THE KEYS TO NEGOTIATING
These tips come from Marcus Lemonis - investor and host of CNBC's "The Profit" http://cnb.cx/1Hxt4V2
- •Always know the facts.The first one is basic, but important. "If you haven't done your due diligence, you're going to be at a significant disadvantage," Lemonis said.
- •Know your leverage."...if you don't know your leverage, and you don't know where to find it, you're gonna fail very quickly in negotiating."
- •Don't talk too much.It's true what they say about having two ears and one mouth, especially in negotiating. Sometimes less is more, Lemonis said, and the more you talk, the more opportunities there are to trip yourself up. "Listen to what their hot buttons are. It's a little like playing chess. In order for you to make your next move you have to truly understand what their move was. And if all you're doing is talking you're never gonna understand the next move."
- •Don't assume that the first offer is the worst offer.It may seem counter intuitive, but for Lemonis, his first offer is his best offer. "It's better to assume that people are genuine in their first offer." Although he concedes that there are times the other party has figures or analysis he wasn't aware of or didn't consider, he says in most cases he finds pushback is just arguing for argument's sake, because it's expected in negotiating.
- •Never misrepresent the facts.This is the most important tip when negotiating with Lemonis. "The worst thing you can do in a negotiation, and I see people do this all the time, is to withhold information," he said. The truth always comes out, and with it the deal crumbles or must be renegotiated.