Are you a lousy negotiator? Have you been on training courses that haven’t worked? When it comes to protracted, drawn-out discussions, do you still fall short?
If so, there may be a neat solution for you: get other people to negotiate on your behalf.
When the stakes are high, negotiations will be a test of both your wits and your willpower. So what makes a good negotiator?
Use time to your benefit
Anyone who has done business in the Far East, particularly China, will vouch for how long it can take to do deals. Often a simple agreement can take three days to go through. There are lots of pleasantries and you move at a snail’s pace before you reach the nitty-gritty.
If you’re impatient you will often give a series of concessions because you want to move. That’s a big mistake. If you’re running to a tight schedule then try to get someone who has the time to go through the finer details to help you – someone who recognises that you must be patient and rigorously argue every point.
Related How to negotiate your way to success
Information is key
A professional adviser will provide a long list of comparable deals in order to benchmark price. Facts and figures, however, will not be the only factors that come into play when negotiations begin.
You’ll need to step back, be objective and try your best to view things from the other side of the table. For example, if the person opposite you doesn’t strike a deal with you, what options do they have? How desperate are they? Where are the weaknesses? Who are the key decision-makers and what drives them?
Never assume you know what drives the other party. It may sound trite, but make sure you learn their genuine motives, however obvious you think they are.
Price is in the eye of the beholder
Don’t fall into the trap of thinking that every negotiation is about money. Clearly, you have to be in the ballpark, but many, many agreements are done because someone wants to do business with a particular person or company.
Set expectations early
Of course, the issue of price still needs to be raised. It is vital to set a price at the first meeting, whether it’s for the amount that you pay a contractor or how much you pay a supplier. If you don’t get this out of the way, you waste a lot of time negotiating a deal when you never really had one to start with.
This doesn’t mean the price you set is the one you will settle on, but it establishes reference points, making it clear whether the deal is achievable or just pie in the sky.
Be careful when using advisers
In many ways, you can be your own worst enemy. If you are too impatient to sit back and wait for things to happen, it can be dangerous.
One option is to use someone else you trust and let them establish the price and conditions. When they’ve been established, you give your input.
This gives you a couple of advantages. First, you’re not going to rashly agree to something that you might regret the minute you’re outside the room. Second, you can always come back and change the terms without losing face.
If you know the deal is going through and you’ve got the upper hand, it can be useful to stall, leaving certain ambiguities to hang in the air. This cranks up the tension and can force the opposition to, perhaps, make additional concessions to bring discussions to a close.
Negotiation is a key business and personal skill – neglect it at your peril!
