NEW YORK, NY: The view from a 76th floor penthouse apartment in residential Lower Manhattan … [+]
Whether you’re a business broker, a tech remote worker, or about to embark on a new career, negotiation is an essential skill for success. I have witnessed countless times in my 25 years of real estate experience how finding mutually beneficial terms, while regularly navigating conflict, can lead to a winning outcome for all parties. Negotiation takes place at different levels, from discussing the details of an initial contract or sales agreement to large-scale commercial agreements with meetings lasting a year or more.
To gain the skills needed to move forward, sign the deal or make the sale, follow these tactics.
1. Listen first when negotiating
Ask questions to find out what’s important to the other party, advises Chris Voss, who served as the lead international kidnapping negotiator for the FBI and taught business negotiations at Harvard University, among others. Chris is the author of “Never Split the Difference: Negotiating Like Your Life Depends on It.” When I had the chance to hear him speak on the subject, he emphasized the importance of having empathy for the other party and listening to them. Sometimes the other party is mainly looking to be heard and validated.
2. Negotiate beyond price
Although negotiation is often associated with selling property or obtaining a salary, the parties involved may not have money as their primary goal. There is a legendary saying this is often mentioned during acquisitions: “You set the price, I set the conditions. » The phrase raises an important point: there is more to a transaction than just sales figures.
I recently worked on a transaction where the client wanted to maximize the price of a property. The buyer was a developer and said he could achieve this price if given a longer time frame. Both parties were able to reach an agreement in which the buyer took longer to close, allowing them to obtain approval and financing for the project. The seller, for his part, needed time to move, so the end game was a win-win.
3. Find common ground when negotiating
At first glance, some agreements may seem black and white, but negotiations can often bring out other details. After several discussions, the parties may discover that they have common goals and agree to find a way to come together. Taking different seller and buyer profiles, which can include large corporations on one side and mom-and-pop retailers on the other, and finding common ground requires time, effort and a dose of creativity. However, these conversations are usually what I enjoy most about my job. Once the parties find ways to benefit, the outcome is often positive.
4. Keep a long-term view
Answers rarely appear during a first conversation. Sometimes it takes months or more to truly develop a plan that will work. When forming a strategic partnership, Apple and LG Display conducted initial negotiations for over a year, as reported by Harvard Business School Business Insights Online Blog. Apple hoped to find a reliable supplier of organic light-emitting diode (OLED) displays, while LG Display aimed to expand its business. After a year of discussions on price, production capacity and quality control, the two reached an agreement. When the iPhone Search for counterpoint.
5. Take the high road
Chris Voss mentions using a late night, FM, DJ voice during negotiation discussions as this can often lead to a calm and efficient atmosphere. When tempers clash at the table, the negative consequence is that it can lead to conflicting conditions in the long term. On the other hand, taking the high road, even if the other party appears to be following different rules, can ultimately lead to a better settlement and help you maintain your integrity.
6. Take the time to anchor the negotiation
Before you have a discussion with the other party, think about where you ultimately want to land. Spend the necessary time to prepare and research properly, so that your arguments are ready. This can help you navigate the conversation and chart a path forward to achieve what you hope to accomplish.
Developing negotiation skills usually takes time and practice. Contacting a mentor or signing up for additional classes could help you further develop these traits. Once you refine them, you will be able to advance in business, sales, or your profession to achieve and maintain long-term success.