Deal or no deal?

By John Lloyd

 In this issue of Refresh Leadership Magazine, I share a few essential skills for the street smart negotiator.

For many people, the mere fact that the transaction they are about to undertake is named ‘negotiation’ causes them to feel uncomfortable and creates stress, but ‘negotiation’ isn’t just a business concept for managers and salespeople - negotiation skills can be applied very effectively in all areas of your life. In life, as in business, you don’t get what you deserve, you get what you plan, prepare for, and negotiate.

We negotiate every day - with our colleagues, family members and friends. People fail to realise that many of the interactions we engage in are a form of negotiation. Many of us dislike negotiating because we are afraid of being taken advantage of. The outcomes are not always what we expect and we don’t always win.

Effective negotiation can be fun and rewarding if you know what you are doing, and the ability to negotiate effectively is crucial in today’s challenging business world and in your private life.  Here are a few tips you can use to improve your negotiation ability.

• Develop what I call “negotiation awareness”.  Be aware that most things are negotiable. You have the right to question the asking price for most things. Don’t necessarily just accept the recommended or list price. I don’t mean that you must aggressively challenge everything, but develop an assertive or enquiring approach. You will be surprised how this will get you more of what you want for less. Practice expressing your feelings without fear or anxiety. Be assertive, but always remain respectful. I find that most of my negotiation successes are achieved with firmness, charm, and a friendly smile. Anyone can do this!

 

• Prepare to negotiate. Gather as much relevant information as possible prior to the negotiation. It helps if you have the ability to think on your feet, but I always feel more comfortable if I have researched the questions regarding price, needs, options and any possible conflict.

 

• Know the bargaining arena. You and the other person or parties both have ideal, realistic and fall-back positions. The bargaining arena is where your positions and their positions overlap. Having a clear understanding of the bargaining arena will keep you focused and realistic about what you and the other person can bargain.

 

•  Know your desired outcome. Your outcomes need to be specific. If you are not clear about what you desire then it is likely that you will get something else. Clarity and focus is the key.

 

• Aim high. People who aim higher do better. A successful negotiator must be an optimist. Expect more and you will get more. Sellers should ask for more than they expect to receive, and buyers should offer less than they expect to pay.

 

• Listening skills. A big contributor towards success in negotiations is to listen. Listen carefully and let the other person talk. Encourage the other negotiator to talk by asking open-ended questions. These are questions that can’t be answered with a simple ‘yes’ or ‘no’. Active listening will help you to understand the facts and implications of the other person’s proposal. You will also understand some of the feelings and motives of the other negotiator.

 

•  Ask questions. Asking the right questions is a powerful negotiation tool. When you need information or clarity - ask a question. If someone is angry or emotional - ask a question. Make sure that your questions are conversational, and not an interrogation. Effective questions give you time, direction and a subtle sense of control.

 

•  Always aim for win – win. Negotiation is not a contest. Most people look at negotiation the wrong way. The principle of win - win negotiating is that there is always a bigger and better deal for both parties if they are willing to search for it. Create a collaborative and not a competitive environment at the start of every negotiation process.

 I hope that these ideas benefit you in your future negotiations. Now go and close a few deals!

 “You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.” - J. Paul Getty

 

John Lloyd is an award winning marketer, business growth strategist, speaker, trainer and columnist. He has built a marketing consulting practice based on value based consulting rather than simply selling time. Contact John at (john@brandstorm.co.za) to grow your business or to speak at your next conference or industry event. (www.brandstorm.co.za)

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