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Successful Negotiation Tactics

December 21, 2024

Most executives consistently leave value behind at a negotiation. However, there are some executives who are particularly skilled at negotiation – here are a few techniques which consistently produce good results.

Frame the Negotiation as a Mutual Benefit

Instead of approaching a negotiation as an argument to win, frame it in terms of what both parties can potentially gain or achieve. Empathy for the other party’s situation goes a long way towards breaking down the barriers between you.

Your ability to frame the dialogue is one of the best negotiation tactics you can develop, since it sets the stage for a smoother dialogue that ultimately gives you the upper hand. 

Listen More Than You Talk

Keeping quiet and simply listeningis one of the most valuable negotiation tactics you can cultivate. This allows you to really understand the other party’s starting position, what their motivations are and what their mindset is.

One step further is the art of remaining strategically silent. Most people will usually start talking naturally just to fill the silence. This is often when you learn more about the person’s real opinions or intentions. People also frequently offer solutions just to start the conversation rolling again.

Sometimes within a conversation you may simply not immediately know what to say in reply – instead of starting to talk just for the sake of saying something, use strategic silence to turn what could have been your disadvantage into your advantage. The space created also gives you more time to think.

Gain Something from Any Concession

A common block to negotiations is that when one party gives in on a point it creates the impression to the other party that the person feels on weak ground, or that what they were initially asking for was in fact too much. This often leads to stalemate, with neither party willing to give any ground.

Instead, use concessions to your advantage as negotiation tactics to create leverage. Is there something the other party wants that doesn’t matter so much to you? If so, can you concede that point in exchange for them making a concession that matters more to you than what you are losing? For example, you could drop your price if it is compensated by a longer-term contract, or you could stick to your price but give the other party regional exclusivity.

Keep an Open Mind and Explore all Options

Flexibility is critical in negotiation – you should give yourself some wiggle room to accommodate the other party’s objectives and make them feel as though their position is being taken seriously. Maintain a mindset of exploring your options and conversing to see what the possibilities are – not to offer a final solution. Exploring opens doors, offering closes them. 

Instead of getting stuck on a single desired outcome, prepare by compiling a list of multiple outcomes you’d be happy with. Ultimately what you want is to move your business forward and there are usually many different routes that can make that happen.

Know When to Fold

Even the best negotiation tactics can fail when one or both parties is unwilling to reach a compromise. It is always essential to know when to walk away.

It is common to get caught up in the process of the negotiation and feel as though you have to agree to something to make it ‘worth it’ for the time, energy (and often money) you have invested to get to this stage.

However, retain the big picture perspective – if what the other party is willing to offer isn’t on par with what you need, it is much better to part ways. You will have learnt something from the experience and can move on to use your resources more productively on something else.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

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