Have you ever wondered if the traditional methods work better? Test them for yourself! There is a reason why the classic tips and tricks have worked so well for so long. These upcoming methods will have you impressing everyone with your superior negotiation skills.
Today, we’re bringing you 9 old-school negotiating tips and tricks from professional salesmen. Let’s get started!
Influence
by Robert Cialdini
⏱ 16 minutes reading time
🎧 Audio version available
9. Make the First Offer
Starting things off, the first trick is to make the first offer. Normally, in negotiations, information is often equal to power. And one of the best and oldest negotiation tactics is to seize control, and you can do that by tackling the bargaining first.
Be the first one to set the initial terms of a negotiation. For example, when skilled negotiators are selling an item or a service, they start off by setting a high value on it and then leave it to the other person to propose a lower price.
Numerous times, research and professionals have shown that the final price tends to be way higher when the seller is the one to set the opening offer. And vice versa, prices tend to be on the lower end when the buyer is the one to offer first. You’re setting the terms of the debate by speaking up first, allowing you control to steer the discussion towards your interest.
8. Ask Open-Ended Question
The next golden trick is to ask open-ended and listening carefully for the answer. As a negotiator, you’re obviously trying to steer the conversation towards your own way, and it will rarely pay off if you’re asking yes or no, single worded questions.
You want to create a dialogue, a back and forth discussion, and to do that, you need the other person, the buyer, to give you valuable information. Let’s say a client is haggling for a price you don’t like. Instead of asking a simple, ever-predictable question such as “Will this be your final offer?” Try something that’s more open-ended such as
“What would you say if I told you this price isn’t working out for me?”
This wonderful type of question puts pressure on the other party. Chances are that their next answer will include a better price offer or even offer you additional perks in order to find friendly, common ground.
7. Don’t Use Ranges
Remember, if you tell the other party that your offer ranges between– let’s say– $2,000 and $5,000, you’re risking them making up their mind on the lower end of that range. This happens because you just revealed your hand to who is probably another skilled negotiator opposite you, telling them how low they can get away with in their final offer. It’s best to use concrete numbers instead of using ranges.
You may already have predetermined you’re willing to accept the low $2,000 you proposed earlier as a possible outcome, but if there’s a chance to increase that, take it. There is no need to reveal that from the get-go. If the other person wants to pay less, they’ll express their limits.
6. Do Your Homework
Always do your homework, especially if you’re hard set on being a ruthless negotiator. This means thoroughly researching the topic you’re going to discuss before holding the discussion. This preparation is key for success. Doing research is going to help you predict and prepare for whatever position or hard bargain the other part is likely to take during the negotiations.
So what kind of homework should you do? You can start off by researching the other parties themselves that you’re going to deal with you. You can seek information such as the party’s financial status, their backgrounds, past deals, agreements, what their company culture is like, and if you can, any additional information on their negotiating team and which approaches they often use.
If you have no idea where to start, head online; search for the name of the company or the names of the people you’re going to negotiate with using sources such as news articles, trade magazines, the ever helpful LinkedIn, et cetera. Check out their website if they have one and read up on their most recent activities. If you have access to talk to other companies that have worked with them, they can offer insight into what they’re like to negotiate with.
Remember, the more you know, the better your offer could be, and the more likely that it’s going to be accepted.
Doing this research will also have the amazing added benefit of helping back your offer with facts. You’ll be able to be more persuasive in your argument if you can confidently cite relevant facts and statistics.
5. Have Your Negotiation Goals Prepared
In the same spirit of doing research ahead, if there is one thing all professional negotiators agree on, it’s that you need to have your goals prepared.
Having a clear vision of what you want to achieve and how you expect the negotiation to go is a good starting point. Whether that’s wanting to aim for lower prices, landing a client, preferential deliveries, write down what your goals are. Rank them in the order of their importance. Plan your minimum position, your limit of how low you’re willing to go before you walk away from the discussion. Finally, spell out the ideal outcome. What falls between those two points is your successful outcome.
Then be extra prepared by having a plan B that you’re going to fall back on if you’re not able to meet the goals you originally set.
4. Don’t Approach It As a Battle
What many new negotiators do is approach negotiations as battles. The old school way was avoiding entering the room in a combative mood. Try to become more aware of your emotions. The goal is to remain calm, even if the negotiations aren’t exactly going your way– especially then. You want to avoid combative behavior such as shouting, handling out threats, or losing control in angry outbursts.
The key is to avoid increasing the tension in the room. Instead of being combative, use a collaborative language. You want to be professional. Using phrases such as “let’s see another way we can work together on this” goes a long way to moving negotiations towards a more positive tone.
3. Don’t Head In Hungry
Randomly enough, this is one trick offered by many professionals, including Cornell University professor Emily Zitek and Dartmouth College professor, Alexander Jordan. Both agree that feelings such as being hungry, feeling tired, or even bored, can dramatically derail negotiations.
What happens is that hunger especially elevates a person’s sense of entitlement, and it can lead to an inability to see things clearly and from another person’s perspective, as well as overall poor and hasty decisions. So before walking in, make sure that you’ve had a good meal, have gotten plenty of rest, and are feeling well.
2. Make Strategic Concessions
Being a talented negotiator means that you actually have to do some concessions. Just make sure that they’re strategic and that you’re prepared to how much you’re willing to compromise.
This does the opposite of making you look weak or vulnerable. If giving some ground during a negotiation helps you reach your goal, then it’s worth it. This is where doing research matters so much. When you’re well prepared, you come in armed with information. You can find out which areas matter the most to the other party while which ones are less important to your business. As you negotiate, you can concede these points and then ask them to concede on the areas that are important for your business in return. It’s a win-win! And speaking of them…
1. Let Both Parties Win
At the end of the day, the best negotiations end with both parties winning. What often happens is that negotiators who come in, ready for battle, and have a mindset that’s more “win-lose,” they tend to alienate their partners and basically kill any chance for repeat business.
However, those who approach deals with a win-win outcome they’re pushing for are likely to end up with a lot of opened doors down the road. Because they’re willing to let both parties get something they can.
A ruthless, cutthroat attitude may even damage your professional reputation. Whether you’re trying to grow your small business, your personal portfolio, or even run an entire corporation, it’s important to try to understand the other party’s perspective.
Sure, everyone would love walking out of a meeting room, having scored all their ideal goals and exceeded all expectations. And everyone wants to feel like they got an amazing deal, like they just drove a hard bargain. But instead of seeing the other person as someone you can conquer, try to be partners with them. Reputation matters as a negotiator. You want to be known as someone who’s honest. Approach negotiation with an ethical and a win-win mindset. This way, both parties walk out of the room feeling satisfied.
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