Successful negotiation is an important aspect of everyday business life.
Here are a few pointers to set you on the right track.
• Do your homework before the negotiations
• The first offer sets the benchmark
Do your homework before the negotiations
You need to know your product or service very well. If you’re 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. Every move you make should get you closer to achieving your end game and completing 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 or services that you usually include at a later stage, then it makes sense to include these in the initial quote. These extras can be conceded at a later time in your negotiations.
The first price mentioned sets the benchmark and any further negotiation will hinge around the first offer made. This means the first offer is critical and needs to be managed appropriately.
Read their body language
Tone of voice and body language are great indicators as to whether you are close to a deal or not.
If you’ve been watching the other party throughout the negotiations, you should be able to gauge where you are in the deal.
It also helps if you’ve 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. Understanding these priorities from the outset is important.
You may have to work with the other party again in the future – so it’s best to close the deal on good terms. There’s less chance of the deal falling through if the other party is satisfied with the outcome.
How Appleby Mall can help
We’re more than accountants – we’re also business advisors with many years of negotiating experience. We’ll get to know your business and help you to prepare, strategise and win your negotiations.
If you’d like to get in touch, please give us a call or send us an email.
