Download - Module 10 negotiation
Li
Lipsey School of Real Estate2011 Systems for Success
Presented by
Mike Lipsey, MCRE
Module 10 Negotiation10.1….....................................Negotiating Tactics 10.2………………...……............Settlement Range10.3…………….…………Strategies for Leverage10.4……………………………….…Closing Tactics
Module 10: Negotiation
Negotiating Tactics
Big Pot / Overload
The Bogey
The Bone
Car Salesman
Cherry Picking
11th Hour Squeeze
Emotion
Ice Pick
The Nibbler
The Note Taker
10.1
Tactic (Big Pot / Overload)
Big Pot / OverloadAsking For More Than Expecting To Receive
NeutralizerEstablishing Most Specific Need (What Do They Really Want?)
10.1
Tactic (The Bogey)
The BogeyTrading Emotions For Economics “I love you, but..”
NeutralizerThe Mirror, “I love you too, but..”
10.1
Tactic (The Bone)
The BoneGiving Concessions Now.. “We have more business down the road.”
NeutralizerContracting for the Future Business, or Giving Credit.
10.1
Tactic (Car Salesman)
Car Salesman / Plateau NegotiatingCreating the Perception that your Receiving a Great Deal!
NeutralizerSee the “Wizard” for yourself.
10.1
Tactic (Cherry–Picking)
Cherry-PickingObtaining Bids from Several Area Competitors – Pick Best of all to Make you Compete Against Them.
NeutralizerAsk for Specifics and / or Present Your Features and Benefits
10.1
Tactic (11th Hour Squeeze)
The Crunch or 11th Hour SqueezeDelaying Completion of Contractual Finalization“They don’t sign the lease, they wait for you to give up more.”
NeutralizerEmpty Cupboard (There isn’t anything left)Moral Appeal (Prepare in advance for this)Reversal (What do we get in return – High Risk)
10.1
Tactic (Emotion)
EmotionThe Angry Parent
NeutralizerHumor (High Risk)Enter Your Angry Parent (High Risk)Don’t Get Hooked (Staying in your Adult State)
10.1
Tactic (Ice Pick)
Ice PickLeading you to believe that you are very close to the deal (Hidden Agenda & The Good Cheerleader)
NeutralizerDon’t get sucked in early (get notes prior to meeting) or “The Salami” (What else is on their mind before you commit)
10.1
Tactic (The Nibbler)
The Nibbler The Negotiation is Almost Done and they ask for one concession at a time over a period
NeutralizerMoral AppealGive and Take
10.1
Tactic (The Note Taker)
The Note Taker Intimidate by taking notes, takes your words out of context, selective listener
NeutralizerPutting Your Points in Context
10.1
Settlement Range
Opening Offer
Goal
50 Yard Line
Warning Area
Bottom Line
10.2
Strategies for Leverage (Hurricane)
HARM The side that can cause greater damage
UNDERSTANDING The side that understands deal points
RESOURCES The party with more time and money
10.3
REWARDThe side with more to offer
INVESTMENT The side that has invested more
CREATIVITY The side that can create more options
Strategies for Leverage (Hurricane)
10.3
ABILITY The side with more knowledge
INFLUENCE The side with more external forces
NEED The side that can lease afford an impasse
EMPHASIS The side who has assigned a higher internal
priority
Strategies for Leverage (Hurricane)
10.3
Closing Techniques
Trial Evaluate Prospects Standing Asking Opinions that Give Insight
Alternative Offering Two or More Alternatives Offering a Choice Between Something and Something instead
of Something and Nothing. (March 1st or April 1st)
Assumptive/Next Step Assumption Prospect Will Perform “Next Step?” 1st of March, If Not then When?
10.4
Erroneous Conclusion Intentional Erroneous Statement Prospect Correction, Walk Right into Sale (12% VS 14%
IRR)
Hard to Get It/Prestige Close “Landlord is Extremely Selective.” “Will You Qualify?”
Reduction of the Ridiculous Bridges a gap between willingness to pay and ability to
pay
Closing Techniques
10.4
Lost Sale/Door Hanger Pretending Presentation is Over While Prospect is Processing, Asking for Suggestions to
Improve Your Presentation Once Identified, Reexamine Hot Buttons
Order Form Fill Out Contract Indirectly Closing Prospect
Mirage (Fantasy Picture) Building a Picture of What Could Be.. This is Where You’ll Put the Kitchen.” Similar to Assumptive Close
Closing Techniques
10.4
Puppy Dog Invitational Close Prospect Experiments with a Product, Returns if
Unsatisfied
Sharp Angle “If it wasn’t for (x) Would You Move Forward?” Handle’s Smoke Screen Objections
Close with Emotion Identify the emotional aspect of the sale Make a strong emotional appeal with that information.
Closing Techniques
10.4
Summary Summarizing Benefits that Meet Client’s Needs
Ultimatum Issue your final proposal. Deliver with confidence and strength This sale will not make or break your career.
“Yes” Momentum
Ask questions that require the prospect to answer “yes.”
Use this momentum to conclude your sale
Closing Techniques
10.4
Similar Situation Similar Former Client With Similar Objection Sharing How you Resolved Conflict
Denominator Close Breaking Financial Terms into Components Total investment, Monthly investment, or Initial Investment
Hot Button 80/20 Rule (80% of Buying Decision Based On 20% of Product’s
Features) Establish Hot Button, Push Hot Button
Ben Franklin/Balance Sheet List of Pros and Cons Many Reasons Why, Few Reasons Why Not
Closing Techniques10.4