Negotiation is a part of our life and while we are negotiating on every step of our life, the most important negotiations are the financial ones. It’s an unfortunate fact that most people are not good at negotiation. Many of them are scared of negotiating because it involves a lot of emotions too. Let such thoughts not make you a bad negotiator. With a few tips on what you need to focus on while negotiating you could become a great negotiator and end up with deals that earn you profit. Here are the 4 most important tips to negotiate like a pro:
1. Price Is Just One Of The Many Things
Price is definitely an important part of any financial deal and negotiation but it is not everything. Sometimes there are other factors that need more consideration than price. For example, how you will be paid the price of something or how you will pay the price of something is an important question. Considering market conditions is also important since you wouldn’t want to forfeit something whose market value is about to go up in near future. In addition to these things, you have to know how soon you need the thing you are negotiating on.
2. The Final Price – The Border
Before you start negotiating as a seller or buyer, you must have a price line in mind that you know you won’t cross. The seller must have a minimum price below which he wouldn’t agree to sell his product and the buyer must have a maximum price above which he wouldn’t buy the product. However, the most important part of this process is setting this border. You must look into the market, the condition of your product/article, your need of money/product and the time you have to finalize the deal before it slips away from your hands.
3. Knowing The Other Party
You must know the party you are negotiating the deal with. If you are a buyer you will have a different set of questions than those of a seller. As a buyer you must ask why the seller is selling what he’s selling. Are there any other buyers of the same product? For how long the thing has been on sale without getting sold? Why is seller asking for the price he has asked for? Has the thing you are about to buy had any accidents in the past? What’s the best offer that the vendor has received so far?
4. Walking Away Is Fine
This is the most emotional and compelling part of any negotiation. You have had a good conversation or many sessions of conversations with the other party and now you can’t say “no” to the offer. Your heart and mind say you shouldn’t buy it but you don’t feel good walking away and saying no to such an amazing vendor. Remember – it doesn’t hurt you or the vendor when you walk away and don’t buy something. It’s a deal pertaining to money, not emotions. Make sure you walk away only when you have analyzed all other options.
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