Negotiation for some people means “somebody wins and someone else loses.” The truth is far from it. The word “negotiation” comes from the Latin word “negotiatius” means to continue doing business by conferring with another to arrive at an agreement. Simply put; A win-win situation.
Adding more value to a request of a lower price means both sides win. But how should a negotiation process be conducted assuming that you are the one to be in control? The best way to learn is to observe how the “masters” do it.
So! Below are the 5 rules you need to obey to have the last say…
Always Start the Negotiations. Always start the negotiations first because whoever controls it tends to control the ending. Giving up the controlling position means the other side will steer it to a conclusion which will not enable you to reach a win-win situation.
Always Negotiate in Writing. It is always good to create the agreement in front of the prospect whilst discussions were ongoing. Other than being a time waster, drawing up the agreement when all verbal discussions had finished would invariably be missing out important issues which were actually discussed. A confirmation meeting or communication would definitely ensue. If however, the agreement is being built during the discussion, you would have a great chance to get the prospect to sign on the agreement straight away whilst both could still remembe.
Always be Cool. You could end up in a meeting with some very egoistical people. Tense discussions and short sharp retorts from both sides usurp your energy and invariably the meeting would descend into chaos unless you learn to be cool. It is like a retarder in terms of emotion control when the other realise that blowing off steam and emotion outburst did not give them an edge in the negotiation whereas you, the cool one, focus on the agenda to conclude the meeting in a win-win ending. Your persona “Cool hand Luke” would always make you the winner.
When discussing the price. Right, I never believe price to be the objection, but of course customers will sell you the idea that they never have enough budget to fit in. So the conversation will tend to go something like this.. “Amilia, you guys are only worth $1000 to begin with because you only have X”.. What you should say is “That’s right, but we also have Y which puts us ahead of everybody else.” This is what I call, anchoring and putting yourself back in the right posture. Your value is suddenly increased because you did not disagree. You agreed and you added.
It doesn’t end when the person says yes. You wish, ha ha. Just because you get the prospect to agree, your job does not end there. Until the deal is sealed, you want to be careful with the buyer’s remorse. Often times, things have to be renegotiated. So what do you do, you ask? Keep in touch every day once the agreement is made. People want to see that you are committed in delivering results. When you keep in touch it lowers down their insecurity about you. Sure, you both agreed on the deal. But at the back of the customer’s head there will always be the golden question.. “did i make the right decision?” Also, be friends with the customer. Be energetic in closing the details. Keep working on the alternatives until the negotiation is done. It ain’t over till the fat lady sings!