While many people like to think of themselves as good negotiators,
many do not understand some of the simple rules, which can quickly label
you as inexperienced, which of course is not a position you wish to be
in, especially when pitting yourself against a skilled and seasoned
negotiator. By steering clear of the following five pitfalls, you should
be able to navigate your way through any negotiation with ease.
1. Don’t negotiate blindly
Before beginning any negotiation, you must determine two things:
your desired outcome and your bottom-line tolerance level. If not, you
will have no direction and will likely be dissatisfied with the outcome
of the negotiation.
2. Don’t start the negotiations
If at all possible, have the other person put the first number on
the table. The reason for this is simple, as illustrated through a
hypothetical example. X is willing to sell his widget for £100. X asks Y
what he is willing to pay for the widget and he says £150. By Y bidding
first, X earned an extra £50 even before the negotiations were
underway.
3. Don’t avoid the process
Negotiating is a back and forth process that takes time. Many people
who are uncomfortable negotiating try to avoid the process by being
upfront with their real bottom-line number. This causes negotiations to
break down, because the other side simply will not believe you. The
expectation is that your opening number will be high/low and move from
there. In fact, if you are responding to an opening bid, it is assumed
that your target number is the number exactly between the two currently
on the table. If you step up to the negotiation table, be prepared to
play the game.
4. Don’t bid against yourself
A skilled negotiator will try to get you to bid against yourself and
a rookie negotiator will fall for it. This happens when the skilled
negotiator gets the rookie negotiator to increase his bid without moving
himself. To gain respect, say: “I’m not going to bid against myself.
I’ve put a number on the table. It’s your move.”
5. Don’t be afraid to walk away
When people are negotiating, they can easily become caught up in the
moment. When this happens, there is a very real possibility of
committing to a position one later regrets. The way to avoid this trap
is to be prepared to walk away when you reach your predetermined
tolerance. It is important to do this for another reason. The other side
may be bluffing. By walking away, you clearly indicate your position to
the opposing party. Understand that many negotiations are completed
after several sessions. This will allow you to walk away with the
confidence of knowing that if the deal happens, it will be on your
terms.
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