Negotiation tactics & skill development tips to win the deal

Before you walk into a meeting to discuss a pay raise or accept a new position, you should think about strategies. A negotiation meeting can be an opportunity to get the most out of a deal. 

Learning negotiation tactics will prepare you for future business dealings. And by improving your negotiation skills, you can assert your value and reduce your chances of being lowballed. 

What are negotiation tactics? 

Negotiation tactics are strategies used to gain an advantage in negotiations. To achieve your objective, certain tactics may be necessary. Compromise, bluffing, and other techniques can secure your desired offer. 

Practicing negotiation techniques can give you an advantage in life. It’s important to ask for what you want and learn to compromise. This self-advocacy is one of the best ways to advance your career development.

Knowing how to negotiate with confidence is vital. This applies whether discussing the salary range for a new position or renegotiating a business arrangement. Strong negotiation tactics help you do just that. Further, using effective negotiation methods may persuade your employer to accept your request.

Why is it so important for all professionals to develop negotiation skills?

Good negotiation skills are important not only for salary negotiation but also for business deals and personal relationships. Whether you’re a major tech business owner or an entry-level employee, negotiation tactics can give you leverage. In fact, negotiation is so important that there are negotiation training courses. Harvard Law School even offers a Program on Negotiation. If your negotiation skills are exceptional enough, you could make a career out of them. 

Regardless of how big a role negotiation will play in your life, certain skills are crucial. You should know how to weigh tradeoffs and propose counter-offers. Negotiation is about conflict resolution skills and compromise. Knowing how to effectively ask for what you want will benefit all of your interpersonal relationships. 

6 negotiation tactics to know about

Before negotiating, you should be aware of certain negotiation tactics. Some of these strategies are beneficial, and others you should avoid. Learning these tactics will empower you during the negotiation process. 

1. Preparing for all outcomes

Every negotiation will not result in a win-win situation. Before you enter the negotiation meeting, mentally prepare yourself for all possible outcomes. The outcome may be a compromise, or you may find yourself disappointed. It’s important to learn how to deal with disappointment and handle yourself with grace. 

Not everything is within your control, and that’s okay. The negotiation process may not go how you imagined. Accepting this is key to maintaining mental clarity and peace of mind. 

2. Finding positivity in every situation

By framing every outcome as positive, it’s hard to lose. Regardless of whether you get the offer you want, you now know what the other party is willing to offer. With this newfound information, you can make informed decisions in the future. 

With a positive mindset, you can find the silver lining in any situation. If you get a lowball offer for a new job, you might use that as an opportunity to recognize your value as an employee, know your worth, and expand your job search. A better offer may be just around the corner. 

3. Making the first offer 

If done with confidence, making the first offer can be a powerful move. This tactic leverages the listener’s anchoring bias. When the listener latches onto (anchors) the first piece of information you give them, that’s called an anchoring bias. Even after receiving new information, the original offer will remain in the mind of the other party. 

After making the first offer, you can use persuasion to reiterate why it’s a beneficial deal for both parties. For instance, if you’re looking for an investor, remind them of the return they’ll see on their investment. When negotiating a salary or raise, remind the employer of the value and experience you bring to the company. 

4. Using the power of language

You can influence the other party's perspective by simply adjusting your wording. Frame the language you use to focus on how the other party will benefit and what they will gain. Don’t ask, “Will you give me this car for $5000?” Instead, say, “I’ll give you $5000 for this car.”

Without offering anything extra, you can make the other party feel like your offer is generous. Paying attention to your wording is an easy way to leverage the negotiation in your favor. 

5. Listening first

Listening first allows you to gather information and learn what’s important to the other party. While you may be tempted to respond immediately, allow a short pause. The other party may continue talking. 

Silence often makes people uncomfortable, and they’re more likely to give in to compromise. A 2011 study in the Journal of Experimental Social Psychology concluded that silent gaps in conversations make people feel distressed and less self-assured. By inviting the other party to speak first, you’re appearing respectful while also gaining leverage. 

6. Hard-bargaining

Hard-bargaining involves maintaining a take-it-or-leave-it attitude during negotiation. A hard bargainer may even use intimidation to achieve their goals. They often make extreme demands to throw off the other party. Also, watch out for manipulation tactics like “good cop, bad cop.”

Making extreme demands rarely results in a win-win situation. It pays to take a collaborative approach that results in the best possible negotiated agreement. Try building mutual respect and earnest communication instead. 

Integrative negotiations vs. distributive negotiations

Negotiations can be divided into two categories: integrative and distributive. Integrative negotiations entail two people working together to find a mutually beneficial solution. If you care about the other party’s satisfaction, you’re taking an integrative approach. 

Distributive negotiations involve a dealmaker solely concerned with their own satisfaction. If your only objective is getting an offer you’re happy with, distributive negotiations are more your style. 

It’s unlikely that the negotiation type will be stated upfront. However, by the end of the meeting, it should be clear what type of negotiator you’re dealing with. Notice whether they make an effort to meet your needs or focus solely on their end goal. 

Negotiation dos & don'ts

There are certain things you should remember to do ahead of your negotiation meeting. There are also certain mistakes you should avoid making. If you misstep, simply learn from your mistakes and apply that knowledge in your next negotiation. 

