Negotiation: The Art Of Letting Someone Else Have Your Way

Negotiation: The Art Of Letting Someone Else Have Your Way

Don’t bargain yourself down before you get to the table.

BY ERICA LACENTRA | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

With 2021 off to a more predictable start, many businesses in the mortgage industry should have been able to develop a more comprehensive plan for the coming year. With vaccine rollout providing a light at the end of the tunnel, there has been a renewed effort to set company growth initiatives, marketing plans and determine other areas of focus to get things back to a sense of normalcy. While it is often assumed that November, December, and January are slower months for our industry due to the holidays, this actually tends to be one of the busiest times of the year specifically because this is when the majority of planning for the upcoming year takes place.

Sure, developing a comprehensive plan of action for a full year is time consuming. But one of the parts of that process that tends to be the most challenging, at least in my opinion, is actually negotiating all of the intricate details with external partners and vendors. Even after being in a role for nearly a decade where having strong negotiating skills is of the utmost importance, it can still be challenging.

I’m sure I’m not the only person who is still a bit hesitant to kick off that process, but I often chalk my reluctance up to that little voice in my head telling me that women should be more agreeable, not trying to make waves or “cause problems”. The problem that is caused, though, is that being agreeable doesn’t often allow you to get ahead or get the outcome you want.

THE KNOWN KNOWNS, ETC.

So, pushing that outdated notion aside, negotiation, like any other skill requires practice to become more proficient at it. For those of you, men or women, who are struggling to improve your negotiating techniques, I’d like to offer some tips as to how to make the most out of any negotiation even if your comfort level isn’t quite there yet.

First and foremost, be prepared. This tip sounds like common sense, but I personally know many folks in our industry that take the “I’ll just wing it” approach to negotiating. While I’m sure this technique can work for certain people (having a ton of confidence usually helps), I’m a firm believer that you can accomplish more in a negotiation, and more importantly not get caught off guard or backed into a corner, if you come prepared. Being prepared also helps to build your confidence so that you can go into the process more self-assured that you know what you’re talking about.

At a minimum, you should go into a negotiation knowing what your asks are, specifically which are firm, and which can be dropped if necessary. If money is involved, you should know what your ideal spend is but also what is the highest price you are comfortable spending should you need to compromise. And finally, you should be prepared to talk about what you/your company can bring to the table that provides inherent value to who you are negotiating with that could help reduce monetary spend.

For example, providing an industry partner with greater visibility to your customer base through co-marketing efforts could be a great bargaining chip to reduce traditional sponsorship costs.

While you don’t have to lay all of your cards on the table to start, you should have all of the pieces in place to be able to clearly articulate what your desired end result is and why you feel your ask is reasonable. It’s important to go into any discussion knowing what the best-case scenario is, while also leaving room to concede so that both parties leave the negotiation feeling like they have come out on top.

STAND UP

Next, and this is something I can’t stress enough, lead the negotiation. While this may seem counterintuitive for folks who struggle with negotiations to begin with, it is always better to take the lead whenever you have the opportunity to do so. This allows you to steer the discussion, put your asks up front, and also lead the argument as to why your desired outcome is reasonable and fair. It puts the other party in a defensive role where they must think about what their next counter is and if they should counter at all, which ultimately gives you additional time to think about how you will react to that counter if and when it comes.

Like any situation, you always want to try to enter having the upper hand and this is especially true when negotiating.

BE TRUE TO YOU

Finally, and this is something that will require additional thought and practice before it becomes more natural over time, develop a negotiation strategy that plays to your strengths. Everyone should develop their own style of negotiating; it is up to you to determine what style best fits your personality and also what works the best for you based on your normal interactions with others in the industry. Developing a negotiating style that is already in line with your general behavior in other business settings will also give you a greater level of comfort because you are not forcing yourself to do something you normally wouldn’t.

For example, if you normally make small talk with certain vendors when you touch base with them throughout the year, going into negotiations swinging and beating them up on price right off the bat will probably not be as successful as if you started out the discussion with your usual pleasantries before launching into your negotiation. Play into your strengths and use your previous interactions with folks as a baseline to best plan your course of action when you need to negotiate. Damaging your existing business relationships to save a buck will never pay off in the long-term.

Still, keep in mind that your style may also change slightly depending on who you’re negotiating with and the working relationship you currently have with that individual or company. Negotiating with different people may require you to dial-up or dial-down your intensity, lean more on your existing working relationship or play into new opportunities, focus on price more or less, etc. It is up to you to think about nuances like that while you’re still preparing for the negotiation itself.

When it comes down to it, becoming a great negotiator takes time and practice. However, you will find yourself in a much better position if you prepare and have all of the information you need to reach an agreeable outcome before working on your technique. After each negotiation, take stock of how things went and how you can tweak your approach to be better in the future. Finally, have confidence in your ability and your relationships. Because when it comes down to it, there is a much greater chance of people working with you to reach amore desirable outcome than saying no altogether.

Erica LaCentra is director of marketing for RCN Capital.