Why every CEO can benefit from teaching their team how to negotiate

Why every CEO can benefit from teaching their gruppe how to negotiateWhy every CEO can benefit from teaching their team how to negotiateMy team negotiates absolutely everything- no exceptions.Our company rule is that you never say yes to the first offer put on the table, and you always have to get at least three to five quotes.Realistically, this is all negotiation 101, but many people simply arent used to the practice. For instance, people in production know to negotiate for a better price with manufacturers. Yet some creative departments might not be as focused on getting a better deal when working with an agency.Follow Ladders on FlipboardFollow Ladders magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and moreThats why every company needs to create rules around negotiation and give people a fahrplan for what to do.Negotiating isnt an incredibly difficult skill to learn- it just requires practice. And you should want everyone on your team to get better at it because it can have huge implications for your business.Heres why you cant skip on negotiating tactics and expect your company to succeedYour team has to bring in more money than the company spends.This seems pretty obvious, I know. But being profitable sets the stage for everything your team does.There are certain aspects of the business that everyone is thinking about, like top-of-the-funnel tactics for spreading brand awareness and bringing in customers. Thats all well and good, but its not the only part of your finances that will determine success.You and your team have to keep all expenses in mind- payroll, overhead, vendors- and how much youre actually paying for them. No, ansicht arent the sexy, exciting things to consider, but theyre essential for good business management.Thats why its crucial everyone has their negotiation hat on at all times, thinking about, How much am I spending on this? Does it make sense? Would I spend this if it welches coming from my own bank account?Its very easy for spending to spiral out of control if everyone isnt thinking that way.People will agree with your teams requests if they have the courage to ask.Its amazing what you can get just by asking. The problem is, people are often afraid to ask. But the worst thing that can happen is someone will tell you no.If you ask in a nice way and explain why you want what youre asking for, people will work with your company more often than not. The trick is to make sure your request doesnt come off as arbitrary.For example, in the early days ofThirdLove, I was constantly telling vendors or agencies, Were a ten-person startup, we dont have that kind of money. What kind of break can you give us?It was amazing what companies were willing to do for us.Getting over the fear of negotiation requires practice, which is why you have to encourage your team to role play or walk through negotiation with a teammate. After a while, it becomes second nature, and no one thinks twic e about asking for an updated offer.Your team understands your business better than any vendor.Just because someone hands you a contract doesnt mean they understand your business and whats best for you in the long run.For instance, my team recently negotiated with a photographer over some of the photos from a shoot. Usually, a company only gains access to 20 or so photos. For a traditional retail company, thats plenty. But as a completely online company, we use images in everything we do. Emails, product pages, social, you name it- we need a lot of content.Instead of demanding the images, we told the photographer why we needed the images and then asked if they could work out a different agreement for us. Since we went the distance to explain our reasoning, they agreed.Your team knows your business better than any outside partners, so they should use that to explain and negotiate the best possible terms.You want to set the right kinds of expectations with vendors.Being crystal clear in negotiations and taking time to edit every contract is more than just common sense- it shows the vendor your team cares and your company will be a good partner.You want everyone to know what the relationship will be like, and that starts with setting the right expectations. That means being very clear on the outputs, reading the contract thoroughly, and understanding what youre signing.All that attention to detail sets the stage, ensuring the other side knows youre paying attention to whats going on. While it may take some back-and-forth, theres value in making sure both sides are happy before anything is finalized.Negotiating is difficult for everyone at first, but its actually a bit like exercising. Taking the first step is the daunting part. Once you get started, you realize its not that difficult to keep going when you know the work will pay off.This article first appeared on Inc.You might also enjoyNew neuroscience reveals 4 rituals that will make you happyStrangers know you r social class in the first seven words you say, study finds10 lessons from Benjamin Franklins daily schedule that will double your productivityThe worst mistakes you can make in an interview, according to 12 CEOs10 habits of mentally strong people