When it comes to negotiating, there is no tool more effective than time. Kids are experts at using time to their advantage. Think about the last time your child begged for something right as you were rushing out the door or if they asked you for money because they needed something for school right then. You, yourself, may have even been shopping and decided to buy something because it was only on sale for that day. Almost all of us have made decisions at some point as a result of time pressure. That’s because under pressure, people become more flexible. Time pressure has a way of hypnotizing us and can cause us to make decisions that we may not have made otherwise. Time constraints may be stressful, but they also force things to happen. Here are a few ways you can use deadlines and time constraints to your advantage when negotiating. 

Apply Deadline Pressure

Deadlines pressure negotiating parties into making a decision and they are used as a tactic to create movement in a negotiation. Smart negotiators can apply deadlines as a means for getting the other party to accept their offer. Despite the stress, deadlines force action, and that is often what is needed to propel a negotiation through the finish line. If people don’t know how long a negotiation will last, they tend to hold back in the beginning, saving their concessions for later. With a deadline, however, they are more inclined to play all their bargaining chips. If negotiators set a deadline and commit to it, they usually end up getting a better deal and they are likely to reach it faster. 

Remember the 80/20 Rule

The 80/20 rule is a well-known negotiation tool that states that 80% of negotiations happen in the last 20% of the time. Therefore, you don’t want to give up too much too fast. Rather, you want to save some of your leveraging power to pull out during the last 20% of the negotiation. That’s when you can make the best deal. This is also the best time to put the pressure on your counterpart. Generally speaking, about 80% of concessions come during the last 20% of the negotiation. 

Create Urgency and Leverage

By setting deadlines, you improve your negotiating ability by creating a sense of urgency that can motivate the other party to take action and make concessions. You can do this by making your deadlines appear beneficial. Perhaps you offer a discounted price for signing up by the deadline. You can also emphasize the costs of missing the deadline such as losing opportunities or facing penalties. 

It is often believed that men outperform women in negotiations. However, there is little research to suggest that this is actually true. The truth is that men and women simply negotiate differently. Men are generally seen as more assertive while women tend to be more accommodating. Men and women come to the table with different expectations, levels of entitlement, and self-interest, resulting in very different negotiating styles. The fact is, gender is not a good predictor of negotiation performance. It simply sets the stage for different behaviors and negotiating styles. 

Male Advantages

• Males tend to convey more confidence in a performance-oriented setting than females. Men may even approach a negotiation less prepared than a female but use their confidence to their advantage. This may make a female doubt themselves, even if they were adequately prepared. 

• Men tend to be more overtly aggressive than females and can use this psychological advantage when negotiating with women. They may use this aggressiveness as a tactic to make women feel inferior or self-conscious. 

• Men are often competitive in nature and this competitiveness can help them maximize outcomes. They may push harder and fight longer in order to walk away with the “win.” 

Female Advantages

• Women are excellent negotiators on behalf of others. They are inspired to help others, whether it be colleagues, customers, or their company, and this servant attitude helps them negotiate better outcomes. 

• Women tend to be more cooperative, empathetic, and ethical, all of which are traits that build long-lasting relationships. This cooperativeness and willingness to work together gives women a unique advantage as negotiators. 

• Women are naturally good problem solvers, another excellent trait that can be very beneficial at the negotiation table. Women can think creatively and out of the box to find solutions that better meet the needs of all parties involved. These strong problem solving skills can definitely work to a female’s advantage to negotiate a win-win deal.

Successful negotiations are all about finding mutually agreeable solutions and that can only happen with a little bit of give and take. Concessions are an important, yet often misunderstood part of negotiations. Contrary to popular belief, concessions are not an indication of weakness, but rather a strategic plan for reaching a win-win outcome. Effective negotiations often require trade-offs on both sides, so learn how you can use concessions to your advantage. Here are some tips for meeting the needs of your counterpart without sacrificing your own goals and objectives. 

When to Use Concessions in Negotiations

A concession strategy can be helpful for uncovering important information that include the interests of the other party, their budget, and their priorities. When used properly, this can help you close more lucrative deals. A good time to use concessions would be: 

• When you want to gauge the negotiation strengths of the other party
• When you want to assess the other party’s allocated budget
• When you want to show interest in the needs of the other party
• When you want to bring your position back to the negotiation table

Just like any strategy, there will be times when you want to concede sparingly. Here are some important guidelines for implementing a concession strategy:

Never conceded too early, too quickly, or too much.

If you begin a negotiation by making concessions right away, you risk creating the expectation that you will concede on all issues throughout the discussion. Even if you have planned to make a few concessions, making it a hard fought concession so it appears as though you are giving away something of real value. 

