Negotiations – How Important Are They in Business?

“My father said: ‘You must never try to make all the money that’s in a deal. Let the othernegotiate  fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.’”   J. Paul Getty, Anglo-American industrialist, Founder of Getty Oil.

Whether you realize it or not you are probably negotiating every day if you are running a business.  The question is:  “Are you doing it effectively?”

Things to remember while negotiating:

–       Be positive

–       What do you really want?

–       Know your value

–       Be open minded – listen to the other person so you can understand their position

–       Back up your decisions

The important thing to remember during negotiating is to not be aggressive – no one likes a bully.  Instead be confident, assertive, factual and clear.

When you are negotiating, try to make it so that you both parties will feel some type of satisfaction.  In negotiations, one will be stronger than the other but it is still an act of compromise.

While you are negotiating, think about the bigger picture.  As the owner of a business you need your customers.  Business transactions always happen between two or more people so you need to be tactful.

If you stand your ground on your price, for example, then you must justify it by providing factual information that you have researched prior to setting your prices.  

It is vital that you know your product or service inside out and at the same time always remember your value.

Everyone wants a good deal – that is human nature.  Just remember to be realistic when you are negotiating with a customer.  Remember there are two sides to every story.  As J. Paul Getty understood well, negotiations should leave both sides feeling like something has been accomplished and that the solution is benefiting to both parties.  

Check out these negotiating tips from the Canada Business Network.  If you want to talk more about negotiations or about your business, call us and book a free business consultation. We are here to help you. One of the goals of the Centre is to empower small and medium-sized enterprises and give you the tools to achieve success. For more information about Halton Region’s Small Business Centre resources, services, business events and seminars, contact us by dialing 311, 1-866-442-5866, online at www.haltonsmallbusiness.ca, by email at smallbusiness@halton.ca or visit us at 1151 Bronte Road, Oakville. You can also follow us on Twitter and find us on Facebook.

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