Whether it’s buying or selling, dealing with customers or employees, business owners have to negotiate virtually every day. Yet many may not view it as a separate skill, such as bookkeeping or time-management. Successful negotiating is both a science and an art, and central to your success. Therefore it makes sense to brush up your skills.
Most negotiating is applied common sense, yet there are many mistakes people make. The most common is greed: starting out with the attitude that you are going to get everything you want, and that’s that. Another pitfall is getting too emotional about what should be a dispassionate business deal. You should focus on what you want out of the deal, and shouldn’t let yourself be distracted by what you feel about the person you are negotiating with.
This is the nub of negotiating. It is a form of communication, close to persuasion, but aimed at a realistic outcome. The process will only work if both parties want it to. This means coming to some kind of agreement that satisfies all involved.
Another very common mistake is not to negotiate at all. For instance, if you are dissatisfied with the service you are getting from a supplier, it may be tempting to ring them up and berate them. While this may be emotionally satisfying in the short run, all you have done is generate a row. It is unlikely that you will come to some new understanding with your supplier that leads to what you really want, a better service.
Far better if you had rung up, described your concerns and then asked: “What can you do about this?” The result might not have been much better – but then it might have been a lot better. You don’t know until you try. Not starting a negotiation at all is the worst option.
The good news is that negotiating is one of the most carefully studied business skills. There is plenty of help at hand. There are some highly entertaining books on the theory, such as Everything is Negotiable by Gavin Kennedy (Arrow Books), or Getting to Yes by Roger Fisher and William Ury (Century Hutchinson).
There are three central points to bear in mind: negotiating is adversarial but not just an argument; there are certain rituals to be followed in order to keep everyone happy; and negotiating is, by its very nature, complex.
Good negotiators prepare carefully, concentrate throughout the process and yet are able to fit the smallest detail into the overall picture.
The adversarial point is one of the trickiest to master. Remember, the idea is to reach a deal agreeable to both of you. Being too aggressive, or too passive, can be self-defeating. Being able to negotiate in a reasonably dispassionate way, while being emotionally persuasive, is a delicate balancing act which can take a lot of practice.
The idea of ritual may sound odd, but it merely means paying respect to the other party, taking the time to make sure that all opinions are heard and taken into account. Meetings should take place in a manner with which both parties are comfortable. You should also be prepared to take your time. If the other party feels it is being hurried into a deal, it may dig its heels in.
Preparation is key. Just 30 seconds spent trying to think yourself into the other party’s position will pay dividends. What are they thinking? What are they prepared to give up? Having a full command of the facts will also impress upon the other person that you are a professional negotiator who should be treated with respect.
The following points are very important in winning a negotiation:
Query whether fixed issues can’t be altered. In this way you may be able to bring unexpected factors into the bargain.
Time is always negotiable. However fixed various deadlines may seem, they can always be changed.
You will only succeed if you concentrate throughout the process. Keep on top of the details as they build up and don’t be afraid to make frequent notes.
Always talk as if a deal is possible. If you give the impression that you are skeptical about the possibility of any deal at all, this will cast a shadow over the proceedings.
Be happy to signpost the conversation and appear positive. You will get a lot more out of the process if, by using positive comments and body language, you can convince the other side you are prepared to be reasonable.
Keep a careful eye on the subtext. Listen for giveaway phrases indicating they think they are “getting away” with something.
Give yourself time. If something pops up that you didn’t expect, or about which you can’t make up your mind, take the pressure off yourself. Pretend to take some notes, or say something Alike “yes, that’s a very good point, perhaps you could tell me more”. Don’t feel pressured into blurting out something that you may regret later.
Always keep the whole deal in view. There is a danger that if you settle particular points first, you may run out of things to haggle over as you get to the end of the list. Don’t try to clinch the whole deal too early, when the other side is still introducing new factors.
(C) 2002 The Independent – London. via ProQuest Information and Learning Company; All Rights Reserved.