While the proverbial “they” refers to the act of negotiating as an art, many others claim it to be a skill. In the light of actuarial studies of marketing, it has now become a science. However, the big question is: What is it that really helps when evaluating your offerings in the market as accurate, yet rightful. That is a highly subjective clause to debate. So, let’s see what “good table talk” can achieve, regardless of the offerings in the market environment.

When negotiating, using an astute combination of skills is far more important than negotiating aggressively. Negotiating is a technique whereby we tend to ensure a consistent flow of profits rather than one quick buck. As an entrepreneur, you must understand that every element of table talk leads to your long-term entrepreneurial well-being. The specific outcome of any “good” negotiation is a “win-win” situation; namely, the customer feels that is he is paying a fair and just price for services rendered, and the provider feels that his efforts for services are being fairly and justly compensated. It is not uncommon for some negotiators to over-commit and under-deliver when utilizing their “oratory skills.” They forget that negotiating is only a tool towards continuous profits and business, rather than a one-off selling technique.

Astute negotiating is also about developing a good reputation within the market with customers, and yes, even with competitors. Some business professionals regard good negotiating skills as tricking someone into a quick purchase, or selling dust as if it were gold. However, in the long run, these skills contribute to their “de-marketing,” rather than to their marketing and rapport building.

The value of negotiating well is that you will eventually arrive at the most accurate pricing, and not the highest pricing. That is not say that you are not looking for a profitable margin, but you are clearly not looking for a “once-for-all” deal. What you have to ensure, as a negotiator, is that you must always provide the best solution in the market against what you are charging. Here is the rationale: If your client finds out later that a better option existed (with a better product or at a lower price than yours), then your long-term profitability could be in jeopardy. Therefore, ensure that this is the most equitable solution available when negotiating prices.

Here are few tips that will help you optimize your negotiating skills:

Identifying the need: Accurate negotiating skills require identification of the needs and wants of your customer. Prioritizing them is also important because it provides direction for projecting raw material purchases, production schedules, and manpower allocations.

Satisfying the need: Once the needs and wants of a customer are identified, research and analyze whether or not your company has the capacity to produce and deliver what your customer is looking for.

Price Execution: Now that you both agree on the trade or exchange, ensure that every aspect is communicated in a transparent manner. No detail should be omitted. No statement should present itself as being ambiguous or unclear. Both the buyer and the seller (whoever you are in this case) must clearly understand and mutually agree to all the clauses of the price and delivery. If agreed upon, lock in the deal. In case of any satisfaction guarantees, specify the terms of agreement/rebate/return and make sure you (as a provider) adhere to it. As you know, in business, a good reputation is one of the prerequisites for improved profitability.

After Deal Follow Up: After the exchange is done and the deal is closed, make sure that everything was commenced as per the formally specified objectives. In other words, no party must feel used or dissatisfied. If you are dissatisfied as a provider, then discuss the matter promptly.

Relationship Management: Business, according to Adam Smith (the father of modern economics), is actually social welfare—group growth and mutual well-being. So, in order to retain your clients for future business, develop and maintain a professional relationship. It will help you develop a soft spot in his comfort zone, and that may become a continuous source of income for your current and future business.