The negotiating tactics the we discussed are all written below in more detail for you to read and help you understand.
1. How much are you willing to pay for something?
The value of anything is subjective. Meaning it is not set in stone. Everyone will pay for something but what they are willing to pay varies on each individual. Prices that are set are arbitrary. They are estimates someone created or guessed analytically or possibly random what someone might pay for something. The evidence to this fact is when you see marked down prices, discounts or even companies going bankrupt. This is evidence that guesses in prices are not always what people will pay for an item. Whatever people will pay for an item is not set in stone. Keep that in mind.
2. Everything is Negotiable.
When I first had learned this concept I kind of went wild with it and everything I purchased, I tried to negotiate the price. Just because an item has a price tag or the price is listed somewhere does not mean that price is set in stone. If someone set the price means that someone can change the price. Don’t get intimidated by a listed price. It never hurts to ask since all they can say is “No” but if you ask with confidence and you are polite you will be amazed at the results you might get. Like I mentioned when I learned this concept I went wild with it. I guess I was merely testing if this idea was true. I had even gone as far as trying to negotiate gas prices when I went to put gas in my car one day. I was surprised that I actually got some results in my favor. Let me explain. I went to the gas station after work one day. I had to walk into the convenience store to pay for my gas. The first thing that came out of my mouth was “Wow, I am shocked at these prices of gas” I had noticed that prices went up the last couple of days. So I said “These prices have been going up every day,” I asked, “Can you lower them down from what there were yesterday?” I knew the attendant didn’t have any power over the prices, but I just said it. The attendant laughs at me a little and I just said: “I am serious don’t you agree they are high the least you can do is throw in a soda or bottled water.? Guess what happened? He gave me a nice cold soda. It was not much but it made me happy and I convinced me that everything is negotiable.
3. Influenced by Ambition
In general, people always seek to improve themselves or their surroundings. When we go to work we either seek to move up and get better pay or even move to another company that may offer greater benefit for us in some way. When we are renting an apartment most people want to improve that living situation and buy a house. If we are riding a bike to work we generally want to eventually buy a car to drive to work. In general, we are all ambitious in one way or another. That is the reason we buy or sell things and get ourselves into negotiations. We always want something better, faster, or nicer.
There also is a point when you are not satisfied with a certain situation and you perceive that nothing you can do will change that then you most likely will not act and do nothing. Also if you are content or feel there is absolutely nothing that you can do to change your situation you are most likely not going to do anything about it. These are the 2 reasons which stop people’s ambitions.
4. The Path of Least Resistance
I have always thought that since people are made up of mostly water we generally act like water. Water always flows along the path of the least resistance. That is exactly the way people behave. We are always going to take the easiest path. We cannot conscientiously continue to choose to do something harder when we know there is an easier way. We always think in the terms of working smarter not harder. This is the main reason why humans invent things. We invent things to make tasks better or easier to do. This is a factor that drives us in many ways to be creative and think of new ideas to better ourselves.
5. Maximize Your Efforts
When any person has a choice to choose between getting more or getting less it is logical and makes sense that a person will always choose the option to get more. The desire for more is a common instinct for people. This inherent desire is basically saying that every human being is instinctively greedy. Everyone is greedy in some sort of fashion. It is not really a bad thing in some situations. For example, we as parents want more for our children or we may ask more for ourselves which can prevent us from getting scammed.
Remember though being greedy provides no value. So to increase your position or bring more value to the table always look for ways to improve yourself, your product or whatever is on the table in your negotiating. Bringing value enables you to get more in return. Keep in mind as I said in the beginning that value is subjective.
6. The Faster The Better
It is more prevalent today than ever before but we naturally want things quick and easy. It is natural for people to look for every conceivable way to act and get anything they want as fast as they can. This is something that is neither good nor bad and should be expected from anyone. As long as you accept this behavior in people it should not bother you or hinder you in any way. Just be aware of it. The happiest people are the ones that accept this in any negotiation.
7. Why Do We Negotiate?
We enter any negotiation is to make sure all parties involved get their needs met. If needs are met this help to ensure parties work together in future negotiations. It is common for parties that enter into a successful negotiation once to enter into other negotiations in the future. If we take a deeper look into that. The aim at negotiation is to enter into an agreement. It is generally assumed that all parties want to do business with each other but is not necessarily that care all the time. If one party does not want to do business the other party is at a considerable disadvantage. A successful negotiation means that both parties have their needs met. Therefore if one party feels they are not satisfied then by definition that it is an unsuccessful negotiation. With that said we want to have successful negotiations so this will leave the door open for future possible negotiations.
Sometimes we need to evaluate our negotiating styles where we are only focused on our needs been met. How can we change that? Without compromising our needs to where we are not satisfied, how can we make sure the other is happy and satisfied also. This will ensure future business and a long term relationship.
You should always aim to have a win/win negotiation. Just remember that you always reap what you sow and whenever the other party is not happy with an outcome it will always come back to hurt you in the future. Make sure you clearly express that you are committed to a win/win negotiation so the other party doesn’t feel like an adversary. By doing this they might be a little more open and flexible in your negotiation.
8. It Never Hurts To Ask
You never have to accept a deal that you are unhappy with. If you are dissatisfied with something it never hurts to ask for what you want. There is always a solution to get what you ask for. All you have to do is ask. You have to be creative to find that solution but if first starts with asking for it. Sometimes people are afraid to ask for a lower price and they just accept whatever is given. So whenever the offer is presented always act shocked with disappointment. Remember everything is negotiable. So no matter what the price is you must act surprised and disappointed. Sometimes they might immediately lower down the price. Always give the perception that you can get a better deal somewhere else.
