10 Laws of Successful Business Negotiations

Every person has been through at least 100 negotiations in their lives. Whether you negotiate what you and your kids will eat for dinner, your salary, or the next big contract, the process is almost the same. A good negotiator, in today’s dynamic climate, can be the difference between a flourishing, expanding company and a bankrupt one. Even though not a single company should have only one major client, let’s face it, a big contract, a good client, can take your entire business to a whole new level.

     If you want to succeed in this dynamic environment, here are 10 laws you should abide during your negotiation process:


1.   Gather All the Information You’ll Need
     Before you start the negotiation process you should gather all the information you can about your negotiation partner. You should know everything from their demands, to the urgency of their demands, their alternatives, etc. If you don’t have all this information you won’t be able to have a comprehensive image of the other side’s position. Money should be your last concern. Why? Because, if the only thing that you are able to negotiate is your payment, it means that you are unable to add value for your negotiation partner. For him, you are just someone who comes in, does a job and takes him money. You should be more than that.

2.    Everything Is Negotiable
     Let’s pretend you work in IT&C and you are selling your services to a client and you are in the negotiation phase of the process.
    Your client needs 4 apps to be done, but he must launch one of the apps in 3 months. Meanwhile, you have other projects, as well, you decide to make him a deal. You launch his app in 3 months and allocate a lot of resources to deliver it on time, but you get a 4-5 month break to finish your other projects on time.

3.     The 2/3 Rule
       A good negotiator knows that he should shut up and listen two-thirds of the time. He shouldn’t talk more than 30% of the time. Why? Because you are there to get all the information you can from your negotiation partner and use it in your favor. During this time, you should read between the lines and ask lots of questions. Your partner might say “I need these apps launched as soon as possible, one of them in as little as in 3 months.”. You know that the first app is vital, but the other ones can be postponed, so you make him a deal and postpone them by 4-5 months.

4.     Quitting Is a Viable Action
     Don’t be too dependent on the constructive result of a negotiation. Clients come and go, you should never negotiate something that’s not favorable for you. You should be able to say NO and walk away, your negotiation partner will feel that. You will be able to negotiate from a stronger position if he understands this. It doesn’t mean that you should walk away from every negotiation, it means that you should end up with a favorable result for both parties.

5.     Never Rush Things
     A slower negotiation process means fewer mistakes, fewer chances of passing over some important information. Apart from that, if you slow down the pace of the negotiation process, you might make your negotiation partner feel that you are not in a hurry. This will make him offer more incentives for you to say yes, leading to a better outcome.

6.     Have High Aspirations and Be Optimistic
     If you want to get $100 for your services because you know they are of high-quality and your first offer is $100, you will never get that amount. You should offer more than expecting to get in order to sell your services for a better price. You should make an initial offer of $130 and, who knows, you might offer some additional services and end up with a $115 sale. Pack yourself with optimism, say ”I deliver high-quality services, I’m one of the best in my field. This is the fair market price and a good one for me.

7.    Play the Player, Not the Game
     They need your services, they are the ones who need 4 apps to be done ASAP. You are here to help them out, not to get some money to survive one more day. Even though they might seem laid back, they feel the pressure. If you play the player, not the game, you will be able to use that pressure to your advantage.

8.     Focus on Your Negotiation Partner’s Needs
    A good negotiator is able to put himself in his partner’s shoes. He is able to see and understand his needs, the same way professional essay writers understand their clients’ needs. You should focus on accomplishing his needs, rather than focusing on yours. You should show him the way you are capable of fulfilling his needs. If his needs are met, the negotiation process will run smoothly.

9.     Put Your Feelings Aside
  You should never get offended by other’s conduct or point in question. You are there to get yourself the best deal possible, not to get offended. If the other one is swearing a lot and you don’t like that you shouldn’t say ”I don’t like the way he talks. I’m out!”. Get over it and get that deal done.

10.   Everything You Give Should Have a Result
    One-sided compromises are self-defeats. You shall never say “Even though you need your app in 3 months, I’ll deliver it in 2. I want nothing in return.”. No, the resources you allot for this can be used to generate revenues while working for other clients. You should say ”I can deliver it in 2 months, here are my demands.”

Conclusion

Even though we’ve been negotiating our entire lives and we didn’t even realize it. If you want to be a pro to this, you need to understand the basics of the negotiation process. In today’s dynamic climate, as a negotiator, you can make-or-brake businesses. By abiding these 10 laws of successful negotiation, you should always come out as a winner.


About Author: Tom Jager is professional blogger. He is the author of interesting Grademiners review. He has degree in Law and English literature. You can reach him at G+  or  Facebook.

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