The art of negotiation can help you build your business dramatically. You can save yourself hundreds, if not thousands of dollars by negotiating every thing you do as you build your passive income business.

Negotiating anything can be both an art and a science.

Just about anything in life can be negotiated. It all depends on the parties involved and how hard you are willing to push for the negotiation.

Listen to the Podcast Episode of Negotiation

The main goal of a negotiation should be a win-win for all parties involved. Obviously you would like to have the terms work out in your favor and there are ways to actually get that done. There are four key principles to negotiating which will help you to understand ninja hacks and how to implement them.

Negotiation Definition 

  • noun: The act or process of negotiating.

  • noun: The transfer of a negotiable instrument.

  • noun: Trading; mercantile business; trafficking.

 

Four Key Principles to any Negotiation

1. Never Pay Asking Price
2. Seek to create a win-win scenario for all parties (As best you can)
3. Negotiating is all about give-and-take
4. Never give in without getting something in return

These four keys are self-explanatory and you need to have these in mind as you are going through the hacks and implemented them into your next negotiation.

There many people who are nervous, shy, or even repelled by the thought of negotiating anything. Being an investor, you need to work your way through that and make yourself negotiate everything in your business.

You need to negotiate the price and terms of products, services, contracts, etc.. If you don’t negotiate, you’re actually leaving money on the table that should be in your pocket. You can even negotiate with your boss a higher salary or hourly wage to increase your income and then save it to by more investments through negotiation.

My most recent property that I purchased, I got the seller to lower the purchase price down almost 10% off their asking price. I have even negotiated with my renters to get them into longer lease terms and rent amount.

Here are the ninja hacks to negotiating anything.

 

1. Know What You Want

Before you enter negotiations with another party, know exactly what you want in a best case scenario. Your ultimate goal is for you to benefit from the negotiation. In order to do that, you need to start with the end in mind. If, for example, you are looking to buy a property, then you must know the highest price you would be willing to pay in advance.

That is your maximum set point.

Plan out the highest price (maximum set point) you want to pay for the property and do not go any higher. You need to start at a much lower position than your maximum set point in order to be successful in the negotiation process.

Let’s say the seller of a property is asking $200,000.  You need to know the highest price you can pay while still make money which would be $175,000. Because negotiating is about give-and-take, you need to be able to have room to work towards the seller from your starting position.

If I know that I want to spend $175,000 the property, I would offer $140,000 to start so I can work my way up as the seller comes down from their price.

As the seller counters with a lower price, you counter with a higher price. They lower their asking price to $190,000, you increase your offer price to $155,000. Then as the seller counters again, you counter again until you come to a mutual price that’s beneficial to both parties.


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2. Learn As Much As You Can about the Other Party

They say that “knowledge is power”, but it really should say “applied knowledge is power”. The reason why is that you need to know, as best you can, all parties of the negotiating table with their interests, desires, needs, and wants. With this in hand, you can map out beforehand the process you would like to take in the negotiating process.

Having as much information as possible about the other parties involved will help you to know how to implement the other hacks of negotiating.  You will be able to use this to your advantage in the negotiation process.

 

3. Know Who Has the Upper Hand

Before you enter into a negotiation, you need to know who has the upper hand. That means you need to know who has the most incentive to give up ground in the negotiating process. It could be where you have the upper hand because the seller is in dire need to sell a property.

The seller may need the money from the sale of the house and be willing to take a much lower price for it.

It could also be that the other party has the upper hand because you desire what they are selling more than they desire to sell it.  If you see beforehand that you do not have the upper hand, refer to negotiating hack 7 and 8.

 

4. Don’t Be Afraid Ask

There are two things you need to remember: “You have not, because you ask not” and “a closed mouth never gets fed”.

If you don’t ask because you are afraid of being rejected and imagine the seller saying no, you are effectively putting words in their mouth. If you don’t ask, you have already assumed they will say no.  You have your answer already.

The answer you have right now is NO because you not asked.

Here’s a quick tip for you to help the negotiation process started in a nonthreatening way. Ask this question: “Are you flexible on the price?” More often than not, this one question will start the negotiation process for you. Just by asking this question, sellers have dropped their asking price by 5% without me saying another word.

