In any Deal, there is a limit to the amount of negotiation that will take place. Also you will have limited time to execute the same
It is easy to go into negotiation with no preparation and expect to figure out things that come along the way. However the key to any negotiation is be prepared for the matter before hand. Hence before entering any negotiation, be prepared with following things:
So next time you go on for a negotiating a deal, ensure that the most important matters are on terms that you are comfortable with e.g. rent per sq. ft. per month, Maintenance, Term period, Lock in period, Security deposit, Rent increment, parking, etc.
Prepare a priority list and figure out a strategy how you would negotiate.
The list must contain your –
Negotiation is a not a zero sum game.
People often think that other party’s loss is their gain. People that intend on fighting to win every point of the battle will rarely ever win the war. Never ever come to a situation where you are confronting the other party. Sometimes giving in to the terms gives a boost of confidence to other person. This also allows you to win the trust of other person. It will help you to negotiate on your must haves.
Instead of negotiating on a single issue, try to negotiate on multiple issues as that would give you a better understanding of other person’s view point.
For example, instead of getting fixated on rent per sq. ft., ask other party about the rent increment, rent payment dates and try to work out a deal that adds value for both the parties.
If you are stuck onto a point where the other party refuses to budge, always ask why and try to understand their interest. This will give you an opportunity to come up with a value deal that is acceptable to both.
Therefore, I would like to offer you a peek into how I prepare for any negotiation. I mentally create 3 lists of points: must-haves, should-haves, would-love-to-haves. My priority is to ensure that I get all my must haves and in the absence of any, I am willing to walk away from the deal or concede points from my other two lists. This strategy works well as it allows for win-win conversations. Invariably, I have walked away from negotiations not only with my entire must-haves list and most of my should-haves but also, conceding points that were important to the other side as well.
It is only when both parties walk away reasonably happy from a negotiation table that everyone knows that a good deal has been cracked!