5 Key Factors of a Successful Negotiation

Negotiation is an old art and an integral part of any business. It may lead a company to an immense growth or an immediate demise, so it should never be underestimated.

Successful negotiation is not always easy. But if you want to learn how to negotiate like a professional, take a look at this effective process with key factors that can increase your leverage.

Preparation

• Focus on the benefits of the product you’re offering.
• Learn what your competitors offer and stress the advantages your product has over theirs.
• Set your walk-away price
• Develop your sales presentation—practice until you cover all the points
• Key factor: resources

Research your buyer

• Learn what motivates him by looking at his social profiles on networks you can find him.
• Ask questions to learn more about his needs and motivations.
• Look at your customer and his surroundings and use anything that can help your negotiation.
• Key factor: power, leverage

During negotiation

• Set your best price 10-15% higher so you can be able to give up a few percentage points. This will make the other party feel as though they won some concessions.
• Add value for your price—and price for your value.
• Key factor: concession, attitude

Here are 7 steps to a successful negotiation:

• Be confident
• Be aware of why the customer is looking at your product
• Know what the customer values/doesn’t value
• Know the timeline for making a decision
• Make sure you’re dealing with a decision-maker
• Give the customer value that doesn’t cost you much
• Know your walk-away point