5 Strategies for Being a Good Negotiator in Your Business

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Based on research it’s identified that being a good negotiate in your business is very important for success and it requires lot of qualities and effective strategies. Some characteristics like dishonesty, confrontational and egoistical are considered to be bad traits for negotiator. The important qualities for becoming a good negotiator in your business include foresight to prepare, emotional intelligence, art of persuasion, ability to remain calm under pressure, being a good listener, effective communication skills, quick thinking, positive attitude and self-confidence to close a deal with better bargain. Generally negotiating through E-mail is easier than speaking in person as you will find enough time to think and respond to the questions of opposite party. If you don’t have the politeness and courtesy towards your opposite party, there are possible chances for business negotiations gone awry. Five best strategies to become a good negotiate in your business are explained in this article.

 

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Make the First Bid:

Whenever you are negotiating among a group, try to be the first person to bid for the deal. Usually people avoid this because they presume that if they quote a price of X dollars, someone else might quote X + Y dollars which can only result in loss. But this rarely happens in real world, since the other person might not know actual value of product you are buying. You should try setting an anchor with your 1st offer since it can impact highly the remaining negotiation. Based on research it has been found that when sellers make first offer, usually the final concluded price tends to be higher than the case when buyer makes the first bid since the offer made by buyer is always low. Hence in order to be a good negotiator for your business, you should make the first bid and set a low anchor. You should start with high bid if you are a seller and make the first bid for lower price if you are buyer. You should analyze the worst and best cases for every deal without any pressure of interaction, and allow discussions to be open-ended and interactive.

 

Never hesitate to Ask and Set High Expectations:

You should always understand that without asking for something, the answer will always be No. If you want to save X dollars on a business deal you are about to make, never hesitate to ask for the best bid possible. If seller agrees, you can be happy that you have made the best deal and even if he disagrees, it does not harm you in anyway. So always look for worst case scenario and bid for best possible price, as there is nothing wrong in asking. You should set high expectations in order to generate best outcomes. Always assume that you can make the best deal and be positive about your bids with the seller.

 

Create a Win-Win Situation

The important art of negotiation in a business deal is making the opposite party believe that you are aiming for a win-win situation. When you negotiate, it’s already understood that both parties try to reach the best possible outcome. So, try to make the opposite party understand that you are aiming for win-win situation and be positive in your bids. Good communication skills are important requirement for any negotiator and you should express your opinions with self-confidence and positive attitude in order to convince the builder.

 

Silence is a great tool

When you make an offer which is considered way too low by the seller, don’t respond immediately. Just stay calm and remain silent for some time. The seller might start talking automatically to fill the silence and would give reasons for why he considers the offer too low. He might also give information on why he wants to make the deal quickly. You can think about making your next offer with such useful information. So, always take your time to make the next reply and think twice before you speak. Whenever you talk, come up with open-ended questions which will result in better deals. When you are nervous and seller considers your offer to be low, don’t sound too desperate and keep explaining why it’s a good offer as this will only drive off the seller. You should always use silence as a tool for negotiation since this can result in some useful information from the seller.

 

Build a Good Rapport:

If you want to become a successful negotiator in your business, you should have effective communication and develop good rapport with the seller/opposite party. Long term business relationships can help in making negotiations smoother and easier. Whenever you close a good deal, thank your partner/seller and try to develop positive relationship with them. Always give room for other person to speak and be a good listener.