After four decades of professional negotiations,
having negotiated everything from labor contracts to hotel contracts, from the terms of employment, to the basis of the sale of one's home (or business), I
truly believe that one of the most widely overlooked aspects in
negotiating is the necessity for a negotiator to be fair, honest and
honorable, and to fully understand not only his own needs but the needs
of the opponent. It is important to understand that at the very least,
there are always at least two sides to any negotiation, and while one
side may at certain points have the "upper hand" over the other, one
must always beware that the "tables may turn," and negotiators generally
have long memories.
Some individuals who believe they know how to negotiate try to win every aspect of a negotiation, and fail to realize that the only negotiations with long term positive results are those that are "win- win" in nature. While one side may feel they have won a victory, and taken advantage of the other, unless both sides walk away from a negotiation feeling they, at the very least, did alright, somewhere down the line, the negotiating strategy will backfire. A professional negotiator goes into a negotiation fully prepared, having comprehensively and completely done his homework about the other side. An effective negotiator knows that there is generally a delicate balance and a fine line between getting a good deal, and pushing too hard, so that the other side, even if you get the concession, resents you for asking. In the long run, negotiators with reputations for being tough but fair are respected and get the best for their clients, while those who "play games" often lose out over time.
For example, in negotiating with a hotel, a negotiator must understand various aspects from the vendor's standpoint, such as labor costs, union requirements, service charges and fees, taxes, mark-ups, margins, etc. An effective negotiator understands that the most profitable aspect of a hotel is the "bar," followed by the banquet Food and Beverage department. Labor considerations may often afford a hotel very little margin for granting concessions. If there are fees for certain services, a negotiator must understand if these items are being handled internally by the hotel, or if they are sub- contracted out to vendors and/ or suppliers. If, for example, a negotiator wants a concession regarding the parking fee, it is essential to understand if the hotel controls that internally, or are they paying someone else, or is it some sort of cost/ revenue share situation. Similarly, a negotiator must understand if Food and Beverage, and Bar, is handle by one department, or multiple departments, and thus how this may be impacted.
One of the considerations for a real estate professional, is pricing philosophy. The homeowner must beware that while he, of course, wants to achieve the best possible price for his home, pricing that home right, from start, often goes a long way! Don't overprice or under - price, and explain fully to your homeowner - client, how overpricing may potentially hurt them, in the long run! When there is a negotiation, many buyers are tempted to offer an unrealistically low starting price, but fail to realize doing so, might sour the homeowner, and thus, hurt in the long run!
As a professional negotiator, I am never pleased when I am instructed to co-negotiate for my client with someone else, without negotiating expertise. Invariably, it negatively impacts the negotiations, adversely. Negotiating should be left to the professionals!
Some individuals who believe they know how to negotiate try to win every aspect of a negotiation, and fail to realize that the only negotiations with long term positive results are those that are "win- win" in nature. While one side may feel they have won a victory, and taken advantage of the other, unless both sides walk away from a negotiation feeling they, at the very least, did alright, somewhere down the line, the negotiating strategy will backfire. A professional negotiator goes into a negotiation fully prepared, having comprehensively and completely done his homework about the other side. An effective negotiator knows that there is generally a delicate balance and a fine line between getting a good deal, and pushing too hard, so that the other side, even if you get the concession, resents you for asking. In the long run, negotiators with reputations for being tough but fair are respected and get the best for their clients, while those who "play games" often lose out over time.
For example, in negotiating with a hotel, a negotiator must understand various aspects from the vendor's standpoint, such as labor costs, union requirements, service charges and fees, taxes, mark-ups, margins, etc. An effective negotiator understands that the most profitable aspect of a hotel is the "bar," followed by the banquet Food and Beverage department. Labor considerations may often afford a hotel very little margin for granting concessions. If there are fees for certain services, a negotiator must understand if these items are being handled internally by the hotel, or if they are sub- contracted out to vendors and/ or suppliers. If, for example, a negotiator wants a concession regarding the parking fee, it is essential to understand if the hotel controls that internally, or are they paying someone else, or is it some sort of cost/ revenue share situation. Similarly, a negotiator must understand if Food and Beverage, and Bar, is handle by one department, or multiple departments, and thus how this may be impacted.
One of the considerations for a real estate professional, is pricing philosophy. The homeowner must beware that while he, of course, wants to achieve the best possible price for his home, pricing that home right, from start, often goes a long way! Don't overprice or under - price, and explain fully to your homeowner - client, how overpricing may potentially hurt them, in the long run! When there is a negotiation, many buyers are tempted to offer an unrealistically low starting price, but fail to realize doing so, might sour the homeowner, and thus, hurt in the long run!
As a professional negotiator, I am never pleased when I am instructed to co-negotiate for my client with someone else, without negotiating expertise. Invariably, it negatively impacts the negotiations, adversely. Negotiating should be left to the professionals!
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