27 Negotiation Skills Every Professional Should Have
Are you looking for a set of powerful negotiation skills that will help you make better deals? Great! In this article, we’ll discuss some of the most powerful and underrated negotiation skills which have a direct impact on your deal results.
Feel free to read the entire article, or jump right to one of the categories:
The Negotiation Game Changer Certificate Program teaches you:
- the skills needed to drive better, fact-based decisions that ultimately benefit both organizations and its employees.
- a comprehensive analytics skill set that will enable you to achieve deals with results you have been dreaming of.
Negotiation Preparation skills
Doing the research
The most important thing in preparing for a negotiation is to gather as much information as possible for yourself in order to be able to estimate the interdependence as well as possible (1) to make a good overview of the deal variables (2) and their importance for both parties (3), and then to think about what (4) and especially how you want to achieve your goal (5).
Every negotiation process starts with preparation, followed by conducting a sharp strategy, and last but least: the negotiation itself. In this article we’ll dive deeper in the research phase of a negotiation.
Analyzing your BATNA
It’s your backup plan if your negotiation doesn’t lead to a deal. By determining a BATNA you’ll have more confidence because you have a backup plan if the negotiation doesn’t work out. Because of this, you won’t feel forced to make a bad deal.
Going into any negotiation, it’s important to have a clear understanding of your BATNA. If you’re negotiating with a supplier, be sure about the pricing of alternative suppliers. If you’re negotiating over salary, your alternatives might be a different job offer.
The BATNA is your point of departure. Anything you can ‘win’ in your negotiation makes your BATNA less attractive.
Observational negotiation skills
Active listening isn’t just listening to what the other says. It’s actively involving and paying full attention to what someone has to say. Active listening is a great skill to have, as it will give the speaker the feeling his words matter. This will make the other person more honest, open, and willing to cooperate.
You can train active listening by maintaining eye contact, nodding your head, saying ‘yes’, or nodding when the other one is talking.
Listening to what your negotiation opponent has to say isn’t the only way to absorb information. Having the skill to detect body language has been proven to be just as powerful. For example, your negotiation opponent might say he’s got offers lined up from your competitors. However, when paying close attention, you notice that he’s scratching his neck and his nose when talking about the other offers. This could indicate he’s uncertain about the other offers, or perhaps even lying.
Interpersonal negotiation skills
Building rapport is the process of connecting or creating a relationship with someone. It’s typically referred to as harmonious or ‘getting along’. Sometimes this will happen naturally. You’ve probably had multiple situations where it just happened without any effort. This is usually how a friendship starts. However, building rapport is also something you can develop. It’s a great skill for any negotiation, as your opponent will be more likely to meet your needs.
Effective verbal communication
Being able to communicate verbally will go a long way when it comes to effective negotiating. By communicating effectively you’ll notice the negotiation process will be smoother and involve less friction.
Problem-solving starts with identifying and deconstructing the problem. For example, your negotiation opponent might react furiously to your proposal. For many, the negotiation process would end right here. A great problem-solver, however, will try to figure out what part of the proposal upsets the other party. By tackling this in a pragmatic way, you’ll be able to deconstruct the problem and work to a better proposal.
As a procurement manager or a negotiator in general, you’ll find yourself making decisions on a regular basis. Being able to make good decisions will go a long way when it comes to making great deals. Here’s how the average decision-making process looks like:
- Define the problem or the opportunity.
- Come up with a list of possible solutions
- Evaluate each option by listing the numbers, pros, and cons
- Make a decision
- Implement your decision
- Evaluate your decision and adjust if required
Being assertive is usually referred to as being able to stand up for your rights, in a calm and gentle way. Negotiators who are assertive are able to communicate their wishes without making others upset, or becoming upset themselves.
The skill of being assertive will help a lot during negotiations. It’s an essential skill during the heat of a negotiation.
Dealing with high-pressure situations
As a procurement manager, you’ll find yourself negotiating big deals frequently. A price difference of 2% on a total deal could easily implicate millions of dollars. If you’re a procurement manager who purchasing goods on behalf of, let’s say a supermarket, you’ll experience pressure from your negotiation opponent, your boss, your colleagues, and your competitors. That’s a lot of heat, from a lot of angles. Being able to stay calm and keep making the right decisions is critical for a successful career in dealmaking.
Negotiation questioning skills
Asking the right questions in a negotiation is a skill that will give you a lot of value when it comes to steering the conversation in your preferred direction. It’s a great way of ‘manipulating’ your negotiation opponent. Here are some of the most powerful questions you can ask in a negotiation:
These are the kind of questions that require your opponent to go into detail. It’s a great way of getting more information that you can use to formulate a strategy.
For example: “How did you arrive at that price point?”
The power of close questions comes into play when it’s important to be on the same page. Use them to test your understanding of the situation: “So, If I give you X, you will give me Y, correct?”
Be aware of misplaced closed questions, it could kill the conversation and lead to awkward silences.
Asking probing questions is a strategy to find out more details. Sometimes it’s as simple as asking for an example. Or to investigate whether there is proof for what has been said, “how do you know that you can deliver in time?”
Use questions that include the word “exactly” to probe further: “What exactly do you mean by fast shipping?” or “Who, exactly, can make this decision?”
The echo question technique is an effective way to collect more information from your opponent. You do this by repeating the last few words spoken. For example:
“We can deliver you the canned goods fast”
– “You can deliver them fast?”
Leading questions can lead your opponent’s way of thinking. You can leverage this in several ways.
With an assumption – “How much cheaper do you think that you can deliver compared to the competition?” This assumes that your opponent is able to deliver cheaper.
By adding a personal appeal to agree at the end – “It would be great if we can create a long-term deal, don’t you think?”
A technique that helps every conversation and thus negotiations: talk about ‘what if’. It helps to test your own hypothesis, to determine how serious the other person is and this technique helps negotiations forward when there seems no more room left to move.
“If I were to give you A how would you feel about doing B”?
By asking this question, you’re not making a step offer-wise; you’re using words to find out the level of flexibility at the other side of the table & what it might be possible to agree upon. This can be useful for checking a new idea or to help break deadlock and matters can be discussed without the fear of commitment. If used during the exploratory/testing stage it can open up useful alternatives and help shape a deal.
Negotiation deal-making skills
One bargaining tactic which you should try is the “hanging gramophone record”. It’s repairing the same point over and over again. Frequently the other party gets ‘fed up’ with its constant repetition, and feels that further progress appears unlikely until this obstacle is removed. To use this tactic, you need to be very patient & persistent, but if you have both: try and enjoy the guaranteed results!
Some think of haggling as arguing a price in a negative way. about Haggling doesn’t have to be an exercise in discomfort and failure. Approach it the right way and it will not only be enjoyable but an amazing opportunity to explore boundaries in your negotiation.
"Very useful course, many actionable strategies"
Want to close better deals? Prepare faster and achieve deal results you have been dreaming of? This course is a perfect fit for ambitious procurement & sourcing professionals. Enroll now and equip yourself with the full range of skills needed to master the deal.
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