Negotiation is a way for people to resolve their differences. It is a process of reaching a compromise or agreement to avoid discussions and disputes. Negotiation strategies are very helpful in resolving any disagreements between you and others.
Good negotiations make a significant contribution to business success in the following ways:
- Help you build better relationships.
- Provide high-quality and lasting solutions, rather than wrong short-term solutions that cannot meet the needs of any party.
- Help you avoid future problems and conflicts.
Negotiation skills are the qualities that allow two or more parties to reach a compromise. These are usually soft skills such as communication, persuasion, planning, strategy development, and cooperation. Understanding these skills is the first step to becoming a stronger negotiator.
This article will explain to you general negotiation techniques that are useful in everyday life, different types of negotiation strategies, salary negotiation strategies and business negotiation strategies, etc.
General Negotiation Techniques You Must Try
Negotiation is essential for all of us. You have seen a lot of people negotiating the prices of the things they want to buy. Here we will tell you about the most effective negotiating skills and techniques that will help you whenever you purchase something.
1. Preparation and Research
Research is the first step in the negotiation process. You must have all the information about the product and its advantages, usage, and price with different sources.
Once you have done adequate research on the product, you must be prepared for the negotiating process by rehearsing how you will present yourself while negotiating.
2. Don’t be shy to ask for Negotiation.
If you feel like the thing you are looking to buy shouldn’t be that expensive, don’t feel shy while asking to lower the price. Most people think a lot about what other people think. But that doesn’t work for you. No matter where you are, what you are buying asks fearlessly about whether to cut the price or for some discount.
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3. Try to convince them you don’t have more money.
If you have gone to a branded showroom to buy a shirt or trousers and you really like a shirt, but the price seems more than you expected. Then what is the option you have, either you can go out without buying the shirt or convince them with your best efforts?
Indeed, they don’t give you the shirt at half price or in loss, but they will definitely try to do something to help you out.
4. Don’t be desperate to buy a product.
You have seen many girls or women while shopping, they become very excited when they look at something they really like. But, unfortunately, the shopkeeper will benefit from this situation and ask for more price for that product. So whenever you see a product you love to buy, don’t express your feeling or interest in that specific product.
Bluffing is not something we suggest you do, but it can help you to get the desired product at a lesser price. For example, suppose you are looking to buy electronic equipment like a mixer and grinder.
When you visit an electronic store and ask for a special price, you can argue with them by saying that the store people we saw previously asked for a lesser price.
Give them a small figure with a bit of difference. This technique really works, and they will try to offer you a better price.
Salary Negotiation Strategies
Salary is the primary reason for which we work. Wherever you go for a job interview, we all expect to get a higher salary. So, we will tell you about the most productive techniques for negotiating and getting a good salary.
1. Research and know your worth first.
First of all, you need to research how much salary people are getting already for the position you want to apply for. Then, based on your skills and experience, you must have an idea of what you deserve. This thing will help you to make a better decision during the interview.
2. Be patient and wait for the right time.
When you are sitting in an interview, you have got an idea of how much you should be earning at the moment. Then don’t ask questions about the salary you will get. It would help if you waited for the right time. They will first know about your skills and how productive you can be to them. Then, they will offer you a number.
3. Don’t disclose your salary expectations initially.
When your employer asks you to tell them about your expected salary, please don’t give them a number. Instead, you can say that I am not aware of all the job responsibilities and challenges, and I am fine with the company’s package.
4. Make an offer based on the job responsibilities.
If you are forced to give a number, make an offer based on the research you have done earlier and the job responsibilities you will provide. Don’t talk about your financial needs and crisis; talk about what can be an appropriate salary figure for your particular job.
5. Take your time and evaluate the job offer.
When you have been given a job offer, don’t accept it immediately because you must think about many things before taking a job opportunity. So you can answer that I am glad you are offering me this job, but still, I need to think it over.
Now look at your offer letter and check out the other benefits they are offering—for example, accommodations, travel expenses, medical insurance, Annual trips or leaves, etc. Check everything precisely and decide further.
