The most important thing to do when negotiating is to be prepared. Negotiating is about being prepared. This means knowing what to expect from the buyer, creating the conditions of trade you’re willing to accept, and identifying new issues or terms to expand your pie. It is important to be aware of the key negotiation strategies that you should avoid.
Avoid the take it or leave tactic at all costs. It’s a tactic that is aggressive and does not work and could make negotiations more difficult. For example, if a buyer asks for a discount on the cost of implementing your product, it’s best to be calm and rational in responding to their request, rather than dismissing it in a snarky manner.
Two strategies you can employ to your advantage during negotiations are framing as well as anchoring. The former involves stating an initial number that can serve as an anchor to influence the negotiating process. The second involves providing the reasons behind that will impact how the other party sees that number.
Another common tactic to use is to create a situation in which your buyer isn’t able to be in agreement with you. For instance, if the buyer states that they are not willing to meet your price requirements, try saying something like «I recognize that you’re an incredibly value-driven person, and I can imagine the reasons you’re hesitant to accept my offer.» This way, the buyer will have to weigh whether their own values are more important than their desire to accept your offer.