There’s a lot of flux in the business world right now, people are changing jobs, customers may be renegotiating deals with suppliers, and the “way we’ve always done it” is pretty much out the window. As a result I’ve been in a lot of negotiations lately, and I’ve seen a few ways that we can make our deals stronger with good negotiation skills.

First get the Facts
There are always some facts in every deal, and we need to know the facts to be able to make a good deal.  There are facts that we know, but the other side doesn’t; facts that they know, but we don’t and facts that we both know.  The best deals are built by teams that have all the facts on the table, so sharing some of what you know (but they may not) can build trust and help us to reach a better agreement. We can’t share all our facts if they aren’t reciprocating, so try offering up one of yours and see if they will respond with one of theirs.

So for example, the longer lead-time in our proposal may be due to some turnover we’ve recently experienced. Sharing this could help alleviate concerns that we can’t deliver, or that this is a normal lead-time. It also could signal that we aren’t likely to drop the price because we have a good backlog right now. Of course it could create other concerns…

Next there’s the Story
Facts aren’t the only thing that influences our negotiation, there is also the story that we tell about the facts. Stories are about the emotions that the facts evoke. When we don’t have all the details (which is all the time in a negotiation) we tend to fill in the blanks with stories. The truth is that the stories are usually more about US than they are about your negotiating partner. So when someone doesn’t call back right away, we might worry that the deal is off, or that they are talking to someone else. These stories reflect our uncertainty and anxiety about the deal. It could just as easily be that they got distracted, or had a deadline on another project.

In our example our revelation that we’ve had turnover could initiate a story about whether our firm is stable. Why are so many people leaving? We may need to calm those fears before they run amok.

Lastly, there’s the Deal
We really have to get the facts on the table, and deal with the stories that we (and the other side) are telling about the facts to come to a compelling mutually beneficial deal. There’s lots of advice out there about how to perform the “horse trading” part of the negotiation. I have two tools that have really helped me. The first is a table that lists all the issues we are discussing (and yes, there is always more to discuss than just price) with a column for “their position” and another for “our position”.  It helps me to keep my eye on the big picture and understand where I can ask for them to give if I’m going to give in on an item that’s important to them.  It also helps me to keep track of how close we are to done; and how many items are left open.

The second tool is an intermediary. It’s so helpful to have someone who can help with the negotiation who won’t be around to service the account or work with the employee long-term. Sometimes you need someone who can deliver the harsh truth, or press hard for your advantage and in doing so they may ruffle a few feathers. That’s OK, once the deal’s done you can come in and play “good cop”, apologize, and go back to delivering exemplary client service, building a great team or otherwise creating good feelings for the life of the relationship.

So don’t let this time of flux catch you unawares. Find the facts, separate the facts from the story that’s being told and then get down to the business of making a deal.

How do you keep your head and get the deal done?

---

Brad Farris is a small business advisor with Anchor Advisors, Ltd. in Chicago, Il. Since 2001 Anchor Advisors has been helping creative professional firms to grow, by helping them clarify their purpose, get the most from their people, keep their eye on key performance measures, and implement consistent processes. Brad is also the author of The Business Owner’s Champion: 6 Practices to Build your Nerve and your Business.