Practice

The Wince, the Red Herring, Good Guy-Bad Guy, Limited Authority, False Deadlines, Trial Balloons, and a host of other commonly used negotiation tactics are skills techniques. The way to perfect and preserve negotiation skills is to practice, practice, practice.

Where to practice? When working to develop the use of any particular negotiation tactics, it is essential that we practice the tactic until we are comfortable with its use.

It is rarely productive to practice during our most important transactions. We develop our tactical acumen by practicing on things that are not terribly important. Practice at the airport ticket counter, practice at the hotel registration desk, practice at the high school rummage sale, or practice at the local thrift store.

Take twenty $1 bills and be on the lookout for a swap meet, a flea market, or a rummage sale. It is fun to haggle a good deal on an old Hawaiian shirt or a desk lamp ... and, it is great practice!

Get your "Licks" down on the small things and then you will find your conditioned response, tactical skills are ready and available when you engage in the give and take on the big deals.

Timing

The "Dual Vision" strategy discussed in other Negotiate Like the Pros™ articles is finally implemented by using tactical techniques. It may turn out in the best deals that little or no tactics are necessary.

However, when tactics are necessary to bridge the gap in the positions between parties, it is essential that we use the necessary tactics at the right time.

As a rule, you should put off using tactics until we have developed clearly defined strategic objectives ... measures of success.

Only when positions are finely revealed does tactical negotiation become relevant. This is when our practice can really pay off!

Discipline

Implementing a personal schedule to practice negotiation techniques is not easy. Especially as it relates to our business transactions.

Over the last ten years, our Negotiate Like the Pros™ organization has tested numerous coaching approaches. Here is our most current regime:

• An initial one day seminar to learn and review strategic and tactical concepts of negotiation. We use role-playing and audience participation liberally. We establish a practice schedule working on one tactic a week for 8-10 weeks.
• Next, we schedule a meeting for approximately one half day within 60 days of our initial seminar. We review our experiences in tactical practice and then identify our three most difficult challenges. We develop a game plan to meet these challenges and then go back to work.
• Another 30-day follow-up meeting is scheduled to review results. Usually our most difficult challenges are by then approachable and manageable. We can then identify our two or three most attractive business opportunities.
• A similar game plan is developed. In our final 30-day meeting, we review our experiences and compare our results.
• The four-month period described is followed up by toll free telephone consultation through the end of a total one-year period. The results have been phenomenal!
• Our Results Plus™ has really allowed us to substantially impact organizations and individuals who want to achieve dramatic returns on their training dollars.

Negotiate Like the Pros™ is constantly on the lookout for leading organizations that are looking for real results.

Perhaps your organization could be next?

John Patrick Dolan, Attorney at Law, Certified Specialist Criminal Law, CSP, CPAE is a recognized expert in the field of negotiation. He travels throughout the world presenting lively keynote speeches and in-depth training programs for business and legal professionals. Call 1-888-830-2620 for more information.

Negotiation in sales can be a tricky process when salespeople don’t know the true needs of their prospects. But the most successful sales and business professionals know how to ask questions that determine what their prospective clients really want. They use questions to open up communications and encourage prospects to share information.

However, using questions to uncover information and to break down barriers at the negotiating table requires more than just asking questions as you think of them. If you ask the right question, you can get the information you need to close the deal. But ask the wrong question, and you risk offending your prospect and losing the sale. Essentially, you must know how to ask effective questions that produce the right response.

Formulating effective questions requires forethought and skill. So use the following seven guidelines for effective questioning techniques the next time you sit down at the bargaining table with a potential client:

1. Plan Your Questions Ahead of Time

Before starting the negotiations, figure out exactly what key issues you’ll be negotiating. Researching the prospect you’re negotiating with, his or her organization, and background relative to the situation enables you to formulate the right questions to get more information.

Find out what type of person the prospect is, whether he or she is an experienced negotiator, and what’s at stake for the other party in the deal. The more you know, the more effective your questions will be. So plan in advance the kinds of questions likely to produce the most information, and the kinds of questions with the most potential for moving you and your prospect toward a solution.

2. Ask Permission to Ask Questions

Questions can sometimes put people on the defensive. To avoid this situation, choose words and phrases that make your prospects feel like they are being interviewed, rather than interrogated. The last thing you want your prospects to feel is that they’re under interrogation. So use care in your word choices and allow them to open up and let the information flow.

