In business, the key to the game is getting the best possible deal at all times. If you can shave a few dollars off each new deal, those added profits will add up over time. For this reason, it’s important for every employee to know how to make the best deal in each new scenario. Here are four negotiation tactics your employees need to know when making any deals.
1. Share Some Information
Most people think you should keep as much information from your counterparty as possible while making a deal, but this isn’t necessarily true in all situations. If you’re willing to share some information, your counterparty may share as well. Having access to more information about your counterparty allows you to make sure you’re not getting a completely sour deal.
2. Rank Your Priorities
You should know your priorities before entering any meeting. What do you want to get out of the deal? Prioritizing your needs allows you to make sure you stick with what’s most important for your business. Although you may not be able to reach all of your goals when making a deal, making sure that your key goals are met is of the utmost importance.
3. Know When to Walk Away
Sometimes there is simply no possible way for a useful deal to be made, which means you have to be willing to walk away. An unwillingness to walk away from a deal can make your side look weak. A willingness to walk away will show the other party that you have other people you can go to for whatever it is that you actually need. In some cases, it may make sense to be the first one to point out that you can’t get anywhere on a deal to make it seem like you’re becoming uninterested in working with the other party.
4. Make the First Offer and Make It High
Conventional wisdom says that you should allow the other party to make the first offer because you don’t want to show your hand at all. However, by being the first to make an offer, you also get to set the stage of how the negotiations will proceed. While making the first offer is indeed the correct move, this is only the case if the offer is much higher than what you’d actually be willing to accept. The plan is not to get this first offer accepted by the counterparty. Instead, you’re seeking a psychological effect where something near that original number will be acceptable.