Closure

Put it in Writing

Once you have both come to an agreement, put it in writing, right then and there. Make sure there are no misunderstandings. If the close is emotional for either side, take this into consideration as well. Remember there is no room for emotions in negotiations, so if you’re the one who is emotional — gain control or finish the negotiations when you can control your emotions. DON’T close the deal if you’re not in control.

Make sure all concessions are in writing and that you and the other negotiator sign off on the agreed-upon terms. This isn’t a time to rush, but instead to make sure both parties are in agreement. You both should be satisfied with the end result. Finalize the agreement and move forward without delay.

 
This concludes the in-depth explanations of the Five Negotiating Tactics. Focus on the areas that need to be improved, but also refine the areas that are your strengths. Explore how many times you engage in negotiating today and enjoy the give and take of Negotiations!

 
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Take the High Road

If the other negotiator becomes argumentative, the best approach is to let them talk themselves out and simply take notes. This will keep you from getting emotionally involved and will give you time to gather your thoughts. Listen carefully and verify that you understand their position. Sometimes just this simple verification brings the negotiations closer to your position, just because you listened. Sometimes that’s all people want to know — that you’ve listened to their side of the story. It’s a powerful feeling to know that you’ve really been heard.

On the other hand, the argumentative negotiator may be using this as a tactic to get you to bend. Don’t. Let them talk themselves out and actively respond through verification of your notes. This reiteration of their side disarms them.

Remember, you’re looking for a long-term relationship here; that means finding ground where both parties can come out winners. If you sense hard feelings of any kind, attempts to break the ice and smooth the process will work in your favor.

Negotiations include a series of turns until finally both parties come to an agreement. Most importantly, trust must not be broken within negotiations. Things may feel strained if they’re not handled properly. That is why doing your homework and understanding both sides of the negotiations will eliminate most, if not all, of the issues.

Give to Get

Be trustworthy and honest in your negotiations. Be fair. If others are unfair to you, let them know. Don’t allow unfair treatment. This will break down the relationship, so confront the issue immediately. Generosity begets generosity. Fairness begets fairness. Unfairness brings about a lack of trust and a break down in the relationship.

When negotiating, if you give something away once, don’t give away anything else until the other negotiator gives you something in return. Sometimes we get nervous and think we need to keep talking, when in actuality you already gave and already talked plenty.

Always take turns. After you make a move, wait until the other party reciprocates before you move again.

Look for the next post on the Five Negotiating Tactics which will cover Closure: Putting it all Together.

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Listen in Negotiating

Listening Keeps Communications Open

Without communication, there are no negotiations; things simply become a push and shove match. If you simply state your side without listening to the other side, your position is weakened. If you become argumentative, you lose. Laying down your cards without understanding the players and their positions weakens your position and your ability to negotiate. Once the communication bridge is burned, you’ll pay Hell getting it back.

Any time you’re communicating in business, whether it’s during a negotiation or in the middle of a sales meeting, listen 80% of the time and speak only 20% of the time. You may think that negotiations require you to speak more. However, you’ll find that the more the other party talks, the more you learn of their position and the easier it becomes to retain your position.

Silence is also a negotiating tactic. If you remain silent after your offer, especially if you let the silence linger for a few minutes until it begins to feel uncomfortable, you can sometimes get what you want. Just be aware that the other negotiator may try the same thing with you!
 

Find Out More

The more you work with the other negotiator, the stronger your negotiating stance becomes. Always be honest and respectful in your negotiations. This will be remembered during and after negotiations. Since you have already done your homework, there should be few surprises. Listen carefully and always make sure you understand their position by asking questions and obtaining clarification before you respond.

You’ll want to develop questions prior to your meeting. The questions you ask must be thought-provoking and must help you to understand the other party’s point of view. Once you have developed this list, obtain as many answers to the questions prior to the negotiations as you can. These answers will provide to you the ammunition you’ll need in your negotiations. Remember this diagram from our discussion of high gain questions? Use the same principles to outline your questions and answers for your negotiations as well.
 
Look for the next post on the Five Negotiating Tactics which will cover Taking the High Road.

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In a previous post, What is Negotiation?, we discussed the Five Negotiating Tactics. This is the second installment of  going in-depth with an explanation of each of them. This post covers the importance of how to Portray yourself in the interaction of Negotiation.

