Business negotiations. We all have that one deal we want to cash in on but have no idea where to begin. It doesn’t have to be a high-stakes boardroom showdown with directors throwing around fancy jargon. A simple bargain at the local market is a business deal in its own right. Whether you’re haggling over the price of fresh tomatoes or closing a major business contract, knowing your way around negotiations can go a long way. For those brokering services and goods, this might just be your best read yet.
1. Know Your Worth and Your Limits
Before stepping into any negotiation, ask yourself: What do I want out of this deal? More importantly, what am I willing to accept if things don’t go exactly my way? You must have a threshold of the lowest or highest you will go, because, like anything in life, having a clear picture of what you want makes achieving it more probable. This is where your BATNA (Best Alternative to a Negotiated Agreement) comes in. A BATNA is like a fallback plan—the better your alternatives, the stronger your negotiating position–if the client won’t take this, what can I offer instead? If he is instead looking for this, can I offer in that regard? Without a BATNA, you might end up accepting a deal that leaves you questioning your life choices and swearing you got played into accepting a deal that turned out terrible for you.
2. Do Your Homework
Ever walked into a meeting unprepared and ended up nodding along, hoping no one calls you out? It happens, I remember at University coursework, you are told where to read, you fail to do the reading and now you are just staring on as the lecture progresses, hoping and praying you don’t get called out for an answer or insight.
Don’t let that be you in negotiations. Research the market, understand industry trends, and, if possible, dig into the other party’s priorities and pain points. Knowledge is power, and in this case, it’s also money. A well-informed negotiator is a formidable one because they will know what you want, how bad you want it, and thus figure out how to take advantage of that so that they sell you the deal..
3. Build Rapport – It’s Not Just Business
People like doing business with people they trust, so look the part…there’s a reason why lawyers and CEO or other such characters invest in attire and appearance. Establishing a friendly rapport before going into numbers and terms can create a more cooperative atmosphere. A little small talk, a shared joke, or even an anecdote about your failed attempt at making banana pancakes (because who doesn’t love a relatable story?) can set the tone for a smoother negotiation, with your client more relaxed and free with you as a person ad not some bloke there for money,(you probably are but at least be dicreet about it, lol!)
4. Master the Art of Active Listening
Negotiation isn’t just about talking; it’s about truly understanding the other party’s needs. Instead of thinking about your next argument while they’re speaking, actively listen and store what they say for reference. Ask open-ended questions to dig deeper into their motivations and constraints, because the more you understand their position, the easier it is to find common ground. In addition, in the rant the client might hint on other services they might be needing for which you can target later…again, information is power.
5. Be the First to Make an Offer
You might have heard that letting the other party make the first move is a smart strategy. But research suggests that the first offer often sets the anchor point for the negotiation. If you state your terms confidently and strategically, you’re already guiding the discussion in your favor.
6. Offer Win-Win Solutions
Great negotiators don’t just aim for victory—they aim for a mutually beneficial outcome. If both parties walk away feeling satisfied, you’re more likely to build long-term relationships, so instead of focusing on how you, as the negotiator, win from the sale, focus on how you can win, while making the client feel the win on their side as well. Instead of a rigid “take it or leave it” approach, explore creative solutions where both sides feel like they’ve gained something valuable…even if it’s just a feeling.
7. Stay Flexible but Firm
While it’s good to have a strategy, negotiations can be unpredictable, it’s like trying to plan a conversation with your crush–it will go well in your mind, but on the actual ground? Things always go very differently. Being too rigid can cost you great opportunities because you won’t focus and capitalize on them. If new information comes up that changes the playing field, adapt—but without compromising your key interests. Think of it as a dance: You want to move with the rhythm, not trip over your own feet.
8. Control Your Emotions
Business deals aren’t the place for dramatic outbursts or silent treatments (save those for reality TV and some other drama with the pals). Keep your emotions in check, and don’t take things personally. If the negotiation gets heated, take a deep breath, crack a light joke, or suggest a short break. Keeping your cool keeps you in control and saves from possible mistakes.
9. Be Clear and Precise
Ambiguity can be the silent killer of deals, so make sure you clearly define all terms, expectations, and conditions. Avoid vague language like “We’ll figure that out later” because, spoiler alert: later might be too late. Put everything in writing to prevent misunderstandings down the road.
10. Reflect and Improve
Every negotiation, successful or not, is a learning experience. After sealing the deal (or walking away), analyze what went well and what didn’t. Did you miss an opportunity? Did you cave in too quickly? Take notes, learn from them, and refine your strategy for the next round. Business negotiation is one of those skills you learn on the job, even with natural talent for speech and people, you need the experience to get there – Learn From Botched Negotiations.
I find negotiation to be a life skill, whether you’re closing business deals, negotiating a salary, or trying to convince your landlord that rent hikes are unnecessary (we’ve all been there, trying to ask for change when the febuary 28 day rent is the same as the other months’ 30/31 days…) and even at home, what’s foe supper or lunch, why should we buy that instead of this, negotiations are all around us, which is why a sales man is always a salesman.
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