Do you provide a tasty crumble?
This is my second post for you regarding the subject of negotiation (you can find rule one here – Why you should never accept and opening offer).
Rule #2 – Nothing is given away for free (ever)
A common mistake made during negotiations is making concessions without gaining anything in return.
For instance, your buyer wants an extra 5p knocked off each of your widgets – what do you do? Even if you can easily afford the concession, you should challenge it (see rule one).
This doesn’t mean simply smiling and saying “no” – although this would be a good place to start – it means coming up with a solution that meets not only your buyers needs but also your own as well.
Remember, a win-win scenario needs to be achieved for both parties (far too many businesses spend 80% of their time generating 20% of their profit).
A solution to this demand of a 5p reduction could be “This would be acceptable to us if we amend your terms of credit to 20 days from 30”.
This means you’d both win – buyer gets his reduction – you get your money sooner.
The other important factor connected to not making needless concessions is your very reputation as a negotiator.
Seriously – you give an inch, they’ll take a mile – imagine if you did say “no problem, we can do 5p”?
How long do you think it will be before they come back asking for a further 5p off? Probably, not too long if you crumbled in to their demands!
However, if you show your (reasonable) mettle, it would certainly make them think twice.
Wouldn’t it?
Next up in our negotiation master-class is “Skinning Cats!”, make sure you don’t miss it by subscribing, and oh, if you like this post, please comment and share.
