Negotiation is a very important aspect for anyone. It is a discussion that helps in reaching an agreement. In any negotiation, you want to figure out your best alternative to reaching an agreement so that you only agree to something that is in your best interest.
When it comes to negotiation, the majority of people think that they are good communicators but not good negotiators. However, negotiation is a skill that everyone needs to develop.
Here are 7 negotiation strategies for better purchasing value.
#1. Do some research
Do your homework before any negotiation. This is the magic “trick” in every given situation. Knowledge is power – especially in negotiations. Know some important things about the service or product you want to buy before you begin negotiations; like how much competitors charge. If you can tell the seller you know the item is available for a lower price, it puts a lot of pressure on them to lower their offer. Furthermore, it lets you know that you don’t have to accept the seller’s offer. You can walk away from negotiations and still get what you want.
#2. Set Your Pricing Limit
Always have an offer ready before a negotiation. You should set a Walk-away price i.e. the maximum amount you are willing to offer to a seller to make a deal. This will help in directing your negotiation.
#3. Make the Other Side Name a Price First
By allowing the other side to name its price first, you may get a chance to counter with an amount that is lower than what you would have offered initially.
#4. Start at the Lower End
During a negotiation, you should start in the lower end so you give yourself movement to get to a price that both sides can live with. Even if you have to assume, think about what price the other side may be comfortable living with to help understand how much movement you’ll have within the negotiation.
#5. Show that you want to establish a long-term relationship
That is very important. You should explain why it is in their best interest to agree to the value you are demanding for. If you show that you want to establish a long-term relation, there is more probability to reach a better price.
#6. Be Polite
Being polite can help you create an atmosphere of respect that allows for the agreement to be reached.
If you show the other party that you are listening to them, and that you understand them, they will be more willing to listen to you and accept your opinion.
#7. Think through before seeking alternative
Alternatives are helpful anchors that help you not make rash decisions about agreements you might not like.
Should a favorable agreement not be possible, you may want to consider the alternative of sourcing your wants elsewhere at a lower price. However, you should also consider the extra cost you may incur in seeking alternatives elsewhere; like transportation, taxes, bank fees, etc that will make the total price will you pay.
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