Good trading is the basis of all commercial actions of a company. Anyone who thinks that it means simply lowering the prices of their products and services to reach an agreement is wrong. Also because a lower price will not increase your bargaining power, but it will decrease the company’s margin.
- Identify the styles of traders
It is essential to know the way the other negotiates, that is, your trading style. So it is essential to note, at the beginning of the meeting, who the other is, what he really seeks and what he is likely to do to get what he wants.
Professor, the researcher, and consultant Richard Shell, in his book “trading, is Precise”, differentiated two styles of negotiators: cooperative and competitive. Next, we’ll show you how to identify them.
A competitive negotiator usually makes unrealistic initial offers and lets the other bid the first offer. This attitude aims to make the most of it, always seeking to have an advantage and make few concessions.
That way, you will avoid providing information and, at the same time, try to make the most of the other. This behavior shows that he is not interested in a relationship, only for his own benefit, seeing the other as an opponent.
Cooperative negotiators are the opposite of competitive ones and do not treat tradings as a competition to be won. They prefer to preserve the relationship so that it can be lasting. Thus, they become more willing to reveal data and make realistic concessions and offers.
Therefore, we can say that cooperative negotiator understands trading as a process of sharing ideas, information, and options. Thus, it seeks to obtain mutual benefits.
Now that you know both types of negotiators, you can better understand a person’s trading pattern and work on it to achieve profitable relationships and results for both sides.
- Reflect on what stance to adopt during the trading
To increase your trading power, it is very important to understand how you act during a trading, analyzing your posture and what it does to the other. After all, your attitudes can favor or harm your side.
There are two basic stances to consider when trading. The first concerns tradings in which the person does not care about the consequences of his actions, thinking only of the immediate benefit.
This is where the “indecent proposals”, the “forced bar” and the pressures take place. This type of attitude can make the other person uncomfortable and refuse to close deals with your company.
The other posture is more recommended and occurs when the person shows concern about the consequences of their actions in the future, seeking a productive relationship with the other. For this reason, it is common to be interested in the needs of both parties and in good communication that leads to an agreement.
3 Plan the time for tradings
When planning a business meeting, the time element must be in charge of the event. Therefore, it is essential to make a trading agenda with the items to be discussed, the person responsible for each one of them, and the expected duration for each part of the discussion, facilitating the control of time.
On the other hand, it is recommended not to attend meetings without making a preparation or planning, as they will be a restriction on your time and will greatly compromise your results.
- Create a sense of urgency
The sense of urgency is one of the psychological tactics to influence the trader’s decision. In the business context, this means communicating with others in such a way that they feel they must act promptly or they will not have another chance to obtain your products/services.
This tactic is usually linked to the notion of scarcity, that is, with the fear of losing or being left without something that makes people take action faster. Offering a discount valid for a short period, for example, creates this notion in the customer, increasing his sense of urgency.
- Be prepared to work around objections
In a trading, it is normal for the client to have a moment of hesitation and begin to ponder his proposal. Therefore, you should use your market experience to identify the most common objections and be prepared to work around them when they are raised.
For example, if you hear a lot that your prices are high, you may have a reply on the tip of your tongue saying that, despite this, you offer the best payment options on the market.