The commercial classroom: Negotiating tips

We are in the business of negotiating, every day. We need to be able to understand the tactics and processes that are used; and learn to perhaps use some of them ourselves. Certainly, we must recognize different techniques that may be used against us, or in negotiations with our clients or customers. Good Guy/Bad Guy: This is a two person team approach where one person is unreasonable and inflexible, the other person appears to be on your side, coaching or suggesting you compromise on your position from the extreme position presented by their partner. This is a choreographed team effort to have you compromise on the issues. Don't play their game. Do not let the good guy influence your decision. Recognize the game, stick to and negotiate your goals. Low-Balling: A fantastic offer (low) is made and agreed. Then additional items get added. The consumer is enticed by the low rent, but then finds out what was NOT included. You're responsible for heat, water, window washing, rubbish removal, repairs, landscaping, snow removal, cleaning, electric and taxes! Bait and Switch: An offer draws in a buyer, who is then told the item is not available but, for a higher price you can buy... We must be careful, the danger is our appearing to do this. The customer saw a listing or sign on a property; they call and are told it is sold or rented. Their perception is that we are doing a bait and switch. The Departure: At stalemate, or if the other party is refusing to counter offer, preparing to walk away can get things moving. Start gathering your papers and packing your briefcase in a matter-of-fact manner as if you are about to leave; this signals a response is required for you to stay and continue. The Extreme Departure: A party abruptly gets up from the negotiating table and walks out (with or without negative comments). This is a waiting game; after a short time have a third party determines if the negotiations will continue at this time. The Trial Balloon: is a technique to gather information that will be helpful in the negotiation without negotiating anything. These are questions used to assess positions without being offers or terms. They allow you to gain information without commitment. "Would you consider financing the property?" "No, I have an outstanding mortgage." Responding to the Trial Balloon to get information for your side... Directed to the building owner: "Would you consider financing the building yourself?" The Response: "Well if I did, what would your offer be?" Another example of a Trial Balloon... In pricing the listing (to the owner) "What do you think your building is worth?" To a buyer or tenant: "What other properties have you seen?" The Progress Report: When reaching an impasse, take a break. Get away; out of the room for a few minutes. Upon return review the agreed items to show the progress. Become a Better Negotiator * Create an atmosphere of problem solving. * Attentively listen to all. * Be aware of your body language and facial expressions. * Be well prepared - checklist of goals. * Meet with your client in advance. Edward Smith, RECS, is the Long Island metro regional director of Coldwell Banker Commercial NRT, Eastport, N.Y.