How to Win any Negotiation

A successful negotiation usually ends with a winner and a loser. Unfortunately, unless you know your market, product or service the loser will, inevitably end up being you.

That is, unless you're prepared to be the winner.

In order to win any negotiation, there is a template that you must follow and, if you do so correctly, you'll always be the one to walk away the happiest.

I've spent the last 10 years working within Industries that require me to negotiate daily. Albeit, the negotiations I have now in Investment and project management are a little different to my previous life in car sales, the same rules apply!

Follow the simple tips below and save yourself both time and money, whatever you're buying!

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Do your Research

Knowing your product or service is crucial for any successful negotiation, so it's always the first and most important step.

You should always know, in detail, what you're buying and have a good backlog of knowledge on other competitors too.

Depending on what you're negotiating for, it's good practise to research other competitors in the area and know what they offer. Save competitor prices as ammunition for your negotiation, you're going to need them!

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Find the right person (Are you speaking to the decision maker?)

You should immediately identify whether the Person you are speaking to is the decision maker and the one you should be haggling over Price with. Your job is to get in front of the Person who is going to save you the most money.

Open a communication and when the conversation turns to price, you'll be able to work out whether the representative in front of you is able to have any input on a deal.

If there is any way you can get in front of the manager or owner of the business, you should go for it.

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Lead the conversation

You'll often find that the person leading the conversation will come out on top, so you should always focus on leading as much of the negotiation as possible. I like to do so by employing the signposting exercise.

At the beginning of the negotiation, lay out what you'd like to discuss, in order:

"I'd like to talk through my needs for your product, how it fits those needs and finally, what you can do for me to make sure I walk away a customer"

It might feel odd to begin with, but when you've tried it out a couple of times, you'll find your own way of delivery and it'll become second nature.

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Ask questions, lots of questions

During your dialogue, make sure you get all of the information you need form the negotiation.

If you're talking over a product, refer back to specific details in the conversation to get more information. You'll always find the more information you can get from a negotiation, the more leverage you'll have when it's time to buy.

"You've mentioned the Bezel on the Watch has been replaced. When was it replaced? Has that had an impact on its future value?"

Drawing out information will often lead you down a rabbit hole and you might stumble upon the reason for the price point. Your job is to find it.

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Enquire about profit margin

Every Business has a profit margin, regardless of what type of product or Service they sell.

The trouble with most profit margins is that they favour the business, not the customer, so prodding the margin will often lead to it tumble, or, at least, tilting in the other direction.

Try your hardest to get the other party to tell you how much their profit margin is. You'll sometimes be met with resistance but put it in a way that makes them feel that you are trying to get the best deal for both of you.

"I understand that you need to make a profit. I'm looking for a good deal, so what price can we agree on that will give us both?"

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Use closes 

Closes are something that all business owners will use in order to get your custom, so why not try them out yourself, to take control of the negotiation?

They might take some practising, so you're comfortable with the delivery, but using your own close during a negotiation is the most powerful way for you to maintain power.

As a buyer, why not try out one of the following:

"What would the price be for a deal today?"

"I'm happy to do a deal, but I'd like us to come down to x"

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If the price isn't right, walk away

Always remember, no one is forcing you to make a deal, you need to maintain control of the situation and know when to cut your losses; And that doesn't just apply to gambling.

The moment to walk away is the moment that you have used all of the techniques above and the price still isn't moving. When you've exhausted all other avenues, you need to use the opportunity to walk away from the table and look elsewhere.

You might even find that walking away helps you.

Certain businesses will often be back in touch very quickly to offer you what you wanted, having called their bluff.

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Conclusion

Using all my years of negotiating experience, there isn't a lot I don't haggle for these days.

It'd probably surprise you to know that almost everything you buy has movement on price, you just need to remember the key steps above to make sure you find it and get it to work in your favour.

Give the steps I've listed above a try when you're next purchasing a substantial product and you'll be amazed at what you'll save!