What is negotiation? It is a conversation or a discussion through which we want to create a win-win situation for all involved parties. It sounds technical but it is a part of our everyday routine.
When your alarm is blazing and you tell yourself "Let me sleep for 5 more minutes" — you are negotiating with yourself. When you ask your dad for a new bike and he says "I will buy you one if you get 90% marks" — that is negotiation.
We may negotiate well with friends and family but when we go to a client, something snaps and we lose the deal. Something must be lacking.
Homework First Before starting any negotiation, you need to do research, research, and a lot of research. Study the complete background, history, strengths and weaknesses of the other party.
Carry Your Confidence Confidence is a must for every winning situation. If you are not confident about what you are saying, it shows — and the other party takes it as a negative sign.
6 Best Negotiation Practices
1. Share Information To create an atmosphere of trust, initiate the process of sharing information. Talk about your interests and let them open up too. When you seem genuine, the other party starts to trust you.
2. Rank Order Priorities Know what you want and rank your priorities from most important to least important. When priorities are rank-ordered, things are clearer for both parties.
3. Know Your Target Price and Walk Away Price Your target price is what you really want; your walk away price is what you can settle for. When you know your range, negotiation becomes easier.
4. Make the First Offer The party that makes the first offer is more likely to win because the first offer acts as an anchor around which both parties start to negotiate.
5. Don't Counter Too Low If you were not able to make the first offer, don't counter too low. Make an offer that creates a counter-anchor that tilts the deal in your favour.
6. Make More Than One Counter Offer Multiple counter offers leave both parties more satisfied. This prevents Buyer's Remorse — the feeling that a better deal was possible.
Be confident, do your homework, follow these practices and you will win all the negotiations in your life and business!
Wishing you Peace and Abundance — Ashay