 

5. Shut Up!

This is probably one of the more important hacks you can employ when negotiating.

Nobody likes and uncomfortable silence in a conversation. You need to learn to love those uncomfortable silences in the negotiating process. Each and every time you make a request in the negotiation process, make the request and then shut up. It will be that uncomfortable silence that helps the other side want to give in because they feel they need to respond and remove the uncomfortable silence from the conversation.  The first person to give in, looses.

Here’s an example:

You: “How much are you asking for the property?”

Seller: “$200,000”

You: “Are you flexible on the price?”

Now don’t say another word!

It is said that the first person who talks after the proposition is presented, loses. So present your offer/counter offer and then DO NOT SAY ANOTHER WORD until they talk.

You can use this ninja hack EVERY time you make a request in the negotiation process.

 

6. Never Stop Negotiating until the Deals Done

Just like how you should not be afraid to ask in the beginning of the negotiation process, don’t be afraid to continually ask for more “ground”. Again you have not because you asked not and unless you ask and they actually say no to you, you already have a “No” without even asking.

One time I actually got the seller of a property to come down in price four different times. Each time I asked for more of a discount, the seller dropped the asking price and said they could not come down any lower.


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7. Be willing to walk away at any time (and show it!)

You need to be able to walk away from the deal at any given point. This does not necessarily need to be done from a position of strength. You need to know the maximum amount of ground you are willing to give beforehand so that you do not go above and beyond that set point and make a mistake.

That is why ninja hack number one is at the top of the list. The negotiation process can be used for or against you. The whole process of negotiation creates buy-in from both parties. Each has put in their time, effort, thoughts, emotion, and heart into the deal.

That is a lot invested into the negotiation process, and people do not want to feel like they’ve wasted all of that effort to have the deal go away.

This can be used for or against you. If you are not willing to walk away once you’ve reached your maximum amount, you need to be ready to walk away if the process goes above that. If you get emotionally charged and go above your maximum, you have given up the upper hand.

Even if you’re not ready, or willing, to walk away you need to show that you can walk away at any time. This forces the other party to reconsider the offer because they don’t want to lose all they have invested into the negotiation process.

 

8. Think of Yourself As a Negotiator for Somebody Else

The goal in the negotiation process is to not get emotional or too wrapped up in the negotiation that you give too much away and go above your maximum set point.

Imagine that you are a paid negotiator for another company in your next deal. You are getting paid to do the negotiation whether it happens or not. You want your client to be happy, but you have your guidelines (maximum set point) from your employer and you stick to it.

This attitude will show that you’re serious about the negotiation and at the same time willing to walk away from the process if you don’t get what your client wants. This will help you to remove all the emotion out of the negotiation process and allow you to think more clearly.

You need to care about the deal, but not that much.

 

9. Be Patient

Again, think of yourself as a hourly employee negotiating something for your employer. It doesn’t matter how long the process takes you because you get paid either way. This takes even more of your emotions out of the deal.

Just like how you need to shut up after you present your offer, you need to be patient to let the other person talk first. Negotiations can be long or short in duration and you need to be ready for both.

The party in the negotiation process who is the most patient during this process will usually come out on top with the most gained from the negotiation.

 

10. Request a Last-Minute Discount/Price Drop

At the last minute, before you close the deal in the negotiation process, ask for one last change in the deal. It could be something as subtle as saying “in order to get this deal done I really need you to come down $1000.”

It could also be very straightforward saying “the deal is off unless you lower the price $1000.” In both scenarios, you’re asking for more of a discount but it is a difference in tone and directness.

Again, “You have not, because you ask not.

 

Conclusion

By using these negotiation hacks, you can dramatically increase the profitability of your business. Remember the four key principles as well as the hacks for negotiating and you will be able to save and make lots of money that would normally be left on the table.

As for me, I personally negotiate everything.  It could be just by asking the simple question: “Are you flexible on the price?”

 

If you employ these ninja negotiating hacks into your next deal, you will fully succeed in getting the price lower and/or other perks in the deal.

Let me know how you do in your next negotiation. Leave me a comment below, I’d love to hear it!


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10 Ninja Negotiation Hacks to Build Your Business
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