Tips for Winning at the Negotiation Table

Let’s face it – negotiating is difficult, whether it’s for business or personal reasons. As women, we are natural peacemakers – we don’t often invite conflict.

Negotiation is a daily part of business life. Where it gets difficult is when we are negotiating a contractor price for services with a client. Often, in a new business situation, entrepreneurs will accept a lower price just to get a foot in the door. But, as many of us know, there is no recovery from that. As soon as you suggest a price increase, you risk losing the business. After all, you have unknowingly trained your client to pay you at a lower rate than you require.

As I was writing this article, I came across a small notebook filled to the brink with takeaways from a seminar on negotiating that I attended at the annual meeting of my trade association. I took a seat at the back of the room and listened with great interest, as this are of business has been a traditional weak spot for me. Here are some tips I learned and used.

Always prepare – what is it you want to get out of the discussion? Know this beforehand – don’t walk into a session cold.

Have an agenda for this preparation stage – what are your objectives?

Concessions – what are your must haves, and what are your walk away points?

Wish list – what does this look like for you and for your client?

Argue – this is where the conversation has to be about hard facts, such as the legal and financial issues. Know what you need to be profitable and where you won’t budge.

Propose – obviously, there is going to be a discussion about the argument points – what’s your fall back?  You would know going in, because you are prepared.

Add value to the deal – think about re-framing the discussion around value of the transaction, rather than direct pricing. What is the value of the outcome you are committed to delivering?

Deborah Kolb, co-author of “Her Place at the Table: A Woman’s Guide to Negotiating,” advises to get out of your own way. Recognize tendencies you may have for making immediate concessions. Just because you are a small business does not mean you are weak. And, just because they are a large company, doesn’t mean they have more clout.

What are some of the ways you win at the negotiation table?

By Rena Kilgannon
Photo by Iofoto | Shutterstock

Rena Kilgannon runs Kilgannon Group, LLC, a business and marketing consulting firm. She ran an advertising agency in Atlanta, Georgia for 25 years before selling her firm in 2012. Her book, “What’s the Worst that Could Happen” is available on Amazon.com.