Cash Flow Business Tip of the Week- A New Look at Negotiating

make-an-offerI negotiate with note sellers every day. I still make mistakes. I have read books on negotiating. I still make mistakes. I have a graduate degree in psychology. I still make negotiating mistakes. But I have learned a few things as I struggled to improve.

The decisive moment in our business comes when someone actually calls with a note to sell. Our ability to gain their confidence is directly related to how much commission we will earn that month. The following, I think, is something you won’t find in negotiating books.

LIKE THE GODFATHER

When you are trying to get someone to interact with you, to work effectively with you, or to make a deal with you, remember they are not interested in your needs. It’s up to you to show them what you can do for them, where you can do it, when you can do it and how you can do it. How can they profit by dealing with you? What are the benefits to them? What are the risks they want to avoid? How can they protect themselves against losses? The proficient note broker anticipates the needs, fears and questions of the seller. He or she does this before the negotiating process even begins. We can learn the common problems of most note sellers just by taking a few courses and planning for the moment a seller calls with a note to sell.

It’s true that you should seldom take “no” for an answer in a business relationship. But to get a “yes”, you must structure your proposition so the person you are dealing with has no choice but, in their best interest, to accept your offer. Like the Godfather, “make ‘em an offer they can’t refuse.”

For example, when you actually get that call from a skeptical note seller, try this: “If I can show you how to sell your note for a good price and invest the money at a higher rate of interest, would you be interested?” Of course, their ears would perk up, and they would be eager to know what you had in mind. If you could show them information on top-rated mutual funds that have a history of paying more than the note seller could earn on the note he or she would probably be willing to sell the note and move into a better investment. (A little research on mutual funds at www.morningstar.com will give you credibility.)

We will delve into this further in the next Tip.

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