Negotiate your way to big bucks

in Business Hacks

by
Sophia Eribo (ser)

Skills and tactics to help you make more money

"Everything is negotiable. Whether or not the negotiation is easy is another thing."

Carrie Fisher

These days, when people think about negotiating in the business world, the first things that spring to mind are negotiating salary or a job offer. But, of course, negotiation tactics are needed for many areas when it comes to operating a company. When dealing with clients, getting the best deal is just as important for your business as it is for your customers - and for this reason, paying the advertised price isn't always the best strategy. If you regularly have to send out quotations, you'll know your customers might want to haggle a bit too. Learning and using effective negotiation skills is sure to produce results for your company. We got a negotiating master and an Odoo customer whose business is based on this exact skill to both us a short and simple rundown of their advice.

Expert's tips

Dubbed "The King of Negotiators" and named by Forbes magazine as one of America's leading dealmakers, Ed Brodow tells Odoo his advice on the art of negotiating.

"You cannot accomplish anything with anyone without negotiating...

So you can't really have a business relationship without it", says Ed.

  1. Aim high - if you expect more, you'll get more.
  2. Learn how to listen - there are a lot of strategies, but if I had to put my finger on one, this is the most important.
  3. Be willing to challenge everything - a lot of people just accept what's put in front of them.
  4. Sometimes the best agreement is no agreement - you always have to be willing to walk away, so you should always have alternatives.

CEO's tips 

Striking a business deal isn't all about the money. Of course the bottom line is important for Odoo customer Piko Rojnik, who runs Gypi, a company that bulk buys top brand electrical items from sellers all over Europe and then resells them to other retailers on the continent.

CEO of a successful trading company, 

Piko naturally aims to buy for the cheapest price and sell for the highest. He says he's working on such slim margins that 5% can make a world of difference.

But what could make Piko pay something like 1.5% more? What terms can be worked on to sweeten the deal?

  1. Payment terms - try to work out more a more favourable agreement. It's better for cash flow if you don't have to pay in advance. So, if you are going for that more expensive agreement, try to push for a delay in when you'll have to hand over the money. Even a few days can be beneficial.
  2. Shipping - this is another area where there's wiggle room. If you can persuade the other party to reduce freight costs (or waive them altogether), that's certainly worth considering.
  3. Quantities - again this is tied to cash flow. Price tends to decrease the more you buy, but maybe you can persuade the seller to give you that same great price even if you take less.
  4. And lastly, Piko's top tips are to do with way you go about trying to make a deal - perseverance and keeping your cool.

Here are some quick and easy steps to help you make the best deal possible.


 

What are your negotiation tactics? Tell us your strategy for striking the perfect business deal in the comments section.

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