Secrets of Negotiation

By Doherty • April 20th, 2011
May 30th - Day 30 of 50

Image by NoneOther... {Captured In Lights}... via Flickr

Life Coaching Important Basics to Keep in Mind

If you ask for something before a contract is signed, it’s called “negotiating.” Asking for something after a contract is signed, it’s called “begging.” It’s better to be an average negotiator than an expert beggar.

From motivational expert Zig Ziglar: “You can get anything in life, if you help enough other people get what they want.”

Everything is negotiable, but everything has a price.

Quoted prices are invitations to buy, but not statements of value.

Important Fundamentals

1. Terms are just as important as dollars. Many people focus on rates, dates, and scope of work (the big three), but other matters to keep in mind — such as liability and attrition — can have just as much importance. These things will translate into dollars.

2. Negotiate at the proper authority level. Negotiate with the proper authority who can say “yes.” Do not let your negotiation get lost in the translation shuffle. You don’t want to have to negotiate it more than once. Ask to negotiate with someone who has the authority to go “off the script” or the rate card. Refuse to negotiate with an individual who does not have the authority.

3. If you want something, ask for it. Good negotiators do not put their best terms on the table first.

4. Focus on the relationship. It’s important that the relationship is still there once you’re through with the negotiations. You do not want to conclude an agreement and never wish to see each other again.

The Four Unwritten Rules

In every negotiation, there are four unwritten rules. All exist in every negotiation, whether or not you know or understand that.

1. Power

This is the ability to get the other side to do things in the way you see favorable. The top two power sources are competition and the printed word. If a customer knows that four other customers in town want your business, then that customer will likely want your business, too. Businesses play that game all too often. They try to get more than one customer or group interested in their business. And remember: Always question the printed word. Printed rates are not final rates.

2. Time
90% of the negotiating happens in the last ten percent of the time allotted. Negotiating will go on forever unless one side imposes a deadline. The corollary is time works against the person who does not have it. Never reveal your real deadline, and never negotiate when you’re in a hurry.

3. Knowledge
Knowledge is a combination of expertise and information-gathering regarding the wants and needs of the other side. How and when is the person you’re dealing with evaluated? How experienced is the person? What’s the businesses average daily rate, its peak season, and does it have other customers who want the same products or services?

4. Leverage
Leverage is your ability to get the customer to want your business and to give you favorable terms.

If you want to learn more about the 21 Principles of Negotiation, then go to Life Coach to receive your free downloadable copy. Find a coach to help you negotiate what you want out of life.

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