Negotiation Tips to Seal Any Deal.

Last updated on June 23rd, 2023 at 07:18 am

INTRODUCTION

A successful negotiation strategy allows you to secure the deal with the best possible outcome.

Good negotiators are often quiet, chilled individuals who are calm under pressure and can control their emotions. They have a mind of discovery although that is not tempted to rush to problem-solving. Negotiation can be extremely nerve-wracking for most people as they just don’t know where to start.

Five common stages of any negotiation process are:

1. Preparation and Planning
2. Definition of Ground Rules
3. Clarification and Justification
4. Bargaining and Problem Solving
5. Closure and Implementation

Common pitfalls or mistakes people can make when trying a successful negotiation

There are some common pitfalls or mistakes that need to be avoided during a negotiation:

1. Not really listening and truly hearing what someone is saying with their words, emotion and body language.
2. Lack of preparation. It’s important to research your counterpart, the issues and likely responses or expectations. Know your desired outcome and best alternatives from a researched basis.
3. Looking at the situation from your own perspective, your reality. Always check out the other person’s reality. It may not be the same as yours.
4. Have a cultural understanding if you are negotiating outside your own culture. Negotiation style does change with cultures and it is important to adapt your own style while remaining true to yourself.

Some common barriers to closing the deal include:

• Talks that drag on for months, even years, with no end in sight.
• An unwillingness by one party or both to make their best offer.
• Tough competition that makes your counterpart reluctant to close with you.

The following negotiation strategies can help you overcome these road blocks to closing a business deal.

Negotiate the process

Most often there is difficulty in closing the deal in negotiations because there is a failure to negotiate an explicit process at the beginning of talks. Before discussing the specific issues at stakes or the parameters of your talks, it’s necessary to discuss how the negotiation should proceed. What will the ground rules be? Who will facilitate the meetings? What issues will be discussed, and when? Mapping out the negotiation process can help avoid making false assumptions prior and during the talks, in addition to enabling more efficient and streamlined negotiations.

Pre-determining benchmarks and deadlines

When designing the negotiation process, it’s best to set short-term benchmarks as well as a realistic but final deadline. What happens if you fail to meet a benchmark or deadline? Explicitly discuss whether you need to set a new schedule and how you can improve going forward.

Negotiators often worry that they will concede too much as the clock runs and nears the pre-set deadline. But remember that time is running out for the other side also. They are also equally affected by the nearing deadline, so consequently, deadlines can spur concessions and creative thinking from both sides to get the deal done.

Goals Introspection

First and foremost, you must pinpoint what you are trying to achieve. Next step is to carefully analyse the other party’s motives and their possible goals.

Know Your Negotiating Power

Understand how powerful your negotiation position truly are and you’ll get more done at the closing table.

Expectations and Achievements

It takes a certain mindset to succeed in any negotiation. An experiment showed that when people were told to expect a certain amount from their negotiation the amount, they got in the end was around that specific number. This further approves the belief behind the popular phrase ‘what you expect is what you get’. Do not underestimate the power of your own thoughts.

Bring Facts to the Table

The key thing to make sure of is that the right financials are in place before you start your negotiations.

Question of Trades

Best deals are made with asking open questions. Always let the other side answer your question first because they may give you the better offer than you had in mind.

Consequences Matter

Always consider consequences when getting into negotiations: Is this a big, one-off deal, or one of many smaller negotiations? Make sure you chart out what you and the other party stand to gain or lose so you can navigate better through the entire process.

Responding to “What-Ifs”

Never answer a ‘what-if’ question immediately. Take your time to think regardless of how you choose to defend your interest. You can always respond with another question to see where they’re heading to.

 First Offer Trap

It’s a common mistake in business to accept the first offer from the buyer. For example, if you are selling then consider countering at a higher price or better terms upon receiving an offer. If you don’t do so, the other party could come to the conclusion that they offered too much and may attempt to get out of the deal.

Try a shut-down move

If you anticipate that a more attractive offer from a competitor may be an obstacle to closing the deal, you might attempt a shut-down move. This could be for example, asking the other side for a limited, exclusive negotiating period (such as one week) during which time no other offers from competitors will be entertained.

Adjourning a meeting by taking a break

It may sound counterintuitive, but adjourning negotiations until the following day, week, or even longer may assist you in closing a negotiation faster. Taking a break gives you time and space to unwind from the often tense and stressful atmosphere of business negotiations. It also allows you to recap and recoup with your team and superiors as to what you’ve accomplished so far and how far you have to go. This type of review can help you identify whether or not it’s wise to keep moving toward closing a business deal.

Bring in a trusted, neutral third party

Sometimes negotiations get stalled because one or both parties are reluctant to put their best offer on the table. If so, it’s a good idea to enlist a trusted, neutral third party. In private meetings with the third party, each side could disclose its bottom line; the third part could then tell you if a zone of possible agreement exists. If not, it is probably time to move on.

Change the line-up of negotiating teams often brings in fresh perspectives

If you or your team is having difficult closing a business deal, consider bringing in replacements. A new team on one or both sides may be able to look at the negotiation with a fresh perspective, free of any emotional baggage or personality clashes that could be holding up the deal closure.

Set up a contingent contract

Finally, when closing negotiations, you might explore the possibility of a contingent contract-in essence, a bet on which party’s vision of the future will come true.

Closing a business deal is a complex process and, notably, not always the best option. By following pre-set guidelines, one will be better equipped to identify when a deal is within reach as well as when one should explore other opportunities.