Negotiation is a very important tool in life. We use negotiation often for a variety of different reasons whether it be in the workplace to work out a better salary, buying a car or buying a piece of real estate. Companies usually have a final price for products which will be seen on price tags, but with good negotiation techniques, you would be surprised at the deals you can make. With careful planning and updated techniques, you will be good to go.
Determine the importance of all needs
It is important to enter a negotiation with priorities properly ranked. Clearly, define the key issues with the item being purchased and which ones to focus on first. Whatever issues the client brings up first is likely most important to them. It will likely be a deal breaker if the client does not get the answer they wanted to hear.
Clearly define the price range
Let’s say you are walking into a car dealership or trying to seal the deal on a new piece of real estate. After careful consideration, you have decided the exact price range that you are willing to pay for. A dealer may clearly define the price on a website or on the phone but it is still smart to have a target price you are willing to pay before meeting face to face. The worst that could happen is the dealer says the price is final. The best way to get a good deal is to do research and compare prices from around the area. Bring facts to the table when asking for a price to prove you are serious. The more confidence you have the more power you will hold. Clearly, know your limits and walk away if the deal is not going well.
Jump right into an offer
Before getting deep into a conversation with a salesperson it is recommended to shout out your price or deal at the beginning of the conversation to help the other person understand where you are coming from. Again this comes from careful research. Those who frequently lose negotiations or do not make the first move usually are not aggressive enough.
Be reasonable with the counter offer
After making the initial offer a salesman may change their offer to be between your offer and the initial price to find common ground. If you ask for a much lower price all of a sudden you lose that negotiating power and the salesman may not want to reason anymore.