No matter how much you may hate to negotiate yourself into a deal—or even out of one—negotiating is a very legitimate business skill to acquire.
It's even more crucial if you're a smaller business trying to get off the ground. You will have to make your arguments against much bigger, more powerful entities so it's essential that you know the science behind negotiation skills and how they affect the other party's psyche.
Based on psychological research, here are some negotiation tips that will help you to get what you want.
1. Focus on the first 5 minutes. In a study published in the Journal of applied Sciences, the first 5 minutes of a negotiation can predict the negotiated outcome.
In these minutes, the study says you need to focus on "conversational engagement, prosodic emphasis—which basically means you should copy the emotional state of the speaker—and vocal mirroring" to help the negotiations end well on your side.
These first minutes are important because the other party is evaluating you most intensely during this time. They are "sizing you up" and trying to figure out if you actually mean what you say or if you're merely trying to get more than what you know you're worth.
Either way, start out likable so that the other person doesn't shut down on you. If you are able to open him up during these first few minutes, he will listen to your arguments throughout the negotiation. If not, you're basically wasting your time.
2. Start higher than what you'd feel satisfied with. In an article inCurrent Directions in Psychological Science, researchers say you should always start high in negotiations. These starting prices will eventually "form an anchor," which will come to affect every other number that follows it.
This means that you need to start high because it will lead the individuals involved to "selectively focus on information consistent with, and make valuations similar to, the starting value. Thus, starting high will often lead to ending high in negotiations."
Even if you know the number is ridiculously more than what you would be satisfied with, you are the only person who knows this. The other party doesn't know; they can only assume it.
3. You should make your arguments first. According to this study published by the Harvard Business School, you should always consider going first during a negotiation. What are the benefits of making the first offer rather than waiting to hear what the other side is going to say?
It all comes back to that "anchor" number we discussed earlier. If you are the first to go, you are able to set the anchor number, and every number that follows this number will be compared or related to it.
The study says that by "making the first offer, you will anchor the negotiation in your favor."
Making the first offer will also show the other party that you are a confident individual since it's very rare that someone who lacks confidence and power ever makes the first offer.
4. Show that you're passionate. If you're satisfied, show that you're happy by smiling. If you don't like what you're hearing, make sure the other party knows this by showing your emotions.