One of the most critical aspects of a successful business is mastering high-quality negotiation tactics. You just cannot succeed if you aren’t willing to tackle difficult negotiations with your business partners and rivals. Strong negotiation tactics are also vital if you are trying to get involved with new partners or expand your business to include new concepts and services.
As a result, it is crucial to fully understand the kind of canny negotiation tactics that will help your business succeed. This article will discuss the general nature of business negotiation tactics. We will also highlight the best and most successful strategies for just about any business model. By the time you have finished reading, you’ll be ready to unveil these new negotiation tactics at your new business meeting.
What Are Negotiation Tactics?
Negotiation tactics are methods and techniques that you use to get the upper hand when working with partners or business opponents. They are designed to help you create a deal that benefits you but also makes your partner feel like they’ve gotten the best of you. Great negotiation tactics should make both sides of a business deal feel like they’ve gotten the best possible situation. Certain meetings will also pressure you to make concessions for the greater good of your business.
As you can imagine, achieving this goal is very tough. That’s why it is essential to understand only the top negotiation tactics. Too many people approach this process without carefully understanding their benefits or taking into account the most successful methods.
Who Uses Negotiation Tactics?
Not everyone in your business firm needs to understand these negotiation tactics. In fact, it is probably a waste of time and money to initiate everybody in this skill. Only those people who will be working directly on making deals or sales should learn negotiation tactics. For example, all of your executive officers should probably be pretty well versed in these methods. In this way, they can make sure that they aren’t getting the runaround from your competitors.
You should also make sure that all of your salespeople understand these tactics. They can use them when making simple deals every day or when working on mergers. As a business leader, you need to understand these negotiation tactics. They will help you make more money by creating better sales and terms that benefit your business. Beyond that, they will help you seal the deal on more complicated and confusing transactions.
How to Implement Negotiation Tactics
When using negotiation tactics in your business, there are several different steps that you need to take. Each is designed to increase your chances of business success. While there are many approaches that you can take, the following method is usually the simplest and easiest to follow:
- Start by asking for more than you expect – this helps to set a starting point for your opponent and makes them feel better when you negotiate down.
- Never agree to the first offer – you can always use negotiation tactics to improve a deal that, at first, seems very beneficial to you.
- Stay polite, but firm – coming across like an indifferent person during negotiations is the quickest way to end them and get nothing done. On the other hand, if you agree with everything your opponent says you will look weak. As a result, the middle and winning way is a polite yet firm tone in your voice.
- Avoid seeming excited or enthusiastic about a deal – if you show enthusiasm towards a deal, your opponent will believe they can change terms to suit their needs.
- Don’t ignore the power of urgency – make your opponent feel like you may walk away from the deal to create more urgency in wrapping it up.
Following this simple guide will help you create negotiation tactics that work for just about any deal. However, it is also important to understand the various tips that drive these tactics and how you can use them in your everyday deals.
Five Tips for Negotiation Tactics
1. Understand How Deals Change
The initial deal you try to make is going to change while you negotiate. For example, you can use negotiation tactics to decrease the cost your opponent pays but force them to give up other elements, such as making them pay delivery costs. Always be ready to tweak the small details that they are ignoring to come out ahead.
2. Avoid Excessive Conceding
Any negotiation is going to require compromises and concessions. However, you cannot concede too much to your opponent. Endless concessions make you appear desperate and will inspire them to keep taking advantage of you. Even if you are desperate to make the deal, hold back on concessions that are meaningful to you. It might be tough, but it will make you appear firm and avoid looking like a hopeless case.
3. Don’t Let Your Opponent Stall
In some negotiations, you are going to find an opponent trying to stall. For example, they may demand time to show you additional market calculations or other odds and ends. Stalling is a tactic that gives your opponent the chance to change terms or make things worse for your deal.
Therefore, it is recommended to not play their game and ask for a decision the same day. One way to do that is to inform them you do not agree with any prolongation. Furthermore, any persuasion would result in you backing out of the deal.
4. Bluffing is a Powerful Tool
As we mentioned above, you must be willing to walk out of a deal or at least threaten to if you don’t like the terms. The idea here isn’t to end the negotiation but to force your opponent to concede. In almost every situation, you’ll find your opponent trying to stop you or contacting you later with better terms. Sometimes, this approach can backfire, but it will work at least 90 percent of the time.
5. Work Those Awkward Pauses
If you want to make a dramatic impact, you can pause during a meaningful point of the conversation. Most people are very uncomfortable after a pause and will fill in the gap with conversation. A pause can also seem somewhat aggressive or disapproving, which is likely to inspire them to try to come to terms in a way that is beneficial for you. Furthermore, these seconds of silence will add more depth to your words of persuasion.
Final Thoughts on Negotiation Tactics
As you can see, utilizing great negotiation tactics in your business can help you stand apart from your many competitors. It can also provide you with the skills you need to become an industry leader. That’s because these canny negotiation tactics help you appear smarter and more skilled than your opponents. Moreover, they can inspire your clients and partners to trust you in all your business ventures.
If you like what you read here and know others who may appreciate these tips, please don’t hesitate to share them on Twitter, Facebook or any other social media site you use. They may be particularly useful to your partners on LinkedIn. And if you know of any different successful negotiation tactics or have used any of these methods in the past, please drop a line and let us know. We’d love to hear from you.