Portray

It’s important to be positive both in your attitude and in your body language throughout the negotiations. How you come across is 90% of negotiating successfully. Words are not nearly as important as actions.

Face-to-face negotiations can be much more effective than over the phone or in writing. The reason is because the body speaks for itself.

Posture

We all have our own natural way of standing or sitting. Some of us may have developed the habit of slumping or hanging our shoulders over the years.

When entering negotiations, posture is one of the first things someone will notice. You don’t want to look tense, but you also don’t want to look like you’re not attentive to the situation. You want to look like you’re in charge and ready to move forward.

This means shoulders back, head sitting square on your shoulders and looking straight ahead. Keep your arms to the side and your hands relaxed. Be careful not to cross your arms — even if it’s a natural posture for you. In negotiations it closes you off from communications with the other person. Also be careful not to cross your legs. The more open your stance the more open the communication will be. You’re in charge — keep your posture in charge as well.

Watch your opponent; where they may be closed at first, you may notice them opening up as you begin to formulate the negotiations for them.

Handshake

This is the beginning of any negotiation, so make sure your handshake is strong and firm. This one touch will immediately let the opponent know what kind of person you are. If your handshake is weak, half-hearted or condescending, your negotiations will already be off to a bad start. A strong firm handshake is what’s needed.

Head Movements

Do your best to keep your head steady. Sometimes we have a tendency to show agreement to statements when we don’t mean to do so. Showing agreement be- fore understanding the situation weakens your position. It may also cause you to inadvertently agree to something that isn’t in your best interest! Instead of simply nodding without thinking during the negotiation, listen attentively, analyze the data and respond to it.

Nervous Habits

Nail biting, playing with your hair, squirming in your seat, making off-handed comments or jokes, or adjusting your clothes — take all of these and any other nervous habits you have and put them away. Each one of these habits displayed during negotiations will weaken your position. Add to that list nervous hand movements and tapping of a pen as well!

Eye Contact

Direct eye contact is best in negotiations, even if this isn’t your normal way of conversing. Direct eye contact means power. Shifting eye contact means uncer- tainty or distrust. People can feel messages very quickly based upon how well you connect visually.

Look for the next post on the Five Negotiating Tactics which will cover Listening.

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In our last post, What is Negotiation?,  we discussed the Five Negotiating Tactics. Starting in this post we will go in-depth with an explanation of each of them. This post covers the importance of Preparation.

PREPARE

Prepare, Prepare, Prepare. Before you begin any negotiations, remember that the person who understands the issues the best will be the strongest. Understand not only your side, but theirs as well, and all the other choices that could occur in the middle.

When developing a negotiation plan, make it simple. Remember, in every negotiation there is a beginning, middle and end. Understand each step and know where you want to be.

BE OPEN

The more you believe there is only one solution for you, the more you’ll be in a losing position. Why? Because your mind becomes so focused on one outcome, that you cannot accept any other position. Ever hear the saying, “You can’t see the forest through the trees?” If you’re too focused on one particular outcome, you could be missing an even bigger or better outcome. Make sure you look at all your options.

SET YOUR INITIAL OFFER

Carefully set the parameters of your initial offer before you begin your negotiations. Remember what is driving you; is it the price or is it a principal you’re negotiating? If price is the driving factor, know where you want your end number to be. Set your negotiation zone. You set one end of the negotiation zone; the other party sets the other end.

GO FIRST OR SECOND

What’s the best order? It depends on the situation. Going first may give you the power to set the parameters to your benefit. Or maybe you’re in a situation where you want your opponent to go first; you never know, they may come in at a better place than what you would have thought. They may also provide additional information that will support your side of the negotiation. So look at the whole situation before you commit to going first or second.

PLAN TO MAKE CONCESSIONS

While preparing for your negotiations, identify in advance those areas where you would be willing to make concessions. Note that when you’re willing to make concessions (not get run over), you’ll find that it triggers the law of reciprocity. Each side needs to see the satisfaction of movement in their direction. Choose which areas you’re willing to concede before you negotiate, and have a strong story as to why the points you’re going to keep remain.

