Negotiation is a major part of any business. Whether it is at the supply or buyer end of the negotiation, it is an absolute essential part of your operation and plays a crucial role in your financials. Negotiations can be tough and require a lot of resources. Sometimes it can be difficult to figure out, how to save money on this part of your business. For this reason, we have compiled our top five ways to improve your business’ negotiation process.
Understand what the other party wants
Empathy is one of the main pillars of good business negotiation. Ask yourselves some questions before sitting down with them; what is their perspective on this business negotiation? What do they want, what are they looking to get from this negotiation? If you are able to put yourself in their shoes, you will have a very big advantage in the negotiation. If you offer some of what they want voluntarily, it will let them know that you are not enemies trying to take everything for yourself and giving nothing back. It will instantly instil an attitude of friendliness in your potential partner and will ultimately give you more leverage in the negotiations.
Listen to them
Listening is at the core of negotiating effectively. Think of it as a conversation with a friend or maybe even a date – would you then just talk non-stop about yourself without listening to, what they have to say? No matter how boring their stories might be, you recognise that in order to have an effective conversation, it is important that the other end of the conversation feels heard and respected. This is also true of business negotiations. Listen carefully to what they have to say, and make sure they feel listened to and that you understand the fact that their demands are as important as your own.
Move your business negotiations online
Negotiating business online can be a significant force in optimising your negotiation process. It allows you to negotiate with multiple buyers or suppliers simultaneously, which will ultimately give you the best and most effective deal possible. eAuctions have become very popular in the business world since the 1990s and for good reason. They provide massive savings in both money, time, resources, and improve effectiveness across the board. You can find an eAuction service here.
When negotiating business, it is important not to be a pushover. You will undoubtedly meet many assertive maybe even aggressive business people, who are trying to get a good deal and not caring about you or your needs at all. Do not let this happen. Make sure the opposite party understands, you mean business and not to play games. In the process, it is however very important that you stay civilised and not come off as aggressive or unpleasant. No one wants to do business with an unpleasant, rude person. If you have certain terms, you are not willing to change, let them know in a nice but assertive manner.