Natalie Reynolds, founder of negotiation expert advantageSPRING and author of We Have a Deal, offers some essential tips to navigate your way to getting a “yes” at the negotiating table
One of the mantras I use most regularly with clients is “people negotiate with people”. Our capacity to influence others will have a huge impact on the deals that we do. Whether we can persuade someone to agree to a proposal, change their position or amend previously held beliefs will go a long way to helping us get the outcome that we need.
For more than 60 years, researchers have been studying what influences us to agree with or concede to others. There is a science to how we are persuaded and Dr Robert Cialdini is one of the experts at the forefront of this area of study.
Cialdini identified six laws that affect our decision-making: reciprocity, scarcity, authority, consistency, liking and consensus. In my book, We Have a Deal, I adapted Cialdini’s laws to create a simple persuasion toolkit for the negotiating table. For each of the laws, you will find negotiation tips that illustrate ways you can use the insight to improve your negotiation outcomes, both simply and ethically.
■ The law of reciprocity: the obligation to give something back if you have received something from others.
Negotiation tip: Think about what you can give your counterparty, not just in the negotiation, but in any interactions you have beforehand. If you are able to give them something, even something small like a coffee or a book you have recommended, it will precondition them to be in a giving mindset towards you. Similarly, if you are looking to gain more information from them, try giving them some information first in order to encourage reciprocal behaviour.
■ The law of scarcity: people want things that are in short supply. An opportunity seems more valuable to us when its availability is limited.
Negotiation tip: Consider how you position your product, service or position when you are planning your negotiation. If you can provide evidence that what you have to offer is rare or restricted in number, or that the offer will only be able to stand for a limited amount of time, then your counterparty’s scarcity fears might kick in, encouraging them to want what you have in a way that perhaps they didn’t before. Similarly, if you are describing your proposition to your counterparty, you might want to consider not only highlighting the benefits they will gain and why it is unique, but also what they stand to lose if they don’t get their hands on it.
■ The law of authority: we are naturally inclined to follow the lead of credible and knowledgeable experts.
Negotiation tip: Try thinking about ways you can educate your counterparty as to your industry credentials, perhaps displaying qualifications in an office or a summary of recognised achievements in an information pack or on your website. You should also think about including a visible authority or recognised industry expert in a negotiating team or taking them along to any pre-deal exploratory meetings.
■ The law of consistency: people prefer to be consistent with things that they have previously said or done. Once we have committed to something, we tend to stick to it.
Negotiation tip: Think about how you can encourage your counterparty to agree to something small that works in your favour. Perhaps if negotiating with a customer, you might get them to agree on one occasion to be marginally flexible on payment terms. The next time you negotiate with them on this point, you could request slightly more preferential changes on payment terms. Their desire to appear consistent may mean they agree to this more readily than if this was the first time you had made such a request.
■ The law of liking: we prefer to say “yes” to people that we like.
Negotiation tip: Look for ways before the negotiation to build rapport with your counterparty. Research where they went to school, what hobbies they have, whether they have kids – anything that could allow you to identify an area of similarity. You could take cues from how they dress and try to dress similarly in style or tone. You could also look for opportunities to make compliments about them – just make sure they are genuine and don’t make you look like you are deliberately trying to butter them up. In short, look for areas of common ground, aspects of their approach or behaviour that you admire, and then share that with them.
■ The law of consensus: when in doubt, people will look to the actions of others to shape the choices they make, particularly of others similar to themselves.
Negotiation tip: Look for ways you can show your counterparty how popular your product or service is. Share testimonials, let them know how many of their competitors or peers are working with you, cite mentions you have had in the press, show information on the levels of previous sales. Share anything that shows just how many other people have made the (sensible and enlightened) decision to engage with you.
If you are already engaged with your counterparty in an existing relationship and are looking to seek their agreement on a change of existing terms (perhaps you are looking to encourage all your customers to move to a different service package), you might try letting them know how many of their competitors have already made the switch.
The ability to influence others and to persuade them to agree to things is an integral part of the process of negotiation. But so is having the right facts, figures and projections at your disposal. You cannot rely on having one of the two elements of the equation. Your best results are going to come from mastering both parts of the puzzle.
To find out more about negotiation visit www.advantagespring.com or connect with Natalie Reynolds on Twitter @advspringCEO
Reynold’s book, We Have a Deal: How to negotiate with intelligence, flexibility and power, published by Icon Books, is available to buy on Amazon for £12.
