As
an entrepreneur, you will have to negotiate to get better deals to avoid paying
maximum prices and having a high expenditure. You have to
negotiate better deals with your manufacturers, investors, and all other stakeholders
to provide the best situation for your business.
Below
are three best tips you should always consider when negotiating to get a great
deal out of anything.
Argue the Other Party’s Pressures,
Not Yours
The
most common mistake people make when negotiating is focusing on why they need
that deal. This puts you at a disadvantage because you give the other party
power to set the scales. You are the one who needs them, not the other way
around.
Instead
of that, focus on why the deal is beneficial to the other party. Ask yourself the kind of pressures the other
party could be facing. Is there high supply of their product than there is
demand in the market currently? What do they stand to lose if they don’t make this
deal? Focus on that and firmly present
it to the other party until they take the deal.
Present a Win-Win Situation
Listen
well to the other party and decipher what is an acceptable solution on their
side. Understand their priorities, and find a solution in which you meet
halfway. Aim to satisfy the main priorities for yourself and the other partner
in a way that everybody wins.
Your goals should be to get a good deal, not to swindle the other party. That will
just present you as a ruthless, untrustworthy person, and they may never want
to do business with you again. Forbes contributor Keld Jensen’s research with
Market Watch Centre for Negotiation found that negotiators get 42% more value
when they create a trustful and collaborative relationship that benefits
everyone.
Close The Deal
Have
an endgame before you start negotiating. Know what you want to walk away with,
and several compromises that will benefit everyone. Negotiating is like a chess
game, each of your moves will influence the next one, so, throughout the
process, be alert and keep a keen sense of timing. When you reach a
satisfactory point, be swift and close. If you can’t settle on a single number,
be ready to compromise, and sometimes walk away if the deal is not worth it.
