The art of negotiation requires a unique blend of preparation, insight, and strategy in order to reach a win-win solution. Whether you are negotiating a new job offer or finalizing a business deal, it is important to understand which strategy to employ so you can overcome roadblocks and close the deal. There are several different negotiation strategies, each of which makes sense in varying situations. Ultimately, however, if you really want to get the deal done, you need to be prepared to adapt. 

What are Some Examples of Negotiation Strategies?

There are so many different strategies for approaching a negotiation and all of them are useful in their own right. In most cases, it depends on the person you are negotiating with and how they are handling the situation. For instance, some people might prefer to collaborate and work together to reach an amicable solution while others choose to employ hardball tactics. Here are some common strategies that can be used in these situations:

Identify Pain Points: Learn what challenges your counterpart is facing and provide solutions that would solve these challenges. 

Look for Common Ground: Take the time to get to know your counterpart and establish a solid foundation early on. This will help set the tone for an amicable discussion and can positively impact the attitude of all parties involved. 

Prepare in Advance: This should take place in any negotiation, and requires you to gather as much information as possible about the other party. Research history, past problems, pressure points, and also competitors prior to the negotiation. This information will put you in a better position to negotiate effectively. 

Make a List of Concessions: Prior to any negotiation, you should always make a list of concessions you would be willing to make and list them in order of priority. This will prevent you from giving up too much too soon. 

Identify Your Walk Away Point: You should also enter into any negotiation with a firm understanding of when you will walk away. Unfortunately there are times when an agreement cannot be reached and you need to be aware of your walk-away point. 

Adapting During a Negotiation

It sounds easy enough to know how to approach a negotiation but it’s not always an easy feat. If you are dealing with a competitive person, you need to be prepared to change your strategy and adapt to their hardball tactics. In this situation, you may have intended to walk in and collaborate when all of a sudden you were hit with a “my way or the highway” negotiator. In this situation, you would need to adapt and take a more assertive approach.

If they are being tough, be tough back. A hardball negotiator respects someone who is willing to fight back. On the other hand, you may have been prepared to use some tough bargaining tactics of your own only to find that such a strategy is insulting your counterpart. A great negotiator can see this and adapt their strategy to win them back. Perhaps you came on too strong, but you can progress toward a more workable middle ground. 

Our negotiation styles are typically derived from our own personalities and dispositions. Some people are more inclined to listen first before taking action while others prefer to strike first. While our personalities can certainly influence how we negotiate, they should not dictate how we negotiate with everyone. It takes time, but the most skilled negotiators treat each negotiation as a unique opportunity and adapt their strategy accordingly.

Whether you are brand new to the scene or you have been in your professional position for years, having sharp negotiation skills is important for your career. You might be negotiating something personal like a new salary or you might be negotiating a multi-million dollar deal for your company. The truth is negotiations are vital to success in the business world so it’s important to learn the right tactics, strategies, and social acumen to negotiate well. Consider the following strategies for becoming more adept and getting the most of your next negotiation. 

1. Be Prepared

Preparation is the first step to a successful negotiation. You need to have a clear understanding of the entire situation including what is at stake, and what you hope to achieve. You also need to run through all possible scenarios and have a plan in place in case things don’t go as planned. 

2.Do Your Homework

Before entering into a negotiation it is important to do your homework and gather as much information as possible about your counterpart. For example, you should know exactly who you are negotiating with and whether or not they are the primary decision maker. You should also know their company history, what challenges they face, what solutions they are looking for, and what other competitors they might be considering. Arm yourself with as much information as possible so you can tailor the negotiation to fit both of your needs. 

3. Know What You Want

In addition to knowing what your counterpart wants and needs, it is equally important to know exactly what YOU want. You should never enter into a negotiation without a clear understanding of exactly what you want and why. Not only do you need to know what you want, but you also need to know the boundaries of which you will or won’t settle. 

4. See Things From Their Perspective

Many times we are so focused on our own goals and we fail to think about the needs of others. When it comes to negotiating, it is important to put yourself in the other person’s shoes and try to see things from their perspective. Don’t make assumptions about what you think they want. Rather, ask them and listen to their response. Practice empathy and consideration. In the end, this will lead to a far more amicable working relationship. 

