Negotiations are a critical part of any successful business-to-business relationship. That’s why, in today’s competitive market, the ability to close a deal is something that any business person should possess. Skilled negotiators are more likely to reach their personal goals, increase customer loyalty and satisfaction, and attain higher levels of profitability for the company. Therefore, it is important to understand what strategies can be used to help you become a more successful negotiator, and one such strategy is the use of incentives. 

Why is it Advantageous to Offer Incentives?

When you are sitting at the bargaining table trying to close a deal with a customer, it can be helpful to offer incentives. Offering incentives such as discounts, free shipping, or “bonus” products  can help sweeten the deal and make it more appealing to the customer. Consider this example. A man is riding a donkey while holding a stick with a carrot tied to the end. He dangles the carrot in front of the donkey to motivate it to move forward. This same principle can be applied to negotiations. When you dangle a “carrot” in front of the other party, you create an incentive that now motivates the other party to move forward and close the deal. 

How to Know Which Incentives to Use

In order for incentives to be an effective negotiation tool, you must first identify which incentives to use. In other words, what will motivate the other party to move forward? It is important to keep in mind that each situation is unique, because what is a powerful motivator for one customer, may not matter at all for another. Therefore, you must conduct research to figure out the interests of the other party. Prior to the negotiation, you need to learn about the other party’s needs, wants, and desires. Throughout the negotiation process, you can also ask open ended questions to gather additional information about what is most important to your counterpart. Then, you will be able to offer a meaningful incentive that the other party will find appealing. 

The Incentive Theory of Motivation

Research has shown that extrinsic rewards and incentives are among the most powerful motivators to drive people’s actions. Essentially, people are more likely to behave in a certain way when they are promised rewards and incentives. This means that offering incentives during a negotiation greatly increases your chances of closing the deal. 

Going through a divorce is already stressful, so you may consider saving yourself time, money, and additional worry by reaching a settlement outside of court. Ending a marriage is emotionally exhausting, and dealing with lengthy court battles can only exacerbate this already stressful situation. In some cases when both spouses are willing, all of the issues surrounding your divorce can be resolved outside of a courtroom. Though every divorce must go through the judicial system, the ones that go to trial can often take months and sometimes even years to reach the finish line. Not only can this be extremely stressful to deal with over such a period of time, but it can be quite expensive as well. Instead, you can work out an agreement with your spouse outside of court without any pressure or fees from attorneys and the court. Here are some steps you can take to reach a divorce settlement outside of the court.  

Step 1: Contact a Divorce Attorney

Even if you are planning to settle your divorce outside of court, you should still seek legal advice from a divorce lawyer. Having an attorney is important in helping you navigate the legal process and understanding all of the paperwork required to settle outside of court. An attorney will also ensure all rules are followed correctly and that your rights are protected. A lawyer will also be able to help answer any questions, provide helpful advice, and guide you through the process. 

Step 2: Schedule a Discussion

After speaking to an attorney, it is time to sit down and speak with your spouse. Schedule a meeting in a neutral location where you can both discuss the terms of your divorce. This will include things like asset division, child custody, and any other issues that are important to you. You can keep this discussion informal and meet alone at first, but be sure that you do not sign anything or enter into any agreements without consulting your attorney. 

Step 3: Gather Financial Information

In every divorce there will be a period known as the discovery phase, in which both parties will be required to share information about their assets and finances with the other party. It is your responsibility to be open and honest with your spouse and submit accurate information. Your divorce lawyer will be able to assist you in finding the necessary documents and reviewing them with your beforehand. 

Step 4: Create a Detailed Parenting Plan

If you and your spouse have children, agreeing on a parenting plan is probably a top concern for you both. In order to settle your divorce outside of court, you will both need to work together to come up with a plan that satisfies both of you while also serving the best interests of your children. Your attorney can help you come with a suggested plan and calculate appropriate child support amounts. 

