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How to Negotiate and Win a Negotiation

Be bold in your presentation and know who you are facing…

Negotiating is a skill that can save you hundreds or thousands of dollars, as well as make or break friendships and business partners. The following advice tells how to win your next negotiation:

Before arriving at the negotiations, have a prepared a set of terms on which you are willing to work with the person in order to receive their service. At the negotiations, have them offer first. Unskilled negotiators get nervous and will try to appease you by offering more that necessary. Stay silent on your prepared terms, because they will probably offer you much more than you were expecting.

In negotiations, the person who speaks the least is often the one who wins the most. Speaking opens up the possibility for errors, for revealing too much, and for showing nervousness. Be patient and quiet, thus forcing the other person to speak more. The more they speak, the more you learn about them, the better off you are.

I learned that you actually have more power when you shut up.
~Andy Warhol

Act like you do not need what they have to offer and you have other options available. Seeing this, they will try to appease you by watering down their terms or not being as bold in their actions. They may even start to negotiate with themselves just to keep you listening.

When signing an agreement, you should feel calm and relaxed. Rushing negotiations will lead to errors on your part. If appropriate, attempt to leave the negotiations with the terms set but nothing signed. Tell them you have to get the approval of a partner or superior first. This will give you time to think the terms over.

Deferring the final decision to someone other than yourself is an effective tool in diffusing any pressure you may feel. When the person you are negotiating with hears this, they will inevitably tone down their rhetoric. If you are not calling the shots, then it gives them less of a motivation to go all-out in their efforts to persuade you.

Try to have fun at your next negotiations and feel confident about yourself. You’ve done your research and prepared your terms. Be aware that the other person is probably much more nervous and less skilled.

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10 Responses »

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  4. useful. considering i just received some law school offers in the mail.

  5. Any advice on diplomatic/political negotiations?

  6. Most people don’t realize how many times they find themselves in negotiations. Buying a house, a car, a bank loan, insurance and many big ticket items. Even your next pay raise. Never forget that when buying, you are the one with the money. When negotiating a contract for your services, honest bargaining can be very impressive on your employer.

  7. Well done. I love the Warhol quote. I had an old boss who used to say “you have two ears and one mouth, use them in that proportion.” Knowing your opposition cannot be emphasized enough. I had a commodity type buyer who would always argue down price. So, guess what happens – everyone goes to the buyer with a price higher than the offerer will accept, knowing they will have to concede some. BTG

  8. Your article’s very timely. The President and Congress should be reading this IMO.

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