5 Myths, Tips and Clichés about Better Negotiation Debunked
Whether it’s a make or break business deal or working out what to watch, we use negotiation in every aspect of life, particularly in business. Leasing is no different with lease schedules and structures needing careful planning and cooperation with your lessor. But how do you negotiate to get the most optimal outcome for your company? How do you secure that golden lease agreement?
A quick search online will overwhelm you with motivational quotes and posters and plenty of clichés, many of which sound inspirational in theory, but fail to live up to their bold statements in practice. Here’s a few of those common phrases that we’ve debunked to give you a more realistic idea of how to secure the best negotiation.
"It’s a Dog Eat Dog World"
Many of us prepare for negotiating as we would for battle. Solidifying your arguments, pinpointing their weak spots, exploring counter-arguments and strategising rebuttals – these are all tactics of a wonderful debater, but is arguing and negotiating the same thing?
An argument implies that you both stand at separate ends of an agreement and that in order for one to win, the other must lose. That is not always the case, particularly when it comes to negotiating a new lease agreement. Although negotiation may include a verbal joust or two, lessees and lessors are not enemies. In fact the best lease structures are agreed when both lessee and lessor are getting the best out a lease – there is such a thing as a win-win situation!
"Go With Your Gut" or "Take a Leap of Faith"
We’ve all heard the stories where people have risked everything on a gut decision; there’s even been feature length films where a leap of faith pays off and everyone becomes millionaires. In reality, corporate business negotiation is not some glamourous Hollywood masterpiece.
If you are relying on luck when making a bold move during negotiation and it pays off, that does not make you a strong negotiator; it just makes you lucky. Taking risks is arguably a large part of negotiation, but they should always be strategic, with some planning behind them; never on a whim.
"Get Your Game Face On"
Naturally, when it comes to negotiation, you need to be prepared and take the process seriously, after all it is a business deal. However, that does not mean you have to sacrifice every sense of personality and humour. At the end of the day, even though it is business and there are certain formalities you should probably stick to, you are dealing with other people. If you’re negotiating terms for a long term finance lease agreement, you should keep in mind that the lessor may be drawn to working with a human, rather than a coldly clinical, corporate robot.
Facebook’s Mark Zuckerberg famously held negotiations for a $1 billion acquisition of Instagram over steak and ice cream on the patio, while his lawyers watched Game of Thrones inside. It won’t work for everyone, but business does not translate to boardrooms and boredom.
"Play Hard Ball" or "Nice Guys Finish Last"
The old good cop/ bad cop routine has been the staple of cinematic police interrogations since the first silent movies. Apparently, refusing to compromise helps you win the best deals. Granted, you should stick to your guns, but this approach can also lose you a lot of deals. For collaborative deals, it’s probably best not to start on a bitter foot – a worrying thought if you’ve just signed onto a long-term lease agreement, particularly as end of lease is seen by many lessors as an additional profit opportunity through strict return charges.
That does not necessarily mean that nice guys finish first though. Although you should be aware that you may have to compromise in order to keep discussions flowing, making early concessions can lead to you missing out on the opportunities to reach your own negotiation goals.
Read the situation – some negotiations need a firm touch, whereas others will immediately shut down if you seem unwavering. Collaborative outcomes and successful deals are more likely to be reached when you take a reasoned, co-operative approach rather than a soft or competitive one.
"Experience is Key"
While it may be true that practice makes perfect, experience and even success does not necessarily mean you’re the bee’s knees of negotiating. Tactics and techniques that help convince one IT lessor to agree to certain terms for an operating lease may not necessarily work with convincing a different lessor you’d like to work with. A strong negotiator has a bag of tricks and can read the situation so they know which tactics they should employ. Experience may be great, but experience in a variety of negotiations for different leases, contractual terms and lessors gives you a greater advantage in dealing with future discussions.
Negotiation is very much a grey area and there will likely never be a definitive guide to being the best. The trick is to have a number of tips and tricks under your belt and apply them when you get a clearer idea of how to convince the other negotiator to co-operate.
When it comes to lease negotiation the best deals with your lessor and ensuring you get the correct lease clauses and wording in you contract agreements, keeping a clear mind of what you need and can realistically achieve is key. We have seen many examples where companies have believed they have an air tight master lease, but soon come into trouble at the end of lease.
Innervision’s leasing experts have a great wealth of experience and success dealing with a range of lessors on behalf of our customers. Unless you are clued up on your leasing, it is difficult to get the very best out of your lease agreements, which is why our clients trust us to help review documentation and get them to secure the most optimal lease schedules for their specific requirements.
If you would like to hear more about Innervision’s new lease arrangements as well as our other services and lease management software, give us a ring on: + 44 (0) 20 7283 9422
For more information on getting the best operating leases, download our Introductory Guide to Leasing by following the link below:
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