IN THE SPACE AVAILABLE, we are barely going to scratch the surface of how to structure a successful negotiation. Therefore, if you are genuinely interested in learning more, you may care to undertake my Negotiating MasterClass.
However, this is such an important issue – so let’s perhaps explore the four approaches you can adopt.
And then, we’ll take a look at the implications (and the resulting impact) they can have.
The 1st approach is to try to Convince the other party
In other words, persuading them your position is what ought to be accepted.
You present arguments – sometimes cajoling (hopefully without manipulation). But generally, with the aim of getting your point of view across and accepted by the other side.
In the process of doing this, you need to realise the ultimate result you’re achieving is that You Win & They Lose. If you think about it, that’s being rather short sighted.
You have heard of buyer’s remorse. And if you use this first approach to conclude a negotiation, you can can expect the other party to show remorse afterwards.
As such, your problems arise when there is a time-lapse between finalising agreement on the commercial terms, and actually signing the contract.
A lot can happen between doing the deal and formally consummating it. Therefore, by using this approach (of Convincing … You Win and They Lose), you run the risk of people reneging, or wanting to re-negotiate the terms of the deal.
The 2nd approach is where you Capitulate
Here, you are so keen to get the deal done that you tend to reach agreement with the other party, simple for that reason. In other words, you “give away the farm” to ensure the deal gets done (where You Lose & They Win). And over time, that will prove to be they very damaging approach.
The Commercial property market place is relatively small. And the same vendors and purchasers seem to pop up over and over again.
While you do not have to dominate the other party … you have to earn their respect – so when you do encounter them again, they don’t consider you a pushover. Therefore, if you Capitulate too easily, that’s the memory you will be leaving them with.
The 3rd approach is to Compromise
In other words, you do not get what you want; nor do they get what they want. And therefore, no one is really happy.
So in that situation, You Lose & They Lose – which is unsatisfactory, because you both walk away feeling very uncomfortable about it.
Unfortunately, one of these first three negotiating approaches is what most people tend to use – without realising there is fourth and better way.
The final approach is to Collaborate
When you spend the time finding out what is really important to the other party, then you will end up with a shared solution.
It is not so much a compromise – because for the past 45 years, I’ve never seen two parties with identical agendas. They may well have similar items on each list; but you’ll find those items are never placed in the same order of importance.
In other words, what is at the top of their agenda might actually number 5 or 6 on yours. And as a skilled negotiator, it’s up to you to discover where the various items sit on their agenda, relative to yours.
So, you might find an item at No 6 on your list … is actually position 1 or 2 on their list. Therefore, for them it is a big win when you appear to “make a concession” on that item.
But for you, it’s actually not all that important. As a result … You Win & They Win
It is a skill that’s as easily learnt; but it is something that you really need to master, if you want to be successful with your commercial property investing.
Anyway, simply click on the image to the left – and download your copy of this helpful Blueprint, to get you started.
Don’t miss out:
If you’re not already being notified whenever these Answers appear … simply click on the button below to leave a Question – and that will make sure you get advised, when the next article goes live.
Or simply click on the button, to pose another question you may have just thought of.