Every small business owner has to communicate with their suppliers and customers to get the best deals for their business.
If you don't know how to negotiation effectively, you will lose a LOT of money..it's as simple as that.
Know Your Products and Services
You should know what you are talking about when discussing your products and services. When you're trying to convince potential customers to make a purchase, it is imperative that your product knowledge is solid and you think logically.
When you know your products and how they compare to the competitions', you will be in a better position to negotiate.
Know Your Customers and Suppliers
It is also wise to research the people you are dealing with, be it your suppliers or prospective customers. Knowing how much to negotiate depends on how well you know them.
There are some customers who habitually negotiate prices, whether they are fair or not. Knowing this information in advance will enable you to quote an increased price, which you can lower later during the negotiation. This will keep that particular customer happy and your bottom line safe in terms of profits.
When dealing with new customers or suppliers, observe them carefully. You can learn a lot by just watching their expressions and body movements.
Keep Your Options Open
Keep your options and your mind open while negotiating. If you cannot negotiate on price, then try to negotiate on delivery or payment terms. Talk precisely, so that there are no misunderstandings later. Especially with suppliers, try to get free delivery or increased payment or credit terms.
Communicate
When negotiating with your customers, talk softly and do not take negotiations personally. It's part of the business culture. Be firm, but gentle when you cannot negotiate any further.
The better your negotiating skills are, the better chance your chances are of getting the best deals for your small business — that's why you can't afford to wait another day to improve them!