Step 5: Work with a Mediator

If you and your spouse are unable to amicably reach an agreement, you may consider hiring a mediator to help you through the negotiation process. Mediators can be helpful in preventing conflict and reducing any tensions that may arise. 

Step 6: Submit Your Divorce Agreement

Once you and spouse have reached an agreement that you are both happy with, you both will sign the document with your attorneys present. You will then be ready to submit it to the judge for review. With the judge’s approval, the agreement will then be entered as final court order. 

After all of the hard work you have put into updating your resume, searching for jobs, and going on interviews, you have finally landed an offer. While you may feel very excited on the inside, it’s important to remember that there’s still one step left: negotiating the job offer. When an employer extends a job offer, they may present you with a compensation and benefits package that does not necessarily line up with your needs or expectations. You may be interested in asking for more pay, vacation days, insurance benefits, stock options, or some other form of compensation. Here we will discuss some helpful tips for negotiating the best offer. 

1. Start by Evaluating What You Have to Offer

In order to decide whether or not a job offer is right for you, you must first consider what you have to offer an employer. There are several factors to consider:

• Geographic Location: Consider the cost of living where you will be expected to live and make sure the offer is reasonable for the area’s current cost of living. 

• Years of Experience: If an employer is looking to hire someone with 3-5 years of industry experience and you have more, you may consider asking for a higher salary. 

• Specialized Skills: To that same point, if you have additional skills in specific areas or specialized training that exceeds expectations, this might be justification for higher pay. 

• Educational Level: Your educational background and degree could impact your compensation. 

• Licenses and Certifications: If you already have the required or preferred licensing and certifications that an employer is looking for, this could put you in a better position to negotiate. 

2. Research the Current Market Average

You need to be familiar with the current market trend for jobs in your industry. You can find out what similar jobs in your area are paying by doing a quick online search using a tool like Indeed Salaries. Having this information will help you gain a better understanding of what a reasonable salary would be for someone with your experience. 

3. Understand the Needs of the Employer

In order to better influence the person you are negotiating with, you first need to understand what they need. What are their interests and concerns? Why do they need this position filled? How soon do they need this position filled? When you understand the needs of the employer, you will be able to leverage your skills and experience to negotiate a better deal. 

4. Be Prepared to Explain Your Value

This is the time when you need to convince the employer of your value and why hiring you is the best decision. You need to share specific examples of how you have been successful in your current role and how you plan to utilize those skills in your new position. You also need to talk about specific numbers and benefits that you are looking for and why your experience, knowledge, and skills make you worth that price. 

5. Lead with Gratitude

As the expression goes, “you catch more bees with honey than with vinegar.” You are more likely to get a better job offer if you approach the negotiation with gratitude. Keep in mind that the employer has invested a great deal of time interviewing candidates and writing up an offer letter so it is important to recognize their effort and thank them for considering you for the job. You want to be friendly and professional during any and all interactions with potential employers. 

6. Ask for the Top of Your Range

You always want to ask for a number that is slightly higher than what you hope to get. This leaves some room to negotiate down and still end up with an acceptable offer. 

7. Be Flexible

The employer may not be able to provide you with the exact salary amount that you want, but they may be able to offer you other forms of compensation. For example, you might be able to negotiate stock options, flexible work hours, a work vehicle, or additional paid time off. Be willing to consider alternative options if they cannot increase your salary. 

A joint venture involves combining the tools, resources, and expertise of two or more companies. This type of partnership can have several advantages, including access to new markets, opportunities for growth, shared risks and costs, and access to greater resources. However, partnering with another business can be complex, so it takes careful planning and good communication to negotiate a successful joint venture arrangement. Here are some practical pointers for negotiating a joint venture or partnership. 

