How do you handle objections and counteroffers from the other party?

1 Identify the source of objection

The first step to handle an objection is to understand where it is coming from. Is it a genuine concern, a misunderstanding, a tactic, or a preference? Depending on the source, you can use different approaches to address it. For example, if it is a genuine concern, you can empathize, acknowledge, and provide evidence or reassurance. If it is a misunderstanding, you can clarify, educate, and confirm. If it is a tactic, you can expose, question, and challenge. If it is a preference, you can explore, trade, and create value.

3 Focus on interests, not positions

One of the most common mistakes in contract negotiation is to focus on positions, or what each party wants, rather than interests, or why they want it. Positions are often fixed and incompatible, while interests are more flexible and overlapping. By focusing on interests, you can uncover the underlying needs, motivations, and goals of the other party, and find ways to satisfy them without compromising your own. For example, instead of arguing over the price, find out what value the other party expects from the contract, and how you can deliver it.

4 Prepare multiple options and alternatives

Another way to handle objections and counteroffers is to prepare multiple options and alternatives before the negotiation. Options are different ways to meet the interests of both parties, while alternatives are your best course of action if the negotiation fails. Having multiple options and alternatives can help you avoid getting stuck on one solution, increase your creativity and flexibility, and strengthen your bargaining power. For example, if the other party rejects your initial offer, you can present another option that is equally or more attractive to them, or show them how your alternative is better than theirs.

6 Know when to walk away

Finally, you need to know when to walk away from a contract negotiation that is not going anywhere. Sometimes, no matter how hard you try, you cannot overcome the objections and counteroffers of the other party, because they are unreasonable, unrealistic, or unethical. In such cases, you need to recognize the signs of a deadlock, such as repeated demands, threats, or insults, and decide whether to end the negotiation or take a break. Walking away does not mean giving up, but rather protecting your interests and reputation, and leaving the door open for future opportunities.