Negotiation

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Negotiation

• Navigating the Negotiating Highway
• By Doris Barnett

Doris Barnett www.online2k.net/
dak_at_online2k.net
2
Negotiation

• Why should you study negotiation?
• A good marketing plan without sales and profits
  is a guaranteed failure.
• Dont get the cart in front of the horse

Doris Barnett www.online2k.net/
dak_at_online2k.net
3
List 5 Areas That You Negotiate?

• My commission with my broker
• My commission with my clients
• Offers to sellers
• Offers from buyers
• ????? your area here

Doris Barnett www.online2k.net/
dak_at_online2k.net
4
236 Habits of Effective Salespeople

• If you consistently have to be the cheapest to
  get the order, you are not a professional
  salesperson
• Under promise and over perform

Doris Barnett www.online2k.net/
dak_at_online2k.net
5
Principled Negotiation Are You a Motivated
Negotiator?

• Can you separate people from negotiation? Y/n
• Do you clearly understand your motivation? Y/n
• What is your attitude towards negotiation process
• Are you comfortable? Y/n
• Are you skilled? Y/n
• Are you frightened? Y/n
• Do you need to work on it? Y/n
• Can you create the conditions that will influence
  the negotiation favorably? Y/N

Doris Barnett www.online2k.net/
dak_at_online2k.net
6
Principled Negotiation Are You a Motivated
Negotiator?

• Can you list 5 ingredients commonly found in a
  successful negotiation by the Japanese
• 1
• 2
• 3
• 4
• 5
• Do you practice negotiation skills at every
  opportunity? Y/n

Doris Barnett www.online2k.net/
dak_at_online2k.net
7
Principled Negotiation Are You a Motivated
Negotiator?

• Do you keep up to date with current
  thinking/writing on negotiation skills?Y/n
• Do you invest a lot of time in preparation?
  Y/n
• Count the number of answers Yes? No?

Doris Barnett www.online2k.net/
dak_at_online2k.net
8
Negotiation Research results
Doris Barnett www.online2k.net/
dak_at_online2k.net
9
Rate your answersCount the number of yes answers
and see below

• 12 yes world class negotiator!
• 10-11 highly skilled
• 8-9 Hmmmm keep reading and
• Think about taking the class
• 6-7 need lots of practice
• 6 or less are you certain that you want to be a
  negotiator?

Doris Barnett www.online2k.net/
dak_at_online2k.net
10
Principled NegotiationA Japanese Model5 steps

• Co-operation
• Organization/details
• Excellent internal communication
• Extensive network of contacts
• Constant communication between business and
  government

Doris Barnett www.online2k.net/
dak_at_online2k.net
11
Principled NegotiationPhases

• Investigative phase
•  
• Presentation phase
•  
• Bargaining phase
•  
• Agreement phase

Doris Barnett www.online2k.net/
dak_at_online2k.net
12
Phase One-investigative

• Keep it super simple
• Collect all relevant information
• Preparation compensates for a lack of talent
• Fly by the seat of your pants
  (FBTSOYP)
• What does the other side need?
• What can they afford?
• Preparation makes bargaining easy
• Prepare as you go and prepare to lose
• The negotiation is 99 in the bag for the other
  side!

Doris Barnett www.online2k.net/
dak_at_online2k.net N
13
Phase Two-presentation
Tools Maintain a confident positive manner Keep
eye contact No Jerky gestures No Stuttering No
Whispers

• Presentation
• Its creative so its fun
• If you can be innovative
• Preparation persuasion
• You create an environment where the other side
  wants to do business

Doris Barnett www.online2k.net/
dak_at_online2k.net
14
Phase Three- Bargaining Phase

• Bargaining phase
• Fear
• Stomach in knots? Want to run?
• Knuckles white? Want to yell scream?
• Hard to breathe?

