There is no question that negotiation skills are highly sought after in the business world. In today’s increasingly competitive market, the ability to negotiate well is more valued than ever before. That’s’ because businesses rely on successful negotiators to close deals that will improve their bottom line. So, how can you improve your negotiation skills in order to close better deals? The following strategies can help you master the art of negotiation in order to strike the best deals. 

Do Your Homework

Before sitting down at the bargaining table, you need to do your research to find out as much as you can about the person and the company that you are dealing with. Familiarize yourself with their products or service, the industry and their competitors, as well as their strengths and weaknesses. You also want to find out what their interests are and what pain points they may have. When you know their hot button issues, you can better formulate an appropriate response. You should also review similar deals they have completed as well as offerings and pricing from competitors. 

Aim for a Win-Win Situation

The most successful business deals are those that are mutually beneficial for both parties. It is ideal for everyone to leave the table feeling like a winner. Ask yourself: What do I want and what does my counterpart want? Then, propose a deal that addresses the needs of both sides. 

Actively Listen

The best negotiators understand the importance of listening. The ones who do all the talking and try to control the conversation often frustrate and even irritate the other side. In contrast, great negotiators are the ones who truly listen and seek to understand the perspective of the other side. Refrain from talking too much and instead, try to learn what is important to the other side.

Know Where You Can Compromise

Negotiations are about give and take and compromise is inevitable. However, there may be times when you need the deal more than your negotiating partner and vice versa. Be realistic about this and don’t let your pride get in the way. Prior to the negotiation, decide what you need to make the deal happen and what you are willing to compromise and create a strategic plan using this information. 

Have a Plan B

Not every negotiation has a quick and easy outcome. There are times when things may not go as planned so it’s important to have a plan B in your back pocket. You should always prepare a BATNA prior to any negotiation, though you would never share this with your counterpart. If they know you have an alternative plan, they will know how much they can push you. 

Be Polite and Courteous

Nobody wants to do business with someone who is rude or abrasive. Keep in mind that you may have to do business with this person again in the future so it’s always best to remain polite and courteous. Establishing a good long-term relationship should be one of your goals in the negotiation, as this is more likely to result in a successful deal. 

Trying to reach a consensus when everyone has differing opinions may seem like an impossible task. However, when you create a space where everyone can respectfully share their viewpoint, you can work toward a consensus in no time. This is an important skill for groups who need to work together to create solutions, address issues, or meet objectives. Here are some helpful strategies for building consensus within your group. 

1. Make sure everyone is included.

Inclusion is one of the most important requirements for building consensus. Everyone who is part of the discussion, should be involved in the process. No one should ever be excluded or left out. Rather, each person should be given the opportunity to share their ideas and viewpoints. 

2. Encourage participation. 

Not only should every person be included in the discussion, but every person should be encouraged to participate. Ask each person to share their opinions and suggestions so that each person has an equal opportunity to be heard. This ensures that everyone has equal stake in the final decision. 

3. Set expectations for the discussion. 

One person should be designated as the facilitator and this person should set the expectations for the group. Start by identifying your goal for the meeting. Next, make sure everyone understands that they are to listen and be respectful of everyone else’s ideas, regardless of their own opinion. Finally, make it known that everyone’s input is valued the same. No one’s input is weighed more or less than anyone else’s. Each member has the same opportunity to amend, veto, or block ideas. Everyone involved is expected to collaborate and build on each other’s ideas in order to reach a solution that will satisfy the entire group. 

4. Explain the benefits of reaching a consensus.

If everyone in the group understands the benefits of negotiating an agreement, they are more likely to buy into the idea. Some of the benefits include:

• Better decisions that address multiple concerns
• Better group relationships
• Strong levels of cooperation because everyone was involved in the decision

5. Create an outline of what needs to be decided. 

You need to set clear objectives so everyone knows exactly what decisions need to be made. It’s also important to discuss why the issue is being raised in the first place and the upside of reaching a solution. This ensures that everyone is on the same page about the goals of the negotiation. 