5. Listen Carefully

An important rule of thumb when negotiating is to listen more and talk less. You want the other person to feel heard. Their point of view is important so listen to what they have to say. Not only will this make the other person appreciative, but you might find out some helpful information that can help you arrive at a better solution. 

6. Consider Your Alternatives

You should always have a back-up plan when you negotiate. This is also referred to as a BATNA (Best Alternative to a Negotiated Agreement). You should prepare a BATNA in case you are unable to get what you initially asked for. You should never walk away from a negotiation empty-handed. 

7. Choose the Right Playing Field

You immediately put the other party at an advantage when you negotiate at their office. Try to schedule your negotiations at your own office whenever possible. If this doesn’t work out, try choosing a neutral location that will level the playing field. 

8. Don’t Be the First to Name a Price

There’s an old saying in negotiation that “the first to name the price is the one who loses.” Instead of walking in and making demands right off the bat, push the other party to do most of the talking and make them reveal the price they are willing to pay. 

9. Control Your Emotions

Sometimes negotiations can get heated, especially when a lot is at stake or you are dealing with a hard ball negotiator. In the event this happens, never lose your cool, as this will only lead to mistakes. Instead, be professional and always keep your temper in check. 

10. Seek a Win-Win Outcome

Successful negotiators know that everyone should walk away feeling like a winner. When you have a win-lose outcome, someone will always be upset and long-term relationships will be damaged. Seek win-win solutions that will foster strong working relationships. 

11. Build Rapport

Before diving right into the meat of the conversation, spend some time chatting with the other party. Ask them about their family, hobbies, or interests? Get to know each other a little better and find some common ground. This will ensure the conversation starts off on the right foot and will lead to a more productive conversation. 

12. Be Prepared to Compromise

A successful negotiation is all about give and take. Just as it is assumed you will negotiate the price of a new car, you should also assume there will be concessions and compromise in a negotiation. 

13. Prepare Your Concessions in Advance

Don’t wait until you are in the middle of a discussion to decide what you are willing to concede. Rather, you should make a list of concessions beforehand and prioritize them so you don’t give up too much too soon. 

14. Only Deal with Decision Makers

It is a waste of your time to negotiate with people who don’t have the authority to make decisions. Always try to find out on the front end if the person you are negotiating with has the power to do the deal. If not, request to deal directly with the decision maker. 

15. Don’t Feel Intimidated

It’s easy to get nervous in the middle of negotiations. You may even find yourself feeling a bit intimidated by the other party. Keep in mind, however, that they need you as much as you need them so approach negotiations with confidence. 

16. Be Willing to Walk Away

There will undoubtedly be times when you simply cannot reach an agreement. It might also be that the other person wants to see how far they can push you before you walk away. Always enter into negotiations knowing exactly where your “hard line” is and stick to it. This communicates that you will not be taken advantage of and it might actually lead to a better outcome. 

When it comes to negotiating, most people tend to focus on what they plan to say during the negotiation. What information are they going to provide that will sway the other party and what things will they say to convince them? However, highly effective negotiators understand that successful negotiations are more about listening than speaking. Simply put, asking the right questions can give negotiators the best chance of achieving their desired outcome. The ability to ask the right questions is what sets a successful negotiator apart from those who struggle to gain the advantage. More often than not, the one who comes out on top is the one who asks the right questions. As you prepare for your next negotiation, here are some of the best types of questions to ask  to help you emerge victorious. 

Open-Ended Questions

It is important to ask plenty of open-ended questions during a negotiation. These are questions that cannot be answered with a simple yes or no, but rather require the respondent to provide some additional detail and information. Open-ended questions are a great way to gather useful information that will help you better understand what is motivating your counterpart. 

Example: “I’m curious to know how you feel about that?”

“How did you come up with that price?”

Probing Questions

If you find an answer to be incomplete or you want to know additional information about a particular topic, you can follow up with a probing question. If the respondent only provided a short answer to the question, you can nudge them to tell you more by probing them just a bit further. 

