Negotiation is a crucial part of every aspect of life, not just business. Think of it as a life-skill. Negotiating in an effective way isn’t easy because of the preconceived notions and negative connotations attached to the process.
Having different approaches, goals and tactics than your counterparty is not a sign of conflict. It’s perfectly okay to express what doesn’t work for you and what you’re actually looking for.
Here’s how you can improve your mindset and negotiation skills in 3 simple steps:
1) Let Go of The Fear of Negotiation
“Let us never negotiate out of fear. But let us never fear to negotiate.”
~John F. Kennedy
Having different approaches, goals and tactics than your counterparty is not a sign of conflict.
It’s perfectly okay to express what doesn’t work for you and what you’re actually looking for. Showing your cards is not a sign of weakness. It is a symbol of strength and clarity.
Even if you are not able to reach a mutually desirable outcome, that’s okay. It’s better than selling yourself short.
No deal is better than a bad deal.
2) Clarity About What You Want In A Negotiation
A lot of people walk into the room without having absolute clarity about what they are ready to walk away with.
Planning saves you a lot of trouble in the long run. The 3 things that you need to know before any negotiation are:
A) Ideal/Desirable Outcome
A lot of people walk into the room without having absolute clarity about what they are ready to walk away with. Know your ideal expectation, goal and outcome so that you can negotiate with more confidence and clarity.
Moreover, also know why do you require that outcome so
B) Holding Point
Always know in advance what’s the lowest you’re willing to go to rather than deciding that on-the-spot during a negotiation.
However, it’s also important to keep in mind that be careful with how much you compromise. Sometimes, it’s better to not budge an inch from your desired position or your bottom line than to make a bad deal.
C) BATNA (Best Alternative to a Negotiated Agreement)
This term is coined by Harvard researchers Roger Fisher and William Ury in their bestseller “Getting to Yes: Negotiating Agreement Without Giving In.”
Assessing your BATNA and having it ready is extremely helpful if a negotiation reaches an impasse.
Prepare a list of feasible options, if any, to choose from, in case talks come to a halt. Select a tentative option(s) if narrowing down on a definitive option isn’t possible at the time.
3) Know The Other Party
Conduct thorough research about your counterparty – their products, pricing and competitors beforehand.
This way you are prepared to ask them questions during the negotiation. Furthermore, you can be assertive and actively listen at the same time since you covered all the aspects.
This also gives you more leverage during the negotiations. How?
Well, you can employ different negotiation strategies depending upon the other party such as being the ‘Reluctant Party’ or playing the role of the ‘Eager Party’ to get ahead in negotiations.
There are surely a bunch of other tips and skills as well but these 3 are my favourite ones to get you started and help you maximise the return on your energy, time and investment.
Written by Gagan Dhawan
