How to use the "steak dinner" clause in your next negotiation

and on other creative ways in negotiations
#Initiator of the week Barak Yaakovovich #Post5
Negotiation meets us at every stage of our lives, starting with relationships, up to being a writer and of course in real estate.
I believe that a successful negotiation consists of understanding the other side and addressing the emotion (why and his pain), because people buy an emotional result and not a product. In addition to building a creative solution that fits that pain with honesty, sensitivity and assertiveness.
Creative ways to negotiate
The steak section
In the 2001 hit movie A Beautiful Mind, we got a glimpse into the mind of Nobel Prize winning mathematician John Nash. Brilliant (but also schizophrenic), Nash pioneered a negotiation concept known as the Nash Equilibrium. His insights, especially about when it pays (or doesn't) to change course, will go on to be applied to everything from nuclear weapons negotiations to traffic planning and penalty kicks in soccer.
Ryan has adopted the approach of John Nash, he is not a mathematician and he is not an expert in nuclear weapons negotiations or will bring world peace, but he is a gifted and creative entrepreneur from whom we can learn a little tip.
Ryan has a company that specializes in tools for social media management and courses in the field, in order to reach the right customers, Ryan works with suppliers to sell his courses.
After weeks of negotiations, he reached an agreement with a certain supplier, but suddenly the negotiations exploded.
During credit clearing there is a 2 percent commission and neither party agreed to compromise and absorb the commission.
The negotiations were on the verge of an explosion. Although details of tens of thousands of dollars were agreed upon, no one agreed to absorb hundreds of dollars.
Finally, Ryan and his team agreed to absorb the credit fee, only on one condition.
For every $100 of revenue, the vendor will join in inviting 2 of their staff to a steak dinner. In other words, Ryan will absorb the hundreds and maybe thousands of dollars, provided that the supplier hosts a meal costing about 400 dollars each time.
The result - instead of both parties losing the deal, they created a long-term relationship that only gets stronger after each meeting.
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Listening is the most active thing you can do
The goal at the beginning is to extract as much information as possible, such as why the seller wants to sell the property
How can you find out the other's goals and perspective? The other side and its "religion" must be understood by active listening and directed questions.
In order to create a proper framework for each transaction we make, it is important to understand the feelings of our colleague, and address them.
The best ways are to create mirroring by repeating the last 3 words of the other party's sentence and imitating the body language and intonation 70 percent listening and 30 directed questions and this way the other party will feel understood and listened to. Although it seems that listening is passive, it is the most active thing you can do.
Additional strategies are labeling for the purpose of identification. I don't want to insult you with my offer, it sounds like you are disappointed with the current situation, or my favorite method is exaggeration (you will probably really hate me after the offer I will give you), "It would be really rude if I ask if there is Do you have another property you would like to sell?”
And some guiding questions after we found the other side's pain/emotion
what exactly do you mean Where does it take you on a daily basis? What will happen if you fail to sell/buy? What solution have you tried so far?
How long has this been going on? How do you feel about it? Do you feel it will change now or in a few months? So you gave up on selling the property (or pain of one kind or another)?
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Hate the loss
**Professor Daniel Kahneman found that we hate losing more than winning**
The side that feels it has more to lose and is most afraid of this loss has less leverage, and vice versa. To gain leverage, you need to convince your counterparty that they have something real to lose if the deal falls through
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How can I do that?
When you find yourself helping someone else, you naturally feel in control. You have information they don't have. You have expertise they don't have. You feel powerful and useful
You can ask the other party questions that start with what and how
I see you know quite a bit about this - how can I do something similar?
How can I do you X when I don't have Y?
how can you help me
Building rapport
I approach every negotiation with the mindset that I am coming to talk to a friend or acquaintance.
Everyone likes to talk about their children and family, trips, dreams and their dogs, and the funnier and more energetic we become, they will be happy to do business with us
And people like people who are similar to them - the other party said he likes golf, so you also thought of learning golf or are interested in the field, etc.
But the most important thing is to be honest
Creativity in real estate
I believe that the wider our range of solutions, the more we will be able to match the other side with a solution that suits him better. For example, we have a 70-year-old seller, let us understand that he simply does not have the energy to deal with the property, but he does not have a pension (he would be happy to have a monthly income) and he would be happy to avoid a tax event, so we will offer him owner finance

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