Understand Each Other’s Expectations

In order for negotiations to be successful, it is important to know your and your potential JV partner’s expectations for the company. You want to know whether or not you and your prospective partner share the same strategic objectives. For example, one party may be looking to expand its customer network beyond the home market while the other may be more interested in moving into a higher-profit margin within the existing market. It is also important to consider operational synergy and what the roles and responsibilities will be for each partner. For example, one party may be better suited to deal with suppliers while the other has a better understanding of managerial duties. It is best to consider how you and your potential partner will work together to run the business so there is alignment during the negotiation process. 

Know What You Want to Accomplish

What is your end goal and what does success look like? If you don’t know where you want to take your business, how can you negotiate strategically in the right direction? Know your minimum outcomes and what you must obtain so you can be prepared to walk away if your goals are not met.

Create a Game Plan in Advance

You need to develop a detailed game plan before sitting down with your potential partner. How bad do you need this deal? Are you in a position of power or a weaker position? What value do you and your current company bring to the table? Every negotiation requires compromise so determine what issues are most important and deal-breakers for you as well as what issues you would be willing to compromise on. From there, develop a strategy that puts you in the best position to reach a win-win outcome. 

Know Your Counterpart

Spend plenty of time researching your potential partner and gathering information about their knowledge, skills, access to resources, company profits, goals, and values. Do you share some of these same goals and values? Is this person someone you could work well with to reach your goals? You also want to understand the negotiating style of the other party and their track record with past negotiations. Can this person be trusted? Are they an open and honest communicator? Knowing this information will enable you to enter the negotiation process with the right strategy.

Discuss the Details of the Arrangement

There are many different types of joint ventures and each has its own terms and conditions. Therefore, you need to negotiate every aspect of the partnership including who will have majority ownership, financial obligations, operational responsibilities, etc. You may need to negotiate each of these aspects in order to find something you both agree on. For example, if one of you wants to have majority ownership, perhaps the other will carry less financial obligations. It is important to negotiate and agree on every aspect of the relationship so you both have a full understanding of how this partnership will work most effectively. 

Mergers and acquisitions are typically major business decisions that impact the future of companies. However, they often end with disappointing results and generate far less value than expected. That’s because these kinds of deals are often made by simply agreeing on a price, rather than figuring out the science behind negotiating a successful M&A deal. Here we will take a look at some of the ways companies can better prepare and execute M&A deals to maximize their chances of success. 

Conduct Pre-Sale Due Diligence

It is always important to find and resolve any issues before a buyer has a chance to discover them. That’s why you should assess your business early on in the sale process by performing due diligence on your business. This includes reviewing your financial statements, legal documents, sales reports, and any other important information relating to your business. Many businesses fall apart during due diligence if issues are discovered that have not been disclosed or resolved. If a buyer discovers issues, you could end up losing your negotiating position. Remember, your goal is not only to sell your business but also to do so for top dollar. 

Consider Your Negotiating Position

One of the most important things to remember when negotiating a business deal is what your position looks like. For example, is it easier to negotiate the price of a new car when you are desperate for a car or when you are shopping for fun and could care less if you actually drive off the lot in a new car? The key to successful negotiations is understanding your position. Here are a few things to consider regarding negotiating position:

• Avoid desperation at all costs, as this makes you vulnerable. 
• Negotiate with as many buyers as possible, as the more buyers are interested in your company, the stronger your position will be. 
• The better your business is performing, the less inclined you will be to sell and the stronger your position will be. 

Keep Emotions Out of Negotiations

It’s easy to let your emotions get the best of you, especially when you are negotiating a business that you have poured your heart and soul into. However, it is always better to keep your emotions out of the negotiation process. Stay calm and collected throughout the process and do your best to remain objective. If the exchange starts to become heated, take a break and resume talks at a later date. It is also a good idea to work with a third party that can act as a buffer between you and the buyer. 

Keep Running Your Business

One of the most common mistakes made by sellers is losing focus of running their business. It’s so easy to get caught up in the excitement of selling a business that you forget that you need to keep running your business until the deal closes. Unfortunately, many deals don’t make it across the closing table so the last thing you want is for revenues to decrease if you end up needing to put the business back on the market. 

