My 6 Essential Negotiation Tips from over 30 years in Business

Hi there,

Welcome to Wisdom Wednesday. In today’s newsletter, I want to discuss the art of negotiation. Most of us negotiate every day either in our personal or professional lives. Deciding which film to see or which restaurant to visit with your friend or partner may well be a form of negotiation.

My 6 Essential Negotiation Tips from over 30 years in Business

Negotiation is a fundamental skill in the business world. Whether you're closing a deal with a client, securing a pay rise, or discussing project details with colleagues, strong negotiation skills can empower you to achieve your goals.

I ran my own business in motorsport for over 30 years. negotiation was an everyday activity whether I was buying or selling. These are the 5 negotiating skills I used using an example of buying a car:

• Do your homework. Before I even met the seller I would know how much I could pay for the car so that the deal would be profitable. This price would become the red line that I would not cross (in this case pay more than) unless the situation changed (for example the seller offered extra spare parts). This step would involve research into the current market conditions.

• Ask the price. I would always ask the seller for his or her initial asking price. This would tell me if they had realistic expectations. If their price was unrealistic, I would often end the negotiation there knowing that a compromise was going to be impossible that day but that the seller may come back to me in the future.

• Communicate my position. Assuming that the asking price was realistic I would communicate my position clearly and concisely. If their price was less than my red line and the car was desirable I may well have given the asking price. If not, I would explain to the seller exactly why I could not pay that amount.

• Actively listen and build a rapport. Building a rapport with the seller is important. This comes from listening to the seller's point of view and finding out the reasons that he or she is justifying the price.

• Make a counteroffer. I would make a counteroffer that is below the seller’s price but still allows me a little room for further negotiation, if necessary.

• Negotiate. I would try and find a compromise to enable me to buy the car at a price that the seller is happy with and is below my red line. If the seller’s minimum price exceeds my red line (for buying in this example) I will walk away from the deal.

• Remember: There will always be another day, another seller, another car and another deal. It is always disappointing to loose a deal but, at the time, I was buying 2 or 3 cars a week.

Language points:

1) Ask the price:

• “How much do you want (for the car)?”

• “What is your best price for payment today?”

2) Communicate my position:

• “I am afraid that is more than I can pay for a car with this specification.”

• “The last car I bought like yours was £1,000 less and was in better condition”

3) Actively listen and build a rapport:

• “I understand your point but…..”

• “Is there anything else that you can tell me about the car”

4) Make a counteroffer:

• “Would you accept £xxxx if I pay for and collect the car today”

• “The best I can offer is £xxxx”

• “I see the price at around £xxxx”

5) Negotiate:

• “I would be prepared to pay £xxxx if you can throw in an extra set of wheels”

• “You want £yyyy. I want to buy it for £xxxx. I would be prepared to meet you in the middle (i.e. pay halfway between their price and my price) in order to reach an agreement.

Practising these phrases will add fluency and professionalism to your negotiations.

When do you negotiate? Reply to this email and we can look at some more techniques and language of negotiation in a future newsletter.

Words of the Day - Red Line

Red line - compound noun - a point beyond which a person or group is not prepared to negotiate.

“The Prime Minister set out her red lines in the negotiation.”

Do you have any Business English questions?

Please email me and I will do my best to answer them in future newsletters.

Until Friday - have a great day!

Iain.

www.communicateenglish.com

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