Business Negotiations: Myths and reality
Not every business negotiation has to be daunting. You can weed out the myths of negotiating with clients, investors, or partners and gain back your confidence by learning and retaining the reality of the negotiation process. With these myths busted, you can enter even the worse of negotiations with your head held high and confidence to help guide you in making the right decisions.
Myth 1: All negotiations come with a headache
Even the easiest of negotiation process can be daunting. Making sure both parties are being treated fair and getting all the required details and services they need to get the project done correctly and effectively is not something someone typically finds joy in. Trying to make sure you as the contractor is providing what the client needs without getting raped in the end is believed to be a task not for the faint of heart.
Myth 1 Busted: Plan ahead
Next time you are heading out to negotiate the forth coming of future contracts, you won’t need a “good luck” hollered at you on your way out because you have mastered the art of planning. Being prepared for the ‘unknown’ is what keeps our head held high and the only way we can conquer these meetings with less of a headache in the end. In order to plan, develop a list of questions you need to know to make accurate business decisions.
Myth 2: It is in their blood
“I’m not born to negotiate; it’s not in my blood.” The process of negotiating is put up on this pedestal of requiring a farfetched skill that you cannot learn, but only acquire by birth.
Myth 2 Busted: You Can Learn the Skills
The more you can learn and obtain the skills to negotiate, put together with practice, anyone with a desire to be successful, will cut the stress out of the negotiating process and become rather skilled at it. You can find a variety of ways to learn these sought after skills. You may find tips in books, tapes and seminars, or other online resources that will conveniently help you obtain the skills. However, the key to mastering negotiation, like virtually anything else, is by practice. Through practice you will inquire the confidence that is the leading principle to successful negotiation.
Myth 3: The contractor must ‘give in’ to price
In order to seal the deal with a client, you must lower the price, even at the risk of quality.
Myth 3 Busted: Work out other avenues to cut costs
Before you cave in to the client on budget, keep in mind that there may be other ways or areas up for negotiations. Try and find out from the client what they ultimately are seeking. In some cases, the price reflects a ‘rush’ job or other specifications a client is seeking. Bottom line is to find out all aspects of what the client is looking for in the entire project and not just negotiate price, it just may not be the underlying factor.
Myth 4: You have to be the “YES” man
Your client agrees to your initial sales pitch, take the deal and run. In instances like this no negotiations are needed.
Myth 4 Busted: First offer should never be the last
In most cases, you should never accept the first offer and you should always counter offer it. By accepting first proposal you are raising suspicion within the client. Client’s typically go into meetings such as these anticipating some haggling, so by no haggling he may be questioning his position and if he got the best deal possible, leading to him not being happy with the project in the end and wanting out. Another reason to avoid first offers is ideally first proposals are on the lower end, leaving room to negotiations. Without a counter offer you are cutting yourself off from obtaining a higher bid.
About the guest author: The article is drawn by Davis Miller, a regular blogger and an entrepreneur. He is associated with the site thegappartnership.com.au offering help to deal with negotiation. They provide workshop for negotiation in about 50 countries.
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