Whether you are seeking a raise or a promotion, employers often use counter offers in an effort to retain high-value employees that might otherwise leave to go to another company. If your employer offers you a counter offer, you may be wondering how to best handle the situation and evaluate your options. Successful counter offers can result in increased salary, better perks, or even a better job position. Here we will discuss some tips and strategies for handling a counter offer from your employer. 

Know Why You are Considering a New Job

If you have been given a counter offer, the first thing you should do is determine what prompted you to seek a new position in the first place. Are you disappointed with your current boss or co-workers? Are you unhappy with your company altogether? Are you looking to climb the ranks to a higher position? If you want more money or a better position, is this something you can get from your current employer? If you are unhappy with your current position will this counter offer solve the problem? Remember to consider all circumstances surrounding the offer, not just the money. 

Consider the Total Compensation

There is more to a compensation package than just the base salary. Check to see if your counter offer includes additional perks such as a bonus or equity in the company. Furthermore, does it include additional benefits like added vacation, flex scheduling, gym membership, or any other special perks. Compare this entire compensation package with that of your other job offer to figure out what is most important to you. 

Does This Offer Put You on a Solid Track?

If you accept this counter offer will it put you on a solid track to advance your career? You can find this out by speaking with your employer and asking questions about your role within the company. You can inquire about how this new position will impact your career and help you continue on a management track. 

Review the Details of the Offer

Find out exactly what is entailed if you accept the counter offer. What will your roles and responsibilities be? Will you have new hours or job duties? It is important to understand what will be expected of you if you accept the offer so you are aware of any new responsibilities that you would be assuming. You want to make sure this is a good fit with your lifestyle. 

Listen to Your Inner Voice

You have probably been told at some point in your life to “trust your intuition” and this certainly applies when applying for a new job. After you have carefully considered the pros and cons of the counter offer, it’s time to listen to your inner voice to figure out which way you are leaning. If you ignore those subtle concerns, you may end up regretting it in the future. On the other hand, if you fail to follow your instinct out of fear, you may miss out on a great opportunity. 

Whether you are trying to increase your salary, propose a new solution for your company, or settle a high-profile business deal, strong negotiation skills are a must in today’s business world. That said, negotiation is an art form that takes time to master. Most business owners and entrepreneurs would admit that it took quite a bit of trial and error to develop a successful negotiation strategy. The problem with this approach, however, is that even a single failed negotiation can be detrimental to your company. That’s why it is so important for business owners, managers, and employees alike to pay close attention to the do’s and don’ts of negotiation. 

Do’s

1.Do prepare.

One of the most important negotiation strategies is preparation. Prior to the negotiation, take time to research the person with whom you will be speaking, the organization they work for as well as general information about the industry, and also competitors and deals they have made in the past. A lack of preparation can cost you time, money, and credibility.

2. Do set goals.

It is important to clarify your goals and objectives before you begin negotiations. You want to have a clear understanding of your desired outcomes. This will help you plan and prepare a proper negotiation strategy. In addition to understanding your own goals, it is also important to understand the goals and desired outcomes of your counterpart so you can aim toward a win-win solution.

3. Do know your bottom line. 

Before entering into any negotiation you need to clearly define your bottom line. Once you do, you have to promise yourself that you will not stray from it, regardless of the pressure you feel from the other side. Setting a bottom line will allow you to know when to step back and when to push forward in a negotiation. 

4. Do listen to others. 

One of the most important things a successful negotiator can do is listen. When you are eager to strike a deal, it can be tempting to do all the talking. However, the most effective negotiators follow the 80/20 rules: Listen 80% of the time and talk 20% of the time.

5. Do use a friendly approach.

When it comes to business negotiations, courtesy and friendliness goes a long way. Take the time to make a little small talk and find common ground with the other party. Smile and be polite and respectful when someone else is speaking. This will lead to smoother negotiations and a better outcome for everyone involved. 

Don’ts

1. Don’t let your emotions get the best of you.

Business negotiations should never be taken personally. Therefore, you should never let your emotions dictate your approach or behavior. Stay calm and friendly, even if the other person is not. Don’t be afraid to take breaks if necessary to calm tensions in the room. 

