Negotiation techniques are used when there is a discussion between two or more people with separate objectives for a common situation. This happens all the time as you try to close a sale. Imagine what an advantage of negotiation techniques you would have if you focused on what the buyer's real objectives are, and how they arrived at them.
There are two negotiation techniques going on at the same time. One is in the real world. The other is in the internal world of the buyer's mind.
Your objective is for you and the customer to see the sale from the same viewpoint. For example the customer won't agree to the price you are asking. If you drop your price you have moved to where they are in the external world. This is using external negotiation techniques, and it's cost you money.
In the same situation you might stick to your sales price but use negotiation techniques to build the value of your product by changing the internal viewpoint the customer has on the value of the product. What the benefits of the product are worth to them. Nothing has happened in the external world. It's the same product at the same price. This is sales negotiation techniques used in the internal world, and it hasn't cost you a penny. External negotiation techniques usually cost you money or time. Internal negotiation techniques help you avoid giving discounts and making concessions.
The buyer enters the negotiation stage of the sale with a viewpoint, and a set of beliefs and ideas. To negotiate in their world you want to find out where and how this starting point was formed. This will lead to you understanding their motivators and drivers. You will be able to relate to the reference points they are using to form their starting position on their map of reality.
During the sales process enter their map of the world. Question their beliefs. Find out what they think they know about the product, your competitors, the cost, the value, the market. Are they basing their ideas of what the cost should be on a purchase they made five years ago? As early as the introduction and questioning stage of the sales process you can start to change their viewpoint, and stop sales objections coming up in the negotiation stage.
Now you can use internal sales negotiation techniques to move the buyer closer to agreeing a sale with you. This is where many sales people make the most common mistake when negotiating. They focus on the differences between their position and the buyer's. This just highlights the obstacles and does nothing to build a relationship on which agreements can be formed.
If you want to know how to negotiate to get the best possible outcome, start by confirming with the customer on what you agree on. What do the two starting points have in common? This is solid ground to build upon. Then move to the areas of the negotiation where you are close to an agreement. Question the buyer's position and how they formed it internally.
When you have moved positions on the points you and the buyer were close to agreeing, but had some differences, you can work on negotiating the points you are farthest away from agreeing.
Look at what you've achieved up to this point with your negotiation techniques. You've confirmed what you had in common at the start of the negotiations. Using negotiation techniques you have moved the buyer's position on some points. This has built a solid relationship that will help you with the next stages of the negotiation. You have also created a pathway for agreement.
Use the same process of finding where the buyer's beliefs have come from. Change the beliefs that you can, and find alternative ways to achieve the same objective for the buyer with the others. When you have used all the internal negotiation techniques you may still be left with differences that prevent the sale going ahead. This is when you start negotiating in the real world. You achieve your objectives by giving to the buyer, but always getting something in return. Each discount or concession you make should result in a step closer to closing the deal.