Successful negotiation is an important aspect of everyday business life. Here are a just few pointers to set you on the right track.
Do your homework prior to any negotiation
You need to know your product or service very well. If you are negotiating on price, you need to familiarise with cost and know your absolute bottom line. You also need to do your homework on the other party. How well do you know them and do you know their figures too? The more you know, the stronger your negotiating position.
You should always have the end game in mind when negotiating and every move you make should get you closer to achieving your end game and hence the deal.
The first offer sets the benchmark
You should never disclose your budget or end goal to the other party. If you have any ‘additional’ items that you can remove from your offering without impacting the success of your proposal it’s good to have these included in the initial price so you can concede these additional items if need be at a later time.
The first price mentioned sets the benchmark and any further negotiation will hinge around the first offer made. Hence the first offer is critical and needs to be managed appropriately.
Tone of voice and body language are great indicators as to whether you are close to a deal or not. If you have been watching the other party throughout the negotiation process you should be able to gauge where you are in the deal. It also helps if you have had previous contact with the other party and are familiar with their mannerisms.
Always aim for a Win-Win
The final solution should satisfy both yours and the other party’s priorities. Hence, understanding these priorities from the outset is important. You may have to work with the other party again in the future, hence its best to close the deal on good terms. Furthermore if the other party is also satisfied with the outcome there is less chance of them reneging from the deal.
If you need any advice on negotiating in business, please do call us on 01902 42 2020 and we’ll do our utmost to guide you in the right direction. We’re professional chartered accountants and business advisors and have many years of business experience.
Alternatively, you may complete the contact form on our website by clicking here: I’m a business looking for some business advice from an accountant.
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