Negotiation Tool #2 – Both Parties Must Feel Some Pain

 

You know you have negotiated a good deal when both parties walk away feeling just a little bit of pain.  To create a good, long-term relationship with the people you are negotiating with, you must make them feel like they got a good deal too.  If you push for everything and give in on nothing, you might feel great, but the other party feels horrible about the deal.

The art of negotiating is in finding that balance where you give enough to keep the other party motivated and interested in not only getting the deal done but feels good about doing business with you in the future (or would tell their friends to do business with you).

I have seen in my career that a hard-fought negotiation strengthens the relationship between the two parties.  And when the deal is done, you both get to celebrate its success.

Pro Tip:  Always have a few items when you are heading into a negotiation that are a list of things that are non-negotiable, and others that might not be so important to you. They might be important to the other party, but you’d be willing to give up to make the deal.

Negotiation Tool #1 – Alway’s Let the Other Person Go First

So many people race to state their position first in the negotiation yet there is absolutely no advantage for you to do so.  You miss a huge opportunity when you do this because you have no idea where the other party is going to start.

I want you to encourage the other party to go first and state their position.  That gives you the ability to react to it.  You might be surprised as to where they start in the negotiations.  It might be quite a bit higher than you expected.  And with that as a starting point you can negotiate them up.

My advice to you is be quiet and listen first.  I have found that when you request the other side to go first, they are often eager to do so.

 

Negotiation Tool #4 – Don’t Negotiate With Yourself

Ever get into a heated debate with someone, only to find that they are the ones doing all the debating?

I mean, they just keep going on and on about THEIR side, THEIR position, and why THEY are right.

These people make horrible negotiators. In fact, this is a great example of how to talk yourself right out of a deal. 

When negotiating, it’s best to state your position briefly, and then allow time for the other side to speak.

Find out why this is important in our latest installment of the Killer Negotiation Tools and Techniques series on YouTube.

Negotiation Tool #3 – Put It In the Parking Lot

The parking lot is one the best tools in a negotiation.  This is a place you can put issues that you are not ready to negotiate on yet until you see how the rest of the negotiations are going.  You revisit the items in the parking lot at the end of the negotiations.  If the negotiations are really working in your favor, then you are going to be more likely to give on these less important issues.  But if the negotiations are not going so well for you, then you might negotiation much harder on some or all these parking lot issues.

I also use the parking lot for issues that both parties are stuck on and can’t seem to get over.  Once you see where the negotiations are going, you (or the other party) may be more likely to give in on those items you were stuck on.

I always like to be the first to bring up the concept of the parking lot when I am negotiating.  It has a funny way of giving you more control in the process.  As you go through your points, you are the one who suggests, let’s put this in the parking lot and come back to it later.

Pro Tip:  Before you even start the negotiations, have a few deal points that you think are good candidates for the parking lot.