Negotiation is a key skill that can help you save money on purchases and even earn more at work. Whether you’re haggling for a raise, closing a business deal, or lowering your bills, having some negotiation chops can give you a serious edge. Here are some top tips from the pros to help you negotiate like a boss.
1. Do your homework
Before you step into any negotiation, make sure you know your stuff. Know the market value of what you’re negotiating, understand the other party’s motivations and limitations, and have a clear idea of what you want to accomplish. Basically, knowledge is power—the more you know, the more confident you’ll feel, and confidence is key in negotiations.
2. Set clear goals
Know what you want and what your bottom line is before you start negotiating. Think about your ideal outcome, acceptable compromises, and absolute deal-breakers. This helps you stay focused and stay within your parameters so you avoid getting swayed by emotions. It’s even a good idea to write down your goals and limits so you can keep track of them while staying focused on the negotiation.
3. Build rapport
People are more likely to be flexible for someone they like. Take the time to build a connection with the other party. Engage in small talk, find common ground, and show genuine interest in their perspective. Be respectful and courteous; it can make a big difference in the outcome.
4. Listen more than you talk
Great negotiators are great listeners. Pay attention to what the other party is saying, and read between the lines to understand their motivations and concerns. This insight can help you find mutually beneficial solutions. Active listening can be a helpful technique, too—nod, make eye contact, and give verbal acknowledgments. It builds trust and can help you take in critical information.
5. Be prepared to walk away
One of the strongest positions you can have in any negotiation is the willingness to walk away if the deal isn’t what you want. That doesn’t mean you should be unreasonable; just knowing you have alternatives gives you leverage.
6. Make the first offer
Making the first offer can set the tone and anchor the negotiation in your favor. It establishes a reference point, and the rest of the negotiation revolves around it. It gives you an element of control.
7. Use silence to your advantage
Silence can be a powerful tool in negotiations. After making a point or an offer, stay quiet and wait for the other party to respond. It creates a little pressure and can prompt them to make concessions.
8. Focus on interests, not positions
Instead of getting stuck on specific demands, focus on the underlying interests. Understanding why the other party wants something can help you find creative solutions that can satisfy both of you. A good way to do this is to ask questions to uncover the reasons behind positions.
9. Be willing to compromise
Negotiation is all about give and take. Be prepared to make concessions, but do so strategically. Know where you can afford to give a little and where you absolutely need to stand firm. A useful tactic is to offer concessions that are low cost for you but high value for the other party. This creates goodwill and moves the negotiation forward without you having to give up anything that really matters to you.
10. Stay calm and collected
Emotions can cloud judgment, and that’s a bad look in negotiations. Stay calm, composed, and professional, even if the discussion gets heated. Take breaks if needed to cool off and gather your thoughts. Deep breaths and a calm demeanor can keep you in control and prevent the negotiation from going off the rails.
11. Close with confidence
Once you reach an agreement, summarize the key points to make sure both of you are on the same page. Confirm the details in writing to nail things down and avoid any misunderstandings later.
