Are you looking to negotiate a deal of some sort, but looking to keep a conversational tone? Will this be your first time trying to work out a deal related to buying a house, car, or some other asset? If so, then you need to learn all about tips for negotiating just about anything.
Doing so will help you get the best deal possible. That way, you’ll get a higher return on your investment, yet still, be able to find a valuable compromise for both sides.
See below for several tips that you can use to give yourself more leverage in negotiations and handle them like a pro!
1. Perform Prior Research
Have you ever had a conversation with someone where you could tell they knew next to nothing about the topic you were discussing? That’s essentially what’s happening when you try to negotiate without any knowledge on the subject.
Imagine negotiating on a house without having a home inspection performed. As the buyer, you would essentially have zero leverage going into negotiations on price.
Imagine trying to get a better deal on a used car without knowing the resale value of that car’s year, make, model, and trim level. All of this information is highly valuable. All of it can be used to make sure you’re getting a fair deal.
If you’re trying to get a raise with your current job, research how much people generally make at your position with your experience and skill level. If you’re trying to negotiate car insurance quotes, then you need to receive multiple offers in order to find the best deal.
Research is the best way to give yourself more leverage. It also boosts your confidence when talking to the other party. You’ll have peace of mind knowing that you’ve done your homework ahead of time.
2. Keep a Conversational Tone
The last thing you want to do is have a condescending or demanding tone when trying to negotiate with people/companies.
Right or wrong, there’s always a human element to the negotiations. In other words, emotions are high. Both sides have an idea of what they want.
It’s best to manage expectations and emotions by keeping a conversational tone with the other party. Remain approachable. Be transparent.
If you’re making an offer on a house, treat that buyer (and their agent) with respect. Maintaining a conversational tone will help you in the long run. It keeps the dialogue open and makes both sides feel as if they can approach the other side with feedback.
It also helps the other side feel more confident in you as a person. By prioritizing a conversational tone, you’ll seem more human and trustworthy than the other clients/buyers that they’re discussing.
It can be especially helpful if you’re one of several bids (such as buying a house). Keeping a human tone will differentiate you from everyone else. You’ll seem more willing to negotiate than other parties that are using a stern voice. They’ll see more unwavering, thus prompting the seller to stay away.
3. Keep an Open Ear
As we previously mentioned, each side (no matter how many sides are involved) has its own agenda. They have their own interests and expectations. When two sides are unwavering in their demands, nothing gets accomplished.
For example, let’s say you had your eyes on a car that was $20,000. In your mind, you were hoping to shave $2,000 off of it. But is that realistic for the other side? How would that be beneficial to them on their side of things? Maybe paying in cash would help, maybe not.
That’s why we recommend keeping an open ear. In fact, many experts go so far as to tell people to “shut their mouths” and listen.
See where the other side is coming from. Listen to what they’re looking for, pair it with what you’re looking for, then try to come up with a solution.
4. Ask Open-Ended Questions
Open-ended questions, for those of you that don’t know, are questions that encourage conversation and legitimate answers. The worst thing you can do is ask close-ended questions, which always end with an answer of “yes”, “no”, or “maybe”. They aren’t constructive.
The more open-ended questions that you ask, the closer you get to a solution, but remember, keep an open ear. Don’t cut them off or talk over them. Wait until they’re finished.
As an example, instead of asking “are you willing to make repairs before closing on the house?”, ask something along the lines of “how much are you willing to take off the asking price if we offer to make the repairs ourselves?”.
5. Keep Some Assertiveness
Let’s clarify something, here. We’re telling you to be open and conversational, but we’re not telling you to be a pushover, either. There’s a balance to it.
You have to make sure that you remain steadfast, to a degree. Performing prior research will help with this. Once you have a firm idea of the price or terms you’re looking for, hold on to them as long as possible.
If you know that your offer is beneficial for the other side, there’s no reason to give in to their demands.
Use These Tips for Negotiating to Your Advantage
Now that you have seen several tips for negotiating just about anything, be sure to use these tips and tricks in your next negotiations.
Remember, be conversational but assertive. If you research beforehand, it will be as if you have the cheat sheet before taking a pop-up quiz!
Be sure to browse our website for more articles on negotiating price, as well as many other topics that you’ll enjoy.