Summary:
In this episode of the Optimistic American, Paul Johnson sits down with Mark Bonilla, a real estate developer and investor, to discuss the art of negotiation and share their insights and strategies on how to negotiate effectively.
They emphasized the importance of building relationships and establishing trust with the other party before entering into a negotiation. They also stressed the need for preparation, research, and gathering information to determine what the other party wants and needs.
According to Mark and Paul, a successful negotiation involves disclosing your problems, talking about the things that are important to you, and ensuring that you understand the other person's perspective. They recommend being honest and transparent with people, even if it means telling them things they don't want to hear.
Paul shared his approach to negotiation, which involves making the first offer. He believes that in every negotiation, there's not a price, but a range of prices. He then starts by stating the price range he believes the value is in and says that he thinks he will be able to get something close to it. By starting at that price, he puts psychological pressure on the other side to either meet his price or come close to it. He also mentioned that if the other side is not willing to pay close to his price, then it's probably best to stop the discussion and figure out something else that they can do.
In the end, Mark and Paul agreed that effective negotiation involves building relationships, establishing trust, preparation, research, being honest and transparent, understanding the other person's perspective, addressing obligations, and making the first offer.
Here are some of the key points:
Preparation is key to successful negotiations.
Understand the other party's needs before starting any negotiation.
Be transparent about your issues and limitations.
Be honest and straightforward throughout the negotiation process.
Use active listening to understand the other party's perspective fully.
Do not hesitate to ask questions and clarify information.
It's essential to determine the value range before making the first offer.
The first offer can set the tone for the negotiation.
It is essential to understand what is important to both parties to reach an agreement.
A win-win outcome should be the goal for both parties.
How does this fit in the Hierarchy of Agency?
The power of negotiation fits in Knowing the Truth, Finding Power in Love and Connection, and Acting with Belief. As stated during the podcast, being truthful is not only important in sustaining strong and healthy relationships, it helps build that foundational trust that will allow you to propel your negotiation toward a win-win outcome. With the idea of Love and Connection, you will grow in relationships and grow in business. Believe in your value and believe in a better tomorrow.
Learn more about the Hierarchy of Agency here!
Don't forget to watch the full episode here!