Ten Essential Negotiating Tactics Everyone Should Know

I have always believed that one of the most important life skills that every person should have mastered before setting out on their own is the ability to successfully negotiate.

For most of us, negotiating skills are usually needed shortly after we leave home to strike out on our own for the very first time. For example, the opportunity to engage in negotiations often comes into play when we get our first job, move into our first apartment, and buy our first car.

With that in mind, here are the essential tips that I always follow to ensure that I get the most from my negotiations:

1.  Don’t Ever Be Afraid To Ask For Better Terms

It really isn’t that hard to ask someone, “Is that the best you can do?”

But I know a lot of people who don’t have the nerves to ask for better terms on anything, simply because they’re afraid they may insult the other party.  But that train of thought is really misguided, not to mention potentially costly.  The truth is, unless you’re dealing with nefarious entities, asking for better terms on anything will never leave you with any broken bones or bruises.  In fact, the worst thing that will ever happen is the other party will say “no thanks” and turn down your proposal out of hand.

I have successfully asked for better terms in places you would never suspect, such as the local grocery store; just by asking I’ve gotten some really nice deals from them when buying certain products in bulk or that were close to their expiration or use-by dates.   I’ve also asked for and received better terms for smaller ticket items such as hotel reservations and even deals on guitar strings (many new musicians are unaware that they can often get strings two-for-one just by asking.)   Again, though, if you don’t ask you’ll never know.

2.  Negotiate with Conviction

Negotiating is not for the faint of heart.   When you negotiate with conviction, you not only signal strength to the other party but also an unwillingness to be bullied or strong-armed.   However, if the person you are negotiating with senses any lack of self-confidence on your part I guarantee they will quickly capitalize on that and overpower your attempts at getting a better deal.

3.  Hold Your Cards Close to Your Vest

Every good negotiator knows that knowledge is power.  That’s why when you ask a car salesman how much a particular car costs, he’ll usually reply with something like, “How much do you want to spend,” or even worse, “How big of a monthly payment do you want?”  Why would anybody give such critically important information away?

For example, I recently had to have a block wall built in my back yard.  As a result, I had to negotiate with several contractors who wanted my business.   Although I had saved roughly $10,000 for the project, I never let the contractors know that.  Why?  Because if they all knew that I was willing to pay $10,000, I guarantee you that all of the bids would have come in at that price.

4.  Inflate Your Initial Negotiating Position

This might seem like a no-brainer, but when your opponent asks for your initial negotiating position, make sure to ask for more than you actually want.   This serves two key purposes: 1) It gives you negotiating room to come down from your initial conditions; and 2) More importantly, it lets the other party feel as if they are gaining an edge in the negotiation process.  Which is a great lead-in to the next tip…

5.  Be Flexible

I know this may come as a shock to some of you, especially those of you who like to shop at garage sales, but “Take it or leave it” is not a very smart negotiating tactic.  That knucklehead approach often does little more than alienate the other party.

Usually, if you expect to get something during the negotiation process, you have to be willing to give a little too.   If you follow the previous tip and inflate your initial list of desires, you can give your negotiations a real kick by giving those inflated desires away.  By doing this you will foster goodwill with the other party and hopefully encourage them to yield on some of their terms as well. 

That wraps up the first five essential negotiating tactics that everyone should know.  I’ll discuss the remaining five essential negotiating tactics that everyone should know in Part 2 of this article.

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