2. Don’t be intimidated.

Some people rely on intimidation tactics to get their way in a negotiation. Don’t allow yourself to be intimidated by someone who makes threats, raises their voice, or tries to bully you. Stay calm and request for substantive data that will support their claims. 

3. Don’t give something away without getting something in return. 

Negotiations often involve concessions but this is bi-lateral. Make sure that any time you make a concession that your counterpart reciprocates. 

4. Don’t make unreasonable demands.

It’s important to remember that negotiations require give and take so you can’t have an “all-or-nothing” attitude. The best negotiators understand the importance of focusing on a mutually beneficial solution. 

5. Don’t underestimate your worth.

Never underestimate what you and your organization have to offer your counterpart. Write down a list of awards, accomplishments, achievements, or strengths before going into the negotiation and keep these in mind as you advocate for yourself and your company.

You may have heard that you need to leave your emotions at the door when you are negotiating, but don’t be fooled. Emotions can and do have a powerful effect on your thinking and behaviors during a negotiation, which is why it is important to maintain a positive attitude. Successful negotiation requires positive energy. The attitude in which you enter a negotiation plays an important role in determining the outcome of the negotiation, and positive energy increases your confidence and creates more positive results. After all, your disposition is your choice. Some people freeze in the winter while others ski. In the end it’s all about attitude and a positive attitude will undoubtedly lead to more successful negotiations. 

The Benefits of Positivity

A positive attitude is a mental state that expects the best to happen. When you believe things will turn out well, they usually do. Here are a few other benefits if positive attitudes:

Positivity allows for constructive thinking. 

A positive attitude enables you to think outside the box and come up with different solutions because you believe you can find them. Not only do you think things will work out well, but you actively seek out constructive ways to execute your solutions. 

Positive thinking leads to creativity. 

Ideal solutions are not always easy to find but for those who are positive, they aren’t afraid to try new things and look for unique solutions. 

Positivity equates to confidence.

A negotiator with a positive attitude is less likely to make mistakes because they feel empowered. Negativity, on the other hand, narrows one’s focus and tends to fog their ability to make sound decisions. 

How to Develop a Positive Attitude

Before a negotiation begins, you should focus on getting your mind positively charged. You can do this by going over the negotiation in your mind and thinking about positive outcomes. Pay close attention to what thoughts are entering your mind and stand guard against negative thinking. 

In addition to your mind, you want to physically take charge of your body by eating a healthy meal before negotiating, practicing some relaxation and breathing techniques, and wearing a smile to trigger positive emotions. It never hurts to laugh a little too! Having a positive attitude is so important because it can create more positive results. In the end, attitude is a little thing that makes a big difference. 

In today’s complex and competitive world, it’s more important than ever to develop superior negotiation skills that foster strong relationships. Parties may not always reach their desired outcomes, but successful negotiations involve the same basic principles: preparation, persistence, and patience. No matter what industry you’re in, the ability to negotiate effectively is one of the most valuable skills, and it begins with these three principles.

Preparation

Negotiations begin well before you sit down at the table. The difference between a successful and unsuccessful negotiation often lies in the quality of the parties’ preparation. Negotiators often fail to adequately prepare for their discussion, and therefore fail to reach an agreement. During the preparation period, it’s essential to understand the fundamentals of why you are negotiating and what is motivating you and your counterpart. Consider key objectives and priorities for both sides as well as any weaknesses that you hope to improve. You also want to be informed about all parties involved.

The more you know about all sides of the negotiation, the better your chances of finding a good solution. Finally, keep your eye on the prize and know exactly what you hope to gain and how you plan to achieve it. Prepare possible concessions ahead of time, plan for what the other party might say, and determine your BATNA. Over 80% of a negotiation’s outcome is determined in the pre-negotiation phase, highlighting the importance of being properly prepared.

Persistence

Most children are not trained negotiators, yet they often manage to get what they want. Why? Children have a unique ability to persist. They ask you the same questions over and over and in different ways until they break you down and finally get what they want. This same principle can be applied to negotiating. Negotiators who are persistent have the ability to move the needle in their direction because they simply don’t give up. They realize that just because someone says “no” it doesn’t necessarily mean that’s the end of the conversation.