Do: stay cool

Negotiations can be stressful, especially if you deal with social anxiety. Use the days leading up to your negotiation to implement mindfulness into your routine. A 2020 study by Front Psychology found that the role of mindfulness can positively impact negotiation effectiveness. Before the negotiation, find ways to soothe yourself. Use music relaxation for stress and do some virtual yoga or basic stretches. Take a walk, light some scented candles, and soak up sunlight in the morning.

When you’re stressed, it’s hard to think clearly. Don’t get caught up in the moment and accept a lowball offer because of nerves. Instead, use techniques to reduce worry and keep calm before the meeting. 

Do: be confident

You’ve probably heard that confidence is everything, and it’s true. A 2023 study in Psychological Science found that people making more money are likely to have higher self-esteem compared to those making less. Another study in 2021 published by the American Psychological Association found that high income is correlated with feelings of confidence. 

Remind yourself of your personal power before walking into the negotiation. Knowing your personal power will build confidence and help you stand strong. Positive affirmations for confidence are a great form of pre-negotiation encouragement. 

Do: practice good communication

Knowing how to read body language and other types of nonverbal communication is key in negotiation. The 7-38-55 rule states that the majority of communication is nonverbal. It’s important to know if the other party is hesitating or bluffing. Assess the situation and ask yourself if the person you’re speaking with seems nervous. This may make them more open to compromise and saying yes to your offers. 

It’s beneficial to also practice active listening, which means intently paying attention to what another person says. Showing the other party you want to understand them will make them feel valued and keep the negotiation respectful. This can result in integrative negotiations. 

Don't: threaten to walk away if you don't mean it

Ultimatums typically only work if they have credibility. The last thing you want is to walk out of the negotiation losing something you care about. In the heat of the moment, don’t threaten to walk out of your job or turn down a decent offer. Losing your job without a backup plan can be financially stressful.  

Think clearly about your long-term goals and whether walking away from the negotiation will benefit them. Employ logical thinking and decision-making skills during the negotiation process. Avoid letting yourself be overcome by emotion to prevent making a claim you may regret. A 2022 study on anger expression in negotiation found that anger resulted in lower satisfaction with the negotiation.

Don't: put all your cards on the table

Never fully disclose your situation to the other party. You should bring some level of discretion to the bargaining table. For example, don’t let your company know right away how much another company offered you. They may be willing to offer far more to keep you on board. 

Knowing what information to reveal is an entrepreneurial skill that comes with experience. When you feel the urge to overshare, hold back and let the other party do the talking. Negotiation is a lot like a card game, so strategize accordingly. 

How to prepare for a negotiation

Before entering a negotiation, you need to make sure you’re in a good headspace. A successful negotiation requires mental strength and fortitude. If you’re dealing with anything distressing, it may be best to reschedule until you can focus and engage calmly. 

The following steps can help you get an offer you’re happy with:

1. Set your goals. You should walk into the negotiation knowing what you want. Set realistic goals about what you hope to get out of the interaction.  
2. Define your BATNA. A BATNA is the “best alternative to a negotiated agreement.” In other words, if you can’t get the offer you’re hoping for, what is a good backup offer? Think about a reasonable counteroffer you could propose. 
3. Conduct a cost-benefit analysis. Think hard about what you’re willing to walk away with and things that are non-negotiable for you. Contemplate how your desires and interests rank by importance. 
4. Build respect and diplomacy. You don’t need a longstanding relationship to show diplomacy. Simply showing etiquette and politeness will do wonders. Check in with the other party and ask how their week is going. 
5. Prepare to improvise. You can’t predict everything that will happen during the negotiation. Building cognitive flexibility and the ability to adjust your approach will benefit you. 
6. Clear your head of stress. Before walking into the negotiation, use techniques to ground yourself and reduce anxiety. 

Negotiation scenarios you're likely to encounter

When you hear the term negotiation, you likely think of a business negotiation. Perhaps you imagine cutthroat Wall Street professionals in New York. However, there are many situations in which everyday people need negotiation skills. 

The following are negotiation scenarios you’re likely to encounter:

• Buying a house, car, or other real estate purchase
• Asking for a raise or better employee benefits
• Discussing rates when working as a contractor
• Meeting to reach a conflict resolution
• Investing in a company as an entrepreneur
• Reaching a legal agreement 

By practicing negotiation strategies, you’re preparing yourself for a wide variety of scenarios. In the long run, negotiation skills will benefit you in various areas of life. 

Developing & practicing your negotiation skills

To develop the best negotiation skills, you need to practice. Plenty of practice will happen organically throughout your career development. However, you can engage in role-play and real-life scenarios to develop your skills more quickly. 

If you’re new to negotiation, low-stakes situations like bargaining at a market or with friends can grow your skills. Conduct a mock auction or trading game to practice negotiation techniques. Even a simple game like poker can train you to read the room and help you in future endeavors. Like any other skill, exercise your negotiation tactics regularly to stay sharp. 

Using negotiation tactics for career development

Negotiation tactics are an important part of business communication skills. Your career mobility is highly dependent on your negotiation skills. Often, you will only receive what you think you’re worth. Transformation starts with believing you’re skilled enough to receive that pay raise or get promoted. 

A coach can help you maximize your human potential and see the strengths you bring to the table. You can also learn rational persuasion skills and improve your ability to communicate. Working with a coach, you can overcome insecurities and gain the confidence to ask for what you want. 

Negotiation can be scary, but it’s necessary for progress. Don’t let the fear of disappointment keep you from chasing your career aspirations. Personal coaching encourages you to build your strengths and confidence for better negotiation skills in the long run.