Negotiating is a part of life and in business it becomes critical to your success. Poor negotiation can stifle a business just as quickly as losing key customers. While most negotiating strategies seem like common sense, it’s not uncommon for people to get caught up in the emotion of the moment and ignore their basic instincts. Emotion, luck and magic have no place in a successful negotiation.
In terms of creating relationships at BNI, negotiating prices can be as important as your networking strategies. Of course being in business isn’t just about negotiating on being the cheapest. Recently at a BNI meeting an owner of a cleaning company was explaining in his 60 seconds that he doesn’t compete on being the lowest priced; instead he competes on quality, service, reliability and security (their cleaners have security checks).
This shows it’s about explaining your pricing and the valuable aspects of your business you offer. Why not explain the value of your operation in a broader context during your next 60 seconds?
So how did you determine how to price your services and how do you negotiate? Think about the 3 E’s:
- Empathy – If you agree to at least negotiate on a price with a potential client, they may see you as empathetic and willing to work with them. Many people allow their emotions to help decide how they will spend their money, so developing a positive rapport may help you close a deal.
- Explanation – Negotiating allows you to explain to your potential client why your fee is fair for the value of service they’d receive. If they can search the internet and find others in your industry who offer similar services for cheaper, this is especially important. You know you are worth the extra money; you just have to justify it to the client.
- Expansion – While negotiating, a potential client may mention a service that you don’t offer, but your competitor does. Hearing this kind of feedback can help you later when you’re looking to expand what you offer.
Try for a win-win scenario
By applying negotiation strategies, you will notice a difference in your negotiation skills almost immediately. Throughout a negotiation, try to determine what you believe to be an acceptable outcome for the other party.
Look for a win-win solution. It may be a combination of different things that aren’t necessarily tied solely to price. Understanding the other side’s priorities is just as important as understanding your own, so figure out what you would do if you were in their shoes.
