Six Winning Negotiation Strategies

To reach your objectives and exert a positive influence over others, you’ll need a game plan for reaching agreement. Here is a set of strategies to help you achieve your objectives and create win-win deals:

Strategy No. 1: Be Prepared

The key to success in any negotiating situation is preparation. As the saying goes, “Knowledge is Power.” The more you know about the circumstances surrounding the situation, the more powerful you will feel and the more you will be able to direct the outcome.

First define the needs of the other party. Ask yourself, “What do I know about them?” This is particularly important because many salespeople assume that the buyer has all the power. The salesperson often feels powerless to control the outcome. By establishing how much the buyer needs what the salesperson has to offer, you shift the balance of power. The degree to which the feeling of power and control will be transferred to the salesperson depends to a large extent on knowledge.

It is a simple truth of negotiations that the control of the negotiation will lie with the party that is perceived to need the deal the least. So take as much time as circumstances permit to evaluate the situation. There is no substitute for knowledge.

Strategy No. 2: Negotiate With Top Level Decision Makers

While this may seem obvious, there is more to this strategy. Always establish the decision-making hierarchy ahead of time. If you don’t know who the decision maker is, aim high. This strategy will achieve three very important objectives:

1. The higher you reach in the decision-making process, the better you can assess the needs of the other party. For example, if you target the president of a company to negotiate with and you get to deal with him or her, your power base will be stronger because the need to strive for an agreement has been demonstrated at the highest level within the organization.

2. By aiming high you are more likely to be dealing with someone who can discuss options beyond simply “yes” and “no”… someone who can shape up a deal and not just respond to the situation as it appears at face value. This is an important tactic because if you negotiate at a lower level where only “yes” or “no” decisions can be made, you run the risk that if the answer is not “yes” it will have to be “no” — not ideal circumstances for a win-win outcome.

3. By dealing with the highest level of decision maker you will avoid many of the common barriers to business decisions. Policy, budgets, systems and higher authority are often used as excuses to defer decisions and sometimes as negotiating ploys to secure concessions. If your negotiating partner is the ultimate decision maker, chances are these barriers will not exist.

Strategy No. 3: Get The Agenda

Never open a negotiation with a demand or an offer. Always make sure you ask questions at the outset of the negotiation — questions to clarify the facts, gather information and establish needs. This is what I call getting the agenda. If you don’t take this initial step in the negotiation you run the real risk of agreeing to a deal without ever knowing if it was the best deal, or a fair deal, for both parties. Never, ever, deal without an agenda.

Strategy No. 4: Trade Concessions; Don’t Give Them

Whenever you are required to give a concession in order to clinch the deal, always create a “quid pro quo,” something for something. Not only does this strategy establish the fairness of the deal, thereby creating a win-win outcome, it also helps you maintain professional integrity. People have very little respect for you if you simply crumble under pressure. Don’t give away the store. Remember, if you just give, they will just take. Always seek a trade.

Strategy No. 5: Play It Cool

Understand the other party’s emotional commitment. However, make sure you always have control of your own emotions during a negotiation. Never lose your temper or show excitement unless you know the other party well enough to be sure that he or she will not manipulate your vulnerable emotional state. Always avoid emotional seepage. As they say in poker games, “Play your cards close to your chest.”

Strategy No. 6: Walk Away From Bad Deals

All good negotiators understand the importance of maintaining an objective perspective about the outcome of any deal. A good negotiator won’t even sit down to negotiate unless he or she is already prepared to get up and walk away. Never fall in love with the idea of doing deals. If you do, you will lose sight of your real objectives and work to satisfy the false goal of a deal at any price.

This six part strategy requires that you evaluate your options to a successfully negotiated agreement. Once you have established what your alternatives are, you will enter the negotiation feeling more powerful and in control — and more likely to secure a fair and equitable deal.