• Tools
• Discipline and control leave the ego at
  home
• Concentrate on creativity to seek agreement
• Expect best options to be negotiated at the end

Doris Barnett www.online2k.net/
dak_at_online2k.net
15
Phase Four- Agreement Phase
Tools keep your guard up

• Agreement phase
• Final details
• Its not over yet

• Both sides need to FEEL
• That all points are recorded correctly
• All points are agreed upon within the context of
  the negotiation
• If above is true, the biggest decision is where
  the agreement will take place

Doris Barnett www.online2k.net/
dak_at_online2k.net
16
The Power of Language

• Words can have positive or negative impact
• Zig Zigler suggests record your sales
  presentation
• Play it back
• Hear the positive and negative patterns
• Note what you personally use
• In the secrets of closing the sale,
• Zigler shares 24 words that sell from Thom
  Norman, sales trainer extraordinaire. Yale
  university adds 5 more. He also shares 24 words
  that Unsell

Doris Barnett www.online2k.net/
dak_at_online2k.net
17
Selling Words
Yale Universitys 5 extra words in RED

• Understand
• Proven
• Health
• Easy
• Guarantee
• Money
• Safety
• Save
• New

• Love
• Discovery
• Right
• Results
• Truth
• Comfort
• Proud
• Profit
• Deserve

• Happy
• Trust
• Value
• Fun
• Vital
• You
• Security
• Advantage
• Positive
• Benefits

Doris Barnett www.online2k.net/
dak_at_online2k.net
18
UN Selling Words

• Buy
• Death
• Bad
• Sell
• Sold
• Price
• Decision
• Hard
• Difficult
• Obligation

• Liable
• Fail
• Liability
• Failure

• Deal
• Cost
• Pay
• Contract
• Sign
• Try
• Worry
• Loss
• Lose
• Hurt

Doris Barnett www.online2k.net/
dak_at_online2k.net Sound!
19
Communication Chart
Vc Visual Constructed images Vr Visual
remembered Eyes defocused and unmoving
also indicates visual accessing Ac Auditory
constructed Ar Auditory Remembered sounds or
words sounds or words K Kinesthetic
feelings A Auditory sounds or words (also
smell and taste)
Doris Barnett www.online2k.net/
dak_at_online2k.net
20
Visual Communication Words

• I see what you mean
• That looks good to me
• Picture that
• See thru
• Open
• Bright
• See Here

Doris Barnett www.online2k.net/
dak_at_online2k.net
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Handling Objections

• Step 6 by the way or Just one more thing
  then move to the closing stage.

Doris Barnett www.online2k.net/
dak_at_online2k.net
29
Whats Important. The Questions to Ask Yourself?

• 1. Where are we and where do we want to go?
• 2. How do we get there?
• 3. Whats REALLY important here?
• 4. How can we do a better job of finding areas
  of improvement and implementing appropriate
  change?
• 5. Where are the major trouble points?
• 6. Whats the underlying problem as opposed to
  the surface symptoms?

Doris Barnett www.online2k.net/
dak_at_online2k.net
30
The Questions to Ask?

• 7. Whats the vital question? Whats the major
  concern?
• 8. What are the central components of this
  situation?
• 9. What hasnt been asked, whats missing, what
  is vital but, unclear so far?
• 10. What would a trusted, wise friend ask or do?

Doris Barnett www.online2k.net/
dak_at_online2k.net
31
What If

• I had to change this for the better?
• Where would I start?
• What would I look for?
• What are the problems, obstacles, constraints and
  risks?
• How can we remove, modify or avoid these
  constraints?

Doris Barnett www.online2k.net/
dak_at_online2k.net
32
Solving Problems

• First identify the problem. A problem well
  defined is a problem half solved.
• Get the facts -----straight-----.
• Determine whats known, unknown and fuzzy? What
  do you still need to know?
• Get to a sense of knowing where the situation
  is going.

