By BHL Solutions
If you’re familiar with the game of monopoly, you will certainly know the subtle art of negotiation. Growing up, when we played monopoly, we would try to outdo each other; we would “sweet talk” the other to sell out their landed property. The rule of the game was simple: stay rich or leave the game. In so many ways, this applies to the real world. Whether the size of your business is small or big, negotiations are crucial. Negotiations allow you the opportunity to obtain what you want for your company and establish a rapport with other companies.
Here are some tips for a successful negotiation
Have a goal: The goal before a monopoly game is to stay rich. So what are the goals you want to achieve before starting a negotiation conversation? Do you want to negotiate a lower price on a warehouse stock or establish a trade agreement? Define what you are hoping to achieve before entering a negotiation conversation. Visualize the ideal situation of what you want. Then, communicate these goals to your negotiating partner.
Research about the other negotiating partner: Conduct a research on the other negotiation partner’s company, and find out strategies used in a past negotiation with them. Each side has their values, know these values and utilize them. Knowing what the other side of the bargaining table offers, gives you an insight of what a future deal with them looks like; either you are going to lose money or resources. Do a background check to be well leveled.
Contain your cost: Before negotiating, have minimum acceptable offers. Do not accept offers below your initial cost. Spend what you have to, but then don’t spend more than you should. Have a budget and stick to it. For instance, don’t negotiate to sell retail good for a wholesale price, knowing that it affects your bottom line. In investing, the term for it is ‘stop loss.’ Let it be an offer that you are willing to comfortably accept not pressured to take even when it affects your profit.
When negotiating, money is not all that matters: Money is not everything. This probably sounds cliché. We often forget they are other things more important than money which can lead to long time relationships. Figure out what you and your negotiating partner value, and consider how it would be beneficial to you in the long run. You should ask for these things or offer what they want. Let’s say you are negotiating for a job, negotiate for more benefits; a higher spending budget, a certain colleague to be transferred to your team, higher commission, performance-based bonus, vacation days, or compensation package. Same goes for a deal, ask what is beneficial to your company in the long run, or puts lesser cost burden of the project on your side.
Consider Terms: Determine how long the agreement would last, in the event, the negotiation deal is sealed. The length of the agreement should be part of the negotiation process. Consider how long the results of the deal will manifest. And if it is a new company or small company which can’t carry you on for too long, then consider a short term agreement, with the prospect to turn it into a long time agreement if the conditions work out well for both sides.
Note: You don’t have to be experienced to negotiate. When you don’t have employees who are skillful in this area, a great option is to outsource it to agencies like BHL Solutions.