Here are business negotiation best practices that never go out of style:
Business Negotiation Best Practices
1. Always negotiate in good faith:
Business negotiations are a form of communication. You communicate your needs, wants, and expectations to the other party, and they do the same in return. They may be honest or dishonest, and you need to read between the lines.
A business negotiation can be like a chess match. You and the other party are each trying to outmaneuver each other to win.
We all have certain “hot buttons” in life, things that make us angry or upset when pushed. These are the things that make us want to say “no.”
If you push someone’s hot buttons, they will become angry or upset. You can probably use this knowledge to your advantage if you are so inclined.
If someone has a bad temper, you can get them riled up just by pushing their buttons. If they are afraid of something, you can threaten them with it if they don’t agree to your terms. If they have a need or want (such as needing more time or money), you can promise them what they want if they agree to what you want.
2. State your bottom line but be willing to concede on certain points:
Don’t try to win every point in a business negotiation! You will look foolish if you try. If you are negotiating the price of an item, for example, and you know from the outset that you will pay no more than $500, don’t try to win the point of getting the item for $450 or even $475.
If you are negotiating a raise with your boss, don’t try to win the point of getting a $2,000 raise instead of $1,500.
3. Be willing to walk away from a deal if you are not satisfied with it:
Always know your bottom line and be prepared to walk away from a deal if you are not satisfied with it. You won’t get what you want if you don’t ask for it!
Quality is a major issue in most business negotiations. If you aren’t willing to walk away from an inferior product or service, then you probably won’t get what you want in any negotiation. Just because someone wants to sell something doesn’t mean they will give it to you if they think they can get more money for it elsewhere.
To put yourself in a good negotiating position, always be willing to walk away from any deal that doesn’t work out in your favor. Sometimes walking away is the best way to get what you want!
4. Be professional, even if the other party isn’t being professional or respectful:
Sometimes people are just rude or inconsiderate when conducting business transactions. If this happens, simply ignore their behavior and proceed as professionally as possible. If someone insults or berates you during a business negotiation (or during any other type of communication), simply acknowledge them for their concern and continue as if nothing happened.
Never allow another person’s bad behavior to affect your behavior! You will look foolish if you let a rude person upset or anger you! Don’t be afraid to stand up for yourself and tell them how their behavior has affected you! If necessary, remove yourself and/or the other party from the situation until things cool down.
If someone is giving off bad energy during a negotiation, acknowledge it and remove yourself from the situation until he or she is ready to conduct business again in a professional manner. Your actions may save your deal!