Jul
1
2010
homes Recently I was talking with some friends of mine who are planning on using the current depressed real estate market to “trade up” and get a bigger / better house. They were lamenting the fact that this process was going to require them to negotiate with the sellers . They had come to me because they knew that I teach others how to use negotiation to quickly close bigger deals.
What they wanted to do was use that ” win-win ” technique that they had heard others talking about and they wanted me to teach them how. Sigh. Nothing in life is ever as easy as it seems, but from this experience I thought there were a few key points that you might be interested in…
juegos carreras The Negotiating Pizza
When I started talking with my friends about the house that they wanted to buy, I kicked off the conversation by asking them what they wanted to get out of the negotiations that they knew would be required. They said that price meant everything to them - they could only afford to spend so much money.
Dear reader, clearly we were starting off on the wrong foot. The problem is that my friends were looking at the negotiations for the house that they wanted as a pizza. Assuming that that pizza had been cut into 10 slices, they wanted to make sure that they came out of the negotiations with at least 6 pieces and not 4 pieces. This is not win-win negotiating.
In their quest to get the house that they wanted at the lowest possible price, my friends were approaching the negotiations as a contest - a contest that would have a clear winner and a clear loser . No wonder they were nervous!
real estate investing A Better Negotiating Pizza
Win-win negotiating has everything to do with how both sides of the table feel after the negotiators are done. If somebody feels as though they’ve come away with less pizza than the other side, then it wasn’t a win-win discussion.
What you need to do is to make the pizza BIGGER . That way it doesn’t become a matter of who gets how many pieces, because both sides actually walk away with more pizza.
This tactic is used by salespeople all the time. The reason that they use it is because it often works. Here’s what a salesperson can expect to get out of using the “Escalating Authority” tactic:
- Helps to lower the other side’s expectations.
- Causes the other side’s arguments to come out early instead of later.
- May cause conflict within the other side’s negotiating team.
- Causes the other side to state their negotiating demands earlier.
- Just physically wears the other side down.
- May end up lowering the self-confidence of the other side.
- Uses up the other side’s valuable time.
Don’t put all the cards on the table initially. For example if you want to purchase a large quantity of material over a long period, you can mention a small quantity over a short period and get the price. Keep increasing is the quantity that you would purchase and negotiate the price for that quantity. You would finally get the material at the lowest possible price.
If you are the supplier’s main customer, don’t use this as a leverage to get the prices down beyond reasonable levels. Remember that the supplier has to exist and make reasonable profit to survive. Building trust is extremely important such cases You can be published without charge. You can to republish this article in your website or blog. Please provide links Active.
Tags: business negotiation, homes, juegos carreras, real estate investing
