How strong are your negotiation skills? Do you know how to negotiate business deals? What are your negotiation tactics, strategies and techniques. Negotiating business deals is a huge part of a business equation that entrepreneurs and business owners need to master; if they want their businesses to take off. If you own a business, especially a retail outlet; then I bet that you often hear statements such as: “what is your last price,” “the other store sells the same for a lower price,” “I’ll look elsewhere” and many more. When you hear such statements, the first thing that comes to your mind is how to keep the customer in your shop and make him/her buy your product; rather go to your competitors.
“The ability to sell is the number one skill in business. If you cannot sell, don’t bother thinking about becoming a business owner.” – Robert Kiyosaki
Aside the situation described above, I believe every business owner gets to negotiate everyday; one way or the other. As an entrepreneur, you are bound to deal with different kinds of people with different intentions. It’s something you can’t run away from. To successfully run a business, you have to successfully negotiate deals and contracts with suppliers, employees, investors, customers, the government, partners, etc. In fact, business is all about deal making. This is where your negotiating skills should come in. So without wasting your time, below are tips on how to negotiate business deals more effectively to keep your customers and other business associates happy.
How to Negotiate Business Deals: Strategies and Techniques
“I don’t make deals for the money. I’ve got enough much more than I’ll ever need. I do it to do it.” – Donald Trump
Learn how to flinch
This is a skill that has been used for many centuries as a negotiation tactic, but it is least used nowadays. The flinch is an immediate visible reaction to an offer by the client or price that they want to get. The main objective of this strategy is to make the other party feel uncomfortable about the offer and price that they made. As a result the client will try to either rationalize his offer and demands or offer you a concession so both parties win.
Learn not to give in
No matter how much you want to give in to the offer of your client just to make a sale, try to think first if the offer is reasonable enough for you to sell your product, satisfy the client and still earn a profit. Sometimes, you have to learn to say no as well, because a business is still a business; not a charity. And oftentimes, when the client really needs your product; he might give in to your offer.
Learn as much as you can about everything
Usually the person who knows more gets the transaction. You can get the upper hand of the situation if you know as much as you can about the other party. This is very important when negotiating deals, contracts or bank loans. By knowing as much information about the client as you can, you can know the person’s weak spot, and what moves him or her. You will also know what the client needs, wants and how your product or service can help them.
Learning as much as you can is not limited to learning about your client. You also need to learn as much information about your competitors as you can. This way, you help prevent your client using your competitor as a comparison and also helps you prevent any price objections that might happen.
Let your confidence run high
“My style of deal making is quite simple and straightforward. I aim very high and then I just keep pushing and pushing and pushing to get what I’m after. Sometimes, I settle for less than I sought but in most cases, I still end up with what I want.” – Donald Trump
This tip on how to negotiate business deals more effectively teaches you to be confident about yourself. Not many people can effectively negotiate with clients because they lack the confidence to do so; which can have unpleasant results on your part. Practice negotiating at every opportunity you can, this will help develop your confidence in your skills; and to be able to get a grasp of how it is to really negotiate.
Be strategic in your approach
“The results have been spectacular because I have paired both instinct and logic.” – Donald Trump
In the process of negotiating a business deal, a lot of unforeseen factors contribute and determine if you will get a fair deal or not. In fact, there is more to negotiating than merely haggling over price, terms and conditions. Negotiation is more of a psychological things; and the person that’s has mastered the art of influencing will win in every negotiation.
When negotiating, you have to watch your opponent and try to assess his or reactions. You should be able to sense when your opponent’s resistance is wearing down; or if he is unwilling to bend. In fact, I can go on and all reeling out negotiation tactics and strategies but I think I will take a break here.
In conclusion, I believe these few tips on how to negotiate business deals effectively can help you gain advantage when negotiating a deal. Implement these strategies and I will see you at the top.