Knowing how to negotiate effectively is one of the keys to financial success. If you want to buy a car, to sell a car, to buy house, to sell a house, to make a deal, get a raise…you have to negotiate.
The problem is that very often we haven’t educated ourselves on the art of negotiating. We don’t know how to behave, what to say or how to deal with our emotions. Because of that we miss a lot of opportunities in our life. It’s so important!
Knowing how to negotiate will change the quality of your life and the way you feel about yourself. Think of the discount you could get on any sale just by knowing some tricks or imagine knowing how to behave to get the raise you deserve. Don’t you think you would feel more powerful and in control?
To get to that level you need to know and implement the 4 pillars of negotiation.
Regardless the kind of negotiation you’d better be confident. Show the other parties that you’re confortable in the situation. Sometimes you even need swagger according to Adeline Barry Dove (a great lawyer who has never lost a trial in her whole carrier).
Let’s take an example with 2 people A and B:
A has been doing a great job for 7 years in his company. He thinks he deserves a raise. After discussing with his wife he finally takes the decision to book an appointment with his boss. Monday morning he goes to his boss’s office, shakes the manager’s hand and sit down. He’s nervous, sweaty, he always looks down and speaks indistinctly.
B has been doing a great job for 7 years in his company. He knows he deserves a raise. He decides to book an appointment with his boss. Monday morning he goes to his office, he is confident, he stands straight and is smiling.
No need to ask who is more likely to get the raise! Bear in mind that the attitude is really important in negotiations.
Know the deal
Before any negotiation gather as many information as you can. You may be swaggering if you don’t know a damn about what you’re negotiating, you will only look like an idiot.
For example if you want to buy a car, take a look at what other competitors offer first. You can even bring a file with a comparison of cars’ prices. Make an analysis of the market and you’ll have strong arguments during the negotiation with the seller.
You also need to know things on the person you negotiate with (if possible). Know his/her need what is he/she up to. That’s the bedrock of the following point.
Focus on the other side
When negotiating we tend to think about ourselves first. Yet if you want to negotiate better you need to do the opposite. If you learn to listen and pay attention to what the person you negotiate with tells you, you will be way ahead. The person in front of you will feel that you take into account his/her needs, he/she will also feel in confidence, and will be more likely to trust you. So when you do an offer he/she will be less suspicious on whether you’re trying to fool him. Your offers will be more likely accepted.
Being creative means finding solution. Here is a small exercise to understand how being creative is useful during negotiation:
I have $100 that I put on the table. You want it but M.Guy too. You’re not allowed to make 50/50.
How do you do ?
You could take 60 for you and leave 40 for M.Guy but why would he accept?
In this situation you need to think more and be creative.
I am going to give you 2 solutions that you could use in this situation:
- Each of you take 40 and you flip a coin to know who’s going to get the 20
- You take 50,01 and give 49,99 to M.Guy if he doesn’t accept you take the 49,99. You will only lose $0,01 (still better than $10).
If you want to be financial independent master those 4 pillars!
As I am generous I am going to give you 5 more tips and 2 killer sentences to use when you want to sell something and negotiate for it.
- Always give something first before asking for anything
- Never accept the first offer
- Never make the first offer (if you can)
- If one offer is too low, remain silent and look like you disagree (body language). The person in front of you will make you other offers to break that silence.
- Be ready to give up some negotiation. It’s better to leave without anything than being unsatisfied by a deal.
2 killers sentences if you sell something:
- How much do you want to give?
- Is it all you got?