Negotiation Tips That Work Surprisingly Well

Believe it or not, sometimes the strategies we think will work in a business negotiation end up failing. No matter how hard we try to close a good deal, the unpredictable happens. What can we do to end a negotiation in our favor without following every trick in the book? Business people in general and expert negotiators alike are used to taking chances. They’re not afraid to use the most surprising negotiation tips and hope for a successful outcome.

Sharing information

We’re used to approaching a negotiation with our guard up, and we’re afraid that sharing too much information will make us look weak. While upholding information might work in our advantage, sometimes the lack of information can have a negative impact on the outcome of our negotiation. Not sharing information inhibits trust - people are matchers and they’re used to following the reciprocity norm, thus responding in the same way as they’re being treated. This principle applies in business too. How can you expect trust if you’re not offering trust? How can you expect a business partner to share information with you if you’re not willing to share either?

Some studies have managed to prove that sharing information, although not related to the business negotiation in questioning, can boost the final outcome. There’s no need to pull out all your cards, but it’s wise to let an opponent know who you are. Share personal concerns, hobbies or wishes and you’ll have greater chances of turning a negotiation in your favor.

Get your priorities straight

Generally speaking, during a negotiation we’re already aware of the issue we have to deal with. Sequencing them is easy – for example, when attempting to close a client we can easily state that price matters the most, but if we’re not 100% that’s the end goal, moving ahead is useless. The key to successful negotiation is to be transparent. Better outcomes can only be attained if we’re honest with ourselves and with our business partners. All parties involved in a negotiation should be able to compare facts and determine their options. 

Get to know you walk-away terms and target price

You can’t always have it all in business, and sometimes walking away is inevitable. Every negotiator should have a target price in mind prior to entering a negotiation. That price should be realistic – research prior to laying out an offer, and find out as much information as possible about your competitor. If you don’t know how much they can afford, you won’t be able to achieve your target price. An offer that’s overpriced will force your opponent to abandon the negotiation table, especially if they don’t have the resources to accept your terms. 

Making the first offer is a sensible decision

A lot of business people are afraid to make the first offer in a negotiation. Why should you hesitate if you know what you want? In negotiations, power is usually equated with information. As business professionals, we’re used to assuming that extracting as much information as possible beforehand from a counterpart can help us win. Experts are emphasizing on the idea that a business individual who makes the first offer has greater chances of winning. The explanation is simple: a first offer’s success is based on the psychological anchoring principle. The first number laid out sets the stage, and both parties are compelled to work around it.

The lowest offer is not always the winning offer

Negotiations are unpredictable, and even if you’re willing to settle on the lowest offer that doesn’t mean you’ll win. Accepting whatever deal is being thrown at you is not always a good idea. Your counterpart will notice that you’re weak and they will find a way to lower that offer even more. In the end, you’ll end up closing a deal that won’t bring you any satisfaction. It might surprise you, but sometimes being unpredictable can give you an edge.

Making a difference between real and phony deals is a skill you’ll acquire in time. Whether you’re ready to make a first offer or not, it’s up to you to decide. The smartest way of attaining goals is to be honest with yourself and with your counterparts, so there’s no need to be secretive and scare away business partners if you’ve got nothing to hide.