9. The 4 Key Terms
In almost any negotiation there are just going to be 4 key terms that the party is concerned about. It does not matter if you are in a week-long or a day-long negotiation generally speaking there will be only 4 key terms that make a successful negotiation. As an example, if you are in negotiation to buys a house, There might be many terms and conditions but to the buyer, they will not buy if maybe the buying price is not meet along with location, size of the property and whether it has central air. Out of the four key terms, there will be only one term they are truly concerned. For instance, they might compromise on the 3 terms as long as they get the property in their ideal location for personal reasons. Figure out these four key terms. Make sure to get these terms known immediately so you can get those need satisfied.
10. Time Has Value
As previously stated we always want something as fast as possible. Sometimes if we want something immediately we have to pay for it. Whoever gives the impression of being more impatient can give the opposite party more negotiating power. On the other hand, if you are offering something and the speed to get it in your favor can be a plus for you. Think of ways you can get what you offer immediately to the customer. This can be a valuable tool for you to have. Sometimes you can deliver faster than anyone which separates you for a competitor. Keep in mind the more urgent a person seems to be in need makes that person less effective in a negotiation.
If you allow yourself to be rushed by the other party this leaves you in a vulnerable position. This is a common tactic used in a negotiation. Someone might enter in a negotiation telling you to make a decision now or you will forever miss out on the opportunity. If you are put in this situation simple state “If you need me to answer you right now, then my answer has to be “No” Don’t fall for this tactic.
You also must be aware that 80% of the negotiating terms get worked out in the last 20% of the entire negotiation. Perhaps a sense of urgency gets people moving quickly to come to a conclusion.
11. Payment Terms Can Be More Important Than The Prices
There are many products that are paid in terms instead of the price. When you buy a home or a car as an example. Generally speaking, people will buy the most expensive car or home they can afford. Terms are a great negotiating tool since any price can be agreed on as long decide the terms. When you are negotiating on terms it is important that you never accept the first offer that is given. Even if you are happy with the offer that means you can probably get a better offer. That being said you should never reject out the first offer in terms when it is offered. An offer that you may not like can end up being a good offer to you if you are able to work out the terms. When dealing in terms keep in mind that the farther you extend the payments will always make the deal look better since extending the terms will make the payment smaller.
12. Do Your Homework
It is always beneficial for you to do your research. Gather all the fact necessary to have expertise in what you are negotiating about. Never accept generalization. Understand the facts. The details are the things that can make a deal or break a deal. Do your homework and double check your beliefs. Make sure that you are aware of all the facts. Study exactly what the other party is looking for and compare that to what you can offer. Do not enter a negotiation unprepared. Preparation Prevents Poor Performance.
13. Decision Makers Only
Make sure you only enter into a negotiation with someone that has the authority to make the decision to take action. Sometimes this is a tactic that people used to have someone get all the info but that person will not have the authority to make any decision. Figure this out in advance so you will not waste any of your time. It can be just as easy as to ask if they are authorized to move forward if they agree to your offer.
If you do find yourself negotiating with someone that has to check back with someone else then you must also stress that you have to check back with someone also to make the final decision.
14. Who Has The Power?
You need to determine who has the power. No one will enter into a negotiation unless the feel like you have the power to fill their needs, make their position better or even make it worse. Who has power can just mean perceived power but not necessarily true power. It really depends on the person making that decision. There are a couple of ways to give the perceived power. The first power is showing indifference. If you are able to get the perception that the deal is not as important to you as it is to them gives you an edge in power. Indifference is a great form of power. The next power to help you is the power in authority. If you have a title as CEO or Executive give you an authority power. Your title along with being groomed well and dressed sharp gives you greater power in authority. The third form of power is expertise power. When you are well versed in the items you are negotiating this gives you an edge in power. Sometimes people can get away with sounding like an expert but this can easily be exposed the longer you stay negotiating on the same thing. The fourth power in negotiating is empathy. If the other party feels like you are working for their benefit and you understand their needs give you additional power. The last power is when you are perceived to have the power to help or hurt the opposite party. If you hold this power, of course, the other party will work with you to make sure you work in their favor.
15. Creating The Desire
This is a key to almost every sale that is done. When you specifically talk about the benefits that the other party wants then you create a desire from the other party. When the other party has more of a desire to have a successful negotiation then that gives you an additional edge to the negotiation. No matter how much you want a successful negotiation always appear to be neutral. Always be polite and friendly while listing all the benefits for the other party
People always have a need to reciprocate anything that is done to and for them. This comes up mainly when concessions come up. When a concession is offered up to you then should always be willing to provide this concession or something similar. If you don’t at the end you will have a bigger concession you feel that you need to make. You should never be the first one to offer a concession since usually the first one that offers a concession is generally the one who wants a successful negotiation the most but remember like I mentioned you must remain indifferent in the negotiation process. If someone asks you for a concession you may go ahead and give it but always get something with equal or greater value in return. If you are able to work out small concessions this is a sign that you should be more likely to work out bigger concessions
17. Can You Walk Away?
The party that is able to walk away without any hesitation has the power on their side. Walking away is another negotiating tactic that makes you seem indifferent. This is one of the best tactics to use as long as it is done correctly. You should always be prepared to walk away before you even start. This gives you immense power. If you employ this tactic make sure you leave gracefully and respectfully. Be polite and pleasant. Remember no negotiation is final. There is always room to renegotiate. New circumstances arise and things change. Never accept anything that you are unhappy with just the same as making sure the other party is satisfied with the result. Remember a successful negotiation will lead to more opportunities to negotiate more deals.