To negotiate successfully, you must be prepared. Knowing what to expect from your buyer, knowing what you’re willing to exchange for it and thinking of new terms or issues that you can apply to increase the pie are all part of the negotiating game. It’s important to know the fundamental negotiation techniques to avoid.
The take it or leave it tactic is one that should be avoided at all costs. This kind of approach isn’t a good idea, and can make negotiation more difficult. For example, if a buyer is asking for a reduction on the implementation price of your product, you should be calm and rational in responding to the request rather than rejecting it outright.
Anchoring and framing are two strategies that can be utilized to your advantage in a negotiation. The former involves stating a starting point that can serve as an anchor to influence the negotiation process. The latter involves supplying the basis or frame that impacts how the other party views the number.
Another method of negotiating is to create a situation where your buyer isn’t able to accept your offer. For instance, if your buyer claims they are unable to meet your price expectations, try saying something like “I know you’re a value-driven person, and I can see the reason you’re reluctant to accept my offer.” This way, the buyer must consider whether their own values are more important than their desire to agree with you.