Negotiation Strategies

"In business, you don't get what you deserve, you get what you negotiate." - Chester L. Karrass

This quote pretty much sums up the importance of negotiation skills in the corporate world today. Whether you are asking your employers for a salary hike or are convincing the suppliers to bring down their rates, effective negotiation skills always come to the rescue in sealing the deal in one's favor.

Negotiating skills, just like any other management skill can be learned with practice, observation and training. Knowledge of the various strategies one can implement, comes handy in learning this skill too. Given below are some useful tips on devising and implementing negotiation strategies, followed by three most successful strategies and tactics, which many business managers follow.

Devising and Implementing Negotiation Strategies

Lose some, Gain some
A successful negotiation is one in which both the parties gain something and both lose something. So the first thing to do is to jot down what all things you want to gain out of the deal and what all you are willing to let go. Whatever you are letting go is the other party's gain. This will help you while discussing negotiating terms as you would be very precisely able to tell the opposite party, their gains and profits out of the deal.

Clear, Confident and Convincing
There are certain skills which always come handy on a negotiation table, such as being a convincing speaker and a good listener. Another tip is to be clear, confident and assertive, but never aggressive or loud or angry.

Hide Weaknesses
While negotiating a deal, be sure to keep your weaknesses or desperation to seal the deal, right under wraps. If the opposite party knows how important the deal is for you, they may start acting pricey or try to seal the deal in terms favorable to them. So hiding one's weaknesses is essential while implementing such strategies.

Exploit Weaknesses
Although building trust is very important between the two parties, still if you have an advantage over the other party in terms of position or knowledge, exploit it to settle the deal in your favor.

Read the Situation and Improvise
In the end, a good negotiator has to be a good reader of people and situations. If you feel that the other party is not budging, you have to offer them something which they cannot refuse. It can be some discounts, freebies, etc., which won't make much difference to you but are valuable to them. So, continuously improvising on the spot is what is required of all good negotiators.

Effective Strategies

Offer Carrot and Stick
You must have seen this one in movies wherein during investigation, one detective acts all sweet and empathetic towards the criminal and the other one is over-bearing and tough. If you think carefully, you can apply the same tactics in business! One of you can act non-compromising while the other one can act supportive of the other party, thus making them agree on terms which are favorable to your business.

Put the Responsibility on Others
This is another technique which is very commonly used to bring down the price. In order to negotiate, you tell the opposite party that you are working on a very thin budget and thus, now the onus to seal the deal lies on them. In other words, they can come down on the price to fit in your budget!

Bring Forth your Non-Interest
You won't believe it, but certain strategies for managers and executives are actually inspired by what people do when they go out for everyday shopping. Say, you have really liked a beautiful tie in a store and want to buy it, but you do not let it show on your face. Reason being you want the sales person to come down on the price! You tell him you are somewhat interested and that too if he cuts on the rate. The same tactics and strategies can be followed while dealing with business clients too.

While implementing any of the strategies mentioned above, the timing is very important. Also, you should master the art of business communication and display appropriate body language, gestures, facial expressions and eye-contact, while negotiating. In the end, there is no replacement for experience, when it comes to success in negotiations!