When Negotiations Stall, Position the Other Side for Easy Acceptance

When you’re negotiating with people who have studied negotiating, and are proud of their ability to negotiate, you can get ridiculously close to agreement, and the entire negotiation will still fall apart on you. When it does, it’s probably not the price or terms of the agreement that caused the problem, it’s the ego of the other person as a negotiator. When that happens, Power Negotiators use a simple technique that positions the other person for easy acceptance.

Let’s say that you market advertising specialties, such as rulers, with the company’s name on it-or custom printed baseball caps and T-shirts. You have made an appointment to meet with the manager at a local appliance store. What you may not realize is that just before you showed up in his office, the manager said to the owner of the store, “You just watch me negotiate with this advertising specialty representative. I know what I’m doing, and I’ll get us a good price.”

Now he’s not doing as well as he hoped in the negotiation and he may be reluctant to agree to your proposal because he doesn’t want to feel that he lost to you as a negotiator. That can happen, even when the other person knows that your proposal is fair and it satisfies his needs in every way.
So, when this happens you must find a way to make the other person feel good about giving in to you. You must Position for Easy Acceptance. Power Negotiators know that the best way to do this is to make a small concession just at the last moment. The size of the concession can be ridiculously small, and you can still make it work because it’s not the size of the concession that’s critical, but the timing.

So, you might say, “We just can’t budge another dime on the price, but I tell you what. If you’ll go along with the price, I’ll personally supervise the printing to be sure that it goes smoothly.”

Perhaps you were planning to do that anyway, but the point is that you’ve been courteous enough to position the other person so that he can respond, “Well all right, if you’ll do that for me, we’ll go along with the price.” Then he doesn’t feel that he lost to you in the negotiation. He felt that he traded off.

Positioning for Easy Acceptance is another reason why you should never go in with your best offer up front. If you have offered all of your concessions already, before you get to the end of the negotiation, you won’t have anything left with which to position the other side.

Here are some other small concessions that you can use to position:

You’re selling a boat, so you offer to take the buyers out and show them how to sail it.

If you sell office equipment, offer to inventory their supplies and set them up on an automatic reordering system.

You’re selling a car, so you offer to include the snow chains.

Hold this price for 90 days in case they want to duplicate this order.

You’re hiring someone and can’t pay him or her what they asked, but you offer to review it after 90 days.

Offer forty-five day terms instead of 30 days.

Offer three years for the price of two on an extended service warranty.

Remember, it’s the timing of the concession that counts, not the size. The concession can be ridiculously small and still be effective. Using this Gambit, Power Negotiators can make the other person feel good about giving in to them.

Never, ever gloat. Never, when you get through negotiating, say to the other person, “Harry, you know, if you’d hung in there a little big longer, I was prepared to do this and this and this for you.” Harry’s going to say unkind things about your mommy when you do that.

I realize that in the normal course of business you’d never be foolish enough to gloat over the other person because you felt you out-negotiated him. However, you get into trouble with this one when you’re negotiating with someone you know really well. Perhaps you’ve been playing golf with this person for years. Now you’re negotiating something. You both know you’re negotiating and you’re having fun playing the game. Finally, he says to you, “All right. We’re all agreed on this and we’re not going to back out, but just for my own satisfaction, what was your real bottom line there?” Of course you are tempted to brag a little, but don’t do it. He will remember that for the next 20 years.

Always when you’re through negotiating-congratulate. However poorly you think the other people may have done, congratulate them. Say, “Wow. Did you do a fantastic job negotiating with me. I realize that I didn’t get as good a deal as I could have done, but frankly, it was worth it because I learned so much about negotiating. You were brilliant.” You want the other person to feel that he or she won in the negotiations.

Have you ever watched attorneys in court? They’ll cut each other to ribbons inside the courtroom. However, outside you’ll see the district attorney go up to the defense attorney and say, “Wow, were you brilliant in there. You really were. True your guy got 30 years, but I don’t think anybody could have done a better job than you did.” The district attorney understands that he’ll be in another courtroom one day with that same defense attorney, and he doesn’t want the attorney feeling that this is a personal contest. Gloating over a victory will just make the attorney more determined than ever to win the rematch.

