Effective negotiation can influence potential clients and cement favourable business deals. This is a skill no marketer, salesperson or leader should be without, yet many are clueless about the rules of engagement. Raj Khera provides some guidelines to ensuring all parties walk away from the negotiation table with a smile.

A common mistake made by untrained negotiators is to haggle over price. The first aim is to take the focus off price and make service and delivery the main factors, says Khera.

Planning and research are essential parts of negotiation. Failure to reach a favourable outcome during the negotiation process can be traced back to a lack of forethought and preparation. The mark of a good negotiator is someone who thinks on their feet and provides creative solutions according to Khera. However creative solutions that satisfy both parties come from a mind that is assessing and analysing relevant information before the process begins.

Start with gaining a thorough knowledge of your products or services and understanding the value of your offering. Assign a value (price) to each item or aspect of your service to demonstrate that reducing price will result in lowering the quality of that item, recommends Khera. The idea is to emphasise the reality that if clients pay less, they will get less.

Part of the planning process includes researching competitors. Know what your competitors are offering and identify the difference between your products and theirs. If a competitor is offering a service for considerably less they are probably cutting down on quality. Emphasis your value proposition and highlight any extra’s the customer will receive from your business.

Avoid bad-mouthing your competitors at all costs, instead “encourage prospective clients to do due diligence on you and your competitor” and allow them to discover any inconsistencies.

Finally, remember that negotiation is a give and take process. If the client is unwilling to accept your offer it is sometimes better to walk away. Always think about the long term effects of your decision. It may be more profitable to uphold the value that you have set on your products and services and reaffirm your worth, than it is to please every prospective client. According to Khera, clients may even go back and rethink their position.

For more advice watch Raj Khera in his 4 minute video, Negotiation tips: How to overcome price resistance

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