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President's
Corner
Over the last couple weeks
I have been giving you a few
tips on precisely what NOT to
say to a note holder especially
if you are new to negotiation,
or feel it is an area where you
can improve.
This week, do NOT say, "Why
don't you throw out a number?"
There are differing schools of
thought on this, and many note
professionals believe you should
never be the first person in a
negotiation to quote a price.
Let the other side start the
bidding, the thinking goes, and
they will be forced to show
their hands, which will provide
you with an advantage.
But some research has indicated
that the result of a negotiation
is often closer to what the
first mover proposed than to the
number the other party had in
mind; the first number uttered
in a negotiation (so long as it
is not ridiculous) has the
effect of "anchoring the
conversation." And one's role in
the negotiation can matter, too.
In the book Negotiation by Adam
D. Galinsky and Roderick I.
Swaab write: "In our studies, we
found that the final outcome of
a negotiation is affected by
whether the buyer or the seller
makes the first offer.
Specifically, when a seller
makes the first offer, the final
settlement price tends to be
higher than when the buyer makes
the first offer."
Very interesting stuff, try it
with your next note holder!
Remember, Success Demands
Action!
Keep on marketing, it’s going to
work! TWITA!
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