(Almost) Everything is Negotiable

With a few exceptions - like gravity, and death--Negotiation is the process of bargaining. Donald Trump
everything is negotiable, even taxes. First, you need tofancies himself as an extraordinary negotiator, and
believe it. Second you need to practice it.wrote a best-selling book on the topic "The Art of the
VALUE AND PRICINGDeal." However, it was his attorney and corporate V.P.,
Is there such a thing as a "fixed price"? Probably not.George Ross (of "Apprentice" fame) who made the
According to economic theory the law of "supply andtechniques more concrete. In Trump Style Negotiation (
demand" governs pricing. And while this may beWiley & Sons, 2006) he offers "Winning
basically true, there are many other factors whichNegotiation Strategies from Donald Trump's
enter into the equation. Furthermore, many of theseRight-Hand Man." Techniques such as "building trust,
factors are subjective. This means that there is roomfriendship, and satisfaction with the other side." are
for negotiation.discussed. Determining "what the other side wants,"
The "fair market value" concept comes into play asthen ascertaining their weaknesses are also covered.
well. Pricing is supposed to be the result of what aWeaknesses can be such things as pride, lack of
willing buyer will pay to a willing seller. In other words,cash, need, etc. Offering solutions to your "adversary's"
subjective, emotional and psychological considerationsproblems is important, and so is convincing people that
may be in operation. Perhaps the best examples ofthey got "more than they ever expected." Such
the application of this principle are in real estatemundane, but important issues such as controlling the
transactions. What you may be willing to pay for aplace and pace of negotiations can also be used to
house may be significantly discrepant from what I mayone's advantage.
be willing to sell it for, or vice versa. The same conceptIT'S A MINDSET
holds true for property appraisers. These expertsIn the beginning of this article I say just about
determine a value based comparable properties,everything is negotiable, and that you need to believe it
features of the property, and their experience andand practice it! Many people are afraid to negotiate or
education. However, their value may be influenced byinept at the process. Just ask. You may find that the
an "offer" price and perhaps even lender guidelines,other party is willing to deal.
neighborhood trends, etc.Next time you visit your supplier, mechanic, roofer, tailor,
Think about the last time you purchased a useddepartment store, barber, dentist, restaurant, etc., ask if
vehicle, or a new automobile, for that matter. A friendthey can cut their price, or make you a deal. Do they
of mine was a top salesman. He always said he likedoffer discounts? Do they offer low cost financing? Do
to sell used cars because nobody knew the "true"they offer better terms? Do they stand behind their
value. Frequently the emotional component (i.e., "I loveproduct? Will they offer extended service or
the car" or it "suits my image"), or the terms of thereplacement provisions? Just ask. Indicate that you are
sale, override good judgment. This discussiona serious and savvy buyer, cognizant of value, and
demonstrates that value and pricing, like beauty, are inthat you are looking to build a "relationship" with them.
the eyes of the beholder. And, the beholder willYou may be surprised at how often you will gain
certainly be influenced by his position (buyer or seller),concessions. Remember, almost everything is
and by psychological factors.negotiable.
NEGOTIATION