How to negotiate well? If you find yourself reading this article, surely you are passionate about negotiation, or just interested in it. Immense art as I call it, which allows you (if you know it well) to buy a Ferrari for the price of a Fiat Punto! This is an exaggeration as an example, but it shows you the power of this fabulous area of negotiation …
Are you always ready to discover very sophisticated techniques in this area allowing you to earn BIG on your purchases, whether professional purchases (the most common here) or personal purchases (this can always help)? I advise you to remain very attentive to what will follow and especially not to procrastinate by telling yourself that you will read more tomorrow. Because tomorrow is never in reality and it will be very unfortunate for you. Now, if you don’t mind, let’s start.
In this article, you will discover the best possible negotiation techniques that will save you a lot of money that will remain in your pockets to develop your knowledge and of course your business!
I also offer this additional article which will help you better communicate your words in your business and your negotiations.
Negotiate the price ? Yes, but which one?
Before I start talking about the heart of the matter, I would like to remind you of the importance of focusing your energy on good negotiations, and not on those that will earn you very little, if anything at all. It is true, nobody negotiates their menu at the famous family restaurant that everyone knows and which is represented by a big yellow M, without mentioning it of course.
Negotiate what will bring you BIG, that is to say the big prices! Indeed, it is much more judicious to start a negotiation on 500,000, 1,000,000 euros than on 1,000 or 500 euros.
So, just remember from this first part that you have to differentiate the good from the bad time to negotiate.
See it more as a reminder to better understand the rest.
Come prepared and much more…
Know what price you’re ready to go up to well before you start your negotiation with your interlocutor
I even advise you to write it down on a piece of paper. And I insist on telling you to write down your maximum limit on paper and not on a Word or Excel document or whatever. This will allow you to to reinforce your mind in order to you block psychologically on this price not to be exceeded! You will thus have a precious advantage on your interlocutor who perhaps did not know this trick.
In a negotiation, people, that is to say you who will potentially be part of a future negotiation, tend to negotiate with their emotions, carried away by the adrenaline generated by all the excitement of this activity. Rather than negotiating with their heads and the rational part that is in them, these people are more likely to sideline their logic and common sense.
Don’t worry, no one can blame anyone. It’s really just our simple human behavior.
Know as many things as possible about your contact
In fact, if you were medium, it would be the icing on the cake. Between the bluff, the information he especially doesn’t want you to know! You must know a minimum what your interlocutor has in mind.
Let’s explain: knowing the alternatives to negotiating with your interlocutor (this is very important).
Why ? Thanks to this “miracle” information, you will be able to block these alternatives. For example, your interlocutor had a juicy offer with a much lower price from someone else (one of your competitors which could be most likely) compared to what you would like to offer them. Well a tip, if you know this alternative, then you can deal with it.
How? ‘Or’ What ? It’s simple, by proposing something as juicy to your interlocutor, other than the price (a good continuation of your business with him for example…) Hence the importance of knowing the alternatives of your interlocutor and him bring value specific to him and his expectations. Negotiation is actually a game where you give and you give back, otherwise no one wins. It’s “give and take”.
Know your interlocutor financially
Do you remember when I advised you to write your maximum price on a piece of paper? Well now, I advise you to know the maximum price drop (or the increase, it depends on your role in the negotiation) of your interlocutor. It’s much easier to negotiate when you have this information than to negotiate in the dark. Because if you know the financial limits of your contact, you can precisely know the price that suits you and this money.
Let’s take a concrete and simplified example. You negotiate with suppliers. The initial price is 250,000 euros. But of course, as an outstanding negotiator, you plan to lower the price to 225,000 euros, or even 200,000 euros! In addition to your “excellent negotiating skills”, you know that your contact can easily drop by 20,000 euros (his company is greedy and you had inquired before coming to negotiate). So let’s prove that you can go down to at least 230,000 euros (and it’s even better if your supplier has no other alternative). I hope these numbers didn’t hurt your head too much, but this example helps better illustrate my point.
