Win-Win Negotiations

BY: JAY BRIJPAUL 

Four friends buy a coconut and must share it equally. How can they do that? Cut it equally and that would be fair, right? Upon further investigation, the first friend wants the water and the other, the nut; the third, the shell to carve, and the last, the outer fiber to burn!

God gave us two ears and one mouth for a reason. To become a top negotiator, become an investigator. Look for the various stress points. Stress points are important is assessing what course of action to take. For example, time stress. If during your investigation you discover that the seller’s property has been on the market for over one month and the seller needs to move in two weeks, you can offer a lower price with a quick closing.

I once negotiated an offer where the seller wanted a monthly retirement income. The buyer purchased the home at a bargained price and the seller took back the mortgage, creating steady cash flow and deferring some of his tax obligations. That’s a win-win negotiation.

Try this the next time you are negotiating: Become a Parrot! Repeat and Flinch!

Let’s assume that you are at a dealership, buying a car and the dealer wants $10,000. You can repeat the amount in a questionable manner, then flinch and stay silent.

“Ten thousand Dollars?” More often they would respond, with a lower price.

To move the negotiation forward, always respond with “You have to do better than that”

Most of the time the salesperson will use the “higher authority negotiating trick.” They will say, “Let me talk to my Manager.” You can answer that by saying “Your Manager always goes along with your decision, right?”

In negotiating, whoever has more options often wins!

A good negotiator must have many options or the perception of having more options. If the seller has four offers on the table, then he has the options. The buyer must know which option to use.  Look for the main reason why they want to sell and that’s their hot button!

I recall negotiating a transaction where I found out that the seller had inherited the property, needed it sold immediately and wanted to take the next plane out of the country. After a discussion with the buyers, I manufactured many options. On behalf of the buyer, I offered the seller a low price, a big deposit, a plane ticket, and shopping money. The buyers got the home at a great price and the seller got what she wanted.

Find their hot button and keep pressing it until you give them a headache. Then, sell them aspirin.  Flinch and then offer the solution! It’s like the mouse who says, “Forget the cheese, just get me out of this trap!” Always look at the situation from the other person’s point of view. If you are the buyer, then pretend that you are the seller and think through the process. Do not give everything at once! Like a good game of soccer, always kick the ball back into their corner and let them decide!

Splitting the difference is a great negotiating trick. However, work the negotiation until it is about to fall apart and then suggest splitting. Ask the seller who wants to sell quickly; “If I can give you a quick closing, what is the lowest price you are prepared to take?” Repeat the statement in a questionable manner and remember to flinch and remain silent. Finally, you can say, “we are only $5,000 apart, what do you suggest?”

Trading is another way to negotiate. Towards the end of the negotiation, ask the other party what else you can do to help them and then respond, “If I can do that for you, what can you do for me?” In one of my negotiations, the buyers sold their home before purchasing and required storage.  The seller would accommodate their needs only if the price was right. Since the buyer did not want the hassle of moving the furniture twice, they agreed.

The art of negotiating is a good skill to have and there are times when we need others to negotiate for us. A good negotiator on our side is a job well done.