Don’t Let Fatigue Get the Best of You

Sometimes M&A deals take a lot of time to complete so do your best to avoid deal fatigue. Sophisticated negotiators are aware of the natural fatigue people experience as the process wears on and they may take advantage of this by drawing things out even longer. The best way to avoid fatigue is to be well prepared in the beginning and minimizing the chances of a potential buyer or seller finding out anything against your business. 

Some people treat all negotiations as a competition, where there is a winner and a loser. The problem is that this is not the best way to foster strong business relationships. Effective negotiators approach the conversation in a way that benefits all parties involved in the long term. A win-win negotiation is one in which there is careful consideration of both positions in order to find a mutually acceptable outcome. If everyone walks away happy, then that’s a win- win! A negotiation should never be about one party winning and the other losing. Rather, both parties should discuss their interests and create a solution that benefits all. Here are some strategies you can employ to close deals and reach win-win outcomes. 

Prepare Alternatives in Advance

If you walk into the negotiation with a “my way or the highway mentality,” you will most likely not reach a win-win outcome. That’s why it is important to identify any and all alternatives that exist for you and your opponents by doing adequate research beforehand. Do some market research, talk to other vendors that offer similar products or services, and gather facts and data to support your evidence. This allows you to better determine prices, timeframes, terms, and conditions. 

Set Clear Goals and Objectives

In order to reach a desirable outcome for both sides, you must first know what that looks like. Think about your own specific goals as well as those of your counterpart. Prioritize your own interests and what you hope to achieve from the negotiation. Then, think about how you plan to go about creating value for both parties. 

Be Empathetic and Respectful of Your Counterparts

Genuinely try to understand the other party’s interests and position. Be considerate of their needs as well as your own, try to work toward a mutually beneficial agreement, and aim to maximize both of your profits. Doing so will help to create positive, impactful, long-lasting relationships.

Make Multiple Offers

Rather than making one offer and sticking to it, consider making multiple offers at the same time that you think are equally valuable. This will demonstrate your flexibility and willingness to compromise and will help you work toward a mutually beneficial solution. 

Suggest a Contingent Agreement

If both parties cannot reach an amicable agreement, consider pursuing a contingent agreement that will encourage both parties to compromise. These agreements typically include incentives for parties who comply or penalties for parties that don’t comply. It makes it possible for both parties to move forward, even if they have differing opinions. 

Business professionals enter into agreements and transactions with other people and businesses nearly every day. Be it a contract with suppliers or a contract regarding what work or services will be provided, contracts are a part of doing business. Contracts are intended to outline legal obligations that one party owes to another, so it is important to make sure they are clearly written in order to minimize confusion. A poorly drafted contract can not only confuse the involved parties, but it can also become the source of a lawsuit if there is a misunderstanding over the terms. A well-drafted contract, on the other hand, is a great risk management technique to help avoid misunderstandings that can lead to disputes and liability claims. Consider the following tips for writing clear, concise contracts. 

Keep it Simple

Contrary to popular belief, contracts don’t need a lot of fancy verbiage and lengthy descriptions to make them valid. In fact, short, simple, clear sentences are preferred. Your contract will be clearer and easier to read if you write shorter sentences and include vertical lists or subparagraphs to break up complex ideas. 

Write in the Active Voice

Always try to write in the active voice, wherein the subject is performing the action denoted by the verb. You want to be clear that the subject is responsible for the verb’s action. For example, “Tenant must pay utilities on the first day of each month,” as opposed to “Utilities are due on the first day of each month.” In the first example, it is clear that the tenant is responsible for the action but in the second sentence, there is no mention of the tenant at all!

Include All Details

Every contract should include all the rights and obligations of each party so there is no confusion about who is responsible for what. Include any details that are necessary to clarify these obligations. If at any point your business practices change after signing the contract, be sure to update the contract to reflect current practices. 

