Stay Cool Get Heated for the holidays. A Superior Air Conditioning provides the Florida Panhandle with the highest quality service, maintenance and installation <strong>of</strong> heating & air conditioning equipment. Relax with us. License CAC1816167 & Ins. • AMANA & P-TAC’s Certified • 179 Griffin Blvd. Ste 108, <strong>Panama</strong> <strong>City</strong> <strong>Beach</strong>, FL 32413 850.258.3235 66 THE CIRCUIT September/October 2012
“I’m the final Decision Maker” At the beginning <strong>of</strong> many negotiations, someone will typically ask, “Who are the key stakeholders on your side, and is everyone needed to make the decision in the room?” For most entrepreneurs, the answer, <strong>of</strong> course, is yes. Who, besides you, is ever needed to make a decision? Isn’t one <strong>of</strong> the joys <strong>of</strong> being an entrepreneur that you get to call the shots? Yet in negotiations, particularly with larger organizations, this can be a trap. You almost always want to establish at the beginning <strong>of</strong> a negotiation that there is some higher authority with whom you must speak prior to saying yes. In a business owner’s case, that could be a key investor, a partner, or the members <strong>of</strong> your advisory board. While you will almost certainly be making the decision yourself, you do not want the opposing negotiators to know that you are the final decision maker, just in case you get cornered as the conversation develops. Particularly in a high-stakes deal, you will probably benefit from taking an extra 24 hours to think through the terms. “I think we’re Close” We’ve all experienced deal fatigue: The moment when you want so badly to complete a deal that you signal to the other side that you are ready to settle on the details and move forward. The problem with arriving at this crossroads, and announcing you’re there, is that you have just indicated that you value simply reaching an agreement over getting what you actually want. A skilled negotiator on the other side may well use this moment as an opportunity to stall, and thus to negotiate further concessions. Unless you actually face extreme time pressure, you shouldn’t be the party to point out that the clock is loudly ticking in the background. Seven tips for Masterful Negotiating Whether you’re trying to close a major account or get a better rate from a vendor, here are expert pointers on how to win in negotiations. 1. Listen before you speak. There will always be time to open your mouth later, but tap your patience to find out what the other side is thinking first. Then you have extra leverage to tailor your points to fit both sides’ goals. When entering a negotiation, don’t make any assumptions about what’s in the other party’s mind – just enter the situation with an open mind and plenty <strong>of</strong> questions. 2. Embrace your fear. Ninty-five percent <strong>of</strong> the folks you’ll ever negotiate with feel just as nervous and, yes, as scared as you do. For that reason, kindness is a key competitive advantage when it comes to negotiations. Find the theory “nice guys finish first” at the negotiating table; use a combination <strong>of</strong> pr<strong>of</strong>essionalism, ethics and manners. 3. Avoid Storytelling. In a negotiation, the important thing is for you to be completely truthful about your situation. <strong>This</strong> is especially true when it comes to negotiating a loan or another financial arrangement. You don’t want to win a particular negotiation at the expense <strong>of</strong> your credibility. The more forthright you are with the other party, the more likely you are to arrive at a satisfactory outcome. 4. Study Up. The more knowledge you have <strong>of</strong> a situation before going to the negotiating table, the better <strong>of</strong>f you will be. The “consistency principle” refers to a person’s intrinsic need to appear reasonable. That means your counterpart will likely abide by certain standards and defer to your authority if you are able to demonstrate that you absolutely know what you are talking about. 5. Ditch the dog metaphors. Baring teeth and barking the loudest doesn’t have the power it might seem to when bargaining. When deal making gets tense, no one ever wants to back down. Instead <strong>of</strong> viewing your counterpart as the adversary, focus instead on the merits <strong>of</strong> the case and search for ways to achieve reciprocity. The idea is to attack the underlying issue rather than the other negotiator. 6. When all seems lost, gain something else. If a negotiation is going nowhere and taking up too much <strong>of</strong> your time and energy, you may want to walk away from it. Before you do, stop and think, what else can I or my company get out <strong>of</strong> this situation? Might someone else give the negotiations a try? Or perhaps you can use the bad situation as an opportunity to train someone at your company on how to deal with toxic clients. 7. Remember, you’re already a pro at this. However much you think you negotiate, you’re probably underestimating your experience. All <strong>of</strong> us negotiate many times a day. Your co-workers, children, spouse and even fellow passengers on the train, help you refine your skills day in and day out. CHAMBER MEMBERS WEIGH IN: 9 What is your best negotiating tip? Melissa Allegretto General Manager & Vice President Magic Broadcasting It is important to remember the value <strong>of</strong> the relationship / partnership more than the outcome <strong>of</strong> a single negotiation. You always want to maintain trust, and at times during negotiations either side can lose credibility quickly. If you don’t over promise, you will always have an opportunity to over deliver. David Howard Director <strong>of</strong> E-<strong>Commerce</strong> Bay Automotive Group Negotiating the deal begins with all parties understanding each other’s wants, needs and expectations. In today’s market the best deal isn’t always predicated by price, but by the overall experience. Ask 1) Was the negotiation handled with respect? 2) Did we achieve our goals? and 3) Would you return here to do business again? Always remember to do your homework, and the only stupid question when negotiating a deal is the absence <strong>of</strong> questions. THE CIRCUIT September/October 2012 67
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