A piece of advice if you want to know your contact better and if you are not a private investigator (if you know what I mean): ask intelligently caller.
Why ? In order to better understand his needs, his expectations … You might not know how to obtain information about him before coming to negotiate if it was the first time you saw him for example.
Try to put yourself in the place of your interlocutor. Make sure you know his point of view, what motivates him (the money, the good deal he showed his boss, a successful negotiation that will flatter his ego …) Because if there is one thing to do especially not to do in a negotiation, it is to “attack” the ego of his interlocutor!
Be smiling and friendly, at least look like air
You are in a restaurant, sitting comfortably on a red velvet chair. You have a great time with your loved ones and two servers come to serve you. So they just do their job, but with a little difference. The first server (let’s call him Paul) greets you and is very happy to be at your service. He greeted you on arrival, asked you how you were going and brought you a free packet of peanuts, waiting for your dish. He cares about the good quality of the meal you are consuming. He also asked you if you wanted a little more water in your carafe placed on the corner of the table. And you kindly said yes!
The second waiter (let’s call him Damien) was not very cheerful during your presence in the restaurant. He was almost hostile in behavior and barely spoke to you. On the contrary, when you were about to speak to him to place an order, he interrupted you, and asked the person next to you what he wanted for his meal.
Well. Now that the evening is over and you have warmed up the credit card, you have some money left, enough for one server only. And as a good person you are, you say to yourself “what if I left a tip”. So let me guess. Are you going to give this money to Paul the nice and kind waiter or to Damien the rude? The answer is without hesitation Paul who will have made a little more money for this evening.
Why ? Because he was simply more cheerful than Damien!
This is why I advise you to come with a huge smile (without exaggeration) on the day of your negotiation, to appear attentive and friendly with your interlocutor. We are more inclined to give a gift to someone kind rather than someone in a bad mood.
Keep calm and never be impatient!
You will surely one day be confronted with an interlocutor who will want to push you to the limit, who will try to put pressure on you. It’s like in politics, where the different candidates try to push their opponents to the limit to show the people that they do not know how to keep calm and therefore that they will not be able to rule the country. Hence the importance of not showing your emotions to the person in front of you.
You have to be the one who controls the negotiation. It is by being calm that you can better manage the situation. So keep in mind that you have to stay calm, serene and relaxed no matter what happens (unless there is a fire, there you can panic).
Since your interlocutor will want to put pressure on you and hurry you to an agreement (which will surely not be in your favor), you should never be impatient, never! Indeed, it is by being impatient that we are most likely to make mistakes that we could bitterly regret. Better to skip a deal and lose it than to lose money in a deal because of our impatience. What do you think ?
If I can give you some advice, leave a little time before giving your answer following a negotiation (if that is possible for you of course). Why ? This will not only sow doubt in your interlocutor (who could imagine movies and be afraid of losing you), but above all to lower your adrenaline level due to negotiation and of course to be able to rationalize your decision.
Limit the offer over time …
You have finally reached common ground with your interlocutor, this is very good news for you. But you must absolutely give your interlocutor a limit of reflection (if your situation requires it). The duration depends entirely on your situation.
This is why I will take an example in real estate. After a lengthy negotiation for the price of a building, a company gives its interlocutor two days to think about the offer they had agreed to. Rather short as a time for reflection, especially on large sums such as real estate. But this strategy works!
During this time of reflection, this interlocutor will take a look at the other offers. He has other alternatives and is trying to find what would be the best deal for him (and it’s much better to press him). That’s why if you just give it a few hours or days to think about it, it would suit you a lot more.
BATNA (best alternative to a negotiation agreement) in French this gives us: best alternative to a negotiated agreement, from the book getting yes that I strongly recommend.
It is in this situation that your interlocutor will find himself. He will seek the best offer for him. And I imagine it’s yours that matters. So, I advise you to limit your thinking time as much as possible, but not only that! Make him feel that he is the one who won in your negotiation to flatter his ego and make him more confident with your offer.
Now it’s your turn ! I hope these tips have helped you on your entrepreneurial journey.