“In business, you don’t get what you deserve, you get what you negotiate.” - Chester L. Karrass
Many times when we’re trying to save money we overlook the powerful strategy of negotiating to get a better deal. A business transaction normally involves the consumer asking for the price and agreeing to work with it, or walking away from the deal because the terms are not suitable. We’re often afraid or embarrassed to negotiate to get a more advantageous arrangement.
Last week, I attended an intensive seminar organized by Peak Potentials, which revealed street-smart tactics to help business people get ahead. One of the topics we were trained on was the art of negotiation. By testing the simple strategies we learnt, in the real business environment around the seminar location, we discovered how easy it was to negotiate and save a lot of money on practically anything.
T. Harv Eker, CEO of Peak Potentials pointed out that negotiation is not a talent that you’re born with; anyone can learn the skill. Here are some of the negotiating strategies that he outlined:
1. Ask For What You Want
It might sound too simple; but in order to get what you want you really just have to ask for it. Many people miss out on great deals because they have never thought of asking the shopkeeper for a discount or improved payment terms. Whenever you’re shopping, always be willing to ask for something better than what’s offered. A key rule is to never negotiate with anyone who doesn’t have the authority to give you what you want. Always ask politely to speak to the person with the true decision-making power.
2. Create Affinity
Creating affinity is the ability to build a relationship with people and get them to like you. You should try to create affinity before, during and after the negotiation process. So, how do you get people to like you? First of all you need to ask sincere questions to discover what you might have in common. People tend to be more relaxed with you if you have a shared interest. You should also create an environment that is positive for both sides, by stating your win-win intention up front. You let the other party know that you would like to come to an agreement that’s mutually beneficial. Most importantly, never personally criticize your negotiating counterpart.
3. Create A Reason To Negotiate
You have to find some point that is going to entice the other party to want to negotiate with you. What’s in it for them? As long as you can give them a good reason, they will negotiate with you. Some examples of good reasons are:
- The item is damaged or has a flaw and should be sold at a discounted price;
- You will buy in larger volumes if the price is attractive;
- You will bring more business in the future by coming back and bringing your friends and associates;
- You offer to pay in cash instead of using credit or debit cards, to save them money;
- You ask for special attention- something about your situation might be unique and you could benefit.
4. Don’t offer first
Always try to get the other person to make the first offer. You should never make assumptions about the situation that the other person is in; they could be willing to give you a better deal than you think. If you make the first offer, you’re really negotiating against yourself by showing what you’re willing to pay. According to Eker, the seven magic words in negotiating are, “What’s the least you could live with?”
5. Create Competition
It’s important to gently remind the other party that there are other places where you could take your money. You could drop names of other companies that you are discussion with, or tell them that you are going to check out the competition to see if they will give you a better bargain. However, tell them that you would love to give them the business, if an agreement can be reached.
6. Use Weakness As A Strength
Don’t be too pushy when you are negotiating, even if you might have the upper hand. People generally don’t like dealing with persons who think they are smarter than everyone else. It has been shown that a friendly, polite shopper in genuine need will get a break faster than an obnoxious, demanding person. As Eker pointed out, ‘Help me’ are two very effective words when trying to get people on your side.
Try out these strategies the next time you go shopping or whenever you need to negotiate with a business place. You might be surprised at the results!