The Art of Negotiation Presenters: Gabe Jarnot – Northland Capital Scott A. Wheeler, CLFP – Wheeler Business Consulting

Observations Disparity between average and superior companies and professionals is widening. Management and employees cannot just offer commodity products - they must provide customized solutions to succeed. Being a “Player” in the market requires more, because vendors, end-users, employees expect more… Demand more.

There are aggressive negotiators There are influencing negotiators Negotiation Enters every part of of our daily lives: customers, managers, employees, spouses, and kids There are aggressive negotiators There are influencing negotiators Our “true” selves come out when we negotiate

Should produce wise agreements that meet interests of the parties Criteria Should produce wise agreements that meet interests of the parties Should be efficient Should improve – not damage the relationship Source: Getting to Yes

Knowledge is Negotiation Power Moving Negotiations Forward Commitments Reciprocation : The Give and Take of Negotiation Questions

Knowledge is Negotiation Power Client (Vendor or End-user) Clients are demanding that we know more Top producers are “PLAYERS” in their niches and have negotiation positioning power Competition It’s not enough to know your capabilities You must know your competitor’s strengths and weaknesses The product/process Originators need to know the process intimately Cross training is needed to negotiate Commodity Corner Individuals and organizations are being forced into the commodity corner, because they lack knowledge

Knowing your Competition There is no competitor that can do it all. Top negotiators review competitor’s proposals to verify their client’s assumptions. Top organizations meet regularly to discuss strategies that are working to defeat competition. Competition is good – it makes us better negotiators and better service providers. Farm Credit example. Our biggest competition - GSE (government sponsored enterprise) that offers rates in the 3’s today. People often ask us how do we compete? They are tough competition. But we have been able to identify and communicate clearly and very specifically to our sales staff, vendors and customers those areas they are not as strong and that’s where we focus. It’s extremely targeted. Created By Wheeler Business Consulting 2016

Moving Negotiations Forward Successful negotiators find common ground They don’t bargain over hard positions – They negotiate solutions and steps toward end results Sometimes the best step forward is to temporarily back away Timelines are an important negotiation tool Created By Wheeler Business Consulting 2016

Steps toward Commitment Successful negotiators get commitments upfront (verbally and in writing). Efficiencies is the name of the game. The best means of improving funding ratios is through negotiated commitments. Commitments upfront are negotiated with confidence . Commitments separate average from superior production.

Too Often… Originators and clients are talking past one another, instead of having a conversation. Your competition already approved the deal with no additional information. I need a lower rate ! I need a lower Rate I already have a leasing company – what can you offer that they can not? I need a deal, any deal , do you have a deal for me? I am going to get several more quotes before we make a decision.

Reciprocation Negotiation is a two way street Giving secondary considerations for primary gains is critical Research and listening to determine what is most important to the client Win–Win comes from reciprocations

Recommended Reading Gabe’s recommendation: Getting to Yes – Negotiating Agreements Without Giving In By: Roger Fisher and William Ury Scott’s recommendation: Influence – Science and Practice By: Robert Cialdini