Generally speaking, negotiation is a method by which people settle difference amicably. Negotiation is a major part of the sales process.
In negotiation, you do not know what you can get until you try! Successful negotiators have a positive attitude. They view conflict as normal and constructive.
Let us learn the basics of a successful negotiation.
- Prepare well: Be armed with all the information that you may need. You need to know all about the subject in order to convince your buyer. Many a good deal falls apart at the negotiation level for lack of homework.
- Identify your lowest limits: Always identify your lowest limits before you initiate a negotiation and then aim high. It is always easier to trade down than it is to trade up and in case you need to go down you need to know in advance what your lowest limit is so that you do not settle for a loss.
- Put yourself in the customer’s shoes: It helps to understand your customer’s point before you start a negotiation. Identify his type of personality; the pressure he is under within his company, personal or political objectives; what will be considered a satisfactory deal and the strategies he will adopt. The more research, preparation, and planning you have done the better placed you are to answer these questions.
- Never get personal: Negotiations are not personal battles and it should be kept that way. Remember you are trying to do the best for your company and he is trying to do the best for his- never let emotions get into it.
- Never reveal your time pressure: You may be desperate to close the deal within the stipulated time but never ever show it to your buyer. The negotiator who has time on his side has a powerful ally. Never reveal any time pressure that is on you. The sooner you learn about any time deadline, the better able you are to plan the timing of the whole negotiation to suit you.
- Always summarize: There is always a risk that the buyer will interpret the discussion differently. It is therefore essential that you must summarize clearly at the end of the negotiation and present written confirmation as soon as possible.
- Always leave the door open: Even if the negotiation appears to have failed, it is important to maintain some communication so that either party can use it as a lifeline if circumstances change in the future. Never close the door completely.