Do your homework. Check around and ask about other prices that are available.
6. People prefer earlier to later in the satisfaction of a want, need or desire.
If someone says to you, “I can give you $1,000 today or I can give you $1,000 tomorrow.” Which would you choose? The answer is obvious. If you have the choice, you will prefer it now rather than later.
Everyone is impatient to have more of what they want, faster and easier, because time has a value and sooner is more valuable than later.
Everyone wants things faster and faster, and they will patronize anyone who offers them greater speed in satisfying their needs.
How could you serve your customers faster? How could you streamline your processes so you can give your customers more of what they want faster than your competitors? Speed is a value that customers will pay for in a negotiation. How could you use speed as a bargaining tool?
7. Timing is everything in a negotiation. The more urgent the need; the less effective the negotiator.
If you are in a hurry to close a deal, your ability to negotiate well on your own behalf diminishes dramatically. If the other person is eager to make the deal, he or she is functioning under a disadvantage that you can exploit to your advantage.
The person who allows himself to be rushed will get the worst of the bargain.
Rushing or using time pressure is a common tactic in negotiating and you must be alert to other people trying to use it on you. On the other hand, you can use this tactic to your advantage by running out the clock so the other person has no time left and has to make a decision on your terms. Just don’t let someone else do it to you.
8. Your success in any negotiation will be determined by how well you prepare in advance.
Action without planning is the cause of every failure. Negotiating without anticipating what the other party might want is the cause of just about every poor deal that you ever get.
Do your homework; one small detail can be all you need to succeed in a negotiation. Check your assumptions; incorrect assumptions lie at the root of most mistakes. Facts are everything. Pay attention to the details. Be prepared!
9. Putting yourself in the situation of the other person enables you to prepare and negotiate more effectively.
Before you negotiate, write down everything that you think may be of concern to the person with whom you are going to be meeting. When you have identified the major concessions that you think the other party will want, you can then think what you will offer in exchange. You can see where you are strong and where you are weak. You can identify possible areas where agreement or compromise is possible. This type of preparation by reversal is the hallmark of the superior negotiator.
10. You never know the final price and terms until you get up and walk away.
You may negotiate back and forth for a long time, but you never really know the best deal you can get until you make it clear that you are prepared to walk out of the negotiation completely.
The power is on the side of the person who can walk away without flinching. Walking out of a negotiation is just another way of negotiating.
Be prepared to get up and walk out of a negotiation even before you go in. At the appropriate moment, stand up and head for the door. This will often completely confuse and disorient the other party or parties.
The better you get at this; the better will be the deals you will get.
11. No negotiation is ever final. If you are not happy with the existing agreement, ask to reopen the negotiation.
Whenever you experience stress or unhappiness with the existing agreement, or whenever you feel that the other party is dissatisfied, take the initiative to revisit the agreement and find a way to make it more satisfying for both parties. Think long term.
There you have it…put these to use and watch as you get better. For more information I recommend “The 21 Absolutely Unbreakable Laws of Negotiating” by Brian Tracy