Can you give me a better deal on that? How about we come to an arrangement we’re both happy with? What are your expectations?
Questions like these frequently come up when we’re negotiating at work. No matter what the size of your business, negotiation is a vital part of communication. Whether it’s agreeing on a good deal with a supplier, or agreeing on a raise in salary with one of your employees, there are hundreds of examples for every business. And the one way to make sure you can negotiate with confidence is to make sure you understand the art of compromise too. We’ve put together five golden rules to make sure you enter into any discussion with the right preparation – and are happy with the outcome.
Know your concessions
When you negotiate, you need to reach an agreement with someone who doesn’t have the exact same interests as you. That means that you’re either going to have to meet completely in the middle (often an unlikely outcome) or someone is going to have to reduce their expectations. So, you should assess the situation carefully before entering into it and work out where you’re prepared to give some leeway. For example, if you’re renting new office space, perhaps you’re happy to pay a little extra if services such as cleaning and maintenance are included. These are the sorts of points you’ll need to have ready when debating the details.
Listen
As well as knowing and understanding where you can give a little ground, you also have to be prepared to listen. All too often, negotiations end up as two one-sided conversations with both parties focusing on what they want. Listen to the other person and read between the lines of their language. By listening to their reactions and considering them before replying, you’ll start to build trust and respect. And ultimately, you’ll be more likely to reach an outcome you’re both happy with. For example, if you’re meeting with an employee who wants a promotion and you feel that they’re not ready, listen to why they think they deserve it. There may be areas that you haven’t considered, and likewise, there may be areas you can advise them on developing before progressing with the request.
Use silence
As well as listening, use silence as a powerful tool to get more from the conversation. Often, negotiation can feel quite pressured, and there’s a temptation to get in and out as quickly as possible. Those who have mastered the art know that this is not helpful and can lead to impulse responses that you later regret. If, for example, you’re meeting with a supplier and they make a proposal that is unreasonable, don’t reply immediately.
Silence can be more powerful than words and can often elicit a more reasonable offer from the supplier as they feel uncomfortable and want to fill the gap in conversation.
Use your stamina
Negotiating is exhausting - it is by its nature, a pressured and stressful task. If you are inexperienced in this area it can feel tiring, leading you to accept a position you wouldn’t ordinarily accept because you are drained. Practice your stamina, even if it is just with small-scale negotiations in order to improve this. For example, if you call up your phone and internet provider, ask if they can provide better business rates. Customer service representatives are trained to negotiate day in, day out, so practice staying at the table longer with them to get a better deal. Often they hold back on the most attractive deals, so hold your ground and be patient.
Always be prepared to walk away
This is the perfect golden rule to end on. If you follow the first four rules and you still haven’t reached a point that you feel gives you what you want and what you need, walk away. This can be hard, as entering into negotiation immediately opens up the possibility of achieving your goal and therefore raising your hopes. Don’t let this distract you into accepting a deal that you’re not happy with, as you’ll walk away feeling frustrated and unhappy. Better to walk away and plan next steps, either by approaching someone else or reassessing your position in your own time. To be able to walk away, set your limits, as well as your concessions, before entering into negotiation. Whether it’s how much rent you can afford on office space, or a ceiling for a salary increase, it’s crucial you have a fixed range in your head.
As long as you prepare properly, and don’t let the pressure affect your end goal, these rules will help you get better at negotiation. The more you practice – both in personal and in profession circumstances – the better and more confident you’ll get.
Content on this page is paid for and provided by Kia Fleet sponsor of the Guardian Small Business Network Accessing Expertise hub.