Start by saying, “So that I can understand where you’re coming from and how we might work more closely together, it would help me if I asked a few question. Is that okay with you?”

Once you have their permission, be sure to ask your questions gently. Instead of saying, “Why do you insist on those terms?” try saying, “So I can better understand your position, can you please explain to me why those terms are so important to you?”

3. Begin with Broad, Simple Questions and Progress to Questions with More Depth

Broad questions prevent your prospects from feeling pinned down, so start with open-ended inquiries. For example, ask them about their main goal for the negotiation. This method will allow the prospects to answer in general terms and to keep their negotiation strategy a secret. Then as you and the other party become more comfortable, move on to narrower, more direct questions.

Direct questions give you specific information, such as facts and figures. “How much to you expect to pay for this service?” is an example of a direct question.

Then as you uncover the facts, you can gradually progress to positioning and strategic questions, such as, “What will it take for you to agree to our offer?” Strategic questions help everyone focus on working out an acceptable agreement.

4. Make Your Questions Simple

Ask questions that are easy to answer. In other words, don’t ask questions that may make your prospect uncomfortable. So avoid personal questions, unless the answer is absolutely vital to your negotiations. For example, a person’s salary is personal information, but a real estate agent has a valid reason for asking prospects to reveal how much they make.

Also, if someone asks you a question that you don’t know how to answer, admit it. Learn how to say, “I don’t know.” But always offer to find out the answer, and promise to get back with them.

5. Once You’ve Asked a Question, Take Time to Listen

Although listening seems like an obvious part of the question and answer system, the practice is often overlooked. Many times, when salespeople get caught up in the negotiation process, they focus on what they want to ask prospects next, rather than listen attentively to their responses.

If you want to get information from your prospects, you must listen to what they say. Don’t plan your second question until they’ve answered the first. Be quiet, concentrate on their responses, and consider how their statements affect the negotiations.

6. Use Questions to Give Information

To avoid sounding pushy or overbearing, communicate important information by turning your statements into questions. For example, “Did you know our company out-sold our closest competitors by 125 percent last year?” sounds friendlier than just stating numbers and facts.

Also, statements in the form of questions encourage your prospects to respond with more information. For example, your prospect may respond, “Yes, we were impressed with your company’s record of consistently outperforming its competitors. The last company we dealt with seemed to struggle to keep up, which caused many problems.” This response tells you that they are aware of your reputation, and your stability is important to them.

7. Use Questions to Clarify

Experienced negotiators always ask enough questions to ensure that all parties understand all the details of the agreement, because many times two parties will agree, but not on the same terms. For example, if someone agrees to pay on the first, what do they mean? They may mean that they will pay on the first of the month, but which month? Or they may mean they will pay on the first delivery, or the first chance they get.

This may sound nit-picky, but you should always cover every detail of the agreement terms to avoid confusion. Keep asking questions until you and your prospect mean the same things by the terms you use.

The Benefits of Effective Questions

Information is the key to better negotiations, and effective question-asking techniques allow you to collect more information from your prospective clients. The right questions can open up communication lines and encourage conversations that increase the level of trust your prospect has in you and the product or service you sell.

When you use these seven guidelines for effective questioning, you and your prospect can move beyond your individual positions, focus on ways to pool your strengths, and form mutually beneficial agreements. And mutually beneficial agreements mean more clients, more sales, and more money for you and your company.

John Patrick Dolan, Attorney at Law, Certified Specialist Criminal Law, CSP, CPAE is a recognized expert in the field of negotiation. He travels throughout the world presenting lively keynote speeches and in-depth training programs for business and legal professionals. Call 1-888-830-2620 for more information.

If you think successful salespeople “wing it” when it comes to negotiation, think again. In truth, they prepare for every negotiation with the same rigor as a student preparing for an upcoming exam. Smart salespeople realize effective negotiation depends on preparation. They take time to think through their own position and that of their counterpart so they can ultimately handle anything that may arise during the bargaining process.

To become an effective negotiator and a more successful salesperson, you must understand the power of preparation. The first step is to solidify your position. Start by answering the following question: “Where do I stand?” In other words, what is your position in the negotiation process?

Knowing your position means more than saying to yourself, “I want this,” or, “I want that.” In most cases, your position will encompass more components than just the issue driving you to the bargaining table. Before entering the crossfire, use the following three inventory items to establish your position:

1. Know What You Want

Rather than enter a negotiating situation with a vague idea of your position, take time beforehand to formulate a detailed picture in your mind of what you want. Start by making a list of your demands. Say, for example, you're applying for a new job. In this case, your list may include a desired salary, benefits, and vacation time.