6. Write a Counteroffer letter if needed.
If you are not satisfied with the offer given by the employer, you can ask to schedule a meeting to discuss the offer letter. If you have some valid points, you can discuss them and reconsider the salary offer. If they find you reasonable, they can give you another offer letter with a higher payout.
Business Negotiation Strategies
Negotiation is essential in every business. If you are setting up a new startup or working with a running business, you must know about all the business negotiation strategies to get success. Here are some of the most influential business strategies that will work for your business.
1. Be prepared.
First thing you need to do before a business meeting is to prepare yourself by doing adequate research and getting all the information you can. Preparation includes the following steps:
- Perform deep analysis on all the factors affecting the deal.
- Read about all the necessary things you should know for a meeting.
- Get an overview of the positive or negative aspects of the deal you are planning.
- Make a list of alternatives you can go with.
- Be ready for the two figures to make the deal successful.
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2. Don’t feel awkward.
Sometimes, during a business meeting, A negotiator can ask for a very high price for their product. Don’t feel awkward in that situation. Instead, think about it, be confident and offer your price and tell them what benefits they will get if they make a deal with you.
3. Discuss the mutual benefits.
Both the parties are doing business to grow more. So if you want your meeting to be a success, you must focus on the mutual benefits both parties will get if they make a deal.
4. Make a win-win situation.
Negotiating is never about dominating others. Instead, it should be a win-win situation for both organizations; then, both will push themselves to crack the deal and convince their team members to succeed.
5. You must have an alternative or plan B
If you want to negotiate on your own terms, you must prepare yourself for what if both the parties cancel the deal. Then what options you will have. If you don’t think about it, then you must not be able to negotiate.
Types of Negotiation Strategies
Negotiation is a trendy skill that every professional must possess. Today, most jobs are related to the sales and marketing field, in which negotiation is required.
Therefore, if you become proficient in negotiating, you are most likely to succeed in your job or business. Here we are discussing five different types of negotiation everyone should know about.
1. Distributive Negotiation
Distributive Negotiation means when two parties are trying to negotiate the price of a single product. For example, two people are bargaining the price of a second-hand bike with a dealer.
In this process, one party will win, and the other will step back. The one having good distributive negotiation skills will definitely win.
2. Integrative Negotiation
When the employees from an organization go on a strike and protest against the management to fulfill their demands based on various issues, then it is called an integrative negotiation.
In this process, there will be more than one issue. However, both parties may agree on a decision, and both will get something from the negotiation.
3. Multiparty Negotiation
As its name suggests, it is concerned with more than two parties. There are more than two parties involved in such negotiations. For example, when all family members sit together in a drawing hall and decide the venue and other necessary arrangements for the marriage, it is called multiparty negotiation.
4. Team Negotiation
When two teams from an organization need to work together on the same project, they must negotiate with each other about work, benefits, credits, and a lot more. Then this negotiation is called team negotiation.
Must Read: Workplace Communication Skills
5. Positional Negotiation
When two parties are fighting to get a position or hold on to a position, it is called positional negotiation. In that case, there are chances if they negotiate on mutual benefits. Otherwise, the party in power will hold the position. These types of negotiation are mainly less productive.
What are three classical types of negotiation strategies?
We have already discussed five different types of negotiation strategies in this article. Now we are going to discuss three classical types of negotiation strategies.
- Traditional auctions
- Reverse auctions
- Online exchanges
Traditional auctions are also called unconditional auctions. When a property is sold in this way, a 10% deposit is required, and the contract is immediately redeemed. Normally, completion will take place after 28 days.
A reverse auction is an event in which the buyer requests the goods and services he needs, and the seller bids the prices of the specified goods and services. At the end of the reverse auction, the seller with the lowest bid will win the auction.
People who mostly exchange their products online face a lot of problems while negotiating. Because the basic negotiation process generally requires the physical meeting of people.
We have discussed all the negotiating skills that are required to be a successful negotiator. We want you to try out these skills on other people and let us know if these skills worked for you or not. If you are good at negotiation, then trust us, a lot of job opportunities are waiting for you. We really hope you will like this article and if you have questions or suggestions related to this article, please write to us in the comment section. We strongly recommend you to go through the other similar exciting and informational topics on our website.