Keys To Negotiating Well
Whether it's buying a car, asking for a pay rise, saying 'no'
to a friend or renting an apartment - at some stage in our lives
we all are going to need to know how to negotiate. Yet, so few
of us know the basic skills before embarking on life changing
purchases or decisions! These 8 keys will assist you negotiate
well.
1. Know the outcome you want. Do you want a win-win
outcome where both parties benefit? Or a win-lose outcome where
someone (presumably the other party) is not happy with the
result?
It is important you know what type of outcome you want because
that will affect the long term relationship you have with the
other party. Win-win outcomes are beneficial where you have an
ongoing relationship. For example, when you negotiate a pay
rise, you don't want your boss to feel he/she is the 'loser'.
However, if you are buying a car from a car lot, you may not be
so concerned about whether the car salesperson feels as though
they 'won' in the negotiation!
2. Know your 'position'. How important is this deal to
you? How much do you need it? Could you walk away from the deal?
What alternatives do you have? What is your "bottom line" and
what (if anything) are you prepared to concede? You should not
start negotiating until you have thought through and considered
all of the consequences for all of the different outcomes that
may eventuate.
3. Know your counterpart's 'position'. Try to work out
what is important to them in the deal. When you know that you
have an advantage. Try not to reveal what is important to you!
Keep a poker face and play your cards close to your chest.
4. Work out different scenarios ahead of time. Being
caught by surprise will NOT strengthen your position! Think
through all the different possibilities which may eventuate and
plan for each and every one of them. It is useful to brainstorm
and write down on a piece of paper what could possibly happen.
For example, if they said, "XYZ" - I would respond with, "ABC".
This way you can be prepared for just about anything that may
happen.
5. Know yourself. Know your own weaknesses. If you are a
more gentle personality your natural aversion to conflict may
toss you into concessions that aren't necessary! If this is you,
learn about yourself and take counter action. If you are overly
stubborn and never give way to minor points, know this about
yourself. Your stubbornness, holding out for 100% your own way,
may cause you to lose a really great deal!
6. Back up your position with logic. If you negotiate
from a purely emotional position, emotion will sway you from
your position. Fear of loss, sense of failure, conflict,
pressure, sentiment! All can be applied to sway you from
sticking to what you really want.
When negotiating for a pay rise know what similar companies are
paying for similar work. When placing an offer on a house
substantiate your lower offer with the costs of repaving the
driveway, renovating the bathroom, retiling the entrance