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The sales negotiation process can seem like a miserable chore when the parties involved resort to underhanded tactics and sneaky methods to get what they want. But one of the most important aspects of effective negotiation is that everyone leaves satisfied, not feeling like they’ve been swindled out of a good deal. To prevent this cheated feeling, you need to follow a strategy for your negotiations.

No matter what you’re selling, or to whom, you need a reliable negotiation strategy that enables both parties to succeed in the deal. Think of your strategy as your master plan, or systematic approach. Since any strategy is only as strong as the techniques and tactics you use, think of tactics as the tools for implementing your negotiation strategy.

Without a solid strategy in place and the right tools for the job, you are likely to succumb to ineffective negotiation tactics and may end up losing sales or not getting the best outcome for you and your company. Use the following five strategies to negotiate effectively.

1. Always be Prepared

You wouldn’t jump out of an airplane without a parachute, and you wouldn’t climb a mountain without prior preparation, so why should negotiating be any different? All effective negotiations start before you actually sit down at the bargaining table. So don’t jump in without any research or planning. Take time to consider your counterpart’s situation. Ask yourself what they need from the deal, and know what you can and cannot compromise.

Negotiations for a year-long service contract will obviously require more preparation than for a one-time purchase of a product. But regardless, use preparation to gain a comprehensive view of the situation. Preparation and planned alternatives will help you stay relaxed through the negotiation. And remember that the more you know about the deal in question, the easier it will be to arrange the best solution for everyone involved.

2. Set Objective Negotiating Standards

If you want to reach a mutually beneficial agreement, everyone has to play the negotiation game by the same set of rules. Objective negotiating standards are like a set of rules established before the process starts. Many times, these standards are set by the organization, or by a government law. For example, most banks won’t grant a loan to someone buying a home until that house has been inspected and declared structurally sound. This rule is a standard that must be met before the bartering can even begin.

In most cases, you can set your own rules. For example, if you’re negotiating a carpet cleaning service contract, you may approach your client with the competitor’s price and what the client currently pays for regular cleanings as some standards for the process. By setting guidelines prior to the negotiation, you ensure that everyone operates under the same standards and everything runs smoothly.

3. Work With, Not Against, the Other Party

Good negotiations mean all parties leave the table feeling good about the agreement and about each other. In order for this to occur, everyone involved must strive for mutually beneficial solutions. When you approach the situation with this attitude of mutual satisfaction, the other party will usually disarm. Most people only get defensive when they feel like you’re out to swindle them. But if the other party knows you want to play fair, they try to play fair as well.

However, you may come across some people who don’t agree with the concept of fair play. Unfortunately, some people, regardless of how you approach negotiations, won’t play by the same high standards. No matter what you do, these individuals are prepared for battle and may bring out the heavy artillery, such as intimidation and manipulation. But you can’t stoop to their level, no matter how tempted you may be. Keep the possibility of an unfair counterpart in mind, but don’t abandon your strategy for fair play.

4. Finalize All Agreements

Keep in mind that the point of negotiation is to arrange the best deal for everyone, so ask plenty of questions. Don’t let important details slip through, and perhaps more important, listen to the client’s responses and concerns. If they are worried about customer service, or the contract length, or routine repairs on the product, then address these issues with care. When the terms are settled, make sure everyone’s perceptions match, and recap all the important details.

Depending on the impact of the deal, you may decide to put the terms in writing, such as a sales contract or agreement. Keep a copy for your records, and give the other party a copy as well. Then if any questions arise, you’ll both have a copy of the answers. And don’t sign off until both parties understand all the key points. Don’t leave any details hanging, and make sure everyone agrees to all the terms and knows what is expected.

5. Follow Through

Once you’ve negotiated the sale, developed mutually beneficial solutions, and signed the agreements, you must follow through on your part. This means you do what you said you would do, when you said you would do it, and in the manner you said it would be done. For example, if you said you’d deliver a product or service on a certain day, then make sure it’s there. If for some reason you can’t follow through as expected, make sure you contact the other party and discuss alternative arrangements.

Also, make sure the other people involved in the agreement follow through as well. Unfortunately, at some time in your sales career, you’ll inevitably run into some people who blow off agreements. In this case, you must protect yourself. But as a general rule, for everything you give, you must expect to get something in return.

Negotiating Conclusions

Negotiation is a process of give-and-take for everyone involved. When you follow a strategy, you can focus on finding solutions, rather than winning a position. Preparation gives you a comprehensive view of the situation, and standards serve as guidelines for compromise. Remember to work with, not against, your counterpart, and then finalize all the details you’ve agreed upon. Most important, once you’ve completed the negotiation process, keep your word and follow through with the deal.

As a salesperson, you naturally want your customer to be satisfied, but you also need to benefit from your hard work. When you use these strategies every time you negotiate a sale, both parties will come away pleased, and you’ll win more clients in the process.