Example: “Tell me more about what is concerning you?”

“I heard you say you had a bad experience with your previous vendor. What happened after that?”

Open Opportunity Questions

This type of question invites the respondent to share their opinions and point of view about a particular subject. By asking this type of question, you are demonstrating that you value the other party’s opinion and you genuinely care about their views. 

Example: “What do you think about this solution?”

“Help me understand what is concerning you the most?”

Leading Questions

Just as the name implies, this type of question leads the other party to your point of view in a gentle yet persuasive manner. 

Example: “After hearing everything we have to offer, don’t you feel like this would be the best package for you?”

“After I send over the documents, will I have your signature by this afternoon?”

Flattery Questions

Flattery is an effective way to both compliment the other party while also encouraging them to elicit information at the same time. Most people are happy to respond to a friendly compliment.

Example: “Would you mind sharing your expertise to add input into this issue?”

In any negotiation, communication with questioning is vital to success. People often forget to ask questions because they are so focused on what they want to say, but asking the right questions and listening to the other person is the best way to achieve your desired outcome.

Negotiation is a powerful skill that helps you advocate for yourself in both your personal and professional life. Whether you are negotiating your salary or your cable bill, it’s important to learn how to negotiate effectively in order to achieve what’s best for your position. There are several ways to go about negotiating a deal. The most ideal situation is to communicate effectively between both parties in order to reach a mutually beneficial agreement. While this is definitely the ideal situation, that doesn’t mean it’s always possible. Some negotiators realize that hard bargaining tactics have their own place at the negotiating table. Though hard bargaining may not be the most popular strategy, there are times when it simply is the most effective. Let’s take a closer look at what exactly constitutes hard bargaining tactics and why they might need to be employed. 

What are Hard Bargaining Tactics?

Hard bargaining is probably the most recognizable type of negotiation. When most people think of hard bargaining, they picture someone slamming their fist on the table making ultimatums and demands. Hard bargaining tactics are often described as threats, extreme demands, or even unethical behavior, which is used to gain the upper hand in a negotiation. While there is some truth to this description, hard bargaining tactics do not always involve betrayal and harsh antics. The truth is, hard bargaining tactics do involve a battle of the wills and it usually emphasizes results. Hard negotiators are typically unwilling to concede, focusing solely on their position. That said, there is still a time and place when hard bargaining tactics can be useful. 

When to Use Hard Bargaining Tactics

The outcome of a negotiation is largely determined by the negotiator’s tactics. Different approaches will yield different results. Here are a few instances where hard bargaining tactics can be necessary.

• When you absolutely MUST get your desired outcome

If you are negotiating a deal that you know will only go through if your demands are met, you might need to employ hard bargaining tactics. For example, if you know you will only take the job if you get X amount for your salary, you might be willing to negotiate with hard tactics. You can let the manager know that you MUST get your desired salary or you will have to pass on the job. 

• When you know you will never have to deal with the other party again

A great example is when you go to purchase a car. You are likely to haggle on the price and make demands or ultimatums because ultimately you,as the customer, have the upper hand. You are willing to walk away but the car dealer certainly doesn’t want to lose the sale. Given that you will likely never have to deal with the car salesman again, you might do better to employ hard bargaining tactics. 

• When you are negotiating with a soft negotiator

Soft negotiators are often steamrolled by hard negotiators. They are more likely to cave and give ground in an effort to preserve good will. These negotiations almost always end in a win for the hard negotiator. 

In the world of negotiating, there’s one very important rule that everyone should abide by, as it has the potential to dramatically change the outcome: Never accept the first offer. Accepting the first offer can be detrimental in a number of ways. Not only will it cause you to question your decision, but it will also leave you wondering if you could have gotten a better deal had you negotiated more. It is always in your best interest to negotiate the first offer and here’s why. 

The First Offer is Rarely the Best Offer

The first offer is more of a gauge than an actual offer. It is the other party’s way of feeling you out to see what you will take. In most cases, it is usually at the lowest end of their range and is used merely as a starting point. For example, if the hiring manager for a new job offers you a salary of $75k, this is more likely to be a starting range than the actual amount they would be willing to pay. It’s always in your best interest to negotiate further and you should assume there is more money in the coffers. 

