How you negotiate when it comes to landing a sale reflects yourrespect for the customer and how deeply you care about the life ofthat relationship. Too often salespeople and entrepreneurs listento bad advice about hard-core negotiating tactics. In reality,those who are peak performers at negotiating show a lot of styleand grace under pressure–something their co-negotiators rememberand appreciate.
Here are some negotiating tips to keep in mind when it comes tothe art of the deal:
1. Be prepared. Always go into a negotiation well rested.Long, drawn-out meetings–or, worse, negotiating over the long haulfor several months–are exhausting. Make it a rule not to getexhausted. If you do start to feel worn out, take a powder for awhile.
The person with energy has the will to continue. Do everythingin your power not to weaken your position by losing energy. NotreDame football coach Lou Holtz puts it brilliantly: “Nobody quitsunless they think they are not going to be successful. When someoneis running in a marathon, as long as he thinks he is going tofinish, he will continue. It is only when he starts thinking he isnot going to make it that he will quit before he completelyexhausts himself.”
You’re at your weakest when you’re tired. Fatigue stops thepositive thoughts necessary for good negotiations. That’s why, theday before every negotiation, you need to make sure to eat well,watch your alcohol intake and get at least eight hours’ sleep. Thisensures you’ll be in top mental and physical condition and thatyour head is clear to negotiate successfully. Things will better ifyou walk into the deal just plain feeling good.
2. Remember, it’s only a game. Herb Cohen, America’sgreat negotiator and author of You Can Negotiate Anything, says,”Negotiation is just a game. You care about the outcome, but notthat much.” That’s one reason it’s often hard for entrepreneurs toremain neutral when they negotiate–they’re too emotionallyattached and sensitive when it comes to representing themselves andtheir company. It’s much easier to take an unbiased position whenrepresenting somebody else’s money, time, family, product, serviceor even career, but when it hits close to home, it is no longer agame.
The more emotionally attached we become to an outcome, theharder we try to get our way. Pretty soon we begin to lose ourperspective. It’s important to stay neutral.
3. Don’t take a hard-and-fast position. When you startnegotiating, remind yourself that you want this agreement to worksatisfactorily for everyone involved. If you take a position thatsays, “Either this goes my way or it’s not going,” you could end upvery sorry. How do you deal with people who try to force you totake a position? Refuse to negotiate with them. Remain calm andmature no matter how they try to beat you down. If your prospectsthrows out an ultimatum, such as “Either you throw in 10 sets ofwidgets for free with this order or I won’t do business with you,”it’s time to stop the game. Say something like, “I would love towork with you, but it doesn’t sound like it could work right now.”Because this type of individual may be looking for trouble, youmust weigh your words carefully and get them out of your wayfast.
4. Be prepared to walk away. Remember, negotiating is agame, and if you don’t care about the outcome that much, you candetach yourself from the situation and walk away. The purestnegotiations occur when you have plenty of other prospects in thepipeline and plenty of money in the bank.
If an inflexible customer is the only customer you have goingfor you, it can be difficult to negotiate objectively. “Control ofthe negotiation lies with the party who is perceived to need thedeal the least,” says expert negotiator and sales consultant BarryElms. When you care the least at the negotiating table, you havethe most strength.
Most people feel they’ve either failed or walked away from anopportunity when they turn something down, says Joanna Tamer,president of Los Angeles-based S.O.S. Inc., a consulting firm fornew media developers, publishers, distributors and retailers. Butin reality, says Tamer, “there is no shortage of opportunity. Ifyou say yes to something, whether it turns out to be good or bad,you still have to say no to the next thing that comes along becauseyou have already filled that space.”
Tamer’s detachment in the face of negotiation is the key to hersuccess with clients, which include big names like Blockbuster,Harper-Collins and Time-Life Inc. “When I negotiate for myself ormy clients,” says Tamer, “I tell them and myself: `Remember,there’s no shortage of business out there. If this deal doesn’tfly, it isn’t going to end my career or kill your future business.'”
Keeping this positive attitude is important. And when you sayno, Tamer advises, be alert because something will show up soon tofill the place of the deal that didn’t work out. “You may feelawful when something doesn’t work out–but later, you’ll be amazedhow happy you are that it didn’t,” she promises. “If it had workedout, the new opportunity that is in front of you now never wouldhave presented itself.”
5. Practice compassion, and negotiate in good faith. Showcompassion by listening for the real reason behind your customer’sobjection or hesitation. Let customers air their feelings, makecomments, present objections and feel comfortable telling youwhatever is on their minds. Then and only then will all partiescome to the negotiating table in good faith.
