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Everyday we enter into a variety of negotiations with prospective employees, current employees, and vendors. Though the situations are different, there are some basic guidelines that will ensure negotiation success.

It is important to remember that the most successful negotiations are entered into and conducted with good faith. This does not necessarily mean giving into every demand or sacrificing your position, but it does mean going into negotiation sessions with the intention of listening, compromising when necessary, and with the spirit of fairness. One good way to establish good faith is to make an initial offering that affirms your willingness to meet your opposition half way. With a vendor it may be a flexible delivery schedule or with a prospective employee with a benefit offer. Choose something with which you have some flexibility and concession will not adversely affect your company’s position.

Remember, prior to entering into negotiations, do your research. See what other businesses are doing, talk to associates, and use your networking contacts to see what other companies are offering. Check what the market is for goods and services, salaries, and benefits. Failure to know what other employers and businesses are offering can cost you money or failure to secure contracts. The internet is a valuable resource, as well as trade association publications, and your contacts in your industry. What are other companies paying for goods, offering in vacation time, and bidding for contracts? You won’t know where to start or what compromises you can make if you don’t know what others are doing. Conducting negotiations with out research is like going in blind.

Success in negotiations starts with good listening skills. Watch your adversary’s body language and behavior closely and gauge their intensity and stress to determine their priorities. Parties to discussion frequently give clues to points that are negotiable and those that are “deal breakers.” Don’t get caught up in the emotions and stress of discussions and lose sight of your opponent’s position. Listen and communicate carefully and without excessive emotion. We have all seen examples of high stakes negotiations where voices are raised, fists are slammed on tables, and the parties stalk out of the room. Sometimes these shows of power make a big impression but deals are settled after the storm passes. Quiet confidence can make as big an impression as raised voices.

Much of your confidence can come from having realistic expectations. Your research will tell you what you can reasonably expect from your challenger. Also, knowing your own budget and company’s needs will tell you what you can live with. Expecting an unrealistic outcome can cause you to loose the war and the battle. As in any battle (and negotiations can be looked upon as battles) is to know the lay of the land. Where are your strengths, where are obstacles to success, and what is your objective? How do you define success? If you are in a contract negotiation with a prospective employee can you offer tuition reimbursement instead of a higher salary? In a negotiation with a vendor can you allow an extra week in delivery in favor of better credit terms? Negotiations are a dance and the way you follow and compensate for your partner’s moves can pay off and make the dance much more pleasant.

Documentation is an important part of the negotiation process. Document your research results and bring them with you to any discussions. Don’t rely on your memory and if at any point you need to do further research, close the session and make arrangements to resume after you have had a chance to check out any points. Take careful notes and with meetings where the stakes are high, audio or video recording can be helpful. For instance, if you are negotiating with a union or collective bargaining unit, an audio or video record can protect you in potential litigation. In normal day to day negotiations careful note taking should suffice. Your notes should be maintained in confidential files. It goes without saying that all final settlements should be in writing and reviewed thoroughly before signing.

The watch word for negotiation success is caution. The commitments you make will have far reaching consequences for your business and taking your time and being cautious will ensure that the obligations and benefits you are negotiating for will be the ones that will enrich your company.

One of the key reasons many presentations or public speeches fail to hit the mark is because the presenter has spent insufficient time planning the content and structure. The tendency is to rush in to writing a script or preparing a PowerPoint presentation without first stepping back to analyse what’s needed and what’s going to work best.

This article outlines six key questions which, if carefully considered and acted upon at the planning stage, will improve the effectiveness of any presentation.

What

The first thing to clarify is what you are talking about. Whilst the subject matter is often clear from the outset, it isn’t always. Titles and expectations can be ambiguous and it’s important to clear up any ambiguity at the start.

Who

Before getting down to detailed planning, it’s important to understand your audience.

Who are you talking to? What is their level of knowledge and interest? What are their expectations? How many of them will there be?

Many people approach presentations back to front. Their starting point is ‘what do I want to tell them or want them to know?’ Effective presenters, however, put themselves in their audience’s shoes and ask themselves

• Why are they here (and are they volunteers or press-ganged)?
• How much do they know already?
• How much do they think they know? (this may be different from how much they really know and need to be addressed sensitively)
• Do they want to be informed? Persuaded? Entertained? Or is it something else? Or possibly a combination of some/all of these?
• What’s in it for them?
• Why would they be interested/what would catch their interest?
• If there’s just one message I’d like them to take home and act on, what is it?

