NEGOTIATING TO CLOSE MORE DEALS Presented by Mike Lipsey

NEGOTIATING SKILLS Effective negotiating requires a different way of thinking. More and more negotiations today may end in deadlock under current market conditions.

R U N C L E A R UrgencyNeedsCausesLoyaltyExpectationsAuthorityRevenueResource COLD  COOL  T E P I D  WARM  HOT COLD  COOL  T E P I D  WARM  HOT Copyright  The Lipsey Company Account Transaction

Increase your negotiating edge withHURRICAINE Increase your negotiating edge with HURRICAINE HARM The side that can cause greater damage UNDERSTANDING The side that understands deal points RESOURCES The party with more time and money REWARD The side with more to offer INVESTMENT The side that has invested more CREATIVITY The side that can create more options ABILITY The side with more knowledge INFLUENCE The side with more external forces NEED The side that can least afford an impasse EMPHASIS The side who has assigned a higher internal priority

ASKING THE PERFECT QUESTION 3 Stages of Setting Up a Question Make a personal observation that reflects your experience and creates credibility Now ask the perfect open-ended question Make a factual statement that cannot be refuted

ASKING THE PERFECT QUESTION 10 Powerful Opening Questions 1.“What do you look for…?” 2.“What have you found…?” 3.“What has been your experience…?” 4.“How have you successfully used…? 5.“How do you propose…?”

ASKING THE PERFECT QUESTION 10 Powerful Opening Questions 8.“What makes you choose…?” 9.“What do you like about…?” 10.“Are there other factors…?” 6.“How do you determine…?” 7.“Why is that a deciding factor…?”

14 Strategies For Win-Win Negotiations Develop a negotiation perspective of long-term mutual gain vs. short-term personal gain. Set a trusting, cooperative tone at the outset. Do your homework Discuss the issues first person plural pronouns. NEGOTIATING

14 Strategies For Win-Win Negotiations Avoid ultimatums Increase the number of issues you negotiate Focus on interests, not positions Give to get NEGOTIATING Don’t get caught up in the emotion of the negotiation

14 Strategies For Win-Win Negotiations Keep searching for ways to add value Engage in creative problem solving Make concessions incrementally and gradually NEGOTIATING Document deals When the buyer assumes a win-lose posture, test the limits

NEGOTIATING SKILLS Identify all objections Overcoming Objections… Write them all down Script responses with closing questions for each Develop sales tools to enhance/support responses Rehearse in role-play

NEGOTIATING SKILLS Hear them out – take time to listen Handling Objections… Feed the objection back Question the objection

NEGOTIATING SKILLS Handling Objections… Answer the objection Confirm and clarify the answer Change gears – go immediately to the next step in the selling sequence

NEGOTIATING SKILLS Objections or sales-makers, not deal-breakers Responding to Objections… Objections show the prospect’s interest Minor Objections are used to slow things down

NEGOTIATING SKILLS Responding to Objections… Hesitation may not be an objection, it may be a condition – keep it in perspective. Don’t argue an objection – that could be a deal killer Develop sensitivity to how prospects feel about their objection – show concern Lead your prospect to answer their own objection

ASKING FOR MORE Longer term Increase load factors Premiums for shorter terms Higher penalties for termination No termination

ASKING FOR MORE Annual rent increases above pass-throughs Lower or no TI allowance Higher parking rates Fixed expense stop-lower than actual Full pass-throughs- trunet

ASKING FOR MORE Cap-X pass-through Participate in sublease profits Eliminate expansion and renewal options Brinksmanship Award More sophisticated pricing tools

- INTUITION - CLOSING SKILLS - INTUITION © The Lipsey Company TRIAL CLOSE Looking for an Opinion NeutralizeResolveCompromise Negotiating Tactic ConditionObjection

NEGOTIATING SKILLS Tactic: Big Pot/Overload They ask for more than they expect to receive. Negotiating Tactics and How to Neutralize Them Neutralizer: Smoke Out or Set Priorities. Find out what they really want.

NEGOTIATING SKILLS Tactic: The Bogey “I love you but…”. Trades emotion for economics. Negotiating Tactics and How to Neutralize Them Neutralizer: The Mirror “I love you too but…”

NEGOTIATING SKILLS Tactic: The Bone Give concessions now… we have more big business down the road. Negotiating Tactics and How to Neutralize Them Neutralizer: Contract for the future business or give credit.

NEGOTIATING SKILLS Tactic: Car Salesman/Plateau Negotiating They create the perception you got a great deal! Negotiating Tactics and How to Neutralize Them Neutralizer:See the “wizard” yourself.

NEGOTIATING TACTICS Change of Player Revolving Door Trickle Team

NEGOTIATING SKILLS Tactic: Cherry-Picking Obtain bids from several area competitors – pick best of all to make you compete against. Negotiating Tactics and How to Neutralize Them Neutralizer: Ask for specifics and/or Present Your Features and Benefits

NEGOTIATING SKILLS Tactic: The Crunch or 11 th Hour Squeeze They don’t sign the lease! They wait for you to give up more concessions. Negotiating Tactics and How to Neutralize Them Neutralizer: Empty Cupboard (there isn’t anything left), Moral Appeal (prepare in advance for this), or Reversal (what do we get in return – high risk)

NEGOTIATING SKILLS Tactic: Emotion The angry parent surfaces! Negotiating Tactics and How to Neutralize Them Neutralizer: Humor (high risk) Enter Your Angry Parent (high risk), or Don’t Get Hooked – stay in your adult state

NEGOTIATING SKILLS Tactic: Exploding Offer Negotiating Tactics and How to Neutralize Them Neutralizer: Moral Appeal

NEGOTIATING SKILLS Tactic: Ice Pick Lead you to believe you are very close to the deal “Hidden Agenda & The Good Cheerleader” Negotiating Tactics and How to Neutralize Them Neutralizer: Don’t get sucked in early (get notes prior to meeting) or “The Salami” (what else is on their mind before you commit).

NEGOTIATING SKILLS Tactic: The Nibbler The negotiation is almost done and they ask for one concession at a time over a period. Negotiating Tactics and How to Neutralize Them Neutralizer: Moral Appeal or Give and Take

NEGOTIATING SKILLS Tactic: The Note Taker Intimidate by taking notes, takes your words out of context, selective listener Negotiating Tactics and How to Neutralize Them Neutralizer: Put your points in context.

SETTLEMENT RANGE OPENING OFFER GOAL 50-YARD LINE WARNING AREA BOTTOM LINE