Business negotiation tips to get the best profit

Business negotiation tips

Negotiating is an activity that we carry out continuously in our daily life, however, when it comes to reaching business negotiation for financial or commercial agreements then it is necessary to adopt a professional position in order to obtain the best results. When you seek to agree with your family about the choice of a movie or a place to vacation, when you agree with your children how much money to give them weekly or monthly, when you agree on the amount of the rent of a place or a house, meaning you are negotiating.

But when it comes to the management of your company, negotiating with suppliers and clients helps to clarify the economic benefit you can obtain, therefore, skills that do not always occur naturally as part of your personality come into play, but you must acquire through training or practice.

Business negotiation tips

Business negotiation tips for an effective agreement

A good negotiation is one in which you get the best benefit, but also in which a fair and equitable result is given to the other party if what you want is an agreement that will produce a good relationship.

To achieve this, it is necessary to consider these fundamental aspects in the art of efficient negotiation:

  • Be clear about what is being negotiated: What is it that you are looking for, but also what the other party wants to achieve. You will not get anywhere if unattainable results are pursued.
  • Determine the value you bring and communicate: Your position should be to provide a benefit to the other negotiating party and let them know so that they are more willing to accept your terms.
  • Take the negotiation to a personal level: Whether you are looking for a long-term relationship with a supplier or it is a one-time transaction, it is important that you transmit your values and open up to your counterpart’s so that the negotiation takes a more personal tone and mutual respect.
  • Find the middle ground: To reach a mutually beneficial compromise requires that the two parties give in to their claims as much as possible, that is, without it being to the detriment of the other.
  • Visualize a result and share it: By sharing with the other party a clear idea of where you want to go with the negotiation, defining the mutual benefits, it is easier to unlock a transaction, since, when also visualizing the result, the other negotiator will be willing to yield to reach a compromise.

Business negotiation tips

Types of negotiating positions

Having an efficient negotiation depends in part on the position you assume and the results you obtain.

In general terms, there is talk that there are two attitudes that a good negotiator can assume:

Distributive negotiation

It is when what is on the negotiating table is limited, say the sale of a property, and both parties seek to get the best deal, rather than a long-term business relationship.

Integrative negotiation

In this case, the intention is to reach a “win-win” situation in which there is a benefit for the two parties that leads to a fruitful subsequent relationship.

In general, this type of negotiation involves several aspects and requires an attitude of collaboration and trust to solve them mutually beneficially.

Other actions that are useful in the integration negotiation are:

  • Share information so that each party understands the interests of the other.
  • Look for solutions in a joint way to the problems yielding as much as possible to reach the greater good.
  • Forge long-term relationships to extend benefits.

Business negotiation tips

Business negotiation Skills carried out

Knowing the basic elements of a good negotiation is one thing, putting them into practice and getting the best results, another.

These business negotiation tips will serve you when you feel in front of your counterpart:

  • Prepare in advance. The more you know your interlocutor the easier it will be to understand their intentions and needs. Find information about your company, what other negotiations you have participated in, what results you have obtained, who your competitors are and what they offer.
  • Listen to what it offers. At the beginning he adopts a passive role, letting the other establish the starting point of the negotiation but also trying to understand his position and then participate making a proposal acceptable to him and beneficial to you.
  • Make sure you are dealing with whoever has decision-making power. Otherwise, it would be a waste of time.
  • Determine what is the dynamics of the negotiation. One of the two will have the pan by the handle, who is it? Who will naturally win more? Are you the seller looking for an important customer or the buyer who needs a reliable and profitable supplier? What time pressure does each face and what other alternatives do they have?
  • Be professional and courteous. Nobody wants to negotiate with a difficult person. It establishes the bases for a prolonged commercial or financial relationship showing understanding, and collaboration and communicating in a positive way. This kind of business negotiation tips will pay off.
  • Set a limit. You must know in advance when the negotiation is failing to favor you to be able to retire safely.
  • Investigate your alternatives. If you know your options, it will be easier to know when to withdraw, and if you do it, the other will be more willing to give up so as not to let you go.
  • Do not go with the willingness to give in everything. This would put you in a vulnerable position in which the other party takes advantage of your anxiety to close the agreement.
  • Note the time. You can play in your favor or against you and keeping it in mind will prevent you from falling into haste or despair to close a deal.
  • Do not ponder on an intractable topic. The best thing would be to leave it for later and continue negotiating. The most probable thing is that advanced in the negotiations, this point will not be so important or easy to solve in view of what has already been agreed.

Business negotiation tips

  • Prepare a letter of intent or draft agreement. In addition to showing your seriousness and intention to reach an agreement, if you do it and present it, you will be taking the initiative and the other will only have the opportunity to ask for modifications.
  • Seek advice from experts. Do not enter alone to an important negotiation. Although the guidance of experienced professionals in the area in which the negotiation will take place will cost you money, also, in the long run, it will save you a lot more if they help you get a good deal. These experts can contact you with the right people or smooth out rough edges so that agreements can be made quickly.

Business negotiating is an art for which we are preparing, without intention, since childhood. But when it comes to high-level negotiations, it is better to prepare well and act professionally to obtain the expected results, and even better ones. These business negotiation tips will help you a lot.

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