Negotiation is an important part of every business deal. Once the quotation is being send to the buyer and the supplier is able to fulfill the buyer’s need, the next step is usually negotiation. The buyer and seller can negotiate over the pricing, payment terms ,delivery time or any other related matter. Negotiation is merely an art but each business man should have a little essence of this skill. Some of the tips that can make your negotiations more favorable for you are:
Decide your goals:Decide the factors which are of the most concern and what are your goals out of the negotiation. Whether the pricing is the main concern or the time for delivery or the payments terms. Deciding the goals in advance will help you in doing better negotiation.
Research: Research about the suppliers or the buyer’s company before going for a negotiation. Check details about the standard or brand of the company. For example,If the buyer’s company is a big firm owning huge capital, the pricing will not be the main concern for them. So don’t negotiate the prices.
Don’t make the communication static: Try to do detailed discussion before making the final decision. Avoid saying anything that can stop the negotiation. Ask questions, make your points clear and keep your demands and preferences and continue the communication.
Identify the situation when to stop the negotiation: Make a clear of list of non-negotiable terms. The situations when you will finish the negotiation there and then. For example, a supplier takes 50% advance payment before making the product deliver and a buyer is negotiating to make entire payment after the delivery. The seller should end the negotiation as it is not an favorable condition for him.
Be a good listen : Listening is a great habit and is very essential when you are negotiating with a buyer or a seller. Allow the negotiator to talk and express his views. Ask questions about his company and business and take interest in listening to the details given by him. This will help you in the negotiation process. The fellow negotiator may provide you with some useful information about his requirements which can help you to negotiate in a better way.
Don’t present yourself as the only decision making authority: Never make your fellow negotiator realize that you are the sole decision maker. This will provide you with the option to hold your decision regarding the deal. You can say that you have to discuss the negotiated terms with the other members of your company before making the final decision. This will lead you with more time to think.
Get ready to be flexible: It is not possible that the buyer or the supplier will accept all the terms which you have put forward. Always get ready to be flexible on certain terms. Though there should be some terms which are non-negotiable from your side but do not get rigid on every term.
Nothing is sure till the deal is finalized: Never assume that the deal for which you are doing the negotiation is going to finalized for sure. There is always a chance that the deal may not take place. So be prepared for the failure of deal.
The best negotiation is the one in which both the buyer and the seller are fully agreed with the terms of the deals. They should be fully satisfied with negotiated terms and are happy to do the business.Your confidence and the persuasion power can be the two additional qualities that can make you a successful negotiator.