Fuzzy Known Unknown
Doris Barnett www.online2k.net/
dak_at_online2k.net
33
Japanese Thought ProcessDevour the Details With
Formulas The Questions

• Are they a listing agent
• A buyers agent
• A brand new agent
• What success have they had
• Are they technically savvy
• Is their company savvy
• How well educated are they

Search the MLS by License number, look at their
website, company website, TREC.
Doris Barnett www.online2k.net/
dak_at_online2k.net
34
Japanese Thought ProcessDevour the Details With
FormulasThe Questions
Sort by subdivision after you do an agent search
and see if they have more than one listing in any
subdivision consider length of time in the
business. Sort by SAC/BAC Do they offer bonuses?

• Do they specialize
• Where, how, how much
• Do they have reputable help
• Are they experienced
• Do they offer fair prices
• Are they creative
• Win-win or I win negotiation

Doris Barnett www.online2k.net/
dak_at_online2k.net
35
Japanese Thought ProcessDevour the Details With
FormulasHow to Get the Answers

• Listing agent or buyer agent
• Search by agent id or name
• Note number of listings listed? Sold?
• Competitors price differential
• Sales price divided by list price, sort the
  result
• 95 or less is this an I win negotiator
• 100 or more is this an I win negotiator
• 96-99 win-win negotiator

Doris Barnett www.online2k.net/
dak_at_online2k.net
36
Japanese Thought ProcessDevour the Details With
Formulas

• Check the opposing agent information
• Do they have a website?
• What do they brag about?
• What about the company website and information?
• Check the state for licensing information
• Check state information for education
• Do they just maintain? www.trec.state.tx.us/

Doris Barnett www.online2k.net/
dak_at_online2k.net
37
Japanese Thought ProcessDevour the Details With
Formulas

• What is the average
• Days on market for subdivision
• Days on market for opposing agent
• 45 days or less - priced right
• 100 or more-hmmmm
• Does agent specialize in this subdivision
• Commission offered-Do they cut their commission
  or yours?

Doris Barnett www.online2k.net/
dak_at_online2k.net
38
Japanese Thought ProcessDevour the Details With
Formulas

• From their listings you can learn
• Their favorite lender
• Types of mortgages
• Their favorite title company
• If they offer home warranties
• Their favorite price range
• Have they worked with HOAs
• Home owners associations

Doris Barnett www.online2k.net/
dak_at_online2k.net
39
Solving Problems and Making Decisions

• Are your assumptions true, really true
• Try restating the problem now
• Develop several options and alternative solutions
• Look at the options under this microscope
• Achievability - feasibility (likelihood of
  success)
• Cost v. benefits - risks v. rewards
• Pre-conditions of success - your own concerns
  and worries
• Decide does it work or not?

Doris Barnett www.online2k.net/
dak_at_online2k.net
40
Agent Approach

• How does this agent communicate?
• Read the property description (remarks)
• Highlight the adjectives
• Read the website print the descriptive pages
• Highlight the adjectives
• Get a flyer from the property
• Highlight the adjectives
• Can you communicate in their language?

Doris Barnett www.online2k.net/
dak_at_online2k.net
41
Agent Approach

• NLP training reveals the process and structure of
  how people communicate and how they experience
  the world.  This process and structure affects
  everything you experience and is completely
  outside the awareness of most people.  Now you
  can make it work to your full advantage by
  becoming aware of it and... By knowing how to use
  it! http//www.nlp.com/
• Neuro linguistic programming is a recognized
  science
• Apply the basics to your negotiating APPROACH

Doris Barnett www.online2k.net/
dak_at_online2k.net
42
Agent Approach

• List the adjectives and sort them 3 ways
• Visual auditory kinesthetic
• Seeing - hearing -touching
• Look sounds feels
• Picture hmmm textures
• See-soaring
  smooth
• Delightful

Doris Barnett www.online2k.net/
dak_at_online2k.net 43B
43
Lets Do a Little Test

• We want to know how these people present
  themselves, so I want to ask them some questions
  and have the group decide who is
• Visual,
• Auditory,
• Kinesthetic,

Doris Barnett www.online2k.net/
dak_at_online2k.net
44
Lets Test the APPROACH

• Partner with someone you dont know
• Ask these questions, consider their response
• What color are your mothers eyes?
• What color is the carpet in your car?
• What is your favorite kind of music?
• What does your doorbell sound like?
• Can you create a new sound?
• Can you hear yourself sing
• Mary had a little lamb?

