Negotiation Tips for
Buyers and Sellers
Countless books have been written about negotiations. After 18 years of deal-making and hundreds of millions of dollars worth of sales, I conclude there are six keys to mastering the art of negotiating:
1. STAY COOL: Have a plan B, set your upper limit, be prepared to walk away. The person who has the most options has the most power in negotiation. It is a game. Do not get emotionally frazzled. Stay focused, eyes on the prize. Do not fall in love.
2. BE BOLD: Distinguish between your needs and wants, clearly assert your position, never be afraid to ask for anything. Load up the offer with your entire "wish list", but be prepared to edit it and make concessions.
3. CREATE URGENCY: Limit the time, within reason, that the other side has to consider your offer. Circumstances change fast, opportunities vanish, strike while the iron is hot.
4. PLAY FAIR: Understand your opponents priorities, empathize and really listen. Create a win-win strategy which gives the other side something important. Sweeten the deal with things that do not cost you money, like closing dates, deposits and prospects of future business.
5. BE REASONABLE: Be prepared to compromise. Do not lose a deal because of ego and having to win. Don't reject an offer because you are looking for perfection. It doesn't exist.
6. BE PERSISTENT: Take several "No's" before you assume the other side will not accept your proposal, today. Leave the door open. Try again tomorrow.
We spent our lives negotiating; with spouses, kids, friends, bosses, salespeople, clients and adversaries. It is a skill. You will get better with practice. Happy haggling!