Persistence starts with believing in what you are selling and sharing this enthusiasm with the other party. Speak positive truths and continuously remind yourself and the other party why your product or service is valuable. Ultimately, the ability to persist can lead to long-term success!

Patience

We have all been told at some point to be a little more patient. As it turns out, patience is a key element to a successful negotiation. Patience equals time, and more time may lead to better negotiation outcomes. It takes time to understand what is being offered and the risks that might be involved. With time, you can determine those strengths and weaknesses and make a more informed decision. Patience accomplishes a number of things:

• Gather more information
• Lowers the other party’s expectations
• Leads to concessions
• Allows for realistic assessment 

With patience, all parties can take time to resolve their differences and overcome any obstacles. 

Negotiations can get tense, especially when the stakes are high. Every negotiation can test your patience and your resilience to stay calm. That’s because negotiations often involve intense discussions and difficult conversations, and if you get caught up in your personal needs and goals, it’s easy to get emotional. So, how can you remain calm and focused when things heat up? Consider the following tips for staying poised even during the most stressful negotiations. 

Talk Less, Listen More

While you may have a clear idea of what you hope you to gain from the negotiation, your focus needs to be on more than yourself. Active listening is one of the best ways to have a positive impact on future negotiations. Skillful listening is a great way to calm tensions, resolve conflict, and gather valuable information that will lead to successful deals. 

Build Rapport

When you sit down at the table, don’t just get right into the details of the deal. Instead, connect with the person to create a sense of emotional security. Make small talk and find common ground. Perhaps you share a hobby or interest, you cheer for the same sports team, you grew up in the same neighborhood, or you might know a few of the same people. Look for common ground and spend a few minutes getting to know each other. This will set the tone for a friendlier conversation and when you have a rapport with each other, you’re less likely to get defensive. 

Ignore Threats and Express Empathy

If for some reason the other party begins making implicit threats during the conversation, do not react negatively. Instead, listen intently because they are probably speaking out of fear. Rather than get defensive, empathize with them by saying something like, “You must really be feeling a lot of pressure right now.” By showing empathy, you avoid tension and you give them a reason to de-escalate their demands. 

Take Breaks if Needed

There may be times when you simply need to step away and “take 5.” After discussing for a length of time, your brain might need some rest. Suggest a short break to cool things off and take the time to leave the room, get some fresh air, and gather your thoughts. 

End on a Positive Note

Even if things got heated, remember to always circle back to the progress that was made. Summarize what you agreed on, thank them for their time, and end with a little small talk. Remember you might need to interact with them again in the future and ending things positively will set the tone for future negotiations. 

Negotiation is a form of two-way communication that is supposed to help the involved parties get something they want. It involves two parties seeking to resolve their conflicts and modify their demands in order to reach a mutually acceptable solution. There are two ways this can be achieved: distributive and integrative bargaining. Simply put, distributive bargaining results with one party winning and the other party losing, whereas integrative bargaining can be described as a negotiation in which the two parties work together to find a solution that benefits them both. While both are common forms of negotiation, it is important to note the difference between these approaches so you can decide which strategy works best for you. 

Distributive Bargaining

When both parties seek to maximize their own benefit from a transaction, it is considered distributive bargaining. For example, when you go to buy a car and you try to negotiate the lowest price while the seller tries to get as much as possible, you are both trying to protect your own interest in order to maximize your outcome. Here, what one party loses the other party will gain. Also known as a win-lose negotiation, distributive bargaining is a competitive strategy in which one party comes out ahead and the other one loses. 

Integrative Bargaining

Integrative bargaining happens when both parties put forth their interests and seek a solution that will be mutually beneficial. Here, both parties gain something. For example, when you go to buy a house the seller might be asking $390K whereas your maximum offer is $360. You both compromise and settle on $375k, creating a mutual gain for both parties. This is a collaborative negotiation strategy in which the involved parties seek a win-win solution. 

