I’ll show you the some magic words of any negotiation when in a business setting. Get out your pencil and paper, are you ready? Here they are:
“We don’t need it.”
Yes, it’s that simple. The whole of your business success in negotiating the best possible value on purchases come down to those four words. Once you and your team truly believe that you don’t need the item that you are buying, the better the price and value you will be getting in return. However, the opposite is true as well, the more you and your team are convinced that you do need a product, the more you will pay and the less value you’ll gain.
Believe it or not, the whole of negotiation in business dealings with vendors is truly that simple. Of course, there is a lot more to negotiating with vendors, but these four words will pay off more than you can realize until you start to use them. There is a solid reasoning behind this, and here it is:
If you truly feel you “need” a product, then you aren’t bargaining with a vendor – you are begging for their help.
Now, you have lost your bargaining chips as well as an leverage you had when you walked into the room. The leverage that you want to keep in your corner is the ability to get up and walk away from the bargaining table, preferably in a hurry, and not return. One of my favorite pieces of advice on negotiating is this: “Don’t fall in love with one, fall in love with three.” With three different products from three different vendors, you no longer are at the mercy of one, they are at your mercy.
The overall concept of negotiating with vendors can be a tough one, and these four words can add another layer that you may not be used to. The application can be more tricky than you realize even though the overall concept is really basic. The key is to realize that there are always other vendors and businesses out there that offer products that are basically the same as what you are looking at right now. If there wasn’t, that particular vendor could charge through the ceiling for their product and everyone would pay it.
Social networking is difficult for a lot of people. Not everyone good at making small talk, even though it is extremely important. Having the ability to socially network with other people in your industry is an advantage. In the professional world, it is all about who you know and if you can socially communicate well, you will be successful.
Speaking is another one of the business skills that comes easy for some and difficult for others. You might be required to give presentations to staff members or board members. If you have difficulty speaking in public or to groups, your message may not be delivered as you wish. The last thing you want is people focusing on your nervousness and not the message you are trying to convey.
Communication business skills include sales also. You must be able to sell if you want to be persuasive. Your job might not be selling any tangible item. However, you may need to convince management of ideas you might have or employees to help motivate them. The ability to sell something comes naturally for some, and is very uncomfortable for others. The ability to sell is a skill that can help people be very successful in the business world, and will take you far with your career if you can master this skill.
Negotiation is another business skill that is a must. You must have the ability to negotiate. If you cannot negotiate, you cannot work in management. You need to have the ability to negotiate a salary. If you cannot negotiate, you might be working for much less than the company would have been willing to pay you. Never settle for less. Negotiation skills allow you to help a company in many ways and a business will recognize someone with negotiation business skills as a big asset.
There are many business skills you need to be able to communicate effectively to staff, employees, and even vendors. Without the ability to communicate through writing, oral, sales, negotiation, and social networking you risk offending others, losing out on big deals, and more. Communication is one of the most important business skills you need to succeed and you need to be able to communicate in all of these ways in order to consider yourself a successful business person.
The Importance of Sales Negotiations in Business
Anyone who shows reluctance or inability to participate in business negotiations is perceived as one who lacks flexibility and strength. In today’s global business environment, it can even mean disaster. Not all cultures do business the same way; for example, in most Asian countries, it is considered rude to simply start a business negotiation without a fair amount of what we in the US consider “small talk;” asking about one’s health, family, etc. In fact, most Asian businesspeople will not do business with someone until a personal relationship has been established on some level. As you can see, training in sales negotiation not only improves your business skills, it can improve your image and status among colleagues.
Improving Your Negotiation Skills
In order to build one’s sales negotiation skills, one must first take a personal inventory of one’s own strengths and weaknesses, as well as those of the company and its personnel (if applicable). This is where any qualified provider of negotiating training starts when designing course materials and training programs for your company. If you would make yourself and each of your employees a skilled negotiator, it’s also helpful to take stock of your personal goals as well as those of your business.
The best sales negotiation training courses are those in which students have opportunities for practical, real-world experience. Qualified negotiating training experts are able to set up scenarios that students will actually face when down in the proverbial trenches, developing their negotiation skills by actually using them in the kinds of situations encountered in the “real world.”
1.) Ask questions
Smart people know how to ask. Ask questions relevant to the topic of your negotiation. You should know all information related to the discussion. Know what the other party has to say and when in doubt verify things so that there won’t misunderstandings with the other person or party.
2.) Learn to listen
As always, listening is very important in communicating with people. Even on business negotiations, it is vital that you listen to the other person or party you are talking to. Understand the message they are trying to relay and never butt in unless you find it necessary.
3.) Do some research
Before the scheduled negotiation, gather relevant information that you can use in weighing factors connected to the negotiation. For business negotiations, know the background of their company, learn the factors surrounding their offer and verify the information you got about their proposal (if there’s any). Being prepared is important during negotiations. If you want to buy a particular product or maybe a house and lot, do your homework and research about the value of the product you want to purchase and see if the offer of the other party is reasonable.
4.) Don’t rush things
It is not necessary that after the first meeting you will already come up with a decision. If you or the other party is still undecided, then you can set for another appointment so both of you can think it over and weigh things mentioned on the first meeting. It is not good that you make a decision right away or you persuade the other party to immediately agree with you. That would sound too demanding.
5.) Find the right timing
Make sure to set an appointment that both of you will agree. Consider also the mood of the person and see if he’s in great mood or he’s not stressed or in bad mood. It is best that both of you are in the right mood when negotiating so that there won’t be misunderstandings or conflicts that may lead to a heated argument. Always remember that negotiations are done so that both parties can come up with the right solution to the problem or topic being discussed.