Effective Negotiation: 5 Top Tips for Wheelin’ and Dealin’

The word negotiation is derived from the Latin words negotiatus and negotiari, translating as “to carry on business.”

Really, all effective negotiation is about making things happen and doing it in a way that can benefit your needs better. Yet, there are a few less-known negotiation tips out there that can help you perform optimally.

In this guide, we will run you through five top tips for wheelin’ and dealin’, as they say. Whether you’re buying or selling a house, car, asking for a pay raise, or whatever else, these negotiation techniques should stand you in good stead.

Reframe Feeling Nervous

It’s common for most people to get stressed, nervous, and feel anxiety in the build-up to a negotiation. And to show your nerves to anyone you’re negotiating, which may have negative consequences for you.

Yet, being nervous and excited exert pretty much the same physical processes in your body.

With the stress you get when nervous or excited, your heart starts being faster, you release more cortisol, and you’re ready for action. The only difference is the emotional framing of being nervous is seen as negative and excitement positive.

So when you’re nervous before a negotiation, reframe it as excitement! Switch your negative arousal to a positive one, and it may even intimidate the person you’re dealing with.

Silent Treatment

Silence is an excellent tool for competent negotiators. Awkward silences generally occur when negotiating, and your impulse to fill them might put you at a disadvantage.

By speaking too quickly before you think, you could agree to terms that you didn’t want. It’s more appropriate to let your counterpart get their message across and then pause to really soak in what they’ve just said. You then have to construct your response too.

If it takes you a little time where there’s an uncomfortable period of silence, so be it. In the end, you’re sending a message to your counterpart that your serious about the negotiation.

Plus, the silence can be unnerving for the person you’re negotiating with, and they might offer you more than you’re bargaining for in their hast!

Ask for Advice

It might seem contrary to good negotiation tactics, but asking your counterpart for advice is a legit way to go.

This methodology is said to work best, though, when you’re negotiating with partners, as it conveys that you are more competent. By asking advice, you can flatter and ego-boost your counterpart and build better relations.

Though, you should only really ask when you genuinely want advice. A good example of this is when you’re looking for the best way to sell your home, especially if you’re trying to make a quick sale.

Use Final-Offer Arbitration

Final-offer Arbitration or FOA is when both sides agree to use an arbitrator. Each side makes a final and best offer, and then the arbitrator is entrusted with choosing one of them.

By agreeing to this method, both sides are more likely to come up with reasonable offers, as their incentive is to impress the chosen arbitrator. FOA is a suitable method when negotiations have ground to a halt with no progress being made.

Make a Draft Agreement

A draft agreement is a good way of anchoring your point of view across to your counterpart. It has been said that the person who makes the first offer has an advantage, and so drafting this agreement can work in your favor.

Another similar type of document you can use is a standard-form contract, which you can prefer with your legal adviser before a meeting. Ultimately, making the first move means you’re in control of setting the foundations of your negotiations.

Learn Effective Negotiation

So we’ve now looked at five tips that you can utilize to build on your persuasion skills in negotiations. Of course, coming across as confident, professional, polite, and clear are other critical things for you to be good at negotiating.

Thanks for reading, and we hope you can use these tips for effective negotiation. To find out more helpful information, please check out the rest of our blog.