Biography

The word NEGOTIATION is defined as follows:

A mutual discussion and arrangement of terms of a transaction or agreement;
a discussion intended to produce an agreement;
the activity or business of negotiating an agreement;
coming to terms (Oxford Dictionary)

Today’s definition of Negotiation is:
(BEST) A mutual discussion, transaction, or agreement, garnering you with as much of what you want(ed) while leaving the other person(s) feeling they got as much of what they wanted as well! That is why this is called The Art of Negotiation!

(2nd Best) A mutual discussion, transaction, or agreement, garnering you with as much of what you wanted, while leaving the other person(s) feeling they’ve lost a considerable amount, but to a better person/entity/player

Hint: they feel bad, but not bad enough not to have a cocktail with you at a later date, and discuss how you got the better of them.

(Not Good at ALL) A mutual discussion, transaction, or agreement, which may garner you all, some, or none of what you wanted, while creating an enemy of the other person(s), and a 99% chance of retribution in the future, and making it impossible for you to do business with them in the present!

So, how do you position yourself to achieve the Best results of your negotiation efforts?

1. If at all possible, negotiate on your own turf!

2. If the above is not possible, try to manipulate the negotiation to take place on neutral ground (especially a place that serves food)
Why? Because food makes everyone happy! (Don’t eat until you’ve gotten what you wanted)!
Why? Because food will make YOU happy too, and cause you to lose your edge!

3. If you have to meet on their territory be as prepared as possible because you are already at a disadvantage.

4. Don’t appear anxious! Even if your innards are screaming, appear calm and collected at all costs. Smile when and where appropriate.

5. Know your prey!!!
I cannot express enough the importance of knowing who you will be negotiating with. You need to study them like a test. Know their likes and dislikes, how they’ve done business in the past, what their goals are, and their agenda; their weak points and strong points, their vices and virtues, their soft spots (there’s always at least one), and where their heart is (if they have one). If they care about themselves, or others, and who is their god (ie: power, notoriety, publicity, accolades, money).

How can you do this? Among other things, you may cultivate a relationship with their underlings like their secretary or administrative assistant. Don’t ask personal questions that will make them uncomfortable. Tell them who you are, what your goal is (if possible), and ask their opinion on what you’re trying to achieve, and what they think is the best method of achieving it. Does it fit into their boss’s agenda/vision/goals?

Ask them what they think might be the best way to approach your objective? You’d be surprised how many people are willing to help you if you simply ask! Most people overlook the secretary/administrative assistant, or treat them rudely, or as a non-person. How stupid. You will never get to the boss without going through the secretary. (Oh yeah, if the secretary/administrative assistant hates you, you don’t stand a chance). Don’t be placating, or phony, people will pick up on that as well. Be sincere, honest, and genuine.

6. Resist the urge to engage your prey one on one until you are ready to negotiate. If it’s someone you know already, just say “hi” and keep going! Why? Your prey will be sizing you up as prey, the same way you are sizing them up! The bigger the predator they are, the more dangerous position you put yourself in by trying to be cocky and show your hand too quickly.

7. Also, your prey may be “big game” which provides you with the advantage of being the underdog, meaning they have no expectation of you, or someone like you ever getting the advantage over them. This is considerably in your favor if you have patience. The secret to catching the prey without too much of a struggle on your part (if you watch the nature shows), is TIMING!

8. Consider all the angles
Take the time to project yourself into the situation from their prospective. Play Devil’s Advocate. Ask all the questions you think they would ask you if the situation were reversed. Ask the hard questions that you don’t have an answer for, and then get one! Consider the positives, and “what’s in it for them” – there has to always be something in it for the other guy if you want your negotiation tactics to be considered art!

Replay the situation over and over (and over and over) in your head until you think you’ve covered every conceivable scenario, both good and bad, because there will always be something you’ve overlooked.

9. ASK them WHAT THEY WANT! The direct frontal approach can be extremely unnerving, and very effective.

10. Never lose your cool; you’ll lose everything!

11. Never let how you really feel show on your face.

12. Once you’ve made your point(s), STOP TALKING! And no matter how long the silence is, don’t be the first one to speak. The first one who speaks has already lost! (If there’s food around, now is the time to put something in your mouth!)

13. Be gracious whether you win or lose! This is so important. How you do either will speak volumes of you as a person, a competitor, and as someone people may want to do business with in the future. It will establish a reputation for you that will be either positive or negative. And even if you don’t land the big game this time, according to how you played the game, the big game with have respect for you, and they will remember you believe it or not- which will come in handy in the future.

14. Winning what you want out of a negotiation should be a legitimate “best practice” to improve something somewhere, whether it’s a good or service; working conditions, or method of delivery. You should keep in mind that “what goes around, comes around”, so even though you may win today, you may be tomorrow’s loser.