“In business as a life, you don’t get what you deserve. You get what you negotiate”
– (Chester L.)
Negotiations play a vital role in the expansion of your business. No matter what is the size of a business, they have to get involve in process of negotiations at some part of their business dealings. Look from an organization’s point of view; bargaining and negotiating with suppliers, dealers, customers, and carrier services etc. is a common task. Skilled negotiating human resource can prove to be more than a mere asset for the corporation. Some firms lose huge opportunities only because they lack good negotiating skills. In this article, I will present you some insights, incorporating which you can enhance your negotiating skills quite significantly and yield better results.
Keep Alternatives under Consideration
Alternatives improve your standing in business dealings. They can help you in setting the tone of negotiation and using those you can influence the other party. So, do not underestimate the power of competitive alternatives in a business negotiation.
Do your Homework and Understand your Point of View in Advance
One of the biggest mistakes that can be observed in negotiations is a lack of homework. The participants taking part in the whole process do not possess complete knowledge regarding the point they are defending, the reason behind this error is a lack of proper homework. For example, a civil contractor is negotiating with a customer for building his house, but when asked contractor fails to tell the market price of cement, bricks etc. This will go against the contractor and he will fail to get the contract. So, quality homework is a must.
Know and Understand Stakes of the Other Party
Another common problem which can be identified in the negotiation process is that parties even fail to recognize what the other one is proposing and what they want to achieve. In the process of negotiation, give time to your counterparts to present their point of view in detail. Understand what they are saying and then negotiate accordingly.
Remain Professional while Negotiating
Some of the negotiations yield zero productivity because the participant’s deals it as a personal matter, because of which ego is involved in the process and fruitful results cannot be obtained. Keep your tone and attitude professional and show courtesy to the other party only then you can close a good deal.
Do not forget to Show your Passion Regarding the Issue
Many deals fail because one of the members thinks that other one is not very concerned about the matter and taking the whole dealing for granted. Make sure to put your passion in the dealing and make the other members aware that it is an important issue for you and you will put your 110% effort in resolving it.
Initially, Ask for More than what you Need
In dealing both the participant has to forgo some of their benefits, so it is better to start from a higher point as compared to what you need. When initially you quote a higher amount than required, it will provide you a bigger cushion for bargaining. Even after forgoing some of the benefits you asked for, still, you will avail a satisfactory deal. But, do not quote unrealistically high demands.