Step1
Begin With The End In Mind.
Before you commence any negotiation stop to think. What is that you really want to accomplish from this negotiation? If you don't have a clear vision of what you want to accomplish it's very likely you won't get what you want. For instance, if you want to end up with a new car with every amenity and gadget that's available, you need to determine if all that's really necessary for you to be satisfied then settle on what is essential on the car and the price you want to pay. That way you know what is negotiable and not negotiable. The list then can consist of musts vs. wants. Having this list will keep you focused and not subject to emotional ping pong during the negotiation process. This will also give you options to give and take during the negotiation process.
Step2
Understand Who or What You're Dealing With.
Get as much information about the person, product or service that is the object of your negotiation before you are engaged in negotiations. The more you know the better you will be able to negotiate. If you know the history of the performance of a product, the likes and dislikes of the person, or the reputation or qualify of the service you are armed with facts so that when the opposite of the truth is presented to you, you will know how to deal with it and use it to your advantage. For Instance, if you are buying a used car you should research and see if the model has had any recalls, the safety record, check the odometer with a registry to determine if it perhaps has been tampered with, compare several prices of the same model to get a feel for what they are selling for, check the Kelly Blue Book to determine its suggested price, check records to seek if the car has been involved in an auto accident, etc. Armed with this data you will feel a lot more confident when you walk on the car lot and start negotiating than just winging it as the car salesperson starts to puff about all the great things about the model and what a great deal it is.
Step3
Leave Your Emotions At The Door.
One of the most important things about negotiation is you must remain level headed. If you allow yourself to make decisions with your emotions it is very likely that you will regret it later. If you are negotiating a matter that involves a lot of your personal emotions it's better to have someone with you that can remain objective about the situation and provide some level headed suggestions. If that is not possible you should try to postpone the negotiation until you have better composure or if it occurs during the negotiation ask for time to think about it our simply say I need a time out. Its better to do that than follow the heat of passion and end up with something that you don't want or worst yet end up in a worse position than you had before you got started.
Step4
Know When To Walk Away.
One of the most powerful positions you can have is the ability to say no and walk away. If you've determined what you want the outcome to be and you see it's not going to even be close, just walk away from the negotiation and politely say no. Saying no may be just the thing that turns the negotiation around in your favor. The other side often times is just probing to see how far they can go or what you are willing to accept. The word no is a very powerful negotiation term and it's not used nearly enough in most negotiations. Just remember. No right now does not mean no forever. People and events change. When they do negotiations can always be resumed or started all over again.
Step5
Always Ask For More Than What You're Willing To accept.
Most people are reluctant to simply ask for what they want. When they do they start asking for what they ultimately want right up front. That's a big mistake. The reason it's a mistake is because you rarely get what you want at the outset of a negotiation. Almost always the other side will want to negotiate for something different. If you ask for more than what you want to begin with there is room to haggle so to speak. Even if you have to accept less you are still ahead because you already know what you want and you can negotiate downward until you get to the point where you get what you want or, if not, you can always walk away and negotiate when the timing is better or circumstances change. Never allow yourself to appear desperate. It's a fatal give away and will almost always work against you.
Step6
Never Make a Threat You Can't or Don't Intend to Perform.
One of the quickest ways to lose credibility and your ability to negotiate to get what you want is to make a threat or promise that something will happen if a negotiation doesn't go a certain way and then not have the ability or power to carry out the threat or promise. The urge to bluff during a negotiation should be suppressed. If the other side finds out the game is over. You want the perception to always be what you say is what you will do and then do it if necessary.
Step7
Never Insist On Winner Takes All.
If you make the opposite side feel that they've gotten something valuable out of the process too you are more likely to get what you want than trying to take all the marbles and go home. Shoot for a win-win situation if that still gets you substantially what you want. Making the other side feel like it's a losing proposition for them will usually create a scenario where nobody wins.
Step8
Leave The Door Open For Follow Up.
If the negotiation process ends in a stalemate, don't give up on it if there is still value that you want out of it. Cordially leave the door open. Be diplomatic, even if it hurts, and more often than not time will create another opportunity to get what you want. After all, if what you are seeking is not important enough to exercise some degree of patience you probably shouldn't be wasting time on it in the first place.
Always have a back up position
Enthusiast 
