How to Negotiate Effectively
How to Negotiate Effectively
You may be thinking, "Gary, I am a mom, housewife, or stay-at-home dad, so why do I need to know how to negotiate effectively?"I'm glad you asked.The truth is everyone needs to negotiate. Surprisingly, almost everything we do the moment we get up in the morning until we go to bed involves some type of "negotiating".I know, you are saying that I have lost my mind, but no, seriously, we do negotiate ?continuously.Let's say, you are 18 years old, live with your parents, yet work. So, you wake up at 6 am, and begin a negotiation with your younger brother, who is already in the very bathroom that you need in order to take a shower and get ready for work.To avoid arriving late to work, you quickly offer to pay $5.00 to him to leave the bathroom immediately so that you can take a shower.Next, you head into the kitchen to negotiate with your mother over your preference for orange juice and toast for breakfast, while she is counter-negotiating a complete meal of oatmeal, eggs, milk, and sausage.Who wins this negotiation is anyone's guess.The point is that all of us constantly negotiate. For example, we negotiate ? or should -- with our car mechanic to lessen the cost of maintenance and repairs.Soooo ?. to help you succeed in your negotiations, I have prepared this special article that will outline the tools and knowledge you need to succeed.First, you need to know "what is a negotiation." Simply put, it is the exchange of ideas with the intention of changing relationships, agreements, or viewpoints.Negotiation requires ?1. Calmness
2. Understanding of people
3. Preparation before the negotiation (preferably written)
4. Strategy for success (you need to know what the other side wants from the negotiation)Remember that negotiation requires that you give something of perceived value in order to receive something of value.Negotiation may be giving up something today for a later advantage.Here is a short list of non-aggressive negotiation strategies:Know what you wantKnow what the other side wantsNote the "feelings" of your opponentVerbally accept the opponent's viewpointGive your opinion and ask for opponent's opinionGive positive comments and ask for positive commentsRespect differences of opinionVerbally express "how" the two sides are similarStrive to reach "mutual" benefitsBuild a strong relationship for future negotiationsBe sure to note ??the tone of your voice.?how you pronounce your words.?your own body language.?your opponent's body language.Finally, remember that you should always keep the relationship positive so that you can return and negotiate another day.Copyright 2005 ? Gary E. Cain ? All Rights Reserved WorldwideGary is a business teacher and Internet marketer. He owns and operates his own language school in Brazil. Gary has written two books: Stop the Grammar and Internet Self Defense.Gary provides forward-thinking and "already put it in practice" tutorials for home-based Internet businesses that are seeking information and free web tools to maximize sales and revenue.Please take a moment to visit his website at http://www.dollarsforever.com and consider subscribing to Gary's Dollarsforever Ezine. As a subscriber to his Ezine you will receive his monthly, high-quality tutorials delivered directly to your email inbox.
Negotiating Skills: Ask For More Than You Expect To Get
Negotiating Skills: Ask For More Than You Expect To Get
It creates some negotiating room, and you might just get what you're asking for.Whether playing the role of buyer or seller in a sales transaction, asking for more than you expect to get is a classic opening position in negotiations.In the audio book, "Sound Advice on Negotiating Skills," author Roger Dawson says, "Henry Kissinger called this the key to success at the bargaining table." It's simple, notes Dawson, but there are many profound reasons for doing it."It creates some negotiating room that makes it easier to get what you really want," says Dawson. "It creates a climate where the other person can have a win with you." This climate can prevent negotiating deadlocks, especially when dealing with an egotistical negotiator, according to Dawson."When you're selling, it raises the perceived value of your product or service," says Dawson. However, some salespeople are so eager to reach agreement that they soften their opening negotiating position. "They hope that by doing this the client will appreciate how generous they've been," says Dawson. "The danger in this is that the client may instead think, 'If they've given us this much, we can get a lot more; let's be tough negotiators.'"The solution, says Dawson ? a renowned speaker and author of the book, "Secrets of Power Negotiating for Salespeople" ? is to "ask for more than you expect to get, but imply some flexibility so that you can encourage them to negotiate with you."Roger Dawson offers negotiating skills advice each week in the free audio newsletter from What's Working in Biz, http://www.whatsworking.biz/full_story.asp?ArtID=92About The AuthorRichard Cunningham is a principal of What's Working in Biz, http://www.whatsworking.biz, a publisher of business audiobooks and online audio programs on marketing, sales, and small business strategies.
Determine Your Rate And Negotiate Carefully With Unreasonable Clients
Determine Your Rate And Negotiate Carefully With Unreasonable Clients
Consultants who offer executive assistant or computer services on a virtual basis must know their value and be prepared to gauge their billable rate to meet the circumstances.At some point everyone encounters potential clients who expect professional work at rates that are less than appropriate. For example, a posting advertises an opportunity that matches your highly polished skill set. After making contact with the client you find they don't want to pay a reasonable fee for the services they expect.While these types of engagements might help to build a newcomer's portfolio or pay some bills when money is tight, a successful virtual service provider knows their value and refuses to be exploited. Make sure clients understands your training, background and areas of expertise. Then, set expectations for services by pricing in accordance with your qualifications and skills.Be prepared to be flexible, yet firm in your compensation requirements.? Determine your base rate in advance of client discussions. Scratch it out on paper or create a spreadsheet. Take into account the fixed overhead and variable costs to legally operate your business? Determine your flex-rates for times you might be willing to work for slightly less or feel the need to demand more pay.? Calculate the value added for meeting tight time constraints, the demanding nature of the client or the complexity of the project? Take the time to project costs not otherwise considered in your base rate (long distance, printing, etc.)A pre-determined rate scale helps you respond calmly and logically to stressful situations, so you can advert potential disasters.Last year I turned down what seemed on paper to be an ideal "personal assistant" opportunity. The ad described duties such as checking email and preparing responses on the client's behalf. Work assignments would be completed by phone and fax for a client who did not want to use a computer.The job matched my skill set, but I chose to pass because:1. The offered rate was 50% less than the low end of my base rate range.2. The client expected me to own and pay for the operation of a fax machine, but was unwilling to pay for its purchase or operation.3. The client expected a commitment to work for him part-time, even though hours were going to be determined by him each week4. The client's refusal to even consider using a computer was destined to create confusion and conflict over what I prepared on his behalfRegrettably, I realized this potential client was a fussy, technology laggard who wanted a very experienced, highly reliable personal assistant who was agreeable to an entry level rate.Know when to "pass" on a client so you can continue to market to more viable prospects. Try to negotiate a better rate with clients by matching their expectations with your level of service. Keep an eye out for performance bonuses or other types of perks to balance out discounted rates for good clients.Elisa Shostak is the founder of Compass Rose Strategic Consulting LLC, an advisory service and secondary research firm based in Seattle, Washington.This is the first in a series of articles about negotiating with clients and managing a management consulting practice.Elisa can be contacted through her website: http://www.compassrosellc.com or blog http://www.compassrosestrategic.com