Never concede without asking for something in return.

Always have something in mind that is comparable in value to you before offering concessions. You can also bundle several concessions together if needed and offer the package in return for something of greater value if needed. You want to condition the other party in the process of give-and-take so that both parties can find value. 

Plan your concessions in advance.

Prior to negotiating, you should make a list of items you would be willing to concede in order of importance. This will prevent you from conceding too much, too soon. 

Always keep score. 

Business negotiations can be complex and cover a wide range of topics so keep close tabs on what you give and receive throughout the negotiation, confirming any agreements in writing. Continue to remind your counterpart of concessions that have been made on behalf of both parties. 

It’s common advice to minimize your emotions during a negotiation. You may have even been told that emotions are a liability in a negotiation. The truth, however, is that emotion is not the enemy. Not only are emotions a natural human reaction, but they can also create rapport and motivate action. Therefore, you don’t want to take emotion out of the equation, but rather add it in order to achieve a more desirable outcome. Here are some ways you can use emotions strategically to gain a negotiation advantage.

The Benefits of Positive Emotion

Positive emotions such as happiness, satisfaction, and gratitude can enhance your negotiation by building trust and rapport with your counterpart. This can encourage greater cooperation and can lead to more mutually beneficial outcomes. Positive emotions can also reduce stress and prevent conflicts from escalating at the bargaining table. Here are a few ways in which positive emotions can be used to your advantage. 

It Builds a Connection

You want the other person to feel connected to you and be willing to say “We are allies.” If they feel like your adversary, you won’t work well with them. However, when you build rapport with the other party you are more likely to work creatively together. You can build this rapport and connection by asking questions about their interests and needs. After all, people like to talk about themselves and they will appreciate your kindness in listening. This builds trust, likability, and rapport which all lead to more superior outcomes. 

It Makes Them Feel Engaged

You want the other person to feel like they are collaborating with you because when they feel like they are investing their time and energy, they are more likely to want to accomplish a successful outcome. Not only does collaboration encourage a sense of ownership, but it turns the negotiation process into an opportunity to create value for both parties. 

It Fosters Respect

Your positive energy and emotions will also help to make the other party feel respected. For example, you can complement the other person’s knowledge and expertise, making them feel competent and respected by you. In doing so, you will be able to move forward with a more productive conversation because they will no longer feel as though it is you versus them. It takes a bit of humility, bit making the other person feel like they have come up with some great ideas can facilitate a more successful negotiation. 

If you are wondering how to get the most out of your next negotiation, you need to learn more about conflict resolution. Every great negotiator must know how to resolve conflict because almost every business negotiation is part of a long-term relationship. That means conflicts are bound to arise and having strong conflict resolution strategies can help you strengthen your relationship and achieve a more productive outcome. Here we will learn more about how to negotiate conflicts effectively in order to get to yes. 

What is Conflict Negotiation?

Conflict negotiation is a process aimed at resolving disputes or disagreements between two or more parties by finding common ground and reaching mutually acceptable outcomes. Both parties engage in discussions to address their needs and concerns. It is not about winning or losing, but rather focusing on creating a beneficial outcome for all parties involved. This is an important negotiation strategy because it demonstrates mutual respect for both parties while also strengthening the relationship for future discussions. In order to successfully resolve conflict in negotiation, you will need to do the following: 

Be an Active Listener

Listening is a powerful tool when it comes to conflict resolution. Whether you are negotiating with a difficult party or handling an angry customer, active listening can uncover hidden information that might be motivating the other party’s feelings. This information will allow you to create a sensible pathway to move forward. It is essential that you listen respectfully to the other party’s concerns and point of view in order to identify opportunities and achieve valuable insight that will satisfy both parties. 

Control Your Emotions

It’s easy to let your emotions get the best of you when you are in the middle of a heated negotiation. However, this typically does not end well. You never want to compromise the negotiation by challenging, demeaning, or criticizing the other party. This can provoke an emotional response from them and shift the balance of power in their favor. Instead, take a break if necessary to gather your thoughts and harness your emotions so you can return to the discussion ready to move forward in a positive direction. 

Be Patient

Patience is your ally when it comes to conflict resolution. When you are patient, you can take time to understand the situation, manage the crisis wisely, and find creative solutions that benefit everyone involved. When you practice patience, you are able to create more favorable outcomes. 

Focus on Creating Value

You may have to deal with conflicting positions during a negotiation, but if you focus on creating a valuable solution, you can end up with a win-win scenario. Consider both your interests and those of your counterpart and see where they overlap. Consider what concessions you might be willing to make and what you would accept in return and propose a deal that will benefit both sides. 

