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How to Be a Great Negotiator!

Life is full of subtle negotiations (Which movie should we see? What train should we catch? Chinese or pizza?) and other not so subtle negotiations (negotiating the price of a new car, or a salary increase.)

You probably don't need the negotiating skills of Henry Kissinger to survive these encounters, but understanding the ins and outs of negotiating can help you reap big benefits in your career, your finances and even personal relationships.

Here are the six keys to successful negotiation:

Do negotiate. You can always negotiate. Don't be embarrassed to try to negotiate a better price and don't think it's not worth it. There is such a mark-up on cars, jewelry, antiques, furniture and other big-ticket items, that it's foolish not to negotiate (in a minute we'll tell you with whom to negotiate.)

Do your homework! You can't successfully negotiate unless you're armed with the facts.

For a home: You need to know comparable values of homes in the area (ask your broker); how much the owner paid for the home (check county tax records); is the seller in a rush to sell (is the house vacant, has one spouse already moved, etc.)?

For a car: How much did the dealer pay for the new car (check Edmund's New Car Guide)? How much is your used car worth (see the NADA Blue Book and KBB.com)?

For a raise: How much do your counterparts at similar companies make (check salaries in the want ads or call a professional association)? How well has the company done during the past fiscal year (check the annual report)? Check out salary.com for more.

Get the idea? Preparation is crucial.

Assess your counterpart's needs. The seller needs you to buy. The boss wants you to stay. The homeowner needs a quick sale. Figure out what the guy on the other side wants and use it to your advantage.

Timing is crucial. Proper timing gives you more bargaining power. Buy a car at the end of the month when salesmen are trying to meet their monthly quotas. You want to talk to your boss after he has a mellow lunch, not after he comes out of a tense meeting. Ask for a raise after you close a big sale. You get the idea.

Negotiate with the person who has the power to make a deal. You can negotiate the price on that big-screen TV or piece of jewelry, but not with the sales clerk. Negotiate with the sales manager.

Know your bottom line. Go into a negotiation knowing exactly what it is you want to take away from the table. I'll only pay $15,000 for this car; a $5,000 raise is my bottom line, etc.

Few people make the effort to learn the art of negotiating before they begin. That means someone like yourself who does make the effort may be in for a pleasant surprise – no matter what you negotiate for.

Negotiate your way to great deals with these links:

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