1. Preparation - Preparation is the first and most important component of any negotiation.  It should receive more time and effort than any other facet of the process.  A lack of preparation is a central reason why so many people despise negotiating.  They do not know what they really want or what the other party wants.  If this aspect is overlooked, then both parties will walk away unsatisfied.  

To begin, you must distinguish between your goals versus bottom line.  Determining realistic goals will mean doing significant research on the topic and the other party.  If this isn't done properly, you will lose credibility from making unrealistic requests.  The more fact-finding you do, the more data you'll have to justify your position.  

Remember - the devil is in the details.

When your goals and bottom line are clarified, you will know where you should start the negotiation (above your goals), the range of acceptability, and the threshold that you are unwilling to cross.

2. It's Not A Zero Sum Game - One party's win does not need to be the other's loss.  Unfortunately, this is exactly how many people perceive what a negotiation must mean.  Entering into a negotiation with this mindset quickly pushes both sides to become combative and defensive which will not lead to optimal results.

Instead of an aggressive approach, creativity and cooler heads should prevail.  The process would be much smoother and produce a better agreement if both parties first found areas of commonality.  If done correctly, this will allow each can get what they want without excessive concessions. Of course, there will be areas of disagreement, but this strategy will help expedite the negotiation.  

Aiming for this win-win scenario will build greater trust and respect from each side.  When both parties seek to understand the ultimate goals of the other party, more creative solutions will emerge.

3. Benchmarking - There are many negotiation experts who insist on never making the first offer.  In certain situations, this can be a mistake.  By beginning the negotiation process, the initiator has the ability to benchmark the entire process.  

Benchmarking essentially plants a stake in the ground that will be the starting point for the negotiation.  It can be more difficult for the other party to make a dramatic counteroffer if you make the first offer.  While it is typically associated with pricing, it should also include every request within the negotiation.  Caution must be used with this tactic because benchmarking too high can push the other party away and too low will sell yourself short.

When buying a car, benchmarking has already taken place with the price being listed in the window.  It is always listed higher than it should be and for good reason.  The psychology behind this approach creates the impression that the buyer gets a "good deal" when they haggle the dealer to a lower price (that they also find acceptable).  With this in mind, don't be afraid to make a well-informed first offer.

4. Negotiate for Someone Else - When you are negotiating a deal, who else will be affected by the agreement?  Typically, there are more parties involved beyond the people negotiating the deal.  Instead of strictly negotiating for yourself, negotiate for the other people who will also be affected from the deal.  This tactic works very well for people who hate negotiating because it increases their resistance to making too many concessions.

For example, when someone negotiates for a salary increase, perhaps this individual supports a family that is experiencing greater financial needs.  To the employer, this may appear like a money grab, but the reality is that there are serious consequences at stake for the employee.  Their family will suffer if they are not able to secure a raise.  As a result, they will fight harder for their requests.

This example illustrates the importance of negotiating for others instead of strictly yourself.  There is greater accountability to the result of the negotiation because others are counting on you.  Using this approach will help you remain much more committed to your goals and seek more creative solutions to the issues.

5. Ethics and Maintaining Respect- Managing perceptions is critical during each part of the negotiation process.  From the very beginning to even after the deal closes, how you act can have serious repercussions on the deal.  Although each side is fighting for their point of view, respect for everyone must permeate each interaction (including those on your side).   

There are certain negotiation tactics that are questionable by some and other methods that are inappropriate.  By utilizing these strategies, you are putting both your reputation and requests at risk.  Moreover, if one side even perceives that the other is not acting ethically, then the entire negotiation can be jeopardized.

Be cautious with every interaction and avoid even the appearance of what could be perceived as questionable.  After the negotiation concludes, chances are that you will work with those with which you are negotiating or will need to negotiate with them again.  Acting with integrity, honesty, and respect throughout the process will create the optimal atmosphere for continuing a solid relationship with the other party.

What are other negotiation tactics/insights that you use? Have you had success? Lessons learned from failure? Please share your thoughts and experiences below.

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