Business negotiation tactics to improve your outcomes

March 31, 2020

Foolproof tactics for business negotiation

Business negotiation can be very stressful, especially when dealmakers find themselves in complex negotiations with higher stakes. The only thing that can save you some trouble in those situations is a much more robust approach. That is why for negotiating business deals, negotiators need a strategic framework that illuminates the key choices they must make to achieve their ambition.

9 tried and tested business negotiation tactics you must apply

So why waste an opportunity by being ill-prepared when you can use the following immediately implementable business negotiation tactics and feel proud next time you negotiate a business deal?

Using concrete numbers instead of a range

When managing money, use concrete numbers rather than a range. If you’re selling jewelry and you tell your buyer that you’re expecting to get between $400 to $700 for it, you’re expected to get the lower price. This is because you’ve just described to the experienced negotiator opposite you how low they can go in their definitive offer. 

Don’t allow the upper hand so instantly. You may comprehend in your head that you’d accept $400 as a possible result, but there’s no obligation to say that from the origin. Don’t be afraid to say the price is $700, and if the other person desires to pay less, they’ll say as much.

Chris Nutbeen, Founder and CEO of Nuttifox

Know what you need and what you want

In any business negotiation, I know exactly what I need and want. The difference is that ‘what I need’ is something I can’t change, while ‘what I want’ is in my hands. Knowing those two things will help you negotiating business deals. You’ll be able to tell when to stand firm and fight, and when to give in a little more to the other side. You possibly leave without what you need if you are unaware of this.

Amit Raj, Founder of Amit Digital Marketing

Know when to walk away

One tactic that I’ve always used and has proven extremely effective when negotiating business deals is to know when to walk away. While today’s negotiating strategies emphasize teamwork, understanding, and active listening, the result will affect your company and its commercial future. That’s why knowing when to walk away from a business negotiation is crucial.

If the result of the negotiation puts the company in a worse situation – for example, payment conditions have become unfavorable or price discounting will remove any margin – it’s better to walk away. Thank the other party for meeting with you, but clarify that the conditions aren’t in your company’s best interests. Don’t think of this as a bargaining failure; it’s still a win for your company because you stayed true to your principles and objectives.

Shad Elia, Founder, and CEO of New England Home Buyers

Negotiating with influence

When it comes to business negotiation, you need to be firm on what you want out of it. The reason why we venture into any business is to make profits. So if it doesn’t profit you, then you should be a part of it. Right?

Well then, when it comes to negotiation, it’s not just you at the negotiation table. So the one tactic that has proven effective for businesses is – negotiating with influence. For whatever business you may want to begin, the idea of a negotiation is that both parties benefit. So do your research well and come to the negotiation desk with all confidence and influence regarding the business. Trust me, this will help you a great deal.

Dominique Kemps, CEO, and Founder of The Glassperts

Always listen more than you speak

The best business negotiators always listen more than they speak. Over-explaining yourself, centering your perspective, and taking control of the narrative is the quickest way to lose out on a deal because you will lose out on the important messages.

So if you are wondering how to negotiate a business deal effectively, you have to get the full picture of the other side to get the most thorough understanding. This will also make your associate feel recognized and heard, making them slightly more amicable towards your side.

Jonathan Zacharias, Founder of GR0

I believe the best strategy when negotiating business deals is to listen more, speak less, and time your interjections with the proper framing of your offer. While anticipating compromise, make sure to get something each time you give up something, but leave behind your ego.

By listening more, you can appear firm, find the appropriate time to act, and understand the minimum they are willing to accept. It’s not always about getting everything you want and giving up nothing. That’s unrealistic in most cases. It’s more about relationships and ensuring a good deal. Listening is crucial as it will lead you to finesse the process to your advantage.

Dan Potter, Co-Founder of CRAFTD

Focus on the positive

A good thing to remember when you negotiate a business deal is that you always want to focus on the positive and not on the negative. By looking for what’s wrong and nitpicking, your opponent may think you’re unprofessional or just plain ignorant of the issues at hand. 

Remember to keep a strong, confident stance during the business negotiation. This can help make your opponent more receptive to any offers that you may propose as well as help them see your side in general. By using this tactic, not only will it help your career, but it will also help set you up for greater success in the future. When negotiating business deals, you never want to let your opponent get the best of you.

Peter Keszegh, Founder of OnlinebizBooster 

Start with giving the negotiating party the power to say NO

“No” is a tool that helps in gaining control and respect when negotiating business deals. It comes down to the deep and universal human need for autonomy as people need to feel in control. By clearly permitting the other side to say “no” to your ideas, the effectiveness of the decisions go up, the emotions calm, and the other party can look at your proposal. Ultimately you establish a relationship that is based on respect and when the other party respects you they can negotiate a business deal with you on equal terms.

Saurabh Jindal, CEO at Talk Travel

Keep the business negotiation courteous and professional

One of the leading tactics on how to negotiate a business deal is keeping the negotiation courteous and professional. It is because nobody wants to conduct a business with a rude personality. Moreover, after the business negotiation is finalized, you may look forward to doing business with this person.

However, the business transaction may require the continuous participation of the representative. So, setting up a robust long-term relationship must be one of the mandated goals in negotiating in business. Lastly, a positive and collaborative negotiation tone can provide a beneficial result, starting from in progress to closing a business deal. That’s why perceive the pricing and offers while you are negotiating business deals professionally.

Eden Cheng Founder of WeInvoice

Take time to build rapport

This is ancient advice that applies to both in-person and remote business negotiations. It’s very straightforward, people don’t feel comfortable getting right down to negotiating. It is important to take the time to build rapport with your negotiating partner. It will loosen up the situation and set up a more relaxed and friendly environment to begin your business negotiation. So next time you are negotiating business deals, remember to resist the urge to get right to business.

Conclusion

Even though high-stakes negotiations can increase your level of anxiety, there are still a lot of tactics you can implement on your next business negotiation that will help you stand head-to-head with experienced business negotiators. Take note of the above-mentioned advice and start practicing them today. 

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