By Jack Miller
When presenting unusual offers, you have to sell the 'sizzle' not the steak. Rather than extol the merits of a particular product or financial proposition in itself, you're best served by presenting a picture of how a person's life can be changed for the better by concluding a transaction the way you've presented it. You've got to plumb the depths to create an emotional response in the other party. You can do this by answering what might well be the 5 most important words in the English language: 'What's in it for me?' Answering this unspoken question in the mind of the seller goes a long way toward having your offer accepted.
When you can solve the most pressing problem or show him the benefit he values most highly, you'll make your deal. The trick is to leave enough profit in the deal to make it all worth your while. Bear in mind that your profit might come in the form of cash, goods, services, use, possession, occupancy, debt relief, access to power, and even a feeling of righteousness. So long as you are willing, able and ready to accept non-cash profits, you'll open a cornucopia of opportunity in any negotiation.
I like to think of negotiation as a piano keyboard. There are 88 keys. Each has its own vibration, and each has the potential for generating harmony or discord depending upon how they are combined. Thus, successful negotiation also involves the combining of many facets including fear, greed, comfort, freedom from angst, economic need, utility, occupancy and possession, present and future values, financial security, tax relief, etc. Usually, the proposal that you make will embody as many factors as possible to trigger a favorable emotional response.
Sometimes, it's not possible for a person to negotiate face-to-face with another. I've found that it is more successful to send a letter to the person with the power to make a decision rather than to negotiate with someone who must pass on an offer, but who can't accept it. That's one reason why I rarely use brokers to buy properties. Rather than to send a legal looking contract through the mail that might intimidate the other party, I like to write a folksy 'Letter of Intent'. In it I lay out what I'd like to do, then I include a portion showing the other party the benefits he'll receive if he says yes, and the disadvantages if he says no. I conclude by saying that this is a firm offer which will be bound with a sum of money to be deposited into escrow within 24 hours of written acceptance.
I sign it as offerer and indicate that the signature of the owner accepting the proposal will constitute a legally binding contract. I try to make things as easy as possible for the other party. While I'm careful about preserving my profit margins, my price and terms usually include my absorbing all the expenses of sale, purchase, or closing so that the seller or buyer is looking at a net dollar figure which won't be further adjusted at closing. This engenders confidence on their part to make the deal and increases my credibility too.
Negotiation is one of the most rewarding skills you can attain anywhere in the World. One day, you're going to do something just right and come home with a $10,000 profit for only a few hours of work. Then, you'll begin to believe in yourself and in your negotiating ability. Profit and the good life will be virtually automatic thereafter. Start doing it today.