LEVERAGE

Negotiation leverage points include: needs, wants, competition, and time. These factors can be used as leverage either against your position or in your favor.  Always look for these four leveraging points; you’ll be surprised to know that the other person will likely be experiencing at least one, or more, of these factors as well.

Look for the next post on the Five Negotiating Tactics which will cover Portray.

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How to Negotiate Like a Pro

At some point in owning your business, you’re going to have to negotiate for something. Whether it’s over the salary you want to pay a new hire or for the best price from a vendor, negotiating skillfully will be important to the success of your business. But negotiating can be extremely nerve-wracking to many of us… and even to seasoned pros! Most of us simply don’t know how to negotiate well because we never learned. Negotiating skills are not usually taught in school and probably not something you picked up at home or during your childhood, either. And there’s often a healthy amount of fear holding us back, too. But remember, fear is typically caused by not knowing all the facts. You must clearly understand both your side and their side of the story before you can negotiate from a position of power. There are many ways to look at any situation, so let’s discuss how to figure this out. As long as you know the whole story, I promise you, there are no surprises in negotiations.

Negotiators are generally happy people. Once you get used to negotiating well, you’ll notice that you can ask for things you never thought you would ask for — and that you’ll get them, too! Soon you’ll find that you’re obtaining things you never thought you could have…when all along, all you needed to do was to ask. The more you open yourself to opportunities, the more you’ll find that negotiating can be your best friend.

But there are times when poor negotiating skills can prevent you from achieving what you desire. Have you ever been in an argument where you got defensive and immediately became weak in doing so? Did you back yourself into a corner with no ability to win? Did you become angry, or did you react in the opposite way and just give in? Did you become emotional and lose focus on the end result you wanted to achieve? If any of this sounds like you, then it’s time to strategically build your negotiating skills into the effective machine you need.

Negotiation comes into play when two or more parties have a difference in opinion on the ultimate outcome of any given situation. Winning a negotiation means that all parties are in agreement and, in some way, everyone wins in the final outcome.

Your role in assuring the negotiation is favorable to you is to use the following
Five Negotiating Tactics:

• PREPARE: Know your position, their position, and every position in between
• PORTRAY: A positive attitude and body language
• LISTEN: Keep communications open
• TAKE THE HIGH ROAD: Always be honest
• PUT IT IN WRITING: Never leave the table without a written agreement

Stay Tuned for an in-depth explanation of each of the Five Negotiating Tactics. 

In the midst of the ever-changing healthcare environment I find that small business employers are having a more difficult time keeping standard healthcare plans in place. The definition of a small business employer is 50 employees down to 2 employees. What I have found is that small business employers are continuing to increase deductibles and out-of-pocket costs for their employees. This is all well and good due to the fact that the rising cost of healthcare is something that small business employers cannot afford but keeping strong health plans intact is important.

While Health Savings Accounts (HSA) are something the small employer can take into account for their businesses I find that many employers could pay more for an HSA than a standard healthcare plan. The reason is HSA’s can actually end up being more expensive in the long run if their employees happen to have a catastrophic or chronic illness or the premiums are high because the insurance company prices the plan high due to their liability after the deductible is met.

I recommend that employers put into place a $1000, $1500 or $2000 deductible with an out of pocket maximum anywhere from $4-$6000 on an in-network basis and keep the office visit and prescription drug co-pays in place.

I do like the utilization of a Health Reimbursement Account (HRA) as well. You could implement an HSA or a high deductible plan and put in place an HRA, but I would recommend this only if you have 25 or more employees, otherwise the employer loses money if the HRA is used to often by the employees.

Healthcare reform has helped employees recognize the importance of wellness visits by implementing no-copay for wellness visits. Also there are no maximum lifetime limits and the benefit increasing the age for child and military coverage.

I do not see that healthcare reform will be the way of the future. Why? Because it takes away the free enterprise of insurance. I say the government needs to back away from the involvement and let the insurance companies do what they do best (but implement further guidance) which is manage healthcare and provide healthcare benefits for the population. This overplay by the government does not lead to a democratic society, it is our responsibility as citizens to manage our own healthcare and to utilize the system that may be slightly broken at this time, but with improvements definitely can be beneficial for the long term. Keep healthcare reform at bay and let free enterprise continue.

