职场英语：3 Tips for Better Negotiation

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tip #1: let the other party speak first

youll often hear people say, never make the first offerlet the other party do it. this is great advice, but do you know why that will help your negotiating position?

there are two reasons:

1. first, it allows you to define a mid-point. many inexperienced negotiators will find themselves splitting the difference in their negotiations; for example, if one inexperienced negotiator starts by asking $200 in the negotiation and another inexperienced negotiator starts by offering $100 in the negotiation, the negotiation result generally will end up somewhere around $150 (the mid-point). this is human nature not to want to give more or less than youre getting, so people tend to increase or decrease their offers by the same amount as the other party.

but, when the other party states their position first, you he the ability to define the mid-point of the negotiation!

in the example above, if the seller had stated the $200 ask first, the buyer could easily he offered $60, thereby reducing the mid-point of the negotiation (where they expect to end up) down to $130. on the other hand, had the buyer offered $100 to open the negotiation, the seller could he increased his ask to, say, $260, thereby increasing the midpoint to $180. as you can see, the person who states the first position is at a disadvantage to the person who waits, as the person who waits can define the mid-point.

2. second, its quite possible that the other partys first offer will be better than the first offer you would make. for example, lets say you want to hire a plumber, and your budget is $500 for a particular project. while you could state upfront that you he $500 to spend on the plumbing work (in the hopes that the plumber doesnt ask for more than that), what if the plumber was only planning to charge $300? youve now told him that youre willing to pay $500, so he has little reason to quote you anything less than that. by stating your position first, youve given away valuable information to the other party (you maximum price), and he will use that information to extract the most money possible from you.

tip #2: stop talking and start listening

one of the strongest maneuvers when negotiating is to keep your mouth shut. unfortunately, its also one of the most difficult. people are naturally unfortable during a negotiating silence, but this is exactly why you should work to ensure those silent periods occur. if youre unfortable, you can be sure that the person youre negotiating with is unfortable as well. and the mon result of this unfortable situation is that one party will make a concession to break the awkward silence.

next time you are negotiating and the person on the other side of the table throws out an offer, make a point to say nothing. whether it be 10 seconds or 10 minutes, make the other person break the silence. youll be surprised to find that he or she will often interpret your silence as anger or disappointment, and will break the silence by revising their offer or offering a concession. master negotiators will use this tactic to get less experienced negotiators to make successively lower offers without ever hing to throw out a counter-offer themselves.

this may be the most basic but most useful negotiating tactic youll ever employ.

tip #3: information is power

id estimate that in 95% of all negotiations between experienced negotiators, the one with the most information (pertaining to the negotiation) will walk away with the better oute. when negotiating, its important to know as much as possible, not just about the object of the negotiation, but also about the party youre negotiating with and their motives.

most people tend to assume that negotiation is always about money, but often it is not. smart negotiators realize that in many cases, its more important to solve a problem than to offer the most money.

for example, lets say two buyers show up at an open house and both want the house. the first buyer assumes that the seller wants the most money possible, and offers full asking price, but needs two months to close in order to get financing in order, get inspections, etc. the second buyer asks the seller why he is selling, and the seller says that he has received a job offer in another state, and needs to move in the next two weeks; the second buyer makes an offer for $10,000 less than asking, but agrees to close in two weeks, and has no financing or inspection contingencies. while the first buyer offered more money, the second buyer likely solved a problem that was more important than the difference in the offers. all because he gathered some information from the seller before making an offer.

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