Life is one great big negotiation. The ability to negotiate successfully can make the difference between success and failure. It can help you earn more money, a higher title or even budget better. Thus, it’s essential to build powerful negotiation skills and become a better dealmaker.
For a lot of people, strategic negotiation can seem a bit mystifying. Many of us often shy away from asking for more and better. However, knowing the basics will stand you in good stead. Fortunately, there are proven ways to become a good negotiator. Read on for tips on how to become an excellent negotiator.
How do you negotiate a difficult situation?
Your work starts before the actual negotiation. That’s because preparation is the only aspect of negotiations over which you have complete control. Approach the negotiation as a partnership using positive emotions to get a better deal. Similarly, being optimistic and prepared can boost your chances of success. Either way, try to be diplomatic so that the other party doesn’t shut down on you.
Make sure you are clear on what you really want out of the arrangement. Have a clear sense of what’s at stake and run through all possible scenarios. This helps with improvising during the negotiation.
Preparation also means trying to understand what the other party is trying to achieve and how to arrive at a common understanding. Finding common ground means knowing common ground exists. Remember to keep a few cards up your sleeve.
A successful negotiation should be fluid and evolve as you and your partner try to find common ground. Use common sense and conventional wisdom to tailor your discussion to your partner.
How to negotiate salary?
When you’re starting a new job or gunning for a promotion at your current one, you may choose to negotiate your salary. With today’s talent scarcities where job candidates are in the driver’s seat, negotiating a better salary is something that everyone should be focused on. Even a small salary increase can impact your lifetime earnings. Salary negotiation may make you uncomfortable, but it’s extremely important.
Negotiations can include all aspects of compensation, including bonuses, insurance, medical coverage, and other perks.
Do not disclose your salary history or salary requirements. You might be embarrassed to share what you’ve previously been making. Similarly, you don’t want to anchor yourself too low unknowingly. So it’s better to state what you need salary-wise and let the chips fall where they may.
Find out typical pay for the type of position. Next, discuss how much you’re worth in the labor market and bring up hard numbers. Then weigh that amount against the cost of living. Have this data ready for use during the negotiations. This will help you understand how much room you have to negotiate. Then wait on pins and needles to see what happens next.
You don’t have to take the first offer that’s laid out on the table. Simply put, it is the worst strategy to use during a salary negotiation. Rather than offering up a specific number, give a range, such as “$70,000 to $80,000.” If you put a number on the table and you are asked to do better, resist.
There could be other ways you are compensated beyond your paycheck. Therefore, you should be open to discussing additional benefits of your choice, as part of the compensation package. For instance, you can ask for extra vacation time, a flexible schedule or any other perk that can make the job attractive.
How to negotiate when purchasing a new car.
A car is often one of the most expensive things you’ll ever purchase. Fortunately, car buying is one of the last bastions of freewheeling strategic negotiation.
The idea of going back and forth with sellers on car prices is scary. But with a few negotiation tips, you can potentially save thousands of dollars from the sticker price.
Before you head for the dealership, do your homework. If you don’t go in well-organized, you might not get the best deal. You’ll need to do some research before you start the negotiating process. This way, you’ll enter into negotiations with an idea of the average value. By setting the ground rules early, you can level the playing field.
First, you should know what type of car — and, ideally, the specific model — you want. You should also know the mark-up of the car’s sticker price so that you know what to expect when it comes time to negotiate. However, don’t limit yourself to only one make and model.
Now it’s time to find the dealership with the best price on the car you want. First, call and schedule an actual appointment.
Begin the negotiation process on your own terms. The last thing you want is to be rushed by pushy sales staffers.
Tell the salesperson that you’ll sign the paperwork when they hit your target figure. You can exercise your option to walk away to extract further concessions. There’s no guarantee that the dealership will bite on your threat, but it’s worth a try.
The most important thing to remember is to set your buying maximum limit. Also, remember your goal is to pay less than the price listed for the vehicle’s category. Thus, make sure you have at least five price offers from different dealers.
Why is it important to remain calm in a negotiation?
Negotiating a salary or the price of a car is stress that many people can’t manage. It’s not easy to stay calm and engaged when things get heated. It can be very unsettling, profoundly frustrating, and deeply disappointing. Nevertheless, a relaxed state-of-mind in negotiations reduces stress and increases creativity. So, how do you remain calm yet fully engaged at the bargaining table? There are several things you can do to keep your cool.
When negotiators are feeling calm and clear-headed, the difference is stark. While you might disagree strongly with the other side, you have to control your emotional reactions and remain as calm as possible. You surely won’t get what you want if you explode. As such, instead of showing desperation, you must focus on distinguishing the merits of the deal from the hostile behavior.
Use the latest body language tricks, eye contact and careful word choice. Similarly, ask for all offers in writing and respond in kind. Don’t panic and immediately drop your price through the floor. Take a moment and think about how you feel and learn how to recover if needed.
Like any life skill, you can improve it with knowledge and practice. Spend time thinking about what each party really needs from an agreement. That means you should be fully aware of the top goals, priorities and critical success factors of both parties. It’s also important to identify key points, different perspectives and core interests in advance. This ensures the negotiation must satisfy both parties participating in negotiations.
The mere thought of negotiating a deal can unsettle your nerves. Fortunately, there are many resources that can help you improve your negotiation skills. You can start with enrolling for a certificate from UC Davis Graduate School of Management. The UC Davis Strategic Negotiations online short course will teach you how to observe expressions and gestures, gauge likeability, style, and personality.
This program runs for six weeks and is led by industry expert Jim Olson. He will teach you how to develop a negotiation strategy and master cross-cultural communication. Not only will this certificate be proof of your gained knowledge, but it will also increase your confidence during a negotiation. If you are looking for an intensive self-development program, look no further than the UC Davis Graduate School of Management’s Strategic Negotiations course in collaboration with GetSmarter. For more advice, tips and opportunities like these, visit GetSmarter online or contact us today.