You Say Toe-mate-o, I say Toe-ma-toe: Negotiation Tips for Small Business Owners

Typically, we learn how to negotiate (to a certain degree) at a young age. For instance, a coworker at McCauley Marketing Services used to write letters to the tooth fairy because she felt she deserved more money based on the size of her tooth and how bad it hurt to pull. While negotiating with the tooth fairy may seem silly, business owners are forced to negotiate with clients (and sales reps on their behalf) constantly. It’s not unusual for marketing companies, especially those that provide services like website design, print advertising, and press release writing to interact with dozens of media representatives in a day. The best negotiator usually wins, even against the tooth fairy, so it is of utmost importance in business to know how to negotiate well (or to have a representative that knows how to negotiate.)  We’ve developed a 5 step process to help you become the best negotiator possible when dealing with sales reps.

Step 1: Research
If you go into a negotiation even the slightest bit unsure of anything, you will lose (unless the person you are negotiating with is more uncertain than you). Do your research in advance and set an objective. The more you understand, the more comfortable you will feel, and the less likely you are to be thrown off guard by a forth-coming sales representative. Also, prioritize your needs, but do not be too needy. Chances are you will not gain everything you want, so discuss top priorities first.

Step 2: Carry yourself well
When negotiating, always maintain control of yourself.  You are not just trying to win, but you also want to maintain a professional reputation because you will often deal with the same people at a later date. Use your body language to your advantage: aim high, but maintain your approachability.  If a salesperson doesn’t feel personally threatened by you they will be much more likely to remain flexible with their terms.  Also, don’t forget to listen to your rep and observe their body language. This will help you to understand their point of view.

Step 3: Know Your Rep
Ever heard someone say, “It’s not always about you”? Well guess what, it’s not. You need to sincerely consider the individual with which you are dealing. Establish trust from the beginning. A healthy negotiation is not all competition, so be personable and maintain a degree of emotion. Always think about timing; bad timing equals bad results. Don’t ask for something you know your client and/or rep cannot deliver.

Step 4: Know when to walk away
If you do not feel comfortable, get out and find someone else to work with.  There are plenty of media companies, and it’s always best to work with someone that is similar to your own personality. If you like the organization, but not the rep, simply requests another person to work with.  Chances are the company will accommodate your wishes in order to maintain you business.  In negotiating, you must be prepared to compromise, but you shouldn’t compromise your values (or your company’s reputation.) We have all been caught up in the heat of the moment and purchased something from a charismatic salesperson.  This is why it is usually best to walk away and think about it if you have any reservations.    Another consideration to remember is that there will always be people that will say anything to get your business. Remember the old adage, “actions speak louder than words.”  Your business will not get anywhere if you do not learn appropriate discretion, and your business will go downhill fast if you start compromising your values.

Step 5: Concluding the negotiation
After a firm negotiation, end with confirmation (both verbal & written if money is to change hands). Sometimes, a negotiation will not necessarily end with tangible results, but reiterate what’s been discussed:  what both parties are committing to, what will be discussed at a later date, etc. If the negotiation is left open-ended, arrange a time to re-evaluate.

Here at McCauley Marketing Services, we acknowledge and utilize these negotiation steps on a daily basis. For more tips on business dealings and marketing news, keep reading our blog or follow us on Facebook and Twitter.