Art of Negotiation
Chapter 06. How to Use Advantage in Negotiation
To receive the title of “excellent salesman” you must identify the needs
and wants of the customer. — Zig Ziglar
You almost always hold more negotiating power than you think.
Even if you feel all the advantages are in your opponent’s hand,
chances are you already have what the other person wants,
or you can find out what the other person wants
to balance the power more beneficial to themselves.
There are many ways you can increase your negotiating power,
such as preparation,
authority,
partner insights,
empathy, reward/punishment,
and investment.
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The advantage of preparation
The more prepared and knowledgeable you are
before entering a negotiation,
the more advantages you have.
Do this before negotiating. Robert Ringer,
a brilliant negotiator,
discussed bringing an accountant,
lawyer,
and a business executive to a meeting with a real estate owner.
This shows that your side has overwhelming capacity
and knowledge of the deal being discussed.
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Advantage from authority
Making it clear that you have the right to buy or not to buy
—the decision-making power
—will give you authority.
In addition,
when you clearly demonstrate
that you have knowledge in this field,
understanding and experience in terms of prices,
as well as related terms and conditions,
the other party will have to be shy,
timid and limited make a bad deal for you.
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Advantage from understanding the needs of partners
The more you know about your partner’s situation,
the greater your advantage in the negotiation.
If you find out they have an urgent need for a product
or service that you can provide,
or they are having a serious financial problem
and are in dire need of funds or loans,
you are have an advantage over the other side
in negotiating an agreement
in their favor.
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The advantage of understanding or empathy
This is the authority that top negotiators in most fields use.
The more time you spend establishing a close relationship
with your partner,
the more likely your partner will be comfortable
and open to negotiating with you on favorable terms.
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Advantage from the reward and punishment policy
This is an essential advantage
that you can and should develop in negotiation.
When you have the ability to reward
or benefit someone,
they are more likely to want to work with you.
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Advantage from investment
This advantage is related to the time and effort
that you or your partner put into the negotiation.
If it only takes 5 minutes,
your investment is not significant.
But if you spend 5 days,
5 weeks,
or 5 months working hard to come to an agreement,
then you are already making a big impression on your partner.
The more investment,
the greater the power that each side gains from the negotiation.
The two most powerful things in existence:
a kind word and a thoughtful gesture. – Kenneth Langone
