Nearly everything in life worth achieving, requires some sort of negotiating skills. While many people say they know how to negotiate, it is important to realize that is far different from effectively doing so. Therefore, both regarding our personal lives, as well as many skills associated with business expertise, effective negotiation is a key to excellence. When we not only know how to do this, but also consistently utilize the skills, assets, attitudes and abilities, which put you in the best position, we are most capable of achieving things which so many others are not. Understand this requires doing one’s homework, being prepared (ready), and following a quality game plan. Let’s review the 6-step, professional approach:
1. Know your objectives: Only if you enter into the process, knowing what you want to accomplish and achieve, have a clear vision of your goals, and follow a path, in an orderly manner, will you achieve what you seek or need. One of the biggest mistakes poor negotiators often make, is either under-estimating their adversary, over-stating what they promise, fail to differentiate between essential priorities versus wants, don’t understand the need to clearly articulate and tell the truth, etc.
2. Know adversary’s objectives/needs: You might wonder why it is so important to know what the other side needs. Quality negotiating is not about merely asking for the moon, because unless the other side, gets what it needs, the process will often fail. For example, if you negotiate with a hotel or a caterer, why would you believe they would agree to lose money. In that instance, create a process which creates and/or seeks a win-win, where together you reach concepts which might save money, which can then be passed along. In real estate, quality negotiating is never about merely pressuring the owner (if you represent the buyer), to lower the price dramatically, but rather getting the lowest price possible, which will be accepted and close the process, creating a meeting of the mind.
3. Absolute integrity: Amateurs sometimes proceed by overstating what they can deliver, and, their side suffers, when inevitably it is discovered to be so. Rather, one of the necessities of profession negotiations, is to consistently maintain absolute integrity!
4. Full disclosure: Clearly articulate your musts, which are those needs, often referred to as deal-breakers! Explain you want to work together to make it work, and seek alternative approaches or methods, that will make it work well for both sides!
5. Think outside the box: Forget the same-old, same-old philosophy, mentality or approach! Rather, carefully consider alternatives, work with (rather than constantly against) the other side, and develop mutually satisfying approaches. For example, when negotiating with a hotel and/or caterer, clearly explain what you offer/the advantages to them(e.g. common menus, flexibility of menu and service, etc). Seek ways where both sides can win!
6. Come to a win-win, meeting of the minds: Only when both sides come away, feeling they were somewhat successful, and met their needs and objectives, do you get the longer-term, best results. Great negotiator realize that winning does not mean defeating the other side, but rather coming to an agreement which works, and achieves objectives!
I’ve often stated negotiations should usually be left to the professionals, because, the process goes more smoothly, and a greater proportion of goals and objectives are met. When you understand the basics, and focus on the end-result, you will become a far better negotiator.