Read the following practical tips from Jeff Haden, a popular author of managerial posts on Inc.com.
Make the first offer
Do not be afraid to use the opportunity to set the bar for the entire negotiation. If the first offer is made by a seller, the final price is usually higher than if the first offer was made by a buyer. If you are a buyer, start with a low bid. If you are a seller, start with a high bid.
Set the price clearly and specifically, not using a range between two prices. Setting a range would only motivate the other party to make an effort to get the lowest price in your range. If you do not have enough information to set a clear price, ask questions and listen in order to get it.
Expect the best but plan for the worst
High expectations help us achieve high goals. Therefore, always assume that you can achieve what you want. If you do not say what you want, you will never get it. At the same time, prepare for what you cannot accept.
Whenever the other party asks for a concession, you should also require a concession yourself. If you do not require it, you would only show that the price you set was artificially magnified.
Do not rush pointlessly
Hasty negotiations often do not turn out well, which is why you should give enough time to both yourself and the other party. Let the other party speak and try to listen more. The more time your negotiating partner invests in the negotiation, the less likely they will be to thwart this investment. That means a better chance to make the deal.
Count on the fact that what the other party says may not be true. The more boldly and loudly they speak, the more likely it is they are only trying to arouse emotions and embarrass you. Always make sure that your final offer is a not a matter of emotions but a logical decision.
-kk-