Identify the Parties Correctly

It is important to properly name the contract’s parties so it is clear who is actually bound to the contract. For example, always identify business entities by their corporate name to avoid any confusion. You should always use the correct legal name so it is clear who is responsible for performing the obligations under the agreement. 

Specify Payment Obligations

Be sure to specify exactly who pays whom, when the payments must be made, and the conditions for making payments. You want to use specific details to avoid any confusion. For example, if you are accepting payments in installments, be sure to list dates, times, and requirements. You also want to include acceptable methods of payment. 

Include Dispute Resolution

It is common to have disputes over contracts so you should write into the agreements what you and the other party will do in the event something goes wrong. You can decide that the dispute will be resolved through arbitration or mediation rather than litigation. 

Include Contract Termination 

In many cases, contracts will eventually come to an end so you want to describe how that will take place. Specify whether the contract can be terminated any time or only if the contract is breached. You should also include any fees, charges, or other obligations that may result from early termination. 

Selling your home is one of the biggest financial transactions you will make in your lifetime, so want to make sure you aren’t leaving money on the table. There are several factors that go into determining how much money you will walk away with, including the final sale price of your home as well as real estate commissions. Therefore, it is wise for sellers to understand how to negotiate in order to bring in the best possible price. Here are some tactics and strategies for helping a seller get top-dollar for their home. 

Create a Bidding War

While this can be a nightmare for buyers, it’s a dream for the sellers. A bidding war drives up the sale price, sometimes well beyond the initial asking price. Keep in mind, however, that the current market conditions can impact your ability to create a bidding war. When the market is hot, this can easily be accomplished by sellers but in a buyer’s market, it may not be so easy. Pay attention to the market. When there is limited inventory, there can be a frenzy among buyers to outbid each other. On the other hand, if there are plenty of homes on the market, buyers may walk away and simply look for another home. One way to help initiate a bidding war is to price your home slightly below market value. This will attract more buyers to your property, resulting in more offers. You can also trigger a bidding war by setting a deadline for all offers on your home, which can motivate buyers to submit an offer. 

Counter at Your List Price

Most sellers do not accept a potential buyer’s first offer and buyers typically expect a counteroffer. Sometimes, sellers will counteroffer with a price that’s higher than the initial offer but lower than the list price because they don’t want to lose the sale. While this strategy does usually work to get the property sold, it’s not necessarily the best way to get top dollar for your home. Instead of countering with a lower price, counter by sticking to your list price. Someone who really wants to buy the house will come back to you with a higher offer. 

Ask for Sellers to Bring their Highest and Best Offer

Another tactic sellers can employ during negotiations is referred to as the “best and final” offer. This works well when there are multiple offers on a home. The seller asks prospective buyers to bring their “highest and best” offer, encouraging them to submit the highest price they would be willing to pay for your home. This indicates to buyers that there are multiple offers on the table and usually results in more competitive bids. 

Add a Deadline for Counteroffers

When you have countered an offer as the seller, you can initiate a deadline for the prospective buyer to respond. This is a great way to move the negotiations along more quickly and usually encourages the seller to respond more aggressively. 

Agree to Pay Closing Costs

Closing costs typically amount to 3% of a home’s sale price and buyers often feel strapped for cash after paying a down payment and moving expenses. Some buyers can’t or won’t close a deal without assistance for closing costs. Though most buyer’s don’t want to spend the extra cash upfront, they don’t mind borrowing a little more so if you can offer to pay their closing costs, there’s a good chance you can get a higher purchase price for your home. 

Amid rising inflation costs, companies across the world are looking for ways to decrease their expenses in order to achieve higher profits. One of the best ways to do this is by renegotiating with suppliers. This doesn’t always mean getting the lowest possible prices, either. There are many components to negotiate including payment terms, delivery times, warranty periods, and product quality. It is important to negotiate with suppliers in a way that fosters long-term relationships while also benefiting your business right away. Here are a few helpful strategies for winning supplier negotiations. 

