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The Art of Negotiation - Simplicity Is Powerful

“Start out with an ideal and end up with a deal.” -- Karl Albrecht, co-founder of Aldi. 

Let's go through the different phases of a deal and preparation for each one. Skipping one of these will most likely hurt your chances so don't slack off on any of them.

Before the appointment…

Know what you want. Sit down and work out exactly :

What you need and what want. Secure the needs first and negotiate with the wants (aka the extra stuff you can do without)

How much you can afford

How far you’re prepared to compromise on both (afford vs. spend)

Find out what’s available.

Do some research to find out how realistic your goals are versus what the market is offering. 

Re-evaluate your goals.

If you had seriously underestimated the price, you may need to re-think.

If you have overestimated the price, you’re free to raise your expectations, lower your budget or (ideally) both.

1. Knowledge is power, so make sure you understand: 
2. Which professional bodies oversee the industry
3. The technical /legal terms involved
4. What costs the seller really amassed in order to offer you this product
5. Find out if the product / industry has been in the news recently. This might tell you who to avoid, or if the industry’s about to go through some changes which could cost you time, money, emotional stress down the road
6. Ask around to see if anyone you know has done something similar recently. If not, see what case studies / testimonials you can find.

Select your supplier.

The bigger the deal you’re looking at, the more time you should invest. 

Understand how the company works.

1. Do they offer their own product(s) or are they simply reselling something?
2. Do they work with a range of partners, or will they check the entire market for you?>
3. How do they decide which partner gets YOUR business?

That is an absolute key question. If your business goes to the highest bidder, I'd steer clear.

Remember who’s the customer.

As a (potential) paying customer, you are entitled to the person’s time and expertise. Tell them what you want and let them explain your options. Have a calculator and notepad ready, and take the time to do whatever calculations you find necessary.

Show what you know.

Depending on the type of company you’re dealing with (and the amount of leeway the person has), showing that you ‘know your stuff’ could put you at a psychological advantage. So tell them what other deals you have been offered / seen advertised. Show them you understand the technical terms, and the pros and cons of the most common options.

Admit what you don’t know.    
      
If you need something explained, ask.    
      
Don’t let them ‘blind you with science’.
      
Any specialist can use technical terms to gloss over drawbacks – or to sell ‘benefits’ you don’t really want or need. Make them repeat themselves in layman’s terms, then take a good look at what they’ve just said.

Give and take.

1. Don’t be too inflexible
2. Compromise – if you’re being offered a good deal, don’t turn it down because there’s one tiny thing missing.
3. Consider new ideas – just make sure you understand the pros and cons, and find out if you can ‘mix and match’ elements of various options.

Don’t be rushed into anything.

If you’re happy with the deal, get them to draw up the paperwork and tell them you’ll be back in a day or two. At the very least, you should read the small print – and ‘sleep on it’.    
  
If it’s complex / full of legal terms, you might consider taking it to an independent specialist.    

Don’t feel pressured.  

You can always walk away from the deal. If you’re not impressed with their ‘final offer’, thank them for their time and say you need to look elsewhere.