Have you ever made a fairly large purchase and ended up walking away feeling like you got the short end of the stick? Well chances are you're feeling this way because you did.
When it comes to negotiating a fair price most of the time one side gets the better of the deal. Which would be good for the one who came out on top, but bad for the person who came out on the bottom. This is mainly because the side that got the better of the deal is simply put, a better negotiator.
Professional negotiators earn a lot of money from buying and reselling. Some have a natural talent for it and the rest of us just need practice.
Knowing how to be a great negotiator is so important. If you don't know how to negotiate, how do you know if you got the best deal or not? What if you were taken advantage of and didn't find out till way later?
I'm going to share my top 10 negotiating tips so keep reading.
1) Be the boss.
Take control of the situation and don't allow anyone to lead you off anywhere. Meet the other side with a firm handshake and look the part. Have you ever heard of the saying, 'Fake it till you make it?' Well it works.
If you act serious, people will treat you serious. But if you are known for joking around too much, people try to take advantage of you. So when you go into the boardroom, or place where you meet the other side for negotiations, look and act ready for business. The other side may feel intimidated by you, and will make the mistake of giving you more than they should right of the bat.
2) Never ever say yes to the first offer.
Sometimes the first offer might seem amazing. You might think to yourself, "Wow I can't believe they're giving me so much! They must like me." Snap out of it! A lot of times what may seem like a lot, is just a cover-up for what they're not showing you. A good rule of thumb is to say no at least three times.
It may sound vague but if you find yourself in a situation and you have to get a deal done, reject their offer three times. Slowly but surely they'll come closer to the actual discount that you deserve. Remember, nobody's first offer is ever their best.
3) So you've said no three times and now it's time to shake hands right? Maybe.
Depends on what you're negotiating on. With small deals yes you can take it, but with bigger business deals you're going to do something different. Walk away from the deal. "What??" You might ask. This is called 'Walking Away.'
It's purpose is to cause stress to the other side and let them know you don't need them or their offer. The typical affect of this is to make sure they aren't hiding anything from you or to squeeze a little more. Most sales reps keep an ace up their sleeve just in case they can't close you. Make them show you all their cards. You want to force their hand, so to speak.
4) Don't get emotional.
This goes back to step one. Don't let them see what you're thinking. Don't fidget. Keep your body still. You need to appear like you don't need them or their product and that you are in no rush.
A sales rep will always try to tempt you with 'Fear of Loss'. Don't act like you care. Don't be rude about it, because they may decide you're not the sort of person they want to do business with. Be polite, and respectful but make sure to not show your true feelings. When customers get excited and happy, the sales rep knows he's got you. 80% of sales is emotional and the sales rep knows it. If they can't sense any emotion from you their only option is to give away price. This is what you want to happen.
5) Hire a professional.
Considering there are far too many things to negotiate with, your best bet is one of two things:
Comparing prices is one of the best ways to get a good idea on what you should expect to pay. The idea is to pay less than market value. Ideally, being able to buy something and sell it right away at a profit means you made a good buy.
6) Whatever their first offer is, ask for double.
Let's say you can't find anything online and no appraiser is around. Ask the seller if they're serious about selling and what their best (today) price is. Whatever they tell you, double it. Then you may have to go back and forth until you can meet somewhere in the middle.
7) Do your homework and know the market.
The internet is full of great resources for literally ANYTHING you want to buy. Shop competitors and ask if they can do better than a price you were given. You can keep playing this game with them. Look up their item. Go online and see if you can find the same thing at a lower price. Print it out and show them. There is nothing stronger during negotiations than physical evidence.
8) If it's a salary you are negotiating, remember steps 1, 2, 4 and 7.
Keep this in mind, an employer will pay whatever he needs if he thinks you're worth it. Hire a professional to make your resume. Highlight key points that pertain to your new place of employment. Make sure you appear as if you're already a master of the job.
When my husband and I were first dating, he really wanted a job in sales at a large corporation. No matter how hard he tried they never replied to his online applications. So he rented a nice luxury car, took off the stickers, put on his best suit, drove up to where everyone could see him. He said when he pulled up, everyone was staring at him through the windows. He walked in and asked the Manager for an interview. Well long story short, they gave him the interview, the job, and his desired salary. My husband has a talent for sales. This is 50% of negotiations. Looking, acting, and talking the part.
I would recommend going online and reading information on sales tactics. This will only strengthen your ability to negotiate. When you look, act, and talk the part, 50% of the work is done.
9) You never know until you ask.
Sometimes I see people hesitate to ask for a raise, discount, something extra, etc. I'm going to tell you something that'll help you forever, be shameless. That's right. Some of the best deals I've ever seen get closed are by people who aren't afraid to ask for something.
If there exist a time during negotiation talks and you're curious about something, ask. Worst thing they can say is no. You may not always get what you are looking for but you may be surprised. Often times my friends and I will go shopping together. We buy the same thing and I walk away with a discount or something extra. They are always so confused. "How did you get that?" They ask. I just tell them it was because, "I asked."
10) They need you more than you need them.
This is absolute truth. A sellers product is worth nothing until its sold and an employer needs you to keep his business profitable. Without you the buyer or employee, nothing gets done. Remember this always. As you go about your life, this will begin to ring truer as time goes on. Be confident, because you have every right to be. The ball is in your court, you have all the cards, and you have more choices than every seller and employer put together. Sometimes a deal may not go the way you 've hoped for. Shrug it off. Because there is always something better waiting around the corner.
I hope you find this information useful. It's helped me a ton. I tried to cover as much of the basics and important things about negotiating as possible without needlessly getting too specific. This way you can use it in any situation. So take control of your lives and you're Financial Freedom! Also, please leave a comment. Or if you have something to add, please do!
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