Top 5 Negotiating Tips

Many people find negotiation and price setting difficult things to do. They get flustered and say something during negotiations that they really wish they could take back later. Here are some things that you should avoid at all costs:

1. Don’t get noticeably upset. Be savvy and stay cool. Don’t take things personally. Your calm no-nonsense approach can work in your favor by making them nervous. When you get overly emotional you lose the upper hand.

2. Don’t be proud. Don’t tell them that the final decision is up to you. Even if you have to make the final decision it’s wiser not to let them know that. Do you have a partner, advisor, colleague that you “need to talk to?” It’s always wise to think it over when you aren’t being pressured.

3. Don’t point out that you are ready to finish the deal. If you really are under time pressure you can let them know, but it’s better to act like you have all the time in the world. You don’t want to have them think you just want to be finished no matter what because they might take advantage of that to make the terms more to their liking.

4. Don’t be shy to state what amount you want. Adam D. Galinsky of Northwestern’s Kellogg School of Management and Roderick I. Swaab of INSEAD in France wrote in the book Negotiation that “when a seller makes the first offer, the final settlement price tends to be higher than when the buyer makes the offer.”

5. Don’t offer a price range. It’s natural for the customer to want the lowest price. If you say “I’d like to get between $500 to $1000 for this. They aren’t going to give you $1000 when they know you’ll take $500!

Practicing your negotiation tactics with a business partner or friend will make your next negotiation much smoother. It’s so much nicer to end up with a good deal that satisfies both parties instead of a deal when you are kicking yourself afterward and thinking, “I never should have said that!”