Negotiation is a top notch must have soft skill for today’s leaders, managers, businessman and job seekers. It can be define as the process of interaction between two or more persons, initially having separate stances and trying to resolve their differences using arguments and persuasion to reach a mutually acceptable solution. To make it easy for trading day to day bargaining or negotiation we can define this as a process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.
Negotiation or bargaining can be typed as distributive negotiation; based on equal or total benefit of one party, integrative negotiation; based on both parties win win solution and third party negotiation; based on solutions provided by party other than negotiation participants.
This soft skill is very crucial ad important in the buyer seller relationship, corporate meetings and even for your resume. If you are negotiating for effective results and success for your small or medium size business or in job; then here is easy top 10 steps to win every trade negotiation.
1. Don’t Negotiate
Avoid negotiation to the maximum and don’t negotiate if possible. This is actually a cheat code. The key determinant for both parties is value proposition. If you are a seller, then focus on your product value and how it will going to solve problems of buyer, hence, no bargain. If you are a buyer, give weightage to your need and how it will add facilitate you, again, no point of negotiation.
2. Don’t Negotiate With Yourself
We often have a tendency to loose confidence while doing negotiation. This is because of lack of self confidence and lack of self believe. The solution to this is to don’t negotiate with yourself once you made up your mind in both situations such as buying or selling something.
3. Never Accept the First Offer
Never ever accept the first offer. There is two reasons attached to it; first, if you are negotiating with instinctive participants, they will hold best offer for later chances and second factor is to take you out of instant decision. Take out other participant offer and put on the table to evaluate with rational mind and take ample time for consideration.
4. Never Make the First Offer
If you can avoid it, never make the first offer. Always get the other person to put their stake in the ground. By knowing your opponent limitations, expectations and strengths; this will give you better playing field. This is how you can cover your limitation and can re-design your subsequent offers.
5. Listen More & Talk Less
Don’t leak any signals to the person you are negotiating with. The rule is simple always use 20:80 rules while negotiating. 80% is listening and watching; only 20% is just talking. Because risk in doing more talk is that; participant at talking end may can break any of the four rule listed above. Therefore, stay at low with talking and don’t give any hint or signal to your opponent to avoid breaking of any rule.
6. No Free Gifts
Never give anything free to others. If you are at giving end, then there must be some performance, obligation or price attached to it. Make sure if someone wants something from you, they have to work for it. This not only includes products, services but also includes information or cooperation that you can offer. This practice is recommended for two reasons; first if you give freeways at start of a business relationship, chances are it will going to be complimentary part for future agreements. Number two reason is this practice of giving can be thing as addition to regular trade practice, as you gave them easy freeways last time, they will going to bargain for more hard core freeways next time.
7. Watch Out for the Salami Effect
A slightly more complex rule and tip it is. If you are negotiating packaged deal, then don’t give break down of your package. Because chances are they can cut off some items or services from your packaged deal. The way is to take their agreement on complete package and then give them idea what your complete package will include and how compliment your each line of product or service is. After that don’t negotiate by considering rule number one and two.
8. Avoid the Rookie Regret
Interestingly no matter how professional you are; everyone after negotiation agreement, thing what could have been or should have been better. To avoid such after regret, you have to ask three questions before you close the deal. Number one, if you are going to give any concession, then what it actually going to cost you? Second what it’s worth to other party? Lastly, what do you want in return? Preferably it should be equal cost to them and equal value to me. If you can answer well those bad questions, you certainly can avoid rookies regret.
9. Never Make a Quick Deal
Every negotiation process has its own time scale and tempo of its own. You recognize this when you be a part of it. Whenever one party is making process quick, there is a chance that they might have find any mistake of another party and they just want to quickly write things down, before other party realization; or they might have seen an advantage you might not have seen yet. Now what they are wanting to just to put your name on paper and make you enforce things for their advantage.
Therefore, whenever you see other party changing the speed of negotiation process. Don’t look up at as closing the deal, interfere and slow things down and evaluate again three trading questions, as mentioned in step number eight.
10. Never Disclose Your Bottom Line
Never tell anyone what your bottom line was. When you close the deal, no matter how friendly you are. Never tell them how far you got pushed. Because this might can impart impression of win-lose to other party.
If you want to improve your other soft skills and want to work on them for professional development. Here is Top 7 Soft Skills to Grow and Be Successful in Your Career.