When we realize that virtually every aspect of our business and personal life requires negotiation, the benefit of being a better and more efficient negotiator becomes clear.
Negotiation skills are rarely part of our formal education, although we use them all day, every day. These skills are at the core of our professional and personal lives. It doesn’t matter if we run General Motors or the corner snowball stand or our homes, we all have to communicate and convince effectively.
What is negotiation, anyway? Negotiating can be explained simply as “working hand in hand with others to achieve some beneficial result.” Fortunately, it is a practical skill that can be learned. It is not a genetic trait that we are born with, like blue eyes or black hair. So, no matter what our age or position in life is, if we develop a certain attitude about negotiation, pay attention to perfecting our skills, then our life will be more calm.
A few things to remember when developing a trading strategy:
o Act collaboratively, not competitively. It’s not “me against you.” When we see the other person as a negotiating partner, we are aware that everyone should come out with a profit. It is a big mistake to think that someone is going to give you something for nothing. So try to determine what the other person might want in exchange for what you want. And then make your case to show them that if they help you get what you need, you will help them get what they need. Make “mutual benefit” your mantra.
o Customize the situation; treat as individuals, not as institutions or corporations. You are not talking to “the Tchula bench,” but to Charlie Smith, the person sitting across from you, who represents the bench. Flesh and blood Charlie Smith. Please note that you negotiate on your behalf, on behalf of the company. When you see the other person in this light, you can look them in the eye. This eye contact
o Raise your expectations. You generally get what you hope to get. If you think you won’t get the promotion, you probably won’t. If you think you won’t get the contract, you probably won’t. There is no way you can do your best if you think, in the back of your mind, that you will not succeed anyway. So you can also act like you hope to get whatever it is you want. You will be pleasantly surprised when it does! You see, when you really hope to get what you are looking for, others see this in you.
o Know what you want. Sounds simple right? But, surprisingly, there are many times when we go into a trading session saying, “Let’s see what they offer us.” Why let the other person decide what you will get? Nobody knows your business or your life like you. Being able to make concrete proposals gives you strength.
o Stay focused on the real problems. Decide what you really want to achieve; what extra would it be nice to go out with; and what you can do without if you need to give them up to reach an agreement. Why do you need to determine these things in advance? Because in the “heat of battle” you won’t be able to focus on these issues so easily and you might be very surprised at what you didn’t get or what you gave away.
o Prepare. Do your homework; Thoroughly research the person or company you will be dealing with. Is the company innovative or serious? Is the person you are negotiating with known for being creative or for being more traditional? With all the information available on the Internet today, there is practically nothing that we cannot find out beforehand. Whether we are investigating a corporation or a person. Just googling someone will likely bring up something we didn’t know. And of course there is the old way – just ask. Ask your industry colleagues (not competitors) or acquaintances. It shouldn’t surprise you how much people like to talk about what, who, and how much they know!
o Make time your ally. Try to know your counterpart’s deadline without revealing yours. Why? Because if I know your deadline to resolve a problem or reach an agreement, I can delay any decision to the point where I know you have a decision to make. Most concessional behaviors and liquidation actions occur near someone’s deadline; don’t let it be yours.
These are just a few of the many points needed to learn more about the negotiation process. Will it take time and effort to practice negotiation skills? Of course. But becoming a smarter and more efficient negotiator will bring you many rewards in both your professional and personal life.
