Most of the skills that can actually help you in life are not taught at school. One of them is the art of negotiation. Most people learn it through experience and by watching good negotiators, few are initiated into the art by good mentors and some are just natural negotiators.
Experts have a keen understanding of what the person in front of them wants and have a talent to perceive their weaknesses. These weaknesses are exploited through various negotiation techniques.
Tips and Techniques
These are principles of negotiation, which can be used in any kind of a deal settlement. It might be a buying/selling deal, a child-parent argument, or even a salary negotiation with your boss.
A negotiation is a tug-of-war fight to get an upper hand. There are various factors which can help you get into a better bargaining position.
Make Them An Offer, Which They Can't Refuse
Before going through with a negotiation, think through it, decide what you want, and then try to get as much information you can, about the opposing party's expectations and their bargaining position.
Be confident during negotiations. Do not show hesitation. Have a calm and cool air about you. This will give you an idea about how much you can make them bend and how much you are willing to bend.
Make a straightforward win/win offer. State exactly what you want and what is in it for them. Then, hear their side completely. Be reasonable and argue your case and it's advantages for them.
Exploit the loopholes in their arguments. Talk in a style which emphasizes what they can get out of this. Chances are that they will see reason. Of course, a lot a depends on how desperately they need the deal to close.
That is like putting your cards down and letting other people know that you have no aces left. That will be the end of your bargaining position.
Be it buying, selling or any other type of bargaining, act as if the deal in front of you is just one of the many options you have and cloak your desperation. Do not get carried away in your bluffing.
Especially, in salary negotiation, do not be the first to quote a number to your prospective employer and if you must quote, let it be higher than your requirement. Even in real estate negotiations, do not show your desperation in buying or selling the property.
Use Leverage Offered By Your Position
In certain deals, you have an inherent advantage over the opposing party in terms of resources, knowledge, and power position. In simple words, if you have the knowledge that they need to get the deal closed more desperately than you do, then use it to your advantage. Use the leverage you get from your higher power position, to get a benefit out of the deal.
So keep sparring and try to sift the bluff of the opposing party from the truth.
The moment you spot it, you are in a superior bargaining position as you know exactly what is the key. You must exploit the slightest weakness in the logic of their case or demand.
Feign Helplessness And Dependency
Sometimes, feigning helplessness in giving in to their demands can help. You can bluff that not you but somebody else is the one who makes the final decision and it's not up to you to close the deal.
Act as the emissary and make them open up to you. That way, you can show your inability to satisfy their certain demands and also get to know the depth of their need, which will give you an ascending position.
Remember the eternal rule which is 'Everything is Negotiable'. Do not push your demands too far, beyond them being reasonable. After all, you may be in need someday and need them. Try to get as fair a deal as possible. Negotiation is a skill, which you will get better at with practice, as you get to understand and read people better.