Negotiate for Success

“Let us never negotiate out of fear. But let us never fear to negotiate” — John F. Kennedy

When you mention the word “negotiation,” some people just cringe. They dislike the thought of negotiating to buy a car or house — or just about anything. “Tell me how much to pay and let’s be done with it.”

Negotiation is a normal part of a capitalist society. You may remember studying economics and supply and demand curves. At a low price the seller will want to supply less and at a higher price they will want to supply more. Conversely, the demand is low at higher prices and high at lower prices. Eventually, the curves will cross at the price where both the seller and buyer are happy.

Negotiation is critical and essential to business. In order to get better at it, you need to understand the psychology of the process. First, you have to understand the position of the person with whom you are negotiating. What are their pain points and what are they willing to give up? If you can allow them a win on something that is very important for them, then you may be able to gain concessions on other items that will benefit you.

Negotiating is not about being a bully and getting everything you want, leaving nothing for the other party. Sure, you may end up winning, but the other party will walk away with resentment. In this scenario, if your paths…