Negotiation Skills Top 10 Tips

what I thought to do is just give you a quick on the ten rules I'll break them down into separate sections just a plus a couple of minutes on each when you're looking at the 10 rules of negotiation the first thing that you have to be aware of and I know it can be a little bit seemed a bit of a cheat but rule number one in everyone's view on negotiation is don't negotiate and again that's where the cheat comes from and only ten rules and rule number one is don't negotiate what it says is if you're selling get the value proposition identified and sell to the value sell to the customers problem solve the problem and then ask for the money no negotiation needed if you're buying it to the other side of the coin what you just do is you work out how much you want to spend what the value to you is and then tell the supplier how much you want to spend no negotiation they can make their own decision and that's rule number one don't negotiate unless you need to rule number two in negotiation is quite a careful one rule number two is never negotiate with yourself everyone has a tendency to lose a bit of confidence when they do go into a negotiation they're thinking how much can they get away with what's the other guy thinking what should they really be making as an offer well the first thing you do is if you're selling lead with your list price don't negotiate with yourself and don't try and round down your offer to make it appear a bit more acceptable to the other party if you're buying again don't negotiate with yourself set a figure that you want to spend might be within your budget or just might be an expectation and don't don't change from it go straight on make that if you have to make it as a first offer make it that way if not hold back but don't negotiate with yourself that's rule number two now rule number three is never ever ever ever ever ever accept the first offer two reasons first one is if you're working with someone who is an instinctive negotiator they will be keeping something holding back so the first offer won't be the best one for you the second reason is if you didn't win a professional negotiator they're not going to try and break rule number two so they won't be negotiating with themself already so the view here is when you actually see someone make an offer put on the table there's always always a better one behind it not necessarily lower money but a better offer can always be made so rule number three never ever ever accept the first offer now rule number four can sometimes be a bit confusing because rule number four is never make the first offer if you can avoid it the point about this is that if the other guy makes his first offer he's not going to try and break rule number two but you're not going to break rule number three and accept it anyway so you never make the first offer if you can avoid it always get the other person to put their stake in the ground because that might be the best price you're going to see today but of course we're not going to accept it so we're going to negotiate further on it rule number four never make the first offer if you can avoid it now rule number five slightly different slightly more complex when we go into any interaction with another party whether we're buying or selling we have to be aware that we got two ears two eyes and one mouth and what we should be aiming to do is use them in that proportion sometimes called the 80/20 rule you use your ears and eyes 80% of the time and you use your talking muscles 20% of the time the main reason for this is while you're talking you always have the potential to break the other four rules you could be making except in negotiating with yourself and even just breaking all the rules so while you're listening you've got less chance of breaking any other rules so listen more and talk less what it means is you don't leak any signals to the other person and you don't give any room for manoeuvre and you don't break any of the rules rule number six never give anyone a free gift make sure in a negotiation if someone wants something from you they work for it or they give you something in return two key reasons you never give anyone anything for free and by that I don't just mean discount I mean information maybe even cooperation as part of a gift in the negotiation never give anyone a free gift make sure they work for it for two reasons number one today's free gift is tomorrow's starting point so if you happen to give someone a 10% discount just because you can on this deal they accept it next time you get engaged with them and you send them a thousand dollar deal on the table in their mind they'd already starting with a ten percent discount so your thousand dollar deal is actually 900 dollars to them before they've even started talking to you the second reason you don't give anyone any free gifts is not only is it today's starting point but it's an additional extra point that they're looking forward after this so they'll take the 10% and because you easily gave them 10% last time but one another 10% is a minimum so you thought you were starting with $1000 on the table they are actively now talking about 810 they've got taken their ten percent from last time and they're taking the next 10 percent as $90 on this one never give anyone any free gifts rule number seven slightly more complex and what it is primarily is watch the salami now there are two things that happen in a salami the best one is you can do it to yourself let's say for example that we have we're selling a carpet fitting service and what we have is obviously we have the carpet which is the raw material we have the fitting which is four fellows then we have all the gripper runs and all the equipment that goes on and we have the underlay if you put it all together and this is a two thousand dollar deal what you don't do is salami yourself by telling the other party well obviously fifteen hundred dollars of this is the heart of the carpet three hundred dollars is that fitting a hundred dollars is the underlay and another hundred dollars is for they fit the fittings and fixtures you don't salami yourself that way because the first thing the other guy says is well I'll fit it myself so I don't so your $300 is gone next thing he says is well I'll use the old fittings and fixtures so I don't need that hundred dollars and then the next thing it says I'm not paying $100 for London I can get a $50 elsewhere and that's before even starts trying to beat you down on the price of the carpet so what you thought was a two thousand dollar deal is now down to a minimum of a starting point of maybe fifteen sixteen hundred dollars so don't salami yourself and then the second thing don't allow the other person to do it give them a total price tell them what you're gonna do and then make sure that you look at rule number one don't negotiate unless you need to so rule rule number seven is watch the salami real late one interesting one we call it avoid the rookies regret everyone walks away from the deal London but nothing could have got better I don't care how professional you are and okay how good you are most people walk away thinking could I have done better should I have done better to avoid the rookies regret you have to be able to answer the three trading questions before you close the deal and the 3tq or the three trading questions are number one if I'm about to make a concession to the other party what is it going to cost me so if I'm going to give this person an extra 10 days credit on a million-dollar deal and my credit end what's it actually going to cost me as extra 10 days when it's in his bank not mine second what is it worth to the other guy the 10 days credit might be worth an awful lot to him or it may be cash rich and it might matter to him and then the third question we have to ask whether 3tq is if I know what it's going to cost me and if I know what it's worth to the other guy what do I want in return preferably of equal cost to them and equal value to me so if it's going to cost him $10 to give me $100 value I should be aiming to give him something that cost me $10 to give him $100 value and that's the 3 T cube and if you can avoid these bad questions and get the right answers every time you will avoid the rookies regret and that's rule number 8 number nine always always avoid the quick deal every negotiation that you're going to be involved in hazard as a time scale and the tempo of its own you'll recognize this when you pass on it the thing you have to be aware of is when the other party starts changing the tempo usually speeding it up what it means is one or two things they buy the recognized and mistake you've made and they want your name on the paper so that they can enforce that mistake to their advantage or they've seen an advantage for themselves that you haven't yet valued and what they want again is they want your name on the paper to their advantage so whenever you see the other party changing the speed usually speeding it up increasing the tempo trying to close the deal faster don't look upon it as a closing ed deal it's not a bearing signal what this is is this is them trying to take advantage of you so what you do is you slow it down say maybe and then go back and look at the 3tq try and work out what the real value to them is and that's rule number nine always always avoid the quick deal it's never to your advantage so number 10 the final rule of negotiation is never tell anyone what your bottom line was when you close a deal no matter how friendly you are no matter how tempting it is to get into a conversation with the other party about how the deal went never tell them how far you could have got pushed even if there was a penny movement even if there was a one-day movement never tell them because you could change what was a win-win into a perceived lose win on their part if they think they could have got an extra day worth of credit and extra dollars worth of finance and you've kept it for yourself they will see it as a lose so rule number 10 is never tell them what your bottom line is don't tell them before you go in not during the meeting and certainly not at the end so that's the tenth rule of negotiation you

Channel: Antony Stagg

Views: 1,217,301

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Keywords: negotiation tips, negotiation skills, negotiation techniques, negotiation success, Antony Stagg, Alan McCarthy, RDC, negotiation, Oracle, Microsoft

Id: oy0MD2nsZVs

Length: 11min 34sec (694 seconds)

Published: Fri Jan 07 2011