Running a business is no easy task. There are countless ups and downs, and it’s up to you to handle each situation in a way that would benefit your business. Negotiations are very important to the success of your business.
When you have an important deal to close, you’d probably spend countless sleepless nights preparing for it, ensuring everything’s perfect down to the last dot. This will give you a sense of relief that all will go according to plan.
However, no matter how confident you are in your presentation, even if you’ve done everything you could, the negotiation can still go out of hand if not managed properly. This is why choosing the right negotiation tactic is crucial.
Using the wrong tactic can turn all the tables against you, meaning all the long nights you’ve spent and the hard work you’ve put into that presentation can go down the drain. And there’s no turning back—you either create a miracle or accept the harsh reality.
Of course, you want to avoid that kind of situation as much as possible. So, how can you ensure that deal will go exactly as you plan? Here are some negotiation tactics that may help optimize your sales pitch and close all your deals in the future:
1. Understand Your Clients
A winning negotiation tactic doesn’t always have to be so complicated. In fact, it could be as simple as knowing and understanding your business counterpart.
It is easier to create an appropriate presentation and meet your client’s demands if you know your investors and their needs. This will increase your chances of closing your deals in no time.
When you understand your clients, you can show them how your company can fulfill their demands and how much you’re aware of their needs. The more you know, the more favorable the outcomes will be.
Take all the time you need and research properly to determine what your clients want and how you can provide it to them.
2. Create A Private Office Room for Negotiations
In a business negotiation, you either visit the client or the client visits you. If it’s the latter, do you think you’re prepared for their visit? Have you checked the current situation in your office these past few days? If you don’t, this is the best time to do it.
An office room should evoke a positive and light yet professional tone. It doesn’t necessarily mean an extremely workaholic space but an energizing and passionate one. Creating a private office room helps you achieve all of that.
Private office space is great for meeting new prospects and negotiating with clients. You can discuss business plans with your future clients and entertain existing partners to start a new joint business venture. Get closer to closing that deal by making sure there are no distractions as you discuss.
Aside from that, creating a private office space can also be beneficial for your overall business operations. If you want to learn more about that, read here.
3. Let Your Counterpart Speak
When you negotiate, it’s normal to speak a lot to get your counterpart’s sweet yes. However, it’s also important to listen to what they have to say. Allow them to open up and share with you all of their current problems as well as the things they’re looking for. Listen for pain points they may mention that you can address in this deal.
Listening is one of the most crucial abilities that are often overlooked by many because of a multitude of strategies that use plenty of show and tell. Sometimes, it’s challenging to take a pause, especially when you want to object, but let it flow and think of a better solution or prepare for possible objections ahead of time. In short, dive deeper into your client’s portfolio.
4. Simplify The Deal During Negotiations
Clients hate negotiating deals they can’t easily understand. Look for a solution that simplifies the negotiation process and makes it a no-brainer for your counterpart.
You may include notice allowing your clients to terminate the contract anytime, add compensation based on company performance, or anything that makes the deal less risky.
While many people think that money determines the outcome of the negotiation, it’s actually how you can make the deal simple and less risky for the counterparty. This helps prevent any chance of disinclinations that may ruin the negotiation.
5. Be More Urgent with Negotiations
Urgency helps speed up the negotiation process when done correctly, especially when both sides find it beneficial. You can offer great deals and discounts if your clients agree to your terms and conditions and sign up right away.
Why does adding a sense of urgency work in negotiation? That’s because the human brain naturally procrastinates in plenty of ways. It forms immediate action if there’s something that has to be done as soon as possible.
Instilling urgency is also a great persuasion tactic that doesn’t manipulate people. However, it’s worth noting that this may not always work. But still, it’s far better compared to other manipulative strategies that don’t yield positive results; in fact, it can damage relationships.
6. Get A Mediator
Get a mediator both you and the counterparty can trust. Mediators must remain neutral at all times.
Like a court judge, a mediator shouldn’t support a particular party and must perform their duties according to what’s written on the agreement. This way, both teams can review every part of the deal and proceed with the negotiation.
Of course, you won’t be able to get everything you want, but the negotiations may proceed accordingly through this tactic.
7. Create A Contingent Contract
Lastly, when closing a deal, you may consider creating a contingent contract. This is a bet between stating which party’s insight will be fulfilled in the future.
For example, if your contractor can build a satellite office within an ambitious timeline, give them a bonus for being efficient or a penalty in case they fail to complete the task on time. However, both parties should agree to the terms of the contingency agreement.
Final Words on Negotiations
Negotiating a deal is no easy task, but when done correctly, you’ll reap the fruits of your hard work. However, it’s too early to judge things positively. Even if you spend consecutive working and perfecting your presentation, things may still go sideways whether you like it or not. The best thing you can do is to turn the tables back to your side using some of the tactics above.