Have you ever heard someone refer to negotiation as an art form?
Successful negotiators go for what they want and get it. They earn more money because they ask for a raise, they get better deals, and they always seem to have people willing to barter with them. Why is that?
To many, negotiating seems intimidating because they aren’t sure where to begin or how to initiate the conversation. They would rather take the first option told to them than to ask for the better deal.
Many times, people make you an offer and expect you to negotiate. Failure to do so means you’re losing money. Fear of negotiating has the potential to leave thousands of dollars on the table.
Don’t let that happen to you! Here are X ways to negotiate better.
Do Your Research
Though you may know what you want, it’s important to research to see if what you’re asking for is reasonable.
For example, you may be job searching and want a salary of $100,000 for a job as an entry-level office coordinator. Chances are, you won’t get hired because your salary expectations are a bit unrealistic. While you should aim high in negotiating, you should still be feasible.
Knowing what something is actually worth gives you a lot of power and prevents you from accidentally offending the other party.
On the other hand, performing adequate research ensures that you aren’t short-changing yourself too much. You should still aim for what you want, but in a practical sense.
Know What You Want And Ask For It
Now that you’ve done your research and have a starting point, don’t be afraid to ask for it! Negotiating can seem intimidating, but it’s easier when you’re prepared and know exactly what you want.
Be bold and straightforward, while remaining courteous. Refrain from beating around the bush and just ask for what you want.
Be as confident as you can. Remember – you did your research and this is what you want. There is no harm in asking for anything.
Stop Talking and Listen
Many people make the mistake of talking too much after asking for what they want. You don’t need to explain any further. Continuous talking and a lengthy explanation only make you seem nervous and unsure.
Allow the other party time to think and respond. The ball is in their court now so be patient. If the object of your negotiation is large or costly, this could be a bit of a waiting game.
If they don’t agree to exactly what you asked, listen to their reasons. Are they making excuses as to why they can’t meet your proposal or are they giving you legitimate reasons? Listening closely allows you to form a proper response.
Look For a win-Win Solution
Remember that negotiating involves a lot of back and forth. Most often, the other party’s response is not entirely what you asked for. This is where the actual art of negotiating comes in.
Be prepared to have an alternative offer. Remember, whatever they are offering you is of value, so try to find a solution that makes both of you happy.
Personally, I always look for win-win situations when I am thrifting something from someone on Craigslist. Usually the seller simply wants the object out of their house. So I volunteer to pick it up, haul it away, and negotiate for a lesser price than what they initially listed it for. We both leave happy because the seller had to do minimal work while I got the deal I wanted.
Be Willing to Walk Away
Even with the best negotiator, there is no guarantee that you will come to an agreement that is suitable for both parties. The worst case scenario is that you may have to walk away from a deal.
Walking away from something you really want is never easy. The key is to maintain emotional detachment.
So how do you stay emotionally detached from a potential purchase?
Know that there are other options out there. For instance, if you’re interviewing for a job, but the salary isn’t what you asked for, you’ll have to consider if it’s worth it. You remain emotionally detached by reminding yourself that there are other jobs out there that might better fit your needs. The more attached you become to the potential job, the more power you lose in negotiating.
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Negotiating can aide you on your quest to financial freedom if you are able to do it correctly. By remembering these tips, you can master the art of negotiation and ask for anything you want in life.
Would you call yourself a good negotiator? Do you have any stories of when negotiating benefited you?
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I think it takes practice. The more you do it, the better you get at it.
If it’s a negotiation for a raise at work, definitely play up what you did, and not because you have bills to pay. I’ve seen a lot of raises at work get turned down because people said: “I have a baby, new car, got married, bought a house, etc.”
Everyone has bills to pay and life events, so bosses aren’t really impressed by bills, and they have to be accountable to their boss and the company. The raise has to make sense on their end.
Love those points. No one is entitled to getting what they want or think they need. I personally negotiated performance based raises semi annually at my job. It keeps me motivated to work hard since the company will only agree to a raise if I’m putting in the effort.
I love the art of negotiation. Solid advice here! We recently negotiated a large purchase and got a good, fair deal, in my opinion. The most important part of the negotiation was our complete willingness to walk away (knowing other options would, eventually, present themselves).
Thanks, Amanda! Being willing to walk away and remain detached is difficult, but if you give in to emotions, you’re probably not getting a great deal. Glad to hear you walked away with a fair deal!
Researching is so crucial to negotiation! You definitely do not want to walk in and not know what you’re talking about and ultimately look like a fool! Additionally, being confident and bold is definitely needed to get what you want out of the deal! If you are shy and insecure there is a chance that the person you are negotiating with might see you as a pushover and you won’t get what you originally came for.
Great points! Researching helps you to look confident, even if you aren’t.
When it comes to salary negotiations, I think it is important to realize that they are other things to negotiate for than a bigger paycheck. For example, the company may not be able to give you the exact dollar amount that you are looking for; however, they may be able to compensate with more vacation days or allowing you to work from home.
I think negotiations is an acquired skill. I think about the show Pawn Stars when I think of negotiations. You can tell those people that have never negotiated vs. those that are comfortable. It’s interesting to see the dynamic between the experienced negotiators and the Pawn Stars cast.
I feel like I’ve learned so much from them without ever taking a class. While I haven’t had to negotiate anything in awhile I definitely feel more equipped.
I love talking about negotiation/haggling – because I am British, we can be very reserved at that kind of thing. The best negotiators I know are my friends who are in sales, they know that ultimately, the person wants to make a sale and most people/stores have some wriggle room for negotiating.
Nice tips, Rachael!
Recently, we purchased our home. I told the selling agent (via my realtor), I see the listed price, what is the price at which you are willing to sell. The person in a hurry is always the first one to speak their offer and puts themselves at a weaker point when it comes to negotiation. The seller gave me a number that was lower than the listed price – that is where I started negotiating. We got a good deal.
Secondly, I always ask – “Is this the best you can do?” towards the end of the negotiation. You might be surprised with the response you get, it works for me most of the times.