If you spend time considering and answering these questions, you’ll have some very useful information to help you decide on the detailed content and how best to present it.

Why

Considering your audience, while vital, is only part of the equation. Ask yourself ‘why am I giving this speech or presentation?’ Note, the question here is not ‘why is this presentation happening?’ It’s why are you, rather than anyone else, giving it. Having established that, ask yourself:

• What is my objective?
• What impression do I want to leave the audience with – of me, my product, service or company?
• What action do I want them to take as result of listening to me?

Do you want to

• Inform
• Persuade
• Entertain

them? Is there another purpose? Or a mix of some or all of these? What/s most important?

Now put this alongside the information you’ve already gathered – how do the two compare? What adjustments might you need to make to ensure that you take proper account of the needs of both your audience and your own objectives?

When

You’ll also find it helpful to consider some questions about time.

For example, when and in what context is the presentation taking place? If it’s straight after lunch (often referred to as ‘the graveyard slot’), for example, you’ll want to pay even more attention than usual to how you grab and keep people’s attention.

If it’s part of a conference programme, then you’ll find it helpful to consider how it dovetails with other elements of the agenda. If it’s an after dinner speech you may wish to keep it relatively brief and upbeat though this will, of course, depend on the wider circumstances.

And, of course, you’ll want to be absolutely clear about how long you’ve got, and whether that includes time for any questions/discussions that may follow.

Where

As part of your planning, it’s important to consider where you are giving the speech or presentation – its size, facilities and how much flexibility there is with regard, for example, to seating arrangements.

If, for example, it’s a large auditorium, then you’ll almost certainly need to use a microphone and, if possible, should ideally practise with this first. You’ll also want to consider how you use the stage – or whether you’re going to stand at a lectern and use powerful visuals centre stage, to help you tell your story.

If you want to include a demonstration, then you’ll need to be satisfied that everyone will be able to see/hear easily.

Whatever the size of the venue, it’s always wise to check what facilities they have and that any planned equipment or other aids are available or can be safely accommodated.

How

Once you’ve got clarity about the five previous questions you’re be in a good position to decide how to structure your content, and how best to deliver it. Would it be helpful, for example, to include a demonstration or some ‘hands on’ practice? What, if any, audio-visual aids would enhance your overall effectiveness – or can you, as is often the case, do just as well without?

If you keep these six questions in mind when planning your presentation you’ll find it easy to decide what to leave in, what to take out and how to deliver it for maximum positive effect.

I keep six honest serving-men

(They taught me all I knew);

Their names are What and Why and When

And How and Where and Who.

From: The Elephant’s Child by Rudyard Kipling

My husband loves to negotiate. So much so that whenever I need to buy new running shoes, he always buys a pair, too, with the hopes that he can swing a “deal” with the store by buying two pairs at once. Of course, he never gets a discount, but what I find fascinating is the number of times he asks for a discount, doesn’t get it, and still buys the item at full price anyway.

I started thinking about this from the seller’s perspective, by analyzing my own negotiation techniques, and those of my clients. The questions I wanted to answer were: Exactly what makes a successful negotiator? And what do they do differently from the rest of us to get the price they want, while still leaving their customers feeling that they’re getting a good deal?

The following simple five-step process can help maximize your results each time you negotiate. Even better, I find it works wonders at every stage of the sales process, from negotiating price to discussing delivery, added product features or any other terms your prospect is looking for a break on.

Step 1: Get into the right frame of mind

The first thing you have to do when negotiating is make sure you’re in the right frame of mind. Do you really believe that your products or services are worth the price you’re charging? If the answer is no, then you won’t be able to negotiate successfully. Period.

If you implement the next four steps of this plan, I can guarantee that those readers who truly believe that their products are worth the price they charge will walk away with more deals at full price. Those of you who think your products are too expensive, on the other hand, will continue to sell at a discount.

These steps aren’t necessarily easy, and in fact may take some discipline to implement. But for those of you who are willing to put in the effort, I promise that they will help make negotiation easier, and more natural.

Step 2: Hold firm

Sales experts suggest that sales people in the top 20% of their fields never cave in on the first round. So don’t give in to what your prospect is asking for right away. Remember, to those who love it, negotiation is a game. It’s the “art of the deal.” And to make those people happy, you must be willing to play.

