The Negotiation Guru

Before you step into the negotiating room, you have to consider many things. One of the things that you should consider is “what other options do I have?” Answering this question will alter the way you negotiate with the other party.

All skilled negotiators know their objectives before they start negotiating. They also have a bottom-line ready in case they need to walk away from the deal.

Apart from having your objectives and bottom-line, you need to consider your alternatives.

“What will I lose if there’s no deal?”

“Is there a better option?”

“Do I have another offer?”

“Can I get this from another firm?”

Think through all the possible alternatives that you can have. There are usually more alternatives if you look hard enough. One of the common mistakes a negotiator make is to think that they have everything to lose if there’s no deal. This will change the way you negotiate. Be really careful of this.

Never be too focused on trying to close the deal.

Imagine you have to shop for a birthday present for your best friend. You decided to get him a red tie.

Now there are 2 scenarios:

1) There’s only 1 shop in this world which sells red ties

2) There are 10 shops in your neighborhood that sell red ties

The way you negotiate in the 2 different scenarios will be vastly different. If you think that there’s only 1 shop in this world that sells red ties, you probably haven’t looked hard enough. There’s probably another shop that sells red tie just round the corner.

Having alternatives will improve your leverage when you negotiate.

Remember: Always have alternatives before you start negotiating.————–

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Jens Thang
Negotiation Skills for Everyone

Email: jens@thenegotiationguru.com