Let’s make a deal. So much of life is striking a deal with another party so that we get our needs met while the other party strives to get what they want from us, whether it be money, a sale, a date or a job. That’s why it’s crucial that you really know how to negotiate.
Before you even start a negotiation, it’s important to know exactly what it is that you want and how much, either financially or emotionally, you are willing to pay for it. This way you’ve set some boundaries and expectations for yourself that won’t easily be swayed by the other party once the negotating process is underway. If $20,000 is your limit for a car, you won’t be tempted to offer $23,000. If you won’t accept less than $200 for a rare first edition book, you won’t in a moment of weakness cave it to the buyer’s demands to pay less.
Start your negotiation with your most outrageous offer or conditions. This way, the other party can make a counter-offer that is still within your price range or includes most of what you are angling for and you have some wiggle room. By starting the negotiation high, as in I want full health coverage, a company car and 4 weeks vacation along with my salary, you can still make concessions because your first offer has been fully padded. Never start out with a bare bones offer, because you’ve left yourself no fat to cut out.
Do your research ahead of time, whether it’s knowing comparable housing prices or salaries, or recent sale statistics. Having statistics in black and white to show your opponent can become a powerful negotiating tool.
Once you’ve put your cards on the table, stop talking. Don’t be uncomfortable if the other party doesn’t speak. Effective negotiators know the value of silence and they are willing to be quiet until the other party responds to what they’ve offered.
Be creative in your negotiating. You may not be able to pay your son $10 an hour to babysit, but what are two sports tickets or use of your car for the weekend worth to him instead of the amount of cash he wants?
Be willing to leave any deal on the table when negotiating. If your instinct tells you that you can’t accept the final offer on the table, walk away. You may be surprised to hear from the other party tomorrow that they are willing to re-open negotiations.
In the end it’s your negotiation skills that will determine if you really get what you need and want out of a deal.
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