Doris Barnett www.online2k.net/
dak_at_online2k.net
45
Lets Test the APPROACH

• How do you feel early in the morning?
• What does cat fur feel like?
• Feel what its like to pet a dolphin.
• Feed a stingray?
• What does white chocolate taste like?
• Taste chocolate with pickles!

Doris Barnett www.online2k.net/
dak_at_online2k.net
46
Communication Chart
Vc Visual Constructed images Vr Visual
remembered (Eyes defocused and unmoving
also indicates visual accessing) Ac Auditory
constructed Ar Auditory Remembered sounds or
words sounds or words K Kinesthetic
feelings A Auditory sounds or words (also
smell and taste)
Doris Barnett www.online2k.net/
dak_at_online2k.net
47
Why This Test?

• You may identify the best agent approach
• By how someone writes, speaks and reacts
• It is important to communicate in the unconscious
  comfort zone to be more successful in your
  negotiations
• Using this information will also help your
  marketing efforts

Doris Barnett www.online2k.net/
dak_at_online2k.net
48
Dont Assume

• What you see isnt always what you get
• If you always test with questions
• You will never be wrong
• Some people are left handed
• Some people access information
• In reverse to most people
• Dont assume or spell it out to get results
• Ass u me

Doris Barnett www.online2k.net/
dak_at_online2k.net
49
Rapport

• There are several easy ways to establish rapport
  with someone
• The unconscious rapport with words
• I like to call this word weaving
• Pacing with motions or breathing lets try it
• This is fabulous for getting children to sleep
• Always choose the most active person to pace.
• Use this tool when negotiations are getting out
  of hand

Doris Barnett www.online2k.net/
dak_at_online2k.net
50
Please Stand Under the Correct Word

• Visual auditory kinesthetic

Doris Barnett www.online2k.net/
dak_at_online2k.net
51
V A K

• Watch this Let me tell you Smell
• see what Im MMMMM touch this
• doing? WOW! This is plush
• Look here- GREEEAT! Thats rich
• Have a bite. Listen here texture
• High 5 Clap Clap-yes!
• High-5

Doris Barnett www.online2k.net/
dak_at_online2k.net
52
Presenting offers

• Emphasizing talking points with Power Lifts
• When doing a presentation where the focus is not
  on your face
• Draw attention back to you with hand gestures on
  important points.
• Always sit at an angle for best conversations

Doris Barnett www.online2k.net/
dak_at_online2k.net
53
The Rules of Silent Speech

• Do it right the first time. First impressions are
  easier than fixing impressions
• Initiate the eyebrow flash and respond unless you
  want to signal hostility
• Break eye contact downward
• Hold a gaze for only 3 seconds. (Unless its a
  power play)
• Use the most appropriate smile for the situation

Doris Barnett www.online2k.net/
dak_at_online2k.net
54
The Rules of Silent Speech

• Do not invade someone elses space
• If you do, use it as a reward only
• Approach men from the side to the front.
• Approach women from the front to the side
• Never stand when someone else is sitting
• Dont sit in deep arm-chairs as it limits your
  posture signals
• When sitting in chairs, follow the above rules
  although closer proximity will be allowed as the
  physical chair protects.

Doris Barnett www.online2k.net/
dak_at_online2k.net
55
The Rules of Silent Speech

• Shaking hands use a dry hand and a moderate
  pressure
• Hold for 6 seconds, about 6 pumps
• To display dominance hold with the back of your
  hand up and hold with a stronger grip
• To enhance friendship, hold moderately, longer,
  lean in, smile, keep eye contact throughout the
  process
• To submit hold same pressure, less time, less eye
  contact, release downward
• To convey warmth, try wearing contacts or lifting
  your glasses for a more direct eye contact

Doris Barnett www.online2k.net/
dak_at_online2k.net V
56
The Rules of Silent Speech

