egotiation is a crucial skill to have in any business. It can be used not only with clients but also internally to get the best terms for your company and employees. While there are many different ways to negotiate, some of the most important rules include: know what you want; don’t make decisions too quickly; always ask for more than you think you deserve; never let them see that they’ve won an argument with you; use silence as a weapon by waiting until they speak first.
What is Negotiation?
Negotiation is a process that involves two or more people discussing an exchange of values to come up with the best deal. It can be used not only in business but also in everyday life and relationships; for example, when asking your landlord if you can paint one wall instead of all four walls before moving back into your apartment next month.
Is Negotiation a Soft Skill?
Yes, negotiation is considered a soft skill because it can be applied to so many different areas of life. Most people don’t have the ability to negotiate for their salary or benefits at work, but they do have control over whether they will ask for more time on their weekly deadline from their boss.
What are the Seven Rules of Negotiation
Be willing to walk away from a deal. It can be used not only in business but also in everyday life and relationships; for example, when asking your landlord if you can paint one wall instead of all four walls before moving back into your apartment next month. Never negotiate against yourself by revealing your bottom line. For example, if a landlord asks you what your lowest price for the apartment is and you say $800 instead of saying no deal or not giving an answer at all, they will use that against you when trying to get their top offer.
7 Rules of Negotiation
Understand What Are you Trying Accomplish
It is very important to understand the goals of negotiation and what you want to accomplish before starting. For example, if your goal is just to get the best deal then it can be easy for someone else who has a different focus or goal in mind. Also, make sure that both parties come into negotiations with realistic expectations about their own situation; one party thinking they are in a better position than another which can cause issues.
Be Clear About Your Limit
It is important to clearly state what you will not do or where your limit lies before proceeding with negotiations; also make sure both parties understand each other’s limits so nobody makes the mistake of going too far if that was not intended.
Develop a Game Plan Before Negotiations Start
Before entering negotiations, make sure you know what your intentions are which will help to determine the best course of action.
It is important to stay logical and not get emotional when making or receiving offers during negotiations; this can cause issues as it may cloud judgment so never take things personally.
In order to avoid any issues, communicate what is important and your main points clearly. This will allow you to get the best outcome for both parties involved in negotiations; once this has been done make sure that all offers are documented so there can be no confusion as to details or agreements made during negotiations.
Study and Understand Your Counterpart
It is important to understand your counterpart’s values and what they are trying to achieve during negotiations. This will help you decide whether it would be better to come up with a solution together or if one party should give in more than the other (if applicable).
Understanding your counterpart will also allow you to understand what their reactions might be if certain scenarios were to happen or if particular offers are made. This can help you prepare for how best to respond and it may even prevent the negotiations from falling apart completely before they have had a chance to begin!
Work Towards a Win-Win
This is where both parties are happy with the outcome, if one party feels like they have won and the other has lost then it can cause resentment. This rule will allow good relationships to be built between people whether you’re doing business with them or not.
It’s a common mistake to go off-topic during negotiations which leads to time being wasted, people getting distracted or things becoming heated. If you have agreed with your counterpart what the agenda is going to be then stick with this as much as possible.
When someone says they want to “put it in writing”, this is a sure sign that you need to be very careful about what has been agreed upon. This includes verbal contracts which are just as binding as written ones, although if there was no contract then the person will have little recourse should they need to take the matter up in court.
When you’re negotiating, it is important that your counterpart understands and respects what you say. If they question basic points or make remarks which suggest they have no idea of the facts then this can put both parties on a level playing field if not an advantage for them over you.
Avoid Negotiating with Yourself
It is important not to let the other party see you as an individual because it can be used against you if they know your personality and how much control over a situation would affect you. When people are negotiating with themselves, they don’t have any power or influence so keep that in mind when conversing with others.
React Strongly to an Untrustworthy Party at the Negotiating
If you’ve been given the impression that the other party is not trustworthy, then it is better to let them know how strongly you feel about this issue. This can be done with a show of force and confidence so they understand your point right away without any hesitation or doubt in your voice.
It is also important to be ready for them to react poorly because you could lose trust from the other party.
Be Ready For Anything at a Negotiation Meeting
There are many unexpected circumstances and events that can occur during any negotiation meeting, so it is important to make sure you’re ready for anything before heading in. This means bringing things that could be helpful in different situations, such as extra resumes or references for a new job you’re trying to get.
The negotiation process can involve some very long and tedious meetings where nothing is accomplished, so it is important to have things on hand to keep yourself entertained during this time. Bring books with you if there will be a long wait or bring a pack of cards if you need something to do while waiting for others.
You should also be prepared with other items in case things don’t go as planned and the meeting goes longer than expected, such as food or drinks that are easy to eat on the go. If there is someone who may not like you because of your background or differences, it is important to have a few fun tricks up your sleeve.
Just as you would never walk into an interview unprepared and without the proper tools, don’t enter a negotiation without knowing what will be expected from both sides. There are some key rules that can help make negotiations go smoother while also making sure both parties remain fair in the process.
A great negotiator is open-minded, but can also be firm when necessary. The best negotiators are flexible and adjust their approach on a case-by-case basis depending upon what they’re dealing with. They know that sometimes sharing concessions will lead to others doing the same or that withholding them until later can lead to a sweeter deal.
A great negotiator is willing to put in the time and effort required for what they’re doing but is also aware that there can be an inverse relationship between how much you prepare versus how well things actually go. Sometimes it pays off big-time with extensive research, preparation, and planning while others will be great if you just go with the flow and roll with what happens.
A good negotiator is a bad sucker. When it comes to negotiation, don’t be trapped by your own preconceived notions about how something should happen or will play out. This can cause people to get locked into positions that they never intended on taking in the first
Remember that it Takes Two Parties to Negotiate or Renegotiate a Deal
It’s important to remember that the other party has their own interests and concerns so any deal you make will have some give or take on either side. You should always be willing to at least consider what they want but it is ultimately up to them if they are going to accept your terms of negotiation or not.
Final Thoughts on what are the 7 rules of negotiation?
The 7 rules of negotiation really deal with the art of communication and keeping your cool. There is no point in getting angry or upset because then you will be perceived as being unreasonable.
Do you want to learn more about how do real estate agents negotiate? Check out these Best Books on Real Estate Negotiation.
Meet Maurice, a staff editor at Bigger Investing. He’s an accomplished entrepreneur who owns multiple successful websites and a thriving merch shop. When he’s not busy with work, Maurice indulges in his passion for kayaking, climbing, and his family. As a savvy investor, Maurice loves putting his money to work and seeking out new opportunities. With his expertise and passion for finance, he’s dedicated to helping readers achieve their financial goals through Bigger Investing.