Negotiating Tips: become comfortable with the negotiating process
Almost every situation/transaction allows an opportunity for you to practice one of the most important business skills in business is Negotiating.
Yes, I do know that most people hate negotiating, but, if done well, it can be fun and also, if done well and when it is time to negotiate seriously, and you prepare for it, negotiating can either put or keep a lot more money in your pocket.
You don’t get what you deserve, you get what you negotiate
Negotiating Quick Facts:
- Women will pay on average more than $1,353 to avoid negotiating the price of a car
- Women typically ask for less and get less when they do negotiate on average, 30 percent less than men.
- By not negotiating a first salary, an individual stands to lose more than $500,000 by age 60 and men are more than four times as likely as women to negotiate a first salary.
Practicing your negotiating skills is very important and you should practice every chance you get. If you are staying in a hotel, see if you can get a better rate. If you are at a car dealership, perhaps having your car maintained and you are looking at some new/used cars, practice navigating the conversation with the salesperson to see what offer they come up with…if you are not in the car market, let them know that up front, they will try to sell you anyway. Listen to their pitch discover the tactics they use, identify their strategy and even find areas where you might gain some leverage for a better price when you are in the market. Even if you are in a retail store, ask, because you never know.
- Build Affinity – Firstly and fore mostly – build affinity (find something in common) or strike a good relationship. It only takes a minute to get to know a little bit about someone, find common ground and create a positive relationship/situation.It is always easier to do business with someone you like and it is that way for your counter part too, so be likable.
- ASK – You will never get a deal if you don’t ask for one. Buying a pair of shoes on sale and even when I didn’t think there was more room to move, I asked for a little more off and got it. That is an extra $20 that I didn’t have to pay…and that can buy lunch in some places.
The best deal I have been able to get to date at a hotel was in Jackson Wyoming. I was able to negotiate a $249 room down to $99. It was the good guy taking his mother on a road trip rate…the good guy rate only got the price down to $149.
Understanding selling price verses sitting priceyou: “What is the selling price for this item?”
you: “No, that is the sitting price, what is the selling price? This lets the salesperson know that you are ready to buy but are also ready to negotiate.
sales person: “There is a sale next week”.
you: “Why am I being penalizes for buying early?”
- Prepare for serious negotiations – when the negotiating becomes serious and there is a lot of money at stake prepare because Information is Power – know your negotiating counterpart and what his or her goals are and what are his/her needs and wants and also know yourself, your goals and needs and wants.
- Practice – Try using different techniques and different approaches. Try asking different questions – find what works for you and what you are comfortable with. Also, find what didn’t work and determine why it didn’t work for you this time.
When your practice gets serious, use role reversal – play the role of the client and have someone else play you – it helps you get into the mindset of your client and helps you anticipate questions and helps you articulate your responses
Two of the most powerful questions in business are – What is the least that you can live with and What is the best you can do for me today? You never know what their current situation is. Use them and be prepared for them. If it is not you asking those questions then who is? Possibly the other side.
Be PREPARED to either ask or be asked and practice, practice, practice.