All of us face negotiation situation regularly in our professional as well as personal life. While negotiation is an art, there is certain structure as well that can help you plan your negotiation tactics in certain situations. I would try to discuss few negotiation tools with relevant examples that can help you plan your next negotiation.
Before we get into the right tools, let talk about a few myths commonly associated with negotiations:
Negotiation is about monetary benefits only
Even things that considered very transactional, there is very often a larger value at play than just the money involved. If you were buying a part for your car, you also want to negotiate about the quality of the part other than just the price.
Negotiation is a zero sum-game
Only one party wins i.e. you can only win if someone loses. Situations often offer alternatives where both parties can win. For example, offering a discount for volumes is one such case.
Negotiation starts when you sit across the table
If you are negotiating a property lease/purchase through a broker, you don’t want to delegate their commission to 1 final meeting. You can pre-negotiate by dropping anchor.
You can’t be a good negotiator if you are too “nice”
Also, people may argue that some are born negotiators and others aren’t because they are too nice. You have to be a good listener and persuasive to be good negotiator. Similarly argument may not lead to the best possible negotiation either. In fact, calmness can be extremely beneficial to a negotiation.
If you always get what you want, you are a good negotiator
There is a possibility that you are, but another possibility is that you aren’t! Your goals are low- you should raise your goals. You aren’t able to maximize the value in the system. Similarly, sometimes good negotiators do not end up getting anything in the deal, but they might use it to build relationship.