From Neil Patel:
Do you hate negotiating? Is it the confrontational aspect that makes you uncomfortable? Do you worry that you might get screwed? If so, you’re not alone. Negotiations stress a lot of people out. In fact, some people will do anything to avoid them.
The good news is that it’s really not that hard to negotiate well, as long as you remember two words: walk away. Let me show you what I mean by that.
The one thing you must always be prepared to do
Position is everything in negotiations. What do I mean by “position?" Your position is nothing more than what you are offering to the other side.
For example, say you want a raise. You walk into your boss’s office and tell him that you’ve worked hard this year and that you think you deserve a raise. He listens until you are finished, nods and says, “No thanks. Let’s give it another year.” What do you do at that point?
Well, true, you could walk away, but because your position is weak (what alternatives do you have?), walking away isn’t very effective. How do you make your position stronger and the threat of walking away more effective?
You need leverage.
That means if you wanted a raise, your best position is to have another job lined up offering you more money. Then you could say, “I want to stay…but they are offering me 14 percent more money. Is there any chance you can match that?”
Brainstorm a list of all available alternatives
Your first step is to brainstorm a list of all available alternatives that you might consider if the negotiations go south. In other words, if you have to walk away, what are you going to walk away to?
Let’s look at our pretend request for a salary increase as an example. You’ve determined that you would be happy with a 10 to 12 percent salary increase. You have another company offering you 14 percent more, but you like where you work and you don’t want to take the risk of working for someone you don’t like.
Well, what you need to do is crack open a spreadsheet and start plugging in the alternatives if your boss refuses to give you a raise within your range. Your ideas could look like this.
1. Quit and take the other job offering 14 percent more pay.
2. Quit, engage your contacts and start working for yourself (after all, you’ve been considering freelance for quite some time).
3. Put in three months' notice, and then work for yourself.
4. Accept the new job, but discuss with your boss the option of coming back if it doesn’t work out.
5. Stay where you are, but get a promise from your boss that he’ll consider a raise in three months.
6. Put in a 30-day notice as a bluff to see if your boss will bite.
7. Make recommendations about projects you could engage that would lead to a raise.
Choose the most promising alternatives
Out of that list, your next step is to choose the option that's most promising. Let’s eliminate all of the ones that suggest you quit and work for yourself. Let's be serious; at this time in your life you are not ready for that risk.
Let’s also say that you know there is a history of people leaving the company and never being hired back, even if they try. You can eliminate No. 4, then.
That leaves these four.
1. Quit and take the other job offering 14 percent more pay.
2. Stay where you are, but get a promise from your boss that he’ll consider a raise in three months.
3. Put in a 30-day notice as a bluff to see if your boss will bite.
4. Make recommendations about projects you could engage that would lead to a raise.
Find someone to hold you accountable
Once you feel confident that you can walk away if you fail to get a reasonable agreement, connect with somebody you can trust. Sports agent Leigh Steinberg says in his book,Winning with Integrity, that you should "surround yourself" with a support team. In most cases, your spouse, partner in business, best friend or mentor will do.
Once they’ve given you their input, ask them to hold you accountable. Why is this important? This is to keep you from caving in to pressure. If you have somebody you know who is counting on you, then you are more likely to stick to your guns.
Besides, rehearsing your negations is one thing. Being in the heat of the moment is another. Rob Walker writes:
But can you really imagine yourself saying anything remotely like that in the heat of negotiation? When you've just been asked something that really ticks you off? In the middle of a deal that you really want to close? And if you really can't see yourself showing that sort of poise, is it possible to change yourself so thoroughly?
An accountability partner can help you stay poised. For example, if the other party is getting edgy and trying to coerce you into a bad deal, just say that you need to talk to your accountability party. And if they say “This is our best offer…take it or leave it,” and it doesn’t align with your bottom line, leave it! Having the ability to walk away gives you the leverage to avoid being cornered into making bad decisions.
The sad truth
No matter what you do in this life, you’ll never get away from negotiating. But if you just remember the two words “walk away,” being successful at negotiations won’t seem so difficult.
What negotiation tips can you share?
Connect With Cheryl