Have you ever haggled over an item at a flea market, or convinced your parents to let you go to a party by promising to be home by a certain time? These simple, everyday negotiations serve as great practice for more complicated negotiation scenarios like buying a car or landing your dream job.
The ability to negotiate – also known as “The Art of the Deal” – is an essential skill for everyone, not just professional salespeople. We make deals all the time ̶ at the market, in school, at work, in group projects, with our neighbors, and even with family members.
In any case, the best negotiation strategy is always to lead a constructive dialogue, try to meet everyone’s needs – and if you give your word on a deal, KEEP YOUR WORD.
In the process of negotiations, we try to protect our own interests while searching for mutually acceptable agreements. But what are some common obstacles?
Negotiation Challenges
- Not understanding the opponent’s situation
- Criticizing or humiliating the opponent
- Excessive rigidness
- Lack of confidence
- Changing arguments often
- Losing patience
Now let’s take a closer look at the 3 primary steps to follow in a negotiation process.
- Prepare: Plan Your Strategy
- Assess the situation and your opponents
- Define the kind of negotiation
- Examine the type of negotiation
- Evaluate the meaning of the negotiation
- Find the Best Alternative To a Negotiated Agreement (BATNA)
- Negotiate: Use Key Tactics for Success
- Get to know your opponent
- Use the information you have gathered
- Avoid the mythical fixed pie assumption
- Use anchoring
- Avoid overconfidence
- Frame your argument
- Make your information available
- Avoid escalation
- Encourage reciprocation
- Incorporate the contrast principle
- Use a big picture perspective
- Close: Create a Contract
- Final Agreement – don’t add any terms to the initial deal
- Consideration – both sides have to give up something for it to be binding
- Legality – depends on the terms of the interests involved
- Written Contract – it’s always best to have all agreements in writing
Apart from the basic negotiation rules, there are 7 secret tactics and success strategies that never fail and can be used in different negotiation situations.
7 Tips for Better Negotiations
- Be able to walk away.
- Show how the other side’s needs will be met.
- Don’t talk too much.
- Pose open-ended questions and listen.
- Concentrate on the other side’s pressure rather than yours.
- Never take anything personally.
- Let both sides win.
Want more details on all of the above? See the infographic below!