Be very specific in your list of items, because specific demands carry more negotiating power. When you know exactly what you want, you will feel more confident and your counterpart will respond more favorably to your requests. Sometimes just acting like you expect a positive response will sway the other party in your favor. And while you can't always rely on your confidence alone, the force with which you present your demands will at least give you an edge.

2. Know Where You Can Afford to Compromise

So what happens if you don't get exactly what you want out of the deal? Well, that's just reality. No one ever gets everything they ask for in life, and negotiation is no different. The process requires give and take from both parties, so you should always be prepared for compromise.

To avoid giving up too much, or giving in on the wrong issues, know in advance what concessions and compromises you are willing to make. Consider your list of demands and decide which items you absolutely must have, what items you would like to have, and what items would be great to have. Plan ahead how far you can reduce your demands so you aren't forced into making snap decisions, or a decision you may regret.

3. Plan Alternatives to Your Ultimate Goal

Think of alternatives as your safety net. If you can't negotiate a deal that both parties agree with, you should always be prepared to walk away. For every plan A you should have a plan B, and remember never to want anything too badly. Desperation will cause you to make poor decisions, and in reality situations aren't usually as desperate as they seem.

Many times, when negotiators aren't prepared with an alternative perspective, they feel like they have no choice but to take what's offered. When you take time to consider your alternatives prior to the negotiation process, you won't be afraid to walk away when things don't go as planned.

What is Your Counterpart's Position?

Once you've determined your stance, the second part of negotiation preparation requires you to look at the situation from the other side. You must survey your counterpart's position and uncover their strengths and weaknesses. Ask yourself the following five questions to discover what's on the other side's agenda:

1. What Do They Want?

Discovering what the other side wants is crucial for developing mutually beneficial agreements. Obviously they want something from you, or you wouldn't be negotiating in the first place. Do they want the product you're selling? Or do they want a cheaper alternative to a service they already get from somewhere else? In many cases, their wants will be apparent. But if you don't know what they want, then don't be afraid to come out and ask them.

2. What is Important to the Other Side?

Say, for example, you're a real estate agent negotiating the price of a listing with an interested couple. Naturally, they want the house you're selling, but what's really important to them? Is it the location? Are they comfortable with the mortgage? Once you discover your counterpart's needs, you can use those points to negotiate for things that are important to you.

3. Why Are They Willing to Negotiate?

Willingness to participate in negotiation automatically signals some degree of flexibility or need. Roger Dawson described a historical example of this concept in his book, You Can Get Anything You Want. During the Vietnam War, Lyndon Johnson's administration was under tremendous pressure from the constituency to reach an agreement before the general elections, and the Vietnamese used this to their advantage. They pushed the United States into a corner and forced them to give up almost everything to end the fighting. In this case, the impending election added a time constraint on the United States to the point of desperation. When you know why your opponent is willing to negotiate, you can use it to your advantage.

4. What Does the Other Side Bring to the Situation?

Before entering into negotiations, you must find out what they have to offer you. Do they have what you want? Can they afford your demands? If they don't have what you want, the negotiation process is pointless.

5. What Resources Do They Have?

Just like you have other options, your counterparts are likely to have alternatives as well. Find out how badly they need this deal. Are they desperate? Or do they possess a catalog of other options? A customer, for example, usually has plenty of choices when negotiating the sale of a product or service. They can just shop somewhere else if you don't provide what they want on their terms. But sometimes, you'll find that you are the only source for the item your counterparts want.

Preparation for the Future

You wouldn't take a test without studying, so why should the negotiation process be any different? Taking a personal inventory of your position before beginning the negotiation process will give you confidence and prevent you from making poor decisions. Additionally, some investigation of your counterpart's needs and wants will give you an added edge when the process starts.

Knowledge and preparation are the keys to effective negotiation, and as a salesperson, you can only benefit from the extra effort. When you take time to understand your position and your counterpart's position at the bargaining table, you'll be ready for anything and secure more sales as a result.

John Patrick Dolan, Attorney at Law, Certified Specialist Criminal Law, CSP, CPAE is a recognized expert in the field of negotiation. He travels throughout the world presenting lively keynote speeches and in-depth training programs for business and legal professionals. Call 1-888-830-2620 for more information.

