Sunday, March 17, 2013

Business Tricks!

Negotiating in business requires tact and a few tricks. The best negotiating tactics, in my opinion, are listed below. They all work and they are ethical. I always stress people should treat others how they want to be treated. Not all businesses use these tricks, but not all businesses are ethically run.

I like using the silent treatment. When you negotiate a deal, I find the silent treatment works the best. Note: you are not required to respond to any comment or question. Staying silent will create pressure for the other person to speak and likely reveal more than they wish. It will give you a competitive edge too.

Negotiating a deal requires you know what is being said between the dialogue. Knowing this will help you determine many things throughout the deal. How is this done? Ask the right questions. My favorites are "In a perfect world, what would you see this deal looking like?" or "Why doesn't that work for you?"

Remember the game "Hot Potato?" Use it! This game should be used to trade a part of the contract that you don't want to fulfill. It is an ethical pressure tactic. Here is how it works. Let's say you currently have to pay 20k of the proposed contract's fees. Tell the other party you can only afford to pay $5k and any further money will squash the deal. Of course, you could pay the 20k but at this cost it will really cut into your bottom line. It is ethical because it is the truth. You rather not have that added 15k cut into your bottom line and profit margin, right? So, put the ball back into their court. The other party may meet you half way and split this cost- which in the end is usually fair and the right thing to do.

When negotiating always come from a place that is fair for both parties. Don't be greedy or dishonest. It will catch up with you and could ruin your business.

Happy St. Patty's Day!


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