The Real Art of the Deal: 5 Quick Tips
What does the word negotiation mean to you? Does even thinking about it fill you with a little bit of anxiety? Do you equate “negotiation” to “conflict” and try to avoid it at all costs?
There is a perception by many in business that in negotiation one side wins and the other loses. If you subscribe to this belief then it logically follows that the one who wins is better, stronger, smarter or otherwise holds an advantage over the other party. And, by extension, it stands to reason that the side that loses is weaker in some way and leaves the negotiation embattled and discouraged.
However, just as personal relationships are more complex than childhood fairy tales would make them out to be, business negotiations are rarely black and white. Instead, shades of gray and nuance usually blur the line between who wins and who loses in these transactions. But what I’d like to propose is a world in which both sides walk away feeling good about the deal… where negotiations are a very good thing.
In this new paradigm we stop going into a negotiation thinking, “How can I walk away with as much as possible?” and instead turn it into a game of, “How can we both leave here feeling good about what has transpired? What can I offer to give my opponent that he or she really wants?”
In this more evolved type of negotiation you begin to view the other person as your “negotiating partner” instead of your enemy, and you work to uncover the essence of that person – the things that he or she really cares about. And remember, you are ALWAYS negotiating with a person, so be personable. Be real. Be compassionate.
And considering trying the game of “how can we both win here.”
Of course, not everyone who you try to strike a deal with is going to want to travel with you to mutually beneficial middle ground, but it’s worth giving that person the benefit of the doubt and trying to get there if you can.
Before you go into a negotiation make sure you do the following:
- Do some research on the person you’re meeting and try to uncover common ground or clues as to what their motivators are. Opening the session with a personal comment or compliment sets a positive tone for the entire negotiation.
- Know what the variables are that you may be able to negotiate on. Examples might be price, payment terms or delivery terms. Do adequate preparation before you go into the room and know what all the possible variables are.
- Be very clear with yourself on what your bottom line is for each of those items. Before you even walk into the room make sure you know your numbers: what number would make this an incredible deal, what number would you be comfortable with and what number is the absolute lowest you can go?
- You’ll usually want to start negotiations with a higher number, but remember those other variables too. Your goal is to walk away happy, but you want the other person to also feel like they’re getting a good deal.
- If you reach a deadlock and the person you’re trying to work with can’t even get to your bottom line, then don’t continue the conversation. Announce your intention to walk away and withdraw from the deal. That will either set the tone for a new round of talks, or if not at least you won’t waste any more of your time.