No matter what you’re selling, or to whom, you need a reliable negotiation strategy that enables both parties to succeed in the deal. Think of your strategy as your master plan, or systematic approach. Since any strategy is only as strong as the techniques and tactics you use, think of tactics as the tools for implementing your negotiation strategy.

Without a solid strategy in place and the right tools for the job, you are likely to succumb to ineffective negotiation tactics and may end up losing sales or not getting the best outcome for you and your company. Use the following five strategies to negotiate effectively.

1. Always be Prepared

You wouldn’t jump out of an airplane without a parachute, and you wouldn’t climb a mountain without prior preparation, so why should negotiating be any different? All effective negotiations start before you actually sit down at the bargaining table. So don’t jump in without any research or planning. Take time to consider your counterpart’s situation. Ask yourself what they need from the deal, and know what you can and cannot compromise.

Negotiations for a year-long service contract will obviously require more preparation than for a one-time purchase of a product. But regardless, use preparation to gain a comprehensive view of the situation. Preparation and planned alternatives will help you stay relaxed through the negotiation. And remember that the more you know about the deal in question, the easier it will be to arrange the best solution for everyone involved.

2. Set Objective Negotiating Standards

If you want to reach a mutually beneficial agreement, everyone has to play the negotiation game by the same set of rules. Objective negotiating standards are like a set of rules established before the process starts. Many times, these standards are set by the organization, or by a government law. For example, most banks won’t grant a loan to someone buying a home until that house has been inspected and declared structurally sound. This rule is a standard that must be met before the bartering can even begin.

In most cases, you can set your own rules. For example, if you’re negotiating a carpet cleaning service contract, you may approach your client with the competitor’s price and what the client currently pays for regular cleanings as some standards for the process. By setting guidelines prior to the negotiation, you ensure that everyone operates under the same standards and everything runs smoothly.

3. Work With, Not Against, the Other Party

Good negotiations mean all parties leave the table feeling good about the agreement and about each other. In order for this to occur, everyone involved must strive for mutually beneficial solutions. When you approach the situation with this attitude of mutual satisfaction, the other party will usually disarm. Most people only get defensive when they feel like you’re out to swindle them. But if the other party knows you want to play fair, they try to play fair as well.

However, you may come across some people who don’t agree with the concept of fair play. Unfortunately, some people, regardless of how you approach negotiations, won’t play by the same high standards. No matter what you do, these individuals are prepared for battle and may bring out the heavy artillery, such as intimidation and manipulation. But you can’t stoop to their level, no matter how tempted you may be. Keep the possibility of an unfair counterpart in mind, but don’t abandon your strategy for fair play.

4. Finalize All Agreements

Keep in mind that the point of negotiation is to arrange the best deal for everyone, so ask plenty of questions. Don’t let important details slip through, and perhaps more important, listen to the client’s responses and concerns. If they are worried about customer service, or the contract length, or routine repairs on the product, then address these issues with care. When the terms are settled, make sure everyone’s perceptions match, and recap all the important details.

Depending on the impact of the deal, you may decide to put the terms in writing, such as a sales contract or agreement. Keep a copy for your records, and give the other party a copy as well. Then if any questions arise, you’ll both have a copy of the answers. And don’t sign off until both parties understand all the key points. Don’t leave any details hanging, and make sure everyone agrees to all the terms and knows what is expected.

5. Follow Through

Once you’ve negotiated the sale, developed mutually beneficial solutions, and signed the agreements, you must follow through on your part. This means you do what you said you would do, when you said you would do it, and in the manner you said it would be done. For example, if you said you’d deliver a product or service on a certain day, then make sure it’s there. If for some reason you can’t follow through as expected, make sure you contact the other party and discuss alternative arrangements.

Also, make sure the other people involved in the agreement follow through as well. Unfortunately, at some time in your sales career, you’ll inevitably run into some people who blow off agreements. In this case, you must protect yourself. But as a general rule, for everything you give, you must expect to get something in return.

Negotiating Conclusions

Negotiation is a process of give-and-take for everyone involved. When you follow a strategy, you can focus on finding solutions, rather than winning a position. Preparation gives you a comprehensive view of the situation, and standards serve as guidelines for compromise. Remember to work with, not against, your counterpart, and then finalize all the details you’ve agreed upon. Most important, once you’ve completed the negotiation process, keep your word and follow through with the deal.

As a salesperson, you naturally want your customer to be satisfied, but you also need to benefit from your hard work. When you use these strategies every time you negotiate a sale, both parties will come away pleased, and you’ll win more clients in the process.