Key Differences Between Distributive and Integrative Bargaining

• Distributive bargaining is a competitive strategy whereas integrative bargaining is collaborative. 
• Distributive bargaining ends with a winner and a loser while integrative bargaining ends with mutual winners. 
• Distributive bargaining is motivated by self-interest and personal gain whereas integrative bargaining is motivated by mutual interests and gain. 
• Distributive bargaining does not put much emphasis on the relationship between the two parties while integrative bargaining makes the relationship a high priority. 

Our ability to show empathy is what helps us forge meaningful relationships with others, but did you know that empathy can also impact the decision making process? The truth is, empathy can actually impact the motives of those around you and the art of negotiation often relies on an approach known as tactical empathy. Therefore, we can apply basic psychology to learn how to be strategically empathetic during the negotiation process in order to achieve our desired outcome. 

What is Tactical Empathy?

Tactical empathy is an approach centered around deeply listening and connecting with your counterpart rather than aggressively disagreeing with them or trying to persuade them. Though there is a time and a place to play hardball, many successful negotiators prefer a more collaborative approach that incorporates thoughtfulness and empathy. When you build trust with your counterpart, you can then use this trusting relationship to secure deals. 

How Empathy Can Be Used in Negotiations

Tactical empathy consists of several different negotiation strategies, all of which are intended to build trusting relationships and give your counterpart the illusion that they are in control. After all, successful negotiations happen where there is simply the perception of mutual gains. The purpose of tactical empathy is to work toward what appears to be a win-win outcome for both parties. Here are some ways to employ tactical empathy during negotiations. 

Demonstrate that you are acting in good faith. The idea is to show the other party that you seek a solution that will benefit them. You are not there to exploit or deceive them, but rather to help them. 

Show a genuine interest in the other party. Take time to find out what is driving the other party. What are their goals, objectives, motivations, and fears? Actively listen to them and seek to understand their perspective. This helps to build an authentic connection which will ultimately lead to a better outcome for both parties. 

Work to dispel negative feelings. Try to diffuse any feelings of anger, mistrust, suspicion, or fear. Talk to the other party about their feelings and find out why they might be experiencing negative emotions. Then, work to deactivate those emotions by building reassurance and trust. 

Aim for positive emotions. Look for ways to appeal to your counterpart’s emotions and build mutual understanding. Try to be a source of comfort and build a rapport so you can both work together to reach your goals. 

Negotiation is often thought of as a very serious discussion and is probably the last place you would expect to find laughter. However, humor can be an excellent negotiating tool because it helps to establish and strengthen relationships between partners. When tensions are high and negotiations become deadlocked, a simple joke can ease tensions and create a bond among all parties involved, eventually leading to a deal. Whether you are negotiating a pay raise, a million dollar deal, or simply where to go for dinner, humor can play a significant role in your success. 

According to recent studies, humor has numerous benefits in the negotiation process. It can put the involved parties at ease; it can introduce a difficult issue; it can foster teamwork and bonding; it can even help people cooperate amidst disagreements. If you can inject humor into your negotiations, you are more likely to set the tone for a smoother conversation. For example, imagine you have proposed a deal and the tension began rising as the other party asked, “What is this going to cost me?” You pause and respond, “Are you sitting down?” The other person might laugh and the tension is reduced right away. This tactic can be extremely effective for closing deals. 

When you are negotiating, look for opportunities to weave in a little humor- perhaps a funny story or anecdote or even a funny gesture. Negotiations are often serious and intense so humor can be a great way to lighten the mood. When we relax the atmosphere with a few innocent jokes, you are able to put people at ease. In turn, they can think more objectively and make better decisions. Be cautious, however, and choose your words carefully. You want to be sure your humor is always used professionally, so avoid sharp jabs or inappropriate jokes. When used appropriately, humor can not only relax the atmosphere, but it can help you break a deadlock. Self-deprecating humor can be especially effective for this. An occasional joke about yourself can create an environment of collaboration and helps to increase your likability. So, the next time you find yourself in the midst of tense negotiations, consider lightening the mood a little with humor.