[VIDEO] How Do I Win My Next Negotiation?
- Home Owners Of Kedron & Surrounding Suburbs -
Welcome to "The Big Q" where each week I will answer one big question that I hear every day from property owners.
This week I share a few ideas on one of the most important issues I will ever discuss!
- How Do I Win My Next Negotiation -
Key points I discuss:
- What Happened When I Bought My New Car?
- Why Is Negotiation So Important?
- What Are My Tips To Help You Always Come Out On Top?
Check out my five top tips to add SIGNIFICANT value to your home before you go to market! https://bit.ly/3i4YCJc
Thanks for tuning in!
Daniel Hooper - 0424 585 391
Hi, I'm Daniel Hooper, owner and principal of One Percent Property, your Kedron property specialists. Coming to you on Sunday, the 13th of September, with The Big Q. as you probably already know, The Big Q is a segment that I do every week, where I look at one big question that is regularly asked, and hopefully give a little bit of information to help you out as a homeowner and as an informed vendor.
This week I'm looking at the big question of, "How do I win my negotiations?" It's such an important topic. This was sort of brought on by a situation recently where I actually bought a car. I bought a car from one of the big dealerships. You'd expect that these guys are fairly versed in negotiation. They probably have daily training, that sort of thing. But sitting across the desk from the salesman, he took out the brochure of the car with the sale price on it, and he crossed it off and he said, "Look, we're not going to pay that price, but what can you pay?"
Straight away, obviously, they're not going to get the asking price. That was his first mistake. I simply looked at him and I said, "Give me an offer." So he wrote something down. I said, "I'm afraid I can't pay that." That was it. Just stared at him. He was a little uncomfortable. My wife was a little uncomfortable. He wrote down a lower price and I said the same thing, "I'm afraid I can't pay that." Just didn't say anything else. He wrote down a lower price, and a lower price. I literally just kept saying the same sentence over and over, nothing else. We ended up at the price I wanted to pay, at which point I said, "Okay, that's fine. I'll pay that price." Moved ahead and bought the car.
I didn't say anything else, except, "I'm afraid I can't pay that price." He got more and more uncomfortable, reduced the price more and more, to the point where I was happy. I essentially bought the car at the price that I wanted to purchase the car at.
I walked out of the dealership. I started thinking, if this trained sales person wasn't able to deal with the really simple technique like that and got so uncomfortable, just imagine what everyone else that really doesn't have any negotiation training, comes up against when they get in these discussions. You might be saying negotiation is not part of my life. It's not part of my job. But everyone negotiates between three and five times a day. You could be talking to your boss about holiday time or wanting a day off. You could be talking about a pay rise. You might be talking to your wife or husband about, "What are we having for dinner tonight?" They want Chinese and you want Indian. That is a negotiation. Everyone can use these ideas, these tips, these tricks, and hopefully these will help you out.
Number one is see negotiation as a game. If you see negotiation as a game, it's something you enjoy, something you want to practice. Then you will enjoy it and you'll get better at it. If you see negotiation as something that's really annoying, all you're going to do is get angry at people. You're not going to have fun. You put something online, you try to sell it. Someone comes in with a low-ball offer. You see red, you get angry. Next minute, you're telling them to go jump in a lake and you're not going to sell whatever you are selling. You're not going to be able to purchase whatever you want to purchase. If you see it as a game, you're going to enjoy it. You're going to have fun. It's going to help you grow and become a better negotiator.
The next one is set a walk away point, a walk away price, and never, ever exceed it. Before you go into negotiation, work out what you want to pay or work out what you want to sell for. As long as that's got good research behind it, you should never exceed that price. The reason is, once you exceed it once, you're going to train yourself to just continually exceed it. You're going to get emotional when you're in negotiation and you're going to end up paying too much, more than you wanted to pay, or you're going to end up selling for less than you wanted to achieve. It's really, really important to set that price. Really, really important to stick to it.
The next one is look for a win-win where you win. What I mean by that is, don't go into a negotiation trying to rip someone apart. You should not go into a negotiation trying to destroy the other person, take everything from them, because you're going to burn bridges. People are going to hate you. And I also believe in karma.
You go into a negotiation looking for a win-win where both parties can leave happy. With the proviso that you want to get what you want to get out of this negotiation. In almost all situations, you can go into a negotiation, you can get what you want, and you can still let the other person save face. Or you can still give the other a person partially what they want. That should be the goal. Get what you want out of the negotiation, but do it in the kindest and the best possible way, to make sure that when you walk away, the other person is your friend and not your enemy. Really, really important, especially in business. Otherwise you're never going to get far. You might win one or two deals, but in the long run, you're going to get a bad reputation.
The next point is try to get the other side to offer first. It's a really, really simple point, but rule of thumb is, if there's a back and forth about price, the person that offers first, is going to end up with less of the pie. You might be, say, buying a house and whoever offers first, by the time you bounce back and forth a few times, you're going to end up closer to your price if you don't offer first, than you are to the person that offered first. Just a little tip to try and get a little bit more out of the pie when you're doing that negotiation back and forth.
The last point, really, really important, have the strength to walk away. Have the resolve to walk away. If you're in a negotiation that was great at the start, but the guys whittled you down and you're not happy anymore, but you're so deep in you're about to sign the contract, and it's very, very difficult from a social point of view to break it and walk away. If you're not happy, walk away. You must have that strength. Because if you have that feeling in the pit of your stomach that you're going to sign a contract and you're going to be really unhappy afterwards, I guarantee the social awkwardness of pulling the pin and walking away, is much better than the feeling of going into a bad deal that you are not happy with.
That's it. Few tips. Hopefully they will help you win your next negotiation and get better day-on-day as negotiator, so that you can get more out of every discussion you have in life.
Guys, if you are thinking about selling your property, please don't forget to go and check out my article Five Tips on Adding Significant Value to your Home before you go to Market. The link is attached to this video. It really gives you a few good ideas that can add up to $50,000 onto the value of your home, if done right. Please check it out. It's entirely free.
Otherwise, thank you so much for tuning in. I hope you've had a fantastic week this week and I really hope the next week is even better