No matter what your profession is, or where you live, it’s good to have some basic negotiation skills. The better your communication skills, the easier it will be for you to negotiate a deal in your favor. On top of that, you also need to put yourself in the other party’s shoes so that you can figure out what they’re after too. More often than not, a good negotiation should lead to everyone feeling like they’ve gained something out of it. Even though fewer companies are willing to negotiate pay (and some larger companies don’t at all), it’s still useful to have this skillset. Now, let’s get into how to negotiate.
Set The Terms
The easiest way to get the negotiation, whatever it may be for, started in your favor is to set the terms yourself. If you take control from the beginning, it’s easier for you to lead the discussions to where you want them to end up. For example, if you’re selling someone something, if you set the price higher than what you want then you can haggle down with the other person and still reach or go above your goal price. However, if you let the customer suggest a price it can be a huge uphill battle to argue up and get it closer to where you want the price to be.
So, be sure you take the initiative and start the negotiation in a way that’s more favorable to you. Just be sure to not go overboard and say something that will make the other person immediately end the negotiation!
Be Specific – They Will Go For The Favorable Number In A Range
When you’re negotiating with someone, it’s crucial to be as specific as possible. Be smart with your choice of words, and don’t say something you’ll regret. For example, if you’re hiring someone, and you tell them the range for a position is $50,000-$60,000 per year, they’ll automatically assume they should be paid on the higher side. Another good example is if you’re selling something. If you say you’re looking for an offer in the $100-$200 range, the buyer will offer something as close to $100 as possible.
In short, be specific, be direct, and don’t give the other party a range. A range shows your hand and they’ll always go with the number most beneficial to them if you do.
Talk As Little As Possible
It’s wise to only speak as much as you absolutely have to. Silence is a powerful tool, and the person who uses it the best usually gets the upper hand in negotiations. Usually maintaining eye-contact, but remaining silent, will lead your counterpart to ramble and accidentally say something they didn’t mean to let slip or make a concession because they’re unnerved. If they make this type of mistake, you can seize the moment and make a counteroffer that satisfies you.
Listen
Coupled with being silent, it’s important to pay attention and listen closely. Don’t be the person who is doing all the talking and rambling. Make the negotiations back and forth, and when you ask a question do your best to make it fairly open-ended or one that has a decent follow-up. Sometimes questions with simple “yes” or “no” answers don’t give us enough information to make a good decision or counteroffer, so make sure your questions are phrased in a way that lets you get a lot of extra details from the other party.
Make It A Win-Win Situation
As I said earlier, a good negotiation should end with both parties feeling like they’ve gained something important to them. If you focus on making it a win-lose situation and purely try to outmaneuver the other person, you’re more likely to end up burning bridges and closing doors you wish you hadn’t. It’s all about give and take. In the end, both of you should be closer to whatever goal it is you have.
For example, let’s talk about a salary negotiation where you’re the potential employee. You should walk away with an offer that leaves you satisfied with your income and benefits. However, the employer should feel as if they hired someone well worth the money they’re giving them, and within the budget they have for the role.
Do Your Research
This is important and can make or break the negotiation for you. As I said earlier, it’s important to set the terms yourself. However, if you don’t do your research and you do set the terms, you’ll likely end up hurting your case. You’ll likely overestimate your side of things, and the other party will end negotiations and you’ll have potentially soured what could’ve been a mutually beneficial arrangement. Alternatively, you could end up underselling your side and get taken advantage of. If either happens, you’ll almost certainly end up regretting it sooner or later.
Figure Out What The Other Party Wants
Since this is all about a win-win for everyone, it’s good to figure out what the other party wants or needs. Put yourself in their shoes. If you’re able to figure out their end goal or bottom line requirement, you can likely walk away with exactly what you want too. For example, a lot of people are able to argue for a higher salary if they’re able to articulate how much more the company is getting by hiring them than someone else. Of course, that example only really works if your work is better than what your peers may be doing.
Be Prepared To Walk Away
At the end of the day, you need to be prepared to walk away. I know it’s hard to do, but if a deal isn’t going to work out for you, you don’t need to take it. Know your minimum requirements going into it, and if that can’t be reached be willing to do the hard thing and just say no. Sometimes if you’re willing to walk away, it also gives you more leverage and you may be able to get what you wanted.
Conclusion
I hope you enjoyed my article on negotiations! If you have any tips or experiences of your own to share, please leave a comment. Check out the article on how to negotiate with your employer to work from home. It can give more specific details for that type of negotiation!
For more content like this, and a free budgeting template and financial goals worksheet, be sure to sign up for the Bitter to Richer newsletter.
