Last weekend I had the opportunity to learn from a bunch of great business minds at an event called Mega Partnering. The organizer of the event, JT Foxx, spoke for an entire day on negotiation. There was so much great information on that day that it would be impossible to include it all in this one post so I am going to break it up into several.
Today I am going to talk about nine strategies to success in negotiations JT imparted on us last weekend.
Be a Problem Solver or Solution Finder
When you go into a negotiation, you should be ready to find the answers to all of the other parties problems while still maintaining your end. No one wants to feel like they have lost a negotiation, so go in with a positive attitude and let the other side know you want to solve the problems and get the deal done. The worst thing you can do is go in and appear as the enemy and get them against you from the beginning.
Be More Prepared than the Other Guy
In any negotiation, the one who is the most prepared usually ends up the winner. You should do as much research on your opponent as possible before the negotiation. Find out what his likes and dislikes are, is he married, does he have kids, what charities does he support, and what type of person he is. You never know what might come in handy in a negotiation, so make sure you not only know everything about the deal and the other company, but find out the personal stuff about the people you are dealing with. I have heard that one of the tactics that Donald Trump uses when he negotiates is his kids. People will go in prepared to deal with Trump, and he will turn the negotiation over to his kids and completely catch people off guard. Always be prepared!
Emphasize Maximum Value
You want to emphasize maximum value in the negotiation. Show the other party that you are providing a very valuable product or service, and that it is worth much more than they are paying. You never want to give away what you acquired an asset for, and make sure you promote the value the other party is receiving.
Understand Your Opponent, Right Brain v. Left Brain
This will determine the style of negotiation that you use. If you are up against a left brain person, you can bombard him with fact and figures. Bring out the color graphs on flip charts and show him how the deal works logically. If your opponent is right brained, emphasize how you feel, or the feeling that he will get once the deal is done. Understanding this one fact will make a big difference in your outcome.
Control the Negotiation
You want to do everything you can to control the negotiation. Lead the conversation, make sure everyone stays on track. You might even want to purposely get the conversation off track if things aren’t going favorably. Start small talk, ask pointed questions, ask yes no questions, whatever you need to do as long as you are controlling the negotiation.
Use Strategic Alliances
This can also go back to preparation. Do your research and find out if you have any strategic alliances that might help you in the negotiation. You might have a relationship with a supplier that the other side might want access to. Offer up an introduction in the negotiation.
Celebrity, Credibility, Association
These are other great tools to use in a negotiation. You can bet Trump uses these all the time. Even if you are personally not the top in your field, if you can show that you associate with celebrities or other A players, this will go along way towards showing credibility. Why do you think people get pictures with celebrities? Because people are attracted to them, and by having a picture with them you are implying that you hang out with them. Use whatever you have to make that deal!
Make it seem like they won, or it was their own idea
Everyone wants to feel like they won the negotiation. The truth is the best negotiations are truly win win. Yes, one side will always come out a bit ahead, but it shouldn’t be a blow out especially if you plan on doing more business. Because of this, you need to play to the other side’s ego. Try to work things so they feel like the outcome was their idea, and that they were the ones that came out ahead even though you know they weren’t!
Be willing to walk away
This is probably the most important strategy on the list. You need to make sure you have what you can live with in mind and if you can’t get there, just walk away. It is true that there will always be another deal, and you absolutely can not fall in love with the deal or you will always lose. Sometimes walking away is all it takes to sway the other side to your thinking because they are so in love with the deal that they can’t let it die.
Okay, there are a few of the nuggets that I picked up from JT in the Mega Partnering seminar. Check back next Friday for another one of the the great speakers!
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{ 6 comments… read them below or add one }
God Info – always good to see current and different thoughts on the process -Thanks
Good Info ! – I suppose God supports it too!
Thanks for the comment Larry!
There was some awesome info at the conference, stay tuned for more!
I appreciate such information, but I wonder if there isn’t a fundamentally problematic approach when we address those we are negotiating with as “opponents.” I tend to really like the win/win approach.
Alison Moore Smith@Make Your Life Amazing recently posted..Help to Sleep
Thanks for the comment Alison!
I completely agree with you, the only good end to a negotiation is a win/win, especially if you plan on doing other business. That being said, someone will always come out ahead, even if only by a little bit. I do guess you could make a case for the use of a less confrontational word though!
Hi Sean,
Some great review points on the negotiation presentation at Mega Partnering L.A. I’d like to add a couple thoughts to yours.
Objection Handling – Be prepared is a great suggestion. And, part of being prepared is anticipating specific objections. Whether the client/prospect brings them up or you do, be ready to diffuse the objection by acknowledging it…and asking a question. Repeat.
For example, if you’re negotiating fees for online marketing services with a business owner, they may want to dismiss the offer indicating it costs too much. You could say, “I’m understand you think it may cost too much…what is causing you to think that? You can continue to ask questions based on what they say to reveal what it is that’s driving their feeling that its too expensive. You can proceed to diffuse the objection by, for example, showing them ROI projections for the services you’re offering. And, to another point you made, you’re also providing a solution they need.
Asking Questions – To your point of controlling the negotiation, my mentor Blair Singer (SalesPartners) tells us that the person asking the questions is typically in control of the conversation.
Look forward to seeing you at Mega Partnering 4 in Chicago, Don Roberts
(Master of Ceremonies at Mega Partnering 2 and 3)
Don Roberts@Mega Partnering Tips recently posted..Mega Partnering – 5 Mega Partnering Black Belt Tips