Similarly, you will be dealing with that other person again. You don’t want her remembering that she lost to you. It would make her only more determined to get the better of you in a rematch.

Key points to remember:

If the other person is proud of his ability to negotiate, his egotistical need to win may stop you from reaching agreement.

Position the other person to feel good about giving in to you with a small concession made just at the last moment.

Because timing is more important than the size of the concession, the concession can be ridiculously small and still be effective.

Always congratulate the other person when you get through negotiating, however poorly you think he or she did.

Tips for Your Investor Presentations and Due Diligence Visits

When you create your power points or walk over to the nearby diner or coffee shop for a quick informal chat with an investor, remember the following:

1. Focus and niches are still very much in. Broad brush and shot gun approaches are out.

2. Your strategy needs to relate to your competition. If you differ dramatically you must have a defensible reason for doing things differently and it must be supported by customer validation.

3. Depth in all areas – technology, domain, implementation, business development and recruitment – is required. Miss one and you will have some tough questions to answer.

4. Your sales pipeline needs to be well defined and well presented. Other than strategy and focus, investors need to understand how your cash flow projections tie back to actual proposals sitting in front of customers.

5. You need to maintain a balance in presenting the soul of the firm and your cash generation function.

For us a typical investor visit takes two full days from the entire team. The follow up, if and when it occurs takes another week of serious bandwidth. Will it be worth it? I don’t know.

Conclusion: If you run a business that makes money and has the promise of keeping on making money, finding investors is not difficult. Finding the right color of money with the right term sheet is.

Commercial Real Estate Agents – 9 Presentation Tips That Can Win Listings

Commercial real estate is a special class of investment property. It lives and breathes income and price. As a real estate agent, that should be the basis for your listing presentation and to improve your chances of closing on the listing with the seller of the property.

As agents and salespeople, we are up against several other real estate agents in most listing presentations. The seller needs to be convinced of your ability to get the best price for the property and in the timeliest way. That is the best leverage you can use to win the listing.

As part of the pitch in the sales listing presentation, consider this question:

“Just how can the income of the property be used to enhance the price that the seller can get in today’s market?”

To answer the question you really do need to know about the current and future cash flow that comes out of the property. That means reading the lease in detail and with focus on:

  • Income strength
  • Lease term
  • Rent review and option terms
  • Income growth
  • Tenant profile
  • Tenant stability
  • Minimal vacancy threat
  • Lease strength and controls over the tenant
  • Lease protection for the landlord

These points will attract investment buyer interest. Knowing the answers will help you convert the seller’s property to a listing. Show the seller that you really do understand the lease and the value it brings the property in sale.

Not all presentations are simple when it comes to selling commercial property and you can have a number of hurdles to overcome. Importantly you can be prepared for these hurdles if you take the right steps such as:

  1. Comprehensively inspect the property before you meet with the seller. As a result of that inspection be prepared to talk to the property from a detailed perspective.
  2. Take pictures of the property that can be available on a laptop for use in your presentation with the seller if required.
  3. Itemise the strengths and weaknesses of the property today that will be points to handle in the marketing campaign. As part of the listing presentation focus on the strengths and how you intend to use them in the marketing of the property.
  4. Establish the target market that will be ideal for the property promotion. From that target market show how you intend to reach them, and exactly what the requirements are from that target market in today’s terms.
  5. Understand where the competition property is located relative to the subject property and just how the competition property can impact the marketing of the subject property.
  6. Understand the local property history and comparable rents and prices from completed sales and listings for that type of property. Be prepared to use those figures as evidence and argument to support your marketing campaign.
  7. Understand the supply and demand for local property including the threat of new property developments coming up.
  8. Be prepared to talk about return on investment in the current market and how that will impact price to the seller.
  9. Comment on property enquiry of recent time, where it comes from and what they are looking for.

This knowledge will help you find the right points of closure as you present your real estate services to the seller of the property. Local property knowledge and your ability to provide it whilst tapping into the target market will help the seller see that you are the real estate agent of choice to market the property and get the best price.