6 Business Negotiation Tips

Credit: Style My Soul, www.stylemysoul.com | Business Negotiations, Global

Negotiating in business requires a blend of strategy and empathy, and to uncover the most effective tactics, we’ve gathered insights from CEOs and founders. From strategizing the timing of negotiation responses to listening and addressing mutual needs, discover the top tips these experts recommend for successful business negotiations.

Strategize Timing of Negotiation Responses
Timing plays a significant role in achieving favorable outcomes in business negotiations. Alongside adjusting your price offers and counteroffers, strategically managing the timing of your responses is key. Counter-offering too fast can give the impression that you’re not earnest about the pricing. Taking a moment to provide a thoughtful reply demonstrates that each incremental change in the negotiation matters to you. Even if you are willing to agree to their terms eventually, showing deliberation can make the other party feel more content with the agreement once it’s finalized. A swift reply might come off as dismissive, as though the negotiation holds little value for you. When a deadline approaches, the party more in need of the deal tends to concede more. This is evident in scenarios like gym memberships being cheaper in December than in January, when there’s a surge in interest due to New Year’s resolutions. If you’re the one facing a deadline, it’s crucial not to let the other party dictate the pace of the negotiation. Create a sense of urgency, perhaps by mentioning discussions with alternative suppliers or buyers, inducing a fear of missing out (FOMO) in them.
- Michael E. Farah, Founder, Realtor and Real Estate Attorney, The Farah Law Firm, P.C.

Foster Mutual Understanding and Compromise
From experience, I’ve found that the key to effective negotiation is to really understand where the other side is coming from. Rather than focusing solely on your own objectives, take the time to listen and empathize with the other party’s concerns and priorities. By approaching negotiations with a collaborative mindset, you can work towards finding mutually beneficial solutions that foster long-term partnerships. Transparency, honesty, and a willingness to compromise are essential ingredients for successful negotiations in any business relationship. - Cody Jensen, CEO & Founder, Searchbloom

Employ the FFF Negotiation Technique
One unique tip I’ve found effective in negotiating business relationships is the FFF technique, which stands for “Feel, Felt, Found.” This approach involves empathizing with the other party by acknowledging their feelings (“I understand how you feel”), sharing a similar experience you or someone else has felt (“Many of our clients have felt the same way”), and then transitioning to what you have found or discovered (“However, what we have found is…”). By employing this technique, I’ve been able to validate the other party’s emotions, establish common ground, and then gently guide the conversation towards a favorable resolution. This approach not only fosters empathy and rapport but also empowers me to steer negotiations towards mutually beneficial outcomes. - Jonathan Rosenfeld, Owner and Attorney, Rosenfeld Injury Lawyers

Adopt a Cooperative Win-Win Strategy
The truth is that, in business, people are more prone to take a selfish approach when it comes to negotiating. However, what makes this approach counterproductive is the fact that it is important to maintain a positive reputation, especially if the business relationships that have been built on trust are to be sustained. In my experience as a business leader, I have learned that the key to winning at negotiation is being ready to reach a compromise that is more favorable for both parties. What this means is that one would have to realize that the whole point of negotiating is not just that they get what they want, and the other party gets to walk away unsatisfied, which would result in a win-lose situation. No, the goal is to find the middle ground where both parties would win and be satisfied. Therefore, one tip I would recommend for effective negotiation in business is to take a more cooperative approach that is more focused on ensuring that both parties win, as opposed to being too competitive, which would most likely make you appear uncooperative. The truth is, by being cooperative and showing an interest in seeing that both parties walk away from the negotiation having reached a compromise that leaves them equally satisfied, you would also get the other party to become more reasonable and open to reaching a compromise that does not hurt your work relationship and the reputation of the business. - Andrew Johnson, General Manager, National Drug Helpline

Prioritize Genuine Connections and Trust
In business relationships, one tip for effective negotiation is to emphasize the importance of establishing genuine connections. Instead of regarding negotiations merely as transactions, prioritize gaining an understanding of the opposing party’s viewpoint and cultivating an environment of trust and mutual respect. By placing integrity above all else and putting relationships first, you establish a solid groundwork for enduring collaboration and achievement. Within the travel industry, the establishment of genuine relationships with suppliers, customers, and partners has proven to be crucial for obtaining advantageous agreements, resolving disputes, and accomplishing common goals. In the end, the benefits of investing in relationships extend beyond short-term gains, resulting in enduring partnerships that yield favorable results for all participants.
- Anam Barkan, Travel Enthusiast, Director Marketing and Founder, Zoyago

Manage Emotions with Emotional Intelligence
Keep emotions in check. Negotiation is an art where understanding and managing your emotions can give you an edge.
Emotional intelligence allows you to remain focused, understand the perspective of the party opposite you, and find a mutually beneficial solution. It’s about communicating effectively and being empathetic toward others’ needs while staunchly advocating for your own. This balance fosters respect and often leads to successful negotiations.
- Andrew Pickett, Founder and Lead Trial Attorney, Andrew Pickett Law