Click here to view the embedded video.

In this video, Holly Katko discusses how to handle objections in sales and selling.
Getting to ask the right questions to overcome objections in the sell.

A weak labor market already has left half of young college graduates either jobless or underemployed in positions that don’t fully use their skills and knowledge. About 1.5 million, or 53.6 percent, of bachelor’s degree-holders under the age of 25 last year were jobless or underemployed, the highest share in at least 11 years.

Are you looking for a job or career? It is critical to pursue the career avenue and not just attempt to get a job. Here are three ideas to overcome these numbers that right now are stacked against recent graduates:

1st – Have More than One Ticket in Your Pocket

Many of us have gone to school for one specialty and one specialty only. Whether it’s marketing or communication, or finance, or theatre – whatever it might be. We say to ourselves, I’m going to go out and get a great job with a large firm that will take care of me and teach me the ropes. Or any employer, for that matter, just so I can get a job in my field. My answer to this is hogwash! This is your great opportunity to take what you have learned and expand it into other fields, other areas of expertise that you can build upon. If you are in Marketing, look at Sales. If you are in Communications, look at Public Speaking. Now is a great time to open you mind to new ideas and expand your horizons. List 3 new fields you can use your skills and knowledge to expand your career options.

2nd – Take Another Step in Thinking Outside the Box

How about starting your own business? Now is the time to make this happen. You went to school you have a specialty; you have skills in a field well beyond 90 percent of the population. Go out and find the customers that need your skills now. Which brings me to a very important point – you need to identify your client’s pain/needs, then go out and solve them. Don’t wait for someone to give you a “Job”, go out and build your company! Write 3 areas where you could start your own business with your skills and knowledge. Now list 3 areas where your passion is to start your own business. See if they match.

3rd – Keep Independent

Don’t go running back Home to Mom and Dad. This is the time for you to make it on your own. It is OK to ask for help but, this is critical, use this assistance to make yourself more independent. As stated above, use this help to start your own business or product line or service. The more independent you are now, the more you will succeed in the future. These hard times are what make you who you are. The folks have already been through their own hard times and have become the people you know today because of those hard times. Enjoy these times and be proud of every hurdle you overcome to be the success story you are meant to be. Discover 3 areas to use assistance to start your career.

I can’t state enough how important customer service is to your business. This customer-focused approach should permeate everything that everyone in your company does! Consider the difference that outstanding service makes to you when you are a customer. Think of a recent time where you called a company help line but you didn’t receive the help you had expected. Think of those things that the person said on the other end of the line that almost immediately led you to lose trust in the company. Well, reverse this role and remember how you wanted to be treated, so that you can treat your client the same way.

7 Things Not to Do:

1. Allow Interruptions

Stay focused on the call. Don’t let other calls or other people around you interrupt the call. It’s important to stay focused.

2. Make up Answers

Don’t be afraid of not having the answers on the spot. If you don’t have the answer, don’t make it up. Even little white lies will come back to haunt you. Always tell the client you’ll get back to them — don’t guess.

3. Act Like you Know More than the Client

This will cause you to interrupt or dismiss or even resolve the call before you have completely heard the issue. Wait until you have heard the issue in its entirety before you talk. This will allow the client to get it off of their chest and will clear the path for you to provide the solution.

4. Interrupt a Client

Unless the client is completely out of control (never take abuse from a client), stay focused and write down your interpretation of the problem. Don’t internalize the complaint; keep it business related.

5. Over-React

A client may hit your “hot buttons,” but don’t let them push you out of control. Any time you lose control, you lose. Remember, this is a business. Your reaction must be of the highest caliber of profes- sionalism. If it’s not, you lose in a big way — not only the client, but your trust and credibility. These are not easy things to get back.

6. Pseudo-Listen

If you’re not listening with all your senses, then you’re not listening. Trust me, the client can tell if you’re slumped in your chair or thinking about something else or typing an email to a friend while they are on the phone. The client is very intuitive, just like you. Focus.

7. Assume Something Can’t Be Done

Always take the extra time to think outside the box. If an issue has come up once, it will probably come up again. So come up with a new solution, and make sure to document your solution so people who are new to your company will know how to handle the situation in the future.