John Patrick Dolan, Attorney at Law, Certified Specialist Criminal Law, CSP, CPAE is a recognized expert in the field of negotiation. He travels throughout the world presenting lively keynote speeches and in-depth training programs for business and legal professionals. Call 1-888-830-2620 for more information.

Because most people don't understand the dynamics of negotiation, they may get nervous or apprehensive about the process. Even professional salespeople get sweaty palms and anxious stomachs before sitting down at the bargaining table. The trouble resides in all the myths associated with negotiation. But, regardless of what you're selling, you can make the inevitable sales process more productive when you understand and overcome the following seven myths of negotiation:

Myth #1— In order to be a successful negotiator, you must be an SOB.

Mythbuster — This statement is completely false. In fact, most people become SOBs in sales situations because they are poor negotiators and must resort to ruthlessness to get what they want. In reality, effective negotiation has a great deal to do with the attitude you bring to the table. If you approach negotiation as a win-or-lose battle, then that's exactly what you'll get: a battle. You'll struggle against the other party, waste time and energy defending positions, and resort to sneaking things past your counterparts. Then when it's all said and done, you'll probably come away with less than if you'd have treated the negotiation as an opportunity for everyone involved to profit.

Myth #2— Negotiating is synonymous with fighting.

Mythbuster — Fights generally break out when people can't negotiate effectively. When you understand effective negotiation, you can actually head off misunderstandings and conflicts that may arise in the process. You'll know how to settle issues with customers without fighting. And in many cases, you'll be able to mediate conflicts, misunderstandings, and stalemates between other people and groups.

Myth #3— Negotiating is a talent reserved for shrewd businesspeople, experienced diplomats, and precocious children.

Mythbuster— Anyone can learn to negotiate effectively, without being a genius or manipulative. Most salespeople don't consider themselves negotiators, and certainly not professional negotiators. Many equate professional negotiators with hard-charging corporate raiders launching takeovers on other businesses, diplomats meeting to discuss the fates of nations, or lawyers settling million-dollar lawsuits.

But each and every person on the planet is a negotiator, and many times without realizing it. When you take time to learn the art of effective negotiation, you actually can get more of what you want. You can forge better and more productive relationships with your clients and all the people around you in other areas of life.

Myth #4— When you sit down at the bargaining table, you must abandon all ethics to get what you want.

Mythbuster— Getting what you want doesn't mean stealing it from others. By understanding negotiation, you can prevent being conned into things you don't want to do or getting less than you deserve. Consider negotiating for a new sales position. The terms you agree on with the new employer will obviously affect your time with that particular company, and also your time with future employers. The compensation package from one company will set the pattern for the level of income you can command when negotiating with other companies. It's not unusual for the difference in two people's earnings to be more affected by their individual negotiating abilities than their experience or talents.

Myth #5— You must have the upper hand to negotiate effectively.

Mythbuster— If you think that negotiation involves one group trying to beat the other out of a good deal, then you have an inaccurate perception of the process. Actually, the weaker your position, the better your negotiating skills must be, because you can save a huge amount of money. For example, suppose you're negotiating the price of a new computer system for your company. The person selling the system knows your current system is outdated and that you must make a purchase immediately to stay competitive. If you can bring the price down $15,000 from what the seller asks, you'll save much more than the upfront cost. By the time you add interest on a five-year financing plan, you'll have quite a savings that's well worth the negotiating effort.

Myth #6— Negotiating is a time time-wasting activity that only clogs the wheels of progress.

Myth #7— Negotiating is always a formal process with clearly defined parameters and procedures.

Busting the Myths of Negotiation

Human beings negotiate constantly, so it's vital to get beyond the negative thoughts that cause us to ask for less than we deserve. And the art of negotiation requires more than just trading off with others to get the things you want. Negotiating is a process of understanding people and discovering ways you can work together to produce positive results for everyone involved.

When you understand the myths surrounding the negotiation process, then overcome these fallacies, you will reap greater benefits from your sales profession. Most important, you'll come away from every sale completely satisfied for yourself and confident that the other party feels a similar satisfaction.

John Patrick Dolan, Attorney at Law, Certified Specialist Criminal Law, CSP, CPAE is a recognized expert in the field of negotiation. He travels throughout the world presenting lively keynote speeches and in-depth training programs for business and legal professionals. Call 1-888-830-2620 for more information.