• To encourage co-operation, use head tilt, warm
  smile, eye contact
• When negotiating with a group be certain to
  include all of them with eye contact

Doris Barnett www.online2k.net/
dak_at_online2k.net
57
Power Plays

• Success is your ability to control time and space
  of other person
• Walk tall and dont be hurried by anyone
• Pro-longed gaze will disconcert break eye
  contact to the right or left
• Choose your own seat and dont sit lower than
  anyone else
• Deliberately invade someone elses space
• The longer you compel someone to wait, the less
  their dominance appears. 10 minutes might be
  acceptable 15-20 minutes undermines status,
  theirs(its disrespectful).

Doris Barnett www.online2k.net/
dak_at_online2k.net
58
Power Plays

• Unless there is a valid and genuine reason for a
  delay, after 15 minutes, cancel the meeting
• READING OTHERS
• Start with an open mind
• Dont pay too much attention to faces, they are
  the easiest to control.
• Watch feet and hands too
• Watch for Buying signs see next slide
• Liars betray with touches to ears, nose or cheeks
• Hostility is demonstrated through aggressive
  movements of feet, hands, or mouth.

Doris Barnett www.online2k.net/
dak_at_online2k.net
59
Silent Speech test 10Neither agree or disagree
1Agree slightly 2Agree to some extent 3Agree
strongly 4 Agree very stongly

• I make a real effort to be liked when introduced
  to somebody new
• It makes me sad to see somebody alone at a party
• I like talking things over with a friend
• I get angry when I see someone being badly
  treated
• I believe in showing my feelings openly
• I become very involved when watching a film
• I enjoy meeting new people

Doris Barnett www.online2k.net/
dak_at_online2k.net
60
Silent Speech Test 2 0Neither agree or disagree
1Agree slightly 2Agree to some extent
3Agree strongly 4 Agree very stongly

• I cannot feel happy in the company of miserable
  people
• I like making friends
• If someone is upset I usually know right away
• I would sooner work with others than on my own
• The words of a love song often move me deeply
• I would sooner go to a party than a film
• I do not mind going on holiday alone
• I get upset at seeing people cry
• Lets run a total on that and see how well you
  read Silently.

Doris Barnett www.online2k.net/
dak_at_online2k.net
61
Answers to Test on Silent Speech

• 0-25 you seem to be rather self-sufficient person
  who dislikes emotional scenes and prefers to keep
  your feelings under tight control. This will make
  it harder for you to read other peoples silent
  speech signals accurately. During encounters you
  are probably more concerned about the sort of
  impression that you are making than the effect
  another person is having on you.
• 26-45 you are moderately high on the desire and
  ability to get along with others-and show a fair
  degree of empathy. You show little effort at
  present to exploit your skills at reading silent
  speech. You give greater attention to verbal
  messages rather than non-verbal messages.
• 46-60 you either are or could become highly
  skilled at reading body language. You have a
  great empathy towards others, essential
  qualifications for reading this silent speech
  effectively.
• No matter the score you have the ability to
  become proficient in understanding body language
  and non-verbal speech if you take the time and
  trouble to do so

Doris Barnett www.online2k.net/
dak_at_online2k.net
62
Reading Buying Signs

• Look for a sudden relaxation, absence of
  agitation
• A chin touch deserves a trial close
• When they move-in closer CLOSE!
• When Eye contact extends into gazes Close like
  blazes!
• Watch for them mirroring you
• A slight head tilt empathy

Doris Barnett www.online2k.net/
dak_at_online2k.net V
63
Credits

• The secret language of success-David Lewis
• The Book of Excellence- Byrd Baggett
• Transformations- Bandler/grinder
• Getting to yes, Roger Fisher, William Ury and
  Bruce Patton
• How to master the art of listing and selling real
  estate-Tom Hopkins
• Secrets of closing the sale- Zig Zigler
• The small business bible- Paul Resnik

Doris Barnett www.online2k.net/
dak_at_online2k.net