The ability to negotiate well can have a monumental impact on your career. Poor negotiation skills can lead to missed opportunities and economic loss for your organization. Therefore, it is important that you learn the strategies necessary to clinch lucrative business deals. Here are some of the best negotiation tips from the experts. 

Set Clear Goals

If you don’t set clear goals, you are unlikely to clinch a deal that’s in your favor. Prioritize your objectives so you know exactly what things are non-negotiable and what you would be willing to concede. You also want to determine your BATNA so you have a reliable backup plan in place. Having clear goals in mind can help take the emotion out of your decision-making, often resulting in better outcomes. 

Listen and Understand the Other Party’s Needs

One of the biggest mistakes many negotiators make is doing all the talking. These negotiators try to control the conversation and continuously reiterate their own point of view. You are far more likely to clinch the deal if you truly listen to the other side and try to understand their key issues. This allows you to uncover valuable information and formulate a solution that will benefit both parties. 

Be Prepared

If you want any chance of closing a deal, you must take the time to thoroughly prepare. Review the background of the person and business that you are negotiating with. Read articles and press releases about the company as well as personal bios about your counterpart. Review similar deals that have been completed by the other party and understand the offerings of your competition. 

Negotiate with Real Decision Makers

If you are working to clinch an important business deal, make sure you are negotiating with the real decision makers. In large organizations, the decision makers may vary and a contract with certain personnel might not hold. Therefore, before spending your time on lengthy negotiations, be sure you are dealing with the right person. 

Focus on Mutual Gains

The most successful negotiations are the ones in which both parties walk away feeling satisfied. A strategy aimed at mutual gains will almost certainly result in better deals. Furthermore, this helps to build stronger relationships for future negotiations.

Before beginning any negotiation, it is important to establish ground rules that will guide the process and ensure both parties reach a mutual understanding. These ground rules act as a framework for the negotiation, helping to maintain a respectful and professional discussion. Here we will take a look at some useful tips for setting ground rules for your next business negotiation. 

What are Ground Rules?

Ground rules are put in place to help clarify both parties’ understanding and shared expectations of how the negotiation will be conducted. In other words, they establish how the parties will negotiate and what steps they will follow throughout the process. Ground rules can include things such as:

• Dates and location for meetings
• The composition of the table
• Designated spokesperson and coordinators
• Agendas for negotiating 
• Clarity on note-taking and records
• Requests for information
• Ratification protocol for tentative deals

Steps for Setting Ground Rules

1. Define the Purpose and Scope

Before jumping right into the discussion, it is essential that you clearly define the purpose and scope of the meeting. This involves identifying the specific information that will be discussed, which allows both parties to align their expectations and avoid possible misunderstandings. 

2. Determine the Negotiation Process

Another important step in setting ground rules is determining the negotiation process itself. This includes deciding on the format of negotiations, such as in-person meetings, video conferences, or teleconferences. It also includes setting timelines, discussing the frequency of communication, and agreeing on who will be involved in the negotiation for each party.

3. Establish Communication Guidelines

Effective communication is essential for any successful negotiation. Therefore, it is important to set guidelines regarding communication to ensure both parties have a fair and equal opportunity to express their concerns and interests. This includes setting rules about how long each person will get to speak and rules regarding active listening, so that each party gets the opportunity to speak without interruptions. This helps to foster open and honest communication between both parties. 

4. Identify Decision-Making Criteria

Finally, there will also need to be rules guiding the decision making process. This involves discussing the factors that will influence the final agreement, such as legal requirements, business objectives, and risk assessment. Establishing these criteria upfront allows both parties to focus on finding a solution that meets everyone’s needs.

There was a time when the only way to negotiate and close deals was either through face-to-face communication or through phone calls. Today, technology allows you to negotiate, close deals, sign contracts, and make payments more easily and efficiently than ever before. Regardless of location, language barriers, or time constraints, technology has made business communications fast and easy. Furthermore, technology can be a powerful tool for helping you gather and analyze information, communicate, and collaborate in order to boost your negotiation performance. Here are some of the ways in which technology can help you prepare and execute a successful negotiation.

1. Online Research

One of the most important steps in preparing for a negotiation is to gather as much information as possible about the other party, their situation, and their needs. Technology makes it possible to conduct online research through a variety of sources including websites, social media, news articles, reports, reviews, and databases which can provide valuable information regarding the other party’s background, reputation, performance, goals, and challenges. You can use this information to leverage your own position and create a more attractive offer. 

2. Data Analysis

You can also use technology to analyze the data you have collected about the other party and compare it to current market trends. It can help you identify patterns, gaps, and opportunities where you can create more valuable outcomes for both you and the other party. 

