Negotiation is a business’s lifeblood. Whether negotiating a deal, selling, or signing a contract, it can make or break profit and loss. Indeed, 90% of business leaders report that communication and negotiating skills are key to the future of the company.
This article distils effective negotiation techniques and negotiation strategies from top experts to help entrepreneurs, executives, sales professionals, and business owners get better outcomes.
We cover preparation, communication, tactics, and practical business negotiation tips, and back up with research and expert advice.
Strategic Communication and Trust
All negotiation starts with communication. Experts advise that you must clearly state your needs and listen to the other side’s concerns. It builds trust and openness. Try having a minute or two of small talk or niceties at the beginning to help build rapport and freer communication.
Active listening – listening to hear, not thinking of what to say – is the most important negotiation skill. The skilled negotiator will have open-ended questions and then “shut up and listen” in the rough ratio of 70/30 or 80/20 listen/speak.
With respect and empathy, you calm everyone down, find common ground, and lay the foundation for a win-win negotiation.
Preparation and Planning
“One of the most effective negotiation strategies is preparation,” says a business communication guide. This means doing your homework on the other side: researching their background, understanding their needs, strengths, and pressures. Harvard’s experts recommend assessing each side’s interests and no-deal options.
In practice, this means defining clear objectives, a bottom line (reservation point), and your BATNA (Best Alternative to a Negotiated Agreement) – what you’ll do if talks fail.
It’s also important to identify the Zone of Possible Agreement (ZOPA) – the range where both parties’ acceptable terms overlap.
- Research: Get information on the other side’s situation and past deals.
- Define goals and BATNA: Set big targets, but know your walk-away point.
- Plan concessions: Decide in advance what you can give up and always ask for something in return when making concessions.
Good planning, apart from making you more confident, also increases returns. By just thinking of possible deals and counter moves, you go into the negotiation in a position to grow the pie, not fight over a fixed slice.
Like the negotiator in one of the stories, meticulous planning (and converting demands into collaborative language) can settle even the most heated disputes in no time.
Understanding Negotiation Styles
Negotiation tactics also depend on style. Some negotiators are competitive (focused on winning, often aggressive), while others are collaborative (aiming for mutual gains).
Accommodating styles prioritize relationships over hard bargaining, and avoidant styles may sidestep conflict altogether. Effective negotiators recognize these modes and adapt.
For instance, if the other side is being very assertive, offering multiple equivalent options (MESOs) can prevent an impasse by giving a choice.
Harvard’s Program on Negotiation suggests aiming to create a “circle of value” – looking for ways to satisfy both parties’ interests. In practice, this means combining firmness with empathy: be clear about your priorities, but listen for points of common ground.
Adjusting your approach – from firm to friendly – can turn an adversarial negotiation into a joint problem-solving session.
Communication and Emotional Intelligence
Clear communication and emotional intelligence are key negotiation skills. Positive emotions can build trust at the table, and anxiety can be turned into excitement.
Negotiators with high EQ read the other side’s emotions and subtext, picking up cues beyond the words. This helps you reframe or defuse. In practice, stay patient and calm: for example, don’t show frustration if talks stall.
Negotiation instructor Ed Brodow cautions against emotive distractions and trains students to “practice putting your feelings into words without anger or anxiety” in humble “I” statements, but never with a tone of blame.
Effective negotiators have few communication rules: tell your needs, and afterwards, listen to feedback with attention.
Paraphrase or summarize the other’s positions to ensure that you have understood them; this prevents misunderstandings and demonstrates respect.
Most of all, seek open-ended answers to gain valuable information. For instance, instead of posing yes/no questions, seek “What are you struggling with?” in order to unveil underlying issues.
Cultivating both logical argument as well as emotional intelligence makes others feel heard and more inclined to arrive at revolutionary solutions.
Key Negotiation Tactics for Success
Successful negotiators use specific tactics that tip the balance in their favor. A classic is anchoring: stating the first offer to set the negotiation’s range.
Research shows the first number mentioned can be powerful. If you anchor first, do so confidently (e.g., open with a high but justifiable price); if the other side anchors, stay focused on your priorities and don’t adjust irrationally.
Another is framing: presenting proposals with strong justification. For example, emphasize how your solution benefits both sides, not just you.
Together, anchoring and framing shape perception and momentum. Always keep your alternatives in sight. Brodow’s number-one rule is: “Always be willing to walk away.” If the other side knows you have a good BATNA, they’ll make better offers.
Never rush to close. Patience is a weapon: taking your time can pressure the other side to give in if they know you’re not desperate. Aim high and stay optimistic – experienced negotiators open with big asks, knowing modest expectations yield modest results.
Throughout, focus on the other side’s motivations: successful negotiators ask, “What pressures is the other side facing?”. Find points of leverage (like a deadline or the importance of a partnership), and you have power. Some tactics to try:
- Offer Multiple Options: Present several equal packages at once. If all are rejected, the other side will often reveal their preference by choosing or modifying one.
- Contingent Agreements: When uncertain, suggest “if-then” deals (e.g., bonuses tied to performance). This aligns incentives and defuses disagreements about future outcomes.
- Control the Flow of Information: Share good news gradually and bad news quickly (research shows people like it that way). Frame concessions as mutual gains so you don’t leave value on the table.
By using these negotiation tactics, you’ll get better, more lasting deals.
Practical Business Negotiation Tips
Across all industries, there are certain business negotiation tips that always come up. First, be polite and professional. A friendly approach and small courtesies can soften a hard bargain. Second, be flexible and creative: don’t get stuck on one solution. Don’t have an “all-or-nothing” attitude – be open to other deals.
Third, be aware of your value: never underestimate yourself or your efforts. Prepare your strengths/credentials list before negotiating so you can then promote them yourself.
Listen more than you speak (70-80% of the time, according to experts). Do not interrupt when they are speaking; take notes in addition to noticing body language.
Even if pressured, keep a positive tone and tone of voice. If emotions run high, take a break to cool off. Don’t make personal attacks or ultimatums. Harvard negotiators say turn ultimatums into joint problem-solving: instead of “take it or leave it,” say “how can we solve this together?”
Finally, focus on long-term relationships. Smart negotiators want to expand the pie, not pit their egos against each other.
For example, identify tradeoffs: give up something of low value to you if it’s high value to them, in exchange for high value to you. This integrative mindset – combining collaboration with competition – always works better.
Conclusion
Negotiation skills are learned, not inherited. Through these techniques and processes of negotiation – from planning to listening, shrewd anchoring to value creation – corporate professionals can negotiate better.
These strategies forge win-win agreements and make difficult discussions turn into solutions.
Improving your negotiation skills “allows you to expand the pie – create value – so you get more out of the deals you do make”.
Whether you’re a CEO, entrepreneur, salesperson, or manager, investing in these negotiation strategies and tactics will get you long-term results.
Featured Image – Freepik
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