Nothing frustrates negotiators more than a sales person who caves in and drops their price on the first round. If a client asks for a 20% discount and you immediately say yes, they walk away feeling two things:

The price must have been inflated to start with; and
I should have asked for bigger discount. Next time, I will!
Neither of these outcomes is good for you. So the next time your prospect asks for a reduction in price, instead of just giving in, try responding with one of the following instead:

I can appreciate you’re looking for the best deal, but I can tell you that we’ve already given you our best price.

You’re smart to be looking for the best deal, but our pricing is always competitive, and I just can’t go any lower.

A discount? (in a surprised tone)

This is the stage of negotiation during which your belief system is challenged. In order to be successful, you really need to believe that you are already giving your prospect a great price. When I was selling for London Life years ago, I was once approached by client who wanted a 10% discount on his group health benefit plan. I was so shocked by his request – nobody had ever asked for a discount before, and I knew that we had the least expensive plan he was looking at – that all I could say was, “huh?” Not very professional, I admit. But he responded with “well, I just had to ask anyway…” and then paid full price for the plan.

Typically, 40% of all customers will respond the same way, with either “I had to ask” or “I just thought I’d try.” Unfortunately, over 50% of sales people cave in on the first try, and give the client the discount they’re asking for. This is lose-lose for everyone. Your company reduces its profit. You reduce your commission. And your customer walks away dissatisfied because you refused to play the game.

Learn how to hold firm, and practice your responses in advance.

Step 3: Repeat

Some clients will press ahead with their request for a discount even after you’ve given them one of the responses outlined above. The vast majority of them, however, are just looking for assurance that you really are giving them the best possible price, and there is no room to move. In other words, they want to make it a little uncomfortable for you, making sure that you sweat just a bit.

My advice in these cases is again: hold firm. Work to reassure your customer that they’re getting the best price, and remind them of all the hard work you’ve both put into the deal. Try something like:

We’ve been 6 months putting this project together, I would hate to see it not go ahead because we can’t settle on price; or
I knew you’d be tough, so we provided aggressive pricing up front. I would hate to see this not go ahead because we haven’t been able to meet your budget.

We find that an additional 20% of all business is closed at this stage – that’s 60% of all business closed without ever having to reduce your price. Unfortunately, by this point, 80% of all sales people have also already caved. You do the math.

Step 4: Take their mind off the bottom line

If after all this your prospect is still pushing for a discount (and 40% of them will be), then find something else to give them that doesn’t reduce your price.

Free shipping. Extra manuals or training. A client profile on your Web site. What you choose will be specific to your business, your markets and your client base. The key is to have the list of things you’re willing to offer prepared in advance, so you can draw on it during the negotiation.

It’s hard to think creatively in the heat of a negotiation, so planning ahead could give you a ready-made solution that leaves both you and the client feeling satisfied with the transaction. For a copy of the worksheet we developed to help you plan your “no money” concessions, just email us at [email protected]

Step 5: The last line of defense

Finally, if your client is still asking for a discount, you may have to give it to them in order to close the sale. But before you do, always ask them one of the two following questions:

“What is important to you about an x% discount?” OR

“Why is an x% discount important to you?”

These questions will flush out any last details that could help you find a different way to structure the terms and pricing, which will allow you to keep your price while letting the customer walk away with their needs met as well. If, however, you ultimately do have to reduce your price, make sure to follow these two rules:

Never reduce your price without getting something in return. Getting something in exchange for a pricing concession is key to managing customer expectations that future discounts will not be easily dished out. As with the “no money” concessions above, what you get in return for a price reduction will be unique to your business and markets, but could include references or case studies, a bigger order, introductions to senior level executives or cash up front. Again, whatever you ask for, prepare the list in advance so you can respond quickly and smoothly.

Get a firm verbal agreement from the customer that this discount is all they will need to get the deal done. Try asking them something like “I’m not sure if I can get you this price, but if I can, is it fair to say that we can go ahead?” OR “I’m not sure I can get this discount for you. If I can, though, are you willing to sign the agreement this week?”

Nothing is worse than coming to an agreement on price (especially a reduced price!) only to find out that your prospect is still looking for other concessions. By asking them this last question, you can ensure you get all the issues on the table first, giving you the chance to deal with them fairly once and for all.