All successful trading is a beautiful thing, because in a normal scenario, the two sides came out thinking they got more than they paid. That is, any negotiation that is not forced, is a win-win situation.
In any case, this is a always worrying situationbecause you want to make sure you are not letting anything pass so you will not be "cheated" on the other side of the bargain. Of course, information is the key to good trading. With all the data involved, it is possible to prepare and make a fair deal for both. Below, we will see 2 prospects that can help you have a good trading.
1) Know Your Business Numbers
The very first step to getting into any trading is to know the numbers of your business. This means:
a) Be aware of the importance to the business: The overall scenario of your business is essential when negotiating with either a supplier, customer or partner. Depending on your timing, it will be possible to seek better returns or not. This involves all the information financial health e your business such as the current cashier, the entry projections, and your sales funnel.
b) Know your costs: Knowing the costs involved in your part of the negotiation is essential to not accept anything harmful and also be able to defend your price / return. This involves all the information production cost, possible negotiations that can be done with suppliers or even the pricing method of your company.
c) Design the return: Lastly, and more importantly, you should have a return potential projection because it is often necessary to maneuver with the future to achieve a good situation.
2) Putting Instead of the Other Side
The second essential point is to try to understand a little the other side of the negotiation, because usually the different visions that can complicate:
a) Understand your costs: Of course, it is much more difficult to get concrete data on the other's reality, but a minimal study should be done to understand the figures in general. At least the percentage that the negotiation in question may have in relation to its revenues. So you understand its importance as well.
b) Think of scenarios: The truth is that in any negotiation, you can not know exactly what the other side is seeing as value. Sometimes you are being hired simply to anger another person or to fulfill a law. Sometimes someone wants to buy your business just so that it does not exist, so that it grows. Do not accept the first obvious idea, but think about how it can use different ways what you are offering.
3) Follow Your Instincts
Last but not least, follow your instincts regarding the person you are dealing with. If it does not seem reliable, think again and look for other references about it. We often feel things that we can not rationally explain but that are a concrete part of the decision-making process in a business!
Did you like the post? Do you feel better prepared to negotiate now? If you have a good trading history, leave it in the comments!