How to get your own way in business

Trevor Johnson shows you how to get your own way in business

Talks between car company Ford and a major transmission supplier had dragged on for weeks, with neither side willing to back down on price. Then suddenly a deal was struck and everyone breathed a sigh of relief.

The reason for the unexpected breakthrough? Ford’s tough chief negotiator had been transferred to another job.

“He had been so inflexible that when he was replaced by someone charming and relaxed, the other side was so relieved they agreed to almost anything,” James Braybrook, a management consultant and author of How To Get Your Own Way In Business, explains.

“It was a perfect example of the ‘good guy, bad guy’ strategy, which is still one of the most effective persuasion ploys in the negotiator’s book. It’s just one of dozens of tricks you can use to get a good deal against the odds, if you know about them. And so many people don’t.”

Do you know how to broker the best possible business deal, even if the odds are stacked against you?

“Today in business you don’t get what you ask for - you get what you negotiate,” Margaret Neale, professor of organisational behaviour at Stanford University business school, says.

But, she explains, far too often business negotiators get bogged down in trivial irrelevances and over 40 per cent of deals fail to meet anyone’s expectations. How can you improve your chances of getting your own way at the right price? Here are some basic steps to better negotiation skills, which have proved to be highly effective:

PREPARATION IS VITAL

When brokering a successful deal, you should know exactly what you want before you arrive at the negotiating table. Think hard about what the other side is likely to be looking for. Work out what sweeteners and concessions you can offer as part of a deal.

“Try to think of the negotiating process as a see-saw,” Margaret says. “It goes up and down, until you reach the point of balance where both parties think they have achieved a good outcome.”

TALK MONEY

Beforehand, work out a fair price for what you want to buy or sell and what’s most important to you and to the buyer or seller. If you are negotiating on costs or prices, decide on your highest and lowest figures and work out fallback solutions in case your first offers are rejected.

TRY TO BE FAIR

Getting what you want at someone’s expense means they are unlikely to trust you again and could always renege on the deal.

PLAN YOUR STRATEGY

You need to know specifically what you want from the negotiation. Don’t wait for the other side to state their position to determine what yours is going to be. Write a list of all the things you want before you begin negotiations. Try to find out what the other side’s needs are and at what stage they might be prepared to settle.

The list should include what strategists call deal points and trading points. Deal points are those you must win - if you can’t get them, it might not be worth going on with the negotiation. Any point that isn’t a deal point is a trading point - nice if you can get it, but you can live without it.

Be realistic when identifying your deal points. If they aren’t life and death for the business or you’re not sure whether you need them or not, they’re probably trading points.

UNDERSTAND THE NEGOTIATION PROCESS

Which means asking yourself: “How much do we need this person and how much does this person need us?” You should also understand that the negotiation process is a package, so continue to look for variables. Stay flexible and be prepared to modify your plans at short notice.

BE PATIENT

Make sure your proposals stress the mutual advantages. A lack of patience can kill a deal, according to Ed Brodow, author of Negotiate With Confidence, who says: “Your patience can be devastating to the other side if they are in a hurry. Never accept a first offer, because when you eventually say yes, they will conclude they have pushed you to your limit and got themselves a good deal.”

CONTROL NEGOTIATIONS

This can be the key to getting what you want. Experts say that whoever takes the notes effectively controls the meeting. Whoever holds the pen, holds the power.

Make a point of stating what you both agree on, because the other side will then believe you understand them, leading to an immediate drop in hostility. A useful controlling tactic is to stay silent until the other person speaks. After eight seconds of silence, an opponent starts to become uncomfortable.

Negotiation specialist Mike Michalowicz says:

“Know in advance where you can be flexible and how flexible you can be. Don’t compromise on important issues, but be ready to retreat a little. The other side needs to feel like they are winning, too. Retreating slightly will make them feel victorious. And when they feel they are winning, you are winning too.”

DON’T GIVE SOMETHING FOR NOTHING

James Braybrook warns: “If you are willing to take a hit to your bottom line in exchange for nothing, your credibility will go to zero, now and in the future. If you do it once, it becomes expected. Furthermore, it leads to mistrust, because it won’t be clear why you are giving these concessions.

“If you do concede anything during negotiations, make sure you get concessions from the other side too. In any negotiation, the side that needs the deal most will be the one that gives up the most, because they can’t afford to let their opponents walk away from the table. If you allow yourself to give that impression, you’ll be in trouble.”

STALKING HORSE PLOY

This works by letting the other side burn itself out by negotiating with the wrong person. When an agreement is in sight, the negotiator admits he has no authority to close the deal and is replaced by a colleague, who insists on restarting the bargaining from scratch. Drained and frustrated, the other side are easy meat.

CARROT AND STICK

This technique exploits the psychological advantage the buyer has over the seller when there are rumours a rival supplier is offering a better deal. In one recent case, the stick was used to beat down the price. Then came the carrot - the offer of a three-year contract.

James Braybrook points out: “Who’s to know if you really have a stick? As any poker player knows, sometimes a mediocre hand can be a winner if it’s played properly. If your negotiating position isn’t great, but you can see the other side is worried about losing the deal, you can’t go wrong by coming on strong and playing to the other side’s fears.”

REPEAT KEY STATEMENTS

This will help to achieve what you want, but avoid words like unfair and unreasonable, which can encourage doubts and even aggression.

STICK TO YOUR GUNS

If you’ve offered what you know is a good proposal, stand by it. Put the ball in the other side’s court by asking them to show you there is no value in your offer. Don’t be afraid to walk away and leave them to think about what you’re suggesting. If it’s that good, they’ll be back.

KNOW WHEN TO STOP

When you’ve reached agreement, terminate the discussion. Otherwise you might find you’re making more concessions than you bargained for.

And final advice from James Braybrook: “Get the agreement on paper and signed before you pat yourself on the back. Why? Because there’s always a chance that tomorrow the guy on the other side of the table might have a convenient lapse of memory.”