3. Communication and Collaboration

Technology is also a great tool for helping you communicate and collaborate with other team members, stakeholders, and advisors before or during the negotiation. You can use various channels including email, video conferencing, file sharing, and communication software to share information, ideas, and updates. You can also use these tools to consult with experts or mentors for guidance and advice. 

4. Negotiation Skill Development

The best way to become a more skilled negotiator is through practice and experience. Technology makes it possible for you to develop your skills through online courses, blogs, webinars, and podcasts that teach you principles, techniques, and tips for effective negotiation. You also use online simulations to practice these skills in realistic scenarios. 

Being successful in negotiations requires more than just strategy and good communication skills. It requires a great deal of research and preparation, especially when it comes to learning about your counterpart. Knowledge about your counterpart is one of the most important factors in contributing to a successful negotiation outcome. Having a substantial amount of knowledge regarding your counterpart and their motivations allows you to create a negotiation strategy that will bring the most value to you and them. 

Why Should You Research Your Counterpart?

Many negotiators make the mistake of only considering their own needs when preparing for a negotiation. They only think about what they want, what they are willing to give up, how much leverage they have, and what their best arguments will be. Then, they devise a strategy based solely on their own needs and position. While this approach might seem favorable, it is actually missing a very important component- the needs of the other party. Negotiators who neglect to consider the needs and motivations of their counterpart are missing out on the opportunity to create a mutually beneficial solution for everyone involved. Not only does this hinder the negotiations, but it creates a rift between the two parties in future negotiations. On the other hand, negotiators who assess both their needs and the needs of their counterpart achieve more successful outcomes. 

What to Research Before the Negotiation?

Prior to negotiating, you want to gather as much information as possible about your counterpart so you understand their possible motives and what value you can bring to the table. During the research process, you want to seek answers to the following questions:

• What is motivating them?
• What problems or pain points do they have?
• What are they hoping to achieve from the discussion?
• What is their bottom line?
• Who is their decision maker?

How to Use This Information Effectively

• Based on the information you gather, you are now ready to brainstorm a list of possible solutions and outcomes. Strive to come up with solutions that meet both your own interests as well as the interests of your counterpart. 
• Create a list of concessions you would be willing to make that would satisfy the needs of your counterpart and also determine what you would like in return. 
• Prepare questions to ask or statements that will help you determine if you have correctly estimated their walk-away point. You also want to choose alternatives that will best satisfy the needs of both parties. 
• Determine what your walk-away point will be and what you can do to limit the chances that the negotiation will come down to this. You want to have several alternatives that will be attractive to the other party while still helping you achieve your own goals.

Many people dread the thought of negotiations because they find it to be tense and uncomfortable. The truth is, negotiations don’t have to be this way at all. With the right strategies, negotiations can be productive and meaningful conversations that set the foundation for long-term relationships. Developing negotiation skills is an important skill, as it is an essential part of doing business. So, consider the following tips for mastering the basics of negotiation. 

1. Establish a Relationship Beforehand

The master negotiator establishes a relationship with the other party before ever sitting down at the negotiating table. This allows you to get to know the other party and build a personal rapport with them. You can share common interests, learn about what is important to the other person, and get a feel for the person with whom you will be doing business. This helps to build mutual respect and a sense of genuine trust, and that is ultimately the foundation upon which constructive negotiations are built. 

2. Prepare Ahead of Time

Adequate preparation is one of the most important stages of successful negotiations. You simply must do your homework. Research both sides of the discussion, possible trade-offs, and preferred outcomes. Consider any concessions you would be willing to make and think about what you would like to gain in return. You should also prepare a BATNA that includes the lowest acceptable offer you would be willing to accept and remind yourself that your offer needs to be more attractive than your counterpart’s BATNA. By outlining each party’s goals ahead of time, you can enter into the negotiation knowing where the other stands.

3. Focus on Win-Win Outcomes

You never want to approach negotiations as though there will be a winner and a loser. Focusing solely on your own wants and needs will only lead to unsuccessful results. The best negotiators encourage cooperation and work toward mutually beneficial outcomes. 

4. Be an Active Listener

To master negotiating skills, you need to restrain your desire to prove your point and persuade your counterpart. Instead, you need to take the time to genuinely listen to the needs and concerns of the other party as well. Not only will listening give you options for win-win solutions, but it will also help you establish respect with the other party. 

5. Control Your Emotions

Whenever you’re negotiating, it’s essential that you keep your emotions in check and remain composed. Watch closely to your body language and that of your counterpart and look for negative signs like folding arms and lack of eye contact. If things do become tense, be mindful of this and ask to take a short reprieve so everyone can gather their thoughts. Act as a stable anchor and always be respectful. Take the high road and seek to understand rather than argue.