They Are Expecting You to Negotiate

If you take the first offer, you are likely to leave money on the table. That’s because the other party is expecting you to negotiate. Consider buying a car. People rarely walk up to the dealer and say “I’ll take it and pay the sticker price.” The car dealer is almost always waiting for the customer to negotiate the price. The same is true when negotiating salary or a business deal. It is expected that you will counter the first offer, so go ahead and go for it because you could end up with a much better deal. 

There are Plenty of Opportunities Out There

It can be tempting to accept the first offer at times, especially if you are emotionally invested in the deal. This happens frequently when homebuyers fall in love with a house or when someone is finally offered a job at their dream company. That said, you should never feel pressured to accept the first offer and settle for less because there will always be other opportunities. If one person made you an offer, you can expect that someone else will be willing to do the same. 

You Will Regret It

Imagine you see a car for sale for $10k. You think to yourself, I better snatch this up before someone else does, so you make the seller an offer of $8500. To your disbelief, they immediately take the offer without countering. Do you leave feeling like you just walked away with a great deal, or do you leave wondering why they accepted your offer so quickly? More than likely, you will begin questioning yourself and wondering if something could be wrong with the car. You may also be thinking that you should have offered even less. Either way, you walk away feeling dissatisfied with the deal. Accepting the first offer without uncovering how high or low the other party would have been willing to go will almost certainly lead to regret.

There are several tips and strategies for negotiating successfully, but among the most important is understanding who you are talking to and what their role is within the organization. A key part of the negotiation process is finding out early on if the person you are dealing with is the actual decision maker.  You may have the perfect sales pitch prepared, but if you are engaging with the wrong person, it could be a big waste of your time. Sometimes it’s an intentional strategy used by the customer and other times it’s lack of preparation on the part of the sales person, but either way, dealing with the wrong person can result in lost time and even lost sales. 

How to Find Out if You are Dealing with the Decision Maker

One great tip for identifying whether or not you are dealing with the decision maker is to ask this important question early on in the discussion: How have you handled other similar purchasing situations? You are then listening for a sense of confidence on the part of the customer that they have done this before. They may not come right out and tell you if they are a decision maker, but you can generally get a good idea by paying attention to things like tone, body language, and verbal cues. 

Another way to identify the decision maker is to research the organizational hierarchy of the company. For instance, when dealing with smaller businesses, the decision maker is usually the owner, founder, or CEO. However, when dealing with larger businesses, you may have to put in more work to find out who has the final say. Oftentimes, you may have to speak with a junior staff member or gatekeeper, such as an assistant or secretary, before interacting with a senior employee. You can do some research to find out how the company is organized and you can also speak to contacts within your network that can help you identify the final decision maker. 

What to Do if You Are Not Dealing with the Decision Maker

Be mindful that many businesses have a buying process and it’s unlikely you are directly connected with the final decision maker right away. This doesn’t mean you have to demand to speak with the decision maker nor does it mean you have to terminate the discussion. Rather, be careful with what information you share and do not give any indication that you would be willing to negotiate. Use your time with the “non-decision maker” to learn helpful insights that can assist you when you do finally deal with the decision maker.  

Your objective in any negotiation is to never allow yourself to negotiate with anyone who is not the final decision maker. You can politely inform the non-decision maker that you would love to continue the conversation with someone who has the authority to approve the deal. This saves you from having to negotiate twice. Your confidence and persistence in reaching the final decision maker could ultimately be a key factor in being able to close the deal.

Negotiating is an important part of doing business and naturally we want to get the best deal for ourselves. Therefore, it is necessary to learn as much as you can about a deal before signing on the dotted line. Whether you are dealing with a lengthy purchase or lease agreement to nondisclosure or employment agreements, you need to review and understand the dynamics of the deal before signing the contract. This will help you eliminate risk, avoid confusion, and prevent yourself from making a bad deal. These tips will help guide you in recognizing and understanding the dynamics of a negotiation. 