1. Build a Strong Rapport

It’s always easier to do business with people you like. That’s why it is so important to build rapport. Excellent rapport leads to better relationships, better communication, and ultimately better deals. When you have a relationship with your suppliers that is attentive, communicative, approachable, and responsive, you are more likely to gain a competitive advantage when it comes to negotiating. 

2. Promise Them Business

Suppliers are looking for the same thing as you: they want to get as much business as possible and they appreciate the customers who help them achieve those goals. When negotiating with suppliers, let them know that you are a customer who plans to give them repeat business over the long term. Let them know what they can expect from you and use past purchase history to provide a sales projection. 

3. Look Beyond Price

If the supplier cannot budge on price, look for other ways to negotiate that can help lower your expenses. For example, you may be able to negotiate the terms of your contract or you may be able to negotiate a discount if you purchase in bulk. You may also be able to negotiate for faster delivery at no extra charge or for improvements on your warranty. 

4. Compare Multiple Suppliers

As you would anything else, it’s important to shop around and compare pricing from different suppliers. Let each one know you are getting other quotes and explain that you are looking for the supplier that can offer the most competitive bid. 

5. Offer Larger Deposits for a Bigger Discount

Another strategy is to offer higher deposits to your suppliers in return for a bigger discount. If the supplier knows they will get 50-60% of the total cost upfront, this can increase your bargaining power and they may be willing to discount the overall price. 

6. Give Them All Your Business

If a supplier knows that they are getting all of your business, they may be willing to offer deeper discounts to maintain that valued relationship. If you are giving your business to multiple suppliers, consider transferring all of your business to one in exchange for better pricing. 

Searching for a job, interviewing, and getting the position is a stressful process, so it’s not surprising that many people are nervous about asking for more money once they have an offer in hand. The last thing they want is to jeopardize their offer. However, people who negotiate their salary typically increase their starting salary by an average of $5,000. Moreover, most employers expect salary negotiation after an initial job offer. If you have specialized skills or an impressive resume, you could be leaving money on the table. So, consider these helpful tips for negotiating the salary you deserve. 

Familiarize Yourself with Industry Trends

You need to arm yourself with as much information as possible when it comes to salary negotiations. In order to get a current, realistic view of compensation in your field, do some homework and study trends. Job listing sites such as Glassdoor, PayScale, and LinkedIn are a great resource for finding salary ranges. You can also reach out to recruiters to gather insight about average salaries for similar jobs. In addition to finding out average salaries, you should also pay attention to the most in-demand skills for jobs in your field. 

Know Your Value

In order to get the pay you deserve, you must first know what you’re worth. Make a list of your strengths, accomplishments, skills, specialized training, certifications, experience, and any other details that set you apart from other candidates. Have a keen awareness of how your skills can benefit the company’s bottom line. By tying these strengths to your initial offer, you can build a solid case for a salary increase. 

Ask for More Than You Hope to Get

Once you have a salary range in mind, it can be tempting to ask for something in the middle so you don’t come off too forward. However, you should always ask for something toward the top. First off, you should assume you are worth the higher amount. Second, your employer will almost certainly counter the offer so you want to leave a little wiggle room to come up with a salary you are willing to accept. 

Consider the Entire Compensation Package

Money is certainly a huge incentive, but there is often more to a job than just the pay. Before entering into the negotiation, you need to think about what other benefits you would be willing to accept in lieu of a lower salary. Some of these potential benefits would include:

-stock options

-paid vacation days

-flexible working hours

-tuition reimbursement

-professional development

-signing bonus

-remote work opportunities

-opportunities for promotion

Practice Your Delivery

Once you have all the information needed to negotiate, it’s always a good idea to practice the conversation ahead of time. Consider practicing with a colleague, professional mentor, or other business-savvy person who can tell you what to expect and can help coach you through the process.