A good business person needs good strategies for negotiating a better deal when making transactions, regardless of which side of the bargaining table you are on. We all want to learn how to be more successful, and one of those ways is by negotiating a better deal in financial matters. This skill is necessary in order to be a success in life or business. Negotiation skills can make or break you in any deal, so it is important to understand how to use this art and skill effectively.
I am offering 4 tips to negotiating a better deal, which is one where both parties feel happy about the situation and felt they got most or all of what they wanted. It is possible for both sides to feel as if they accomplished something, without anyone being hurt. These strategies could be used to negotiate a better price on a new car, home, boat, close a sale, or get a new salary.
4 Tips To Negotiating A Better Deal
#1: Let Them Do The Talking
If you let them open the negotiations, you will able to let the other party set the opening bid. Why? Think about this scenario: you find an item you wish to purchase through a classified ad, and the item is listed as “Make Offer”. You arrive to have a look at it, and think it is worth $500 to you. You ask what the other party would like to get for the item, and they say “around $350″. Had you offered $500 right away, you would have lost $150. This way, you can probably negotiate the item down to $300 or $325, and get a bargain, and the other party is fairly happy as well. If they start the bidding too low, or too high, depending on which end of the sale you are on, you will also know what they had in mind for the final price, which gives you a chance to work with that or end it earlier. It is important to know what they want, and what you want, and get as close as possible to a solid middle ground, which can be done using this technique.
#2. Don’t Let Your Ego Win
Negotiating a deal should be a win for both parties, at least in their own minds. If you let your ego run the show, you will most likely lose. Turn this around, and let their ego win. Let them know that they are great at negotiations, as many people take pride in their negotiating skills. Give them kudos for their skills, and let them feel better about themselves. Use this to your advantage, and let them think they are winning. They will be more willing to concede a point or two in your favor if they feel they are ‘winning’.
#3. Information Is Your Friend
If you don’t know a lot about what you are negotiating, you will likely lose. When buying a car, knowing the price listed on the web and at other dealers will certainly work in your favor. If you are trying to negotiate a job, know what the going rate is in your region. If you don’t know what you are talking about, you cannot come from a position of strength. Knowledge is power, and power is money, so if you have one, you can get the other. Without knowledge or power, you will lose.
#4. Be Ready To Give And Take
If you are not willing to concede on any points, you have no bargaining power. In a job negotiation, or any negotiation for that matter, you should throw in some points that you don’t really want, so you can concede them during the negotiating process. If you do get them, then that is a bonus, but if you have to sacrifice them, you really won’t care much. This can be a key point in negotiating a good deal – make sure you ask for more than you want, then give in until you get what you wanted to begin with or slightly more. This enables both parties to feel as if they have won. For example, in a job negotiation, tell them you also want your own dedicated parking space, or something similar. Then if the other party balks at that, let it go in favor of something else, and you won’t have to give up something you really wanted.
I hope these tips to negotiating a better deal will help you the next time you buy, sell, or negotiate for a job.
Negotiating a deal is a great way to get more for less. If you are willing to work at it, you can learn this skill and get ahead of the game.