Ask for Things in Writing

It is always important to have a negotiated deal presented in writing. This allows you to read over and fully understand each aspect of the deal. Unlike a verbal agreement, a written contract helps to eliminate misunderstandings and confusion by spelling things out more clearly. It also makes it easier to take your time considering the deal because you have all of the information presented to you directly. 

Read and Understand Each Provision

Be sure to always read and understand each agreement and or provision and make sure it accurately reflects the negotiated agreement. You never want to sign a contract or agree to a deal without fully understanding every aspect of the negotiation. If there is anything that you don’t understand, this would be the time to ask for clarification. 

Consider You Goals

Before agreeing to a negotiation, consider how well the deal meets your goals. Are you getting most of what you asked for? Are you comfortable with any concessions that were made? Do you feel confident that this is the best deal for you? Any skilled negotiator will enter into a negotiation with clear goals in mind so you definitely want to consider how well this deal aligns with those goals. 

Be Objective

Don’t allow yourself to get carried along because you are anxious to close the deal. Likewise, don’t be held back by pessimism. Make a realistic and objective assessment of the deal before making any final decisions. It is important to think through every aspect of the deal and consider both the short term and long term effects before signing on the dotted line.

As with all good negotiation preparation, you should always have a Plan B before walking into a meeting. It is common knowledge that you should plan in advance of any negotiations in order to get the result you want. Do you know the single most effective way to remove the other party’s power? It may surprise you that the answer is having a plan B, otherwise known as a BATNA- Best Alternative to a Negotiated Agreement. Having a good BATNA increases your negotiating power. If you know you have a good alternative, you won’t feel pressured to concede as much, because you won’t care as much if you get the deal. Likewise, it allows you to push the other side harder, because you won’t feel compelled to accept their demands. A BATNA gives you something to fall back on if the negotiations prove unsuccessful. 

Having an alternative, or plan B up your sleeve, can also have a positive impact on your performance during a negotiation. It gives you the confidence to push a little harder because it eliminates the feeling of desperation. For example, imagine you are in dire need of a job and you have just been offered one. Chances are, you aren’t going to want to jeopardize the job by negotiating for more pay and you will likely feel compelled to accept the job as is. Now imagine you have two separate but equally attractive offers on the table. Knowing you have an alternative option gives you the courage and power to ask for a higher salary. 

How to Determine Your BATNA

It may not always be easy to identify your best alternative but the following steps can help clarify the process: 

1. Make a list of all possible alternatives you would like to consider if the negotiations do not go as planned. 
2. Evaluate these alternatives based on value.
3. Select the alternatives that would bring the highest value.
4. After you have determined your BATNA, calculate the lowest value deal you would be willing to accept. 

A strong BATNA can help you walk away from any offer that is less valuable to you. It can also help you to make an informed decision about whether or not to accept an offer. 

BATNA Tips

You want to prepare as much as possible before entering into negotiations. You will need to consider all possible options and develop a strong BATNA in advance. You should expect that the other party will do the same, so be prepared to remain strong in your stance. It is also important to prepare multiple BATNA’s. In fact, the more BATNA’s you have, the more cards you have to play at the negotiating table. Finally, remember that successful negotiators do not allow themselves to get too invested in a successful outcome. A skilled negotiator knows there are bound to be times when you simply need to walk away. 

A strong BATNA acts as a backup plan in case all else fails at the negotiating table. It also improves the likelihood that some kind of agreement will be reached.

Negotiations can be fraught with emotion. After all, both parties want to get what they want out of the deal while still walking away with a good relationship intact. Believe it or not, that kind of outcome is possible. So, how exactly do you drive a hard bargain while also remaining polite and well-mannered? How do you advocate for what you want without offending the other party? The answer is simply to negotiate with confidence while also remaining a nice person. Most people think that negotiation only involves hardball tactics and heated debate. However, there are plenty of ways to negotiate with respect. Here are a few tips for staying professional and well-mannered while negotiating to get what you want. 

