So, do not worry, I was one of you when I went to purchase any product, the salesmen always made a fool of me. And gave me a product at a higher price.
Which my friend bought at a lower price from the same salesmen. When I went to give an interview, I never met the interviewer to agree on the salary I wanted.
But do not be upset. I’m going to tell you the 6 strategies which make you the king of negotiation skills. It helps me a lot.
This is the skill that I gain from my experience and reading habit. And after applying this in my life, I found a lot of improvement in myself. So let’s get started and improve our skills.
Before knowing about the strategy for sharpening our skills, we first know about what is negotiation. What is the importance of negotiation skills in our life? And then we come on to the 6 strategies which help us to become the king of negotiation skills.
What is negotiation?
Negotiation is a strategic conversation between two parties to convince each other of their point and reach a conclusion on which both parties agree.
In the negotiation, every party tries to avoid arguments and try to make an agreement on which both parties will agree.
In the negotiation, each party tries to convince the other party on this term. So in the negotiation, one party will be a winner who convinces the other of his term. And others will be losers.
The negotiation can be between two parties and more. In negotiation, both parties talk about one resolution and try to make a consensus between them. But in negotiation, both parties work on their agenda.
They try to convince others of their agenda. For this, they do research on the other party’s weaknesses and strengths. To give them a better deal and counter their argument.
The party which gives a better deal and convinces another party of his argument is the winner. The best part of the negotiation is that every party gets something. Yes, one gets more and the other less.
The key element which everyone should keep in mind during negotiations.
There are some elements and factors one should keep in their mind. When they go to negotiate. His success and failure depend on this.
1. Know about the parties of negotiation. Like, who is the party in negotiation? What is their background? And how much they influence the negotiation.
2. Their relationship. Like, what is the party relationship with influencers or mediators? Sometimes the negotiation is between family members. Then at the time, how thick will their relationship be?
3. The mode of communication. How to put our agenda that others agree on. The communication should be transparent and give the trust to the other party that their conversation is also heard. It is an important skill to convey to others.
4. Always make an extra plan and prepare an alternative. In the negotiation, you have to open up a new way for yourself. Because you do not know about the result.
5. Visionary thinking. If you sit at the negotiation table with a short vision. You can never make a good decision. Because every negotiation impact is shown after a long time.
6. Accuracy of their claim. You have to be alert and inquire whether the claim made by another party is legitimate or not. Because most people bluff in the game of negotiations.
7. You have to judge their commitment. Whether they are committed to the agreement or not. This means they agree on the promise done at the negotiation table or not.
8. You have to be an expert in creating an illusion. Like, exaggerating the talk. It is also an important skill. Which you have to learn.
What is the benefit of negotiation skills?
1. It a is preventive measure-
Generally, negotiation comes out in the light. When there’s a danger of violence. It does not prevent violence between two people but also in two countries.
This is a preventive diplomacy skill. That’s why diplomats are the vital organ of any country. They win the war on the table.
2. Gives new areas to explore-
The negotiation table gives a wide area for both parties to explore new things. At the negotiation table, both parties want to protect themselves from the argument.
So the relaxed mind opens new ideas to climb the ladder of agreement. The skill of innovation.
3. Save your resources-
The negotiation table saves money, people’s lives, and time. History is witness that war never finds a solution.
But if the solution was found on the table in history. We never went through the painful moment of world war l and ll. The skill of a saver.
4. Give the same level of platforms-
On the negotiation table, both parties are on the same table and at the same level. Both share their agenda, what do they want? What are their issues? And what they expect from the negotiation. So no party can blame his voice will be suppressed.
So, mostly they accept the agreement. It gives them the satisfaction that I try my best and put up all my demands on the table. The skill to hear all voices and convey to others to accept our agenda.
5. Negotiation is not a sacrifice-
In the sacrifice, one party gives all and one party gains all. But in the negotiation both parties found something. One who wins finds more and one who loses finds less. So negotiation is always right. It gives the satisfaction of finding.
After knowing about the negotiation strategy, its key element, and what is the benefit of negotiation skills. Now we are ready to know about the 6 strategies to be a king of negotiation skills. The skill gives satisfaction.
The 6 strategies to be a king of negotiation skills.
1. Law of scarcity-
This is the famous strategy used by marketing experts for various years. Any common man knows that if the supply of any item is less then the demand for that item will rise automatically. But they do not apply it in their life.
But market experts do it. Scarcity gives you the dealing power which you apply to your customer. For example, you notice that if you go to buy land for the resident. The land is square, on the corner of roads, near to market and school.
Prices and demand will always be high in comparison to the land which is a rectangle or without any shape, in the street or away from the market and school.
Because every person wants the best at a lower price. But if you are a seller you have the edge.
Always remember one thing, if you can prove in front of anyone that there is a shortcoming of a particular product or anything they want. The deal will be yours.
2. Law of Competition-
Scarcity and competition are opposite of each other. Scarcity gives you the edge of dealing power and competition snatched the dealing power from you and gave it to the market.
But it is not right in my opinion. The competition gives you a chance to improve and sharpen your skills.
