The reason negotiating is considered an art form is due to the perfected elements it requires. An expert negotiator is equal parts deal maker, economist, public speaker, and relationship builder.
In addition to these core roles, there are numerous other intangibles that every negotiator must master before reaching a level of utmost confidence and effectiveness. So, how does a person become a master negotiator? There is no one-size-fits-all recipe, though countless books and professional development materials have been published on the subject. It is our intent to provide a basic introductory tutorial that focuses strictly on shaping the negotiations dialogue.
Review the following six steps, and evaluate each as it pertains to your own negotiating skills and strategies. Objectively compare what you are already doing with what you could be improving upon, then revise your negotiating blueprint accordingly. Remember, every client is different, but all will share certain expectations that you, in negotiations, will work tirelessly to meet.
1. Listen – No matter what type of negotiations you find yourself involved with, it is mandatory to be a good listener. Listening is not simply hearing your client, but actively processing what is being discussed, as well as understanding what your client is asking for. There is no easier way to ruin a negotiation than to be a poor listener, so be cognizant of your communication skills and practice pacing your delivery, thereby allowing the client to be involved and heard.
2. Know your client’s pain points – Regardless of whether you are a Human Resources professional negotiating executive compensation packages or a technology consultant negotiating a contract, you must know what your client is looking for and is motivated by before entering the negotiation session. This knowledge will help you tailor your approach to give the client what is desired as best as possible, but also prepare you in streamlining your negotiating pitch. Winning a government contract is always predicated on lowest bid, but dealing with a private entity can involve numerous other hot button considerations. Know the differences, and proceed accordingly.
3. Prepare your negotiating strategy – Just as you must be prepared by knowing your client’s pain points and projecting your client’s desired outcomes, you need to prepare your own Opening Position and Bottom Line, clearly understanding your own essentials and expendables, setting yourself up to be able to make concessions in exchange for agreement on your own essentials.
4. Don’t give away too much, too soon – There is no denying the fundamental give-and-take dynamic that is the foundation of every negotiation. The adage, “To get along, you have to go along” rings true and must be heeded, albeit cautiously. Will some sort of compromise capability be part of your negotiating skills repertoire? Absolutely, but never give anything away until you are ready. Knowing the proper time to bend has much to do with the two previously discussed steps … if you listen to your client, and know the hot buttons, you will be primed to give exactly when necessary, and exactly how much. Timing is the key. Too much time will leave you shortchanged, and too soon will unnecessarily leave something on the negotiations table.
5. Quality vs. Price I – Beware the negotiating proclamation, “It’s not about the money.” It’s ALWAYS about the money and to win you must redirect the dialogue toward the inherent value that you offer a client. Cheapest is rarely best, and your negotiating focus must be on differentiating the goods or services you offer as valuable commodities, not merely the most cost effective options. Be prepared to explain what you can provide your clients, and educate them on the overall picture, not merely the dollar signage. When a client makes demands that you cannot meet, look to understand the needs behind those demands and identify
6. Quality vs. Price II – Though you work toward making every negotiation a successful one for all involved, there will come a time when a meeting of the minds is impossible. In the event of such a negotiating stalemate, be willing to walk away before you commit to something you cannot deliver or is not worth your own investment of time, money, and resources. You are far better off respectfully parting ways with a client than you are in short selling yourself. Rest assured, any negotiation that is strictly price-centric cannot support other viable elements, and will present problems in the future. Know where your line in the negotiating sand is to be drawn, and never stray from it.
When (not if) you have made the listed six steps an integral part of your negotiations mindset, you will be on your way to building trust-based relationships with your clients, and proving your value. Never lose sight of active listening, knowing what your client wants, and not compromising yourself or what you offer … you will be negotiating from a position of strength, and your client will respect you as a worthy business partner.
Jim Brodo is Senior Vice President of Marketing at Richardson Sales Training. Jim brings over a decade of experience to this position where he oversees all marketing and communications efforts for the organization including SEO, SEM, planning, public relations, advertising, lead nurturing, and brand strategy.
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