Establish a Rapport

You never want to walk into a negotiation and immediately start talking business. Instead, you want to spend a little time making small talk before the negotiation begins in order to build a relationship with the other party. It can be personal such as talking about sports or a favorite hobby you might have in common. It can also be professional, discussing your experience at the company and asking about theirs. Ultimately, people who engage in small talk before a negotiation are more likely to reach an agreement. 

Be Firm but Respectful

It’s perfectly acceptable to be firm when speaking about your subject and you can do without coming across as rude. Demonstrate your knowledge on the topic and speak with confidence, without belittling or insulting the other party’s position. Keep your argument focused solely on you and back up your argument with facts and logic. This will help you to come across as an expert in your field rather than rude and arrogant.

Ask Questions and Listen

Great negotiators understand that listening is even more powerful than speaking. They ask careful questions that allow them to better understand the other side’s interests. They avoid rhetoric  and only ask questions that serve a purpose. They also wait for the answers and listen attentively with genuine interest rather than arguing their own perspective. 

Keep Emotion to a Minimum

It’s easy for things to get heated during a negotiation when two parties do not agree. However, you should never allow your frustration to get the best of you. Take a deep breath and remember that remaining calm, collected, and professional is your best bet to reach an agreement. No one wants to work with someone who is pushing them too hard to agree or who is showing outward signs of frustration. While showing some emotion is only natural and shows that you are human, be cautious about getting overly emotional and even call for a short break to collect your thoughts and diffuse the situation if needed. No matter how difficult the situation becomes, you should always remain calm and courteous.

Avoid Criticizing, Correcting, or Interrupting

You never want to make threats, criticize others’ opinions, or interrupt the other party when they are speaking. All of these behaviors come across as rude, selfing, and unprofessional. It can be unpleasant to be on the receiving end of these behaviors so it’s important to remember your manners and listen carefully, show empathy, and consider where the other person is coming from before jumping to conclusions. 

Every good negotiator understands the value of compromise. Compromise is a basic negotiation process in which parties will have to give something up in order to reach an agreement. In compromise situations, neither party gets everything they want, but both parties make concessions in order to find a solution that is acceptable to both. Compromise can be a powerful negotiation tool, but you have to know how and when to use it. If you want to use a compromise strategy to your advantage, you need to understand how to do so effectively. 

When to Use a Compromising Negotiation Style

So, how do you know when it’s time to pull out the compromising strategy during negotiations? There are a few different times in which a compromise might be needed in order to reach an agreement:

• When an urgent decision is needed and you need a temporary solution
• When a decision must be made quickly due to lack of time
• When both parties cannot come to an agreement despite lengthy negotiations
• When the other party cannot meet with you because of an unforeseen circumstance or if the decision maker is unable to be present during the negotiation meeting. 
• When you want to ensure a positive, lasting relationship with the other party. 

Strategies for Negotiating a Compromise

Take Your Time

Some negotiations may be time sensitive but that doesn’t mean you have to rush the process to reach an agreement as quickly as possible. Finding a mutually agreeable compromise may take a little longer than either party anticipated, but doing so will lead to more favorable outcomes for everyone involved. 

Prepare in Advance

You should always have concessions prepared in advance just in case the negotiations do not go as planned. It’s safe to assume that most negotiations require a bit of give and take so preparing your concessions in advance will prevent you from giving up too much too soon. Prior to negotiating, gather as much information as possible about the other party including their desires, motivations, fears, and concerns. You need to find out what is most important to them. On that same note, you also need to prioritize your own list of needs and wants. Make a list of which items are of most value to you and which you are most willing to concede. This will help you know which items to compromise on first. 

If You Give, Be Sure to Get Something in Return

An important rule of compromise is you should never give anything up without obtaining something of equal value in return. Compromise is all about ensuring that both sides are satisfied with the outcome. Again, determine what you are willing to concede beforehand and have an idea of what you want in return.

Aim to Minimize Your Losses

Compromise is all about give and take, and that means in order to gain something, you will have to give up something of value. With that in mind, remember to stay focused on your priorities and never give up too much too fast. Find out how you can concede to the other side without giving up your most valuable assets. You want to have a good understanding of which items you are willing to give up so you can mitigate your losses.