For the scarcity, you have to be lucky. It is very difficult to maintain scarcity every time. So you learn to create illustrative scarcity.
And it comes when you feel competition. Now a question arises in your mind how the illusion will be created?
For example, a few days ago I watched an email come from the groove funnel to me to register in their program. First, a common email came to invite me.
Then they offered me a webinar to join. Their tagline was like “others offer you a free trial for 7 days, we offer you a lifetime free subscription”. This line differs them from the other funnel in the market.
Three or four days ago, they set a timer in their email. And said that the last 3 days will be left. If you miss the offer, it will never start again.
So, by setting a timer and giving the lifetime offer they influenced us to join their group and create an ambience of scarcity in our minds. That if you do not accept the offer you will always miss it.
We go through a phase of catastrophe due to covid-19. The world’s economy is going through an unsound phase.
Due to this, there is no scarcity in the market products. If you will avoid the incident of the panic scarcity of masks and sanitisers created by black smokers.
There is a scarcity of buyers of the products. The sellers need competition in the market. So they want the inclusion of money in the market to increase the purchasing power of buyers. Which leads to competition.
So competition is always good for both buyer and seller. So this strategy always helps you to increase your negotiation skill. It opens you to a new window of exposure. It helps you to learn a new skill of creation of illustrative scarcity.
3. Power of locations-
Today I read a book called THE UNDERCOVER ECONOMIST wrote by Tim Harford, a well-known economist and financial news reporter.
In this book, he gives the example of a Starbucks coffee chain house. Why do people buy a coffee that costs $2.25? While they can also drink cheaper coffee than this
He gave two reasons for that. First is the location of the Starbucks coffee chain house. Mainly the stall of this chain is near the metro station and on the road.
Where people are in a hurry and if they want a cup of coffee. They do not hesitate to buy from Starbucks. The location gives Starbucks the chance to keep the dealing power in its hands.
So the location of your shop or the post on which you work always plays a key element in society. It gives you effectiveness in negotiation.
4. Power of Branding-
The other strategy is branding. When you hold a glass of coffee on which the name is written Starbucks. It gives you the feel of the elite. From various years of existence in the field of hospitality. Starbucks creates a brand of trust in the public.
The Public believes that if the coffee is from Starbuck. It is good. That means brand gives us the power of dealing.
Why is branding essential? In the answer to this question, I will give you my example.
I run this site, I am a newcomer, nobody knows me, and why should one agree with my view in this article? Also, I am not an economist or financial expert.
Here the role of branding came. when few people will read my article and find that the words written in the article are practically right in life.
They will build trust in my article. If they like it. They also share it and by this slowly a chain of people will create.
Which makes my site a brand. So the power of branding gives you an authority on the negotiation table. You use it as a negotiation skill.
5. Power of pricing-
The strategy of power of pricing is the key part of negotiation skills. You know that many negotiations end when it comes to the part of price setting.
So we have to use the price-setting strategy carefully. You use three types of price-setting strategies.
1. Unique targeting pricing strategy- In this strategy market experts fixed the price according to their unique customer. For this, companies use artificial intelligence with the help of cookies.
They research customer behaviour and fix the price according to it. Generally, this strategy is used to search for high-paying customers.
2. Group targeting pricing strategy- In this strategy company target the group. It may be according to the community, gender, age, and location wise.
This type of company-specifically targets these groups. So, they fix the price according to their purse size.
Like, when a company sets the price for a product for an old age group. They do not set a high price because they belong to a dependent class. Instead of fixing the high price, they give a discount on it.
3. Self-incrimination pricing strategy- The last strategy is “self-incrimination”. This happens when a business offers a product in which there is very little difference and its difference does not make much difference in the cost of production.
They offer their product in different amounts with different locations and with different features. This strategy lets them know which customers are willing to pay the most for their product.
Supermarkets display such products by keeping the different brands and prices of the product together.
These are the three pricing strategies you can use as your negotiation skill. When you want to negotiate.
6. Comparative advantage-
This is one of the best strategies. Which always increases your negotiation skill. We all know about our weaknesses and strengths.
So, at the negotiation table never shows your weakness. You always show the other party that you have no weakness.
Always try to divert the process of meeting towards your strong point. Hold your strength point firmly. Because it gives you victory.
So these 6 strategies make you the king of negotiation skills. What do you have to do? If you include these 6 strategies in your conversation I guarantee you will win the battle of negotiation.
Negotiation is a skill, which you have to learn, it is not one daily task, it needs practice, it needs patience, and reliance on your experience because it never shows you the wrong path.
Summary of 6 strategies to be a king of negotiation skills.
# strategy of scarcity- Show your opponent that there is a scarcity of that thing which he wants.
# strategy of competition- Competition is not always bad it gives you the power to influence the opponent that you are the only well-wisher of them.
# strategy of locations- It may be your unique demographic, the location gives you the power to bargain, if you have a place in the market. You have many customers.
# strategy of branding- It gives you authority to talk at the negotiation table.
# strategy of pricing- You have to know what your opponent expects from you. It needs experience and practice.
# strategy of competitive advantage- Always take advantage of your uniqueness. Emphasis on the portion of talk in which you are strong.
Best of luck.