Negotiations are a major part of business, and Clayton Perlman is considered an expert on the topic. As a fourteen year real estate developer, Clayton Perlman has learned much about the art of negotiations and business dealings. He has personally been involved with the acquisition, development, and sale of over 100 homes and 300 lots in New Jersey, Utah, Nevada, and California. Each one of these deals has required careful and precise negotiations. In fact, Clayton Perlman has had to negotiate for over 40M dollars in construction and equity financing and more than 11M in mortgage loans. Here are a few of his tips:
(1) Understand Your Position
Understanding where you stand is a critical part of negotiations. Clayton Perlman spends time analyzing financial statements, goals, numbers, and figures before every negotiation takes place. Clayton Perlman advises people to develop a break-even point. The break-even point is essentially the financial term for how low you can go. That is, what is the worst deal you are willing to leave the negotiating table with.
(2) Take Your Time
It is never a good idea to feel rushed in the negotiation process. Odds are, if this is an important negotiation, the other party will give you the time to make a proper decision. Clayton Perlman tells people to never make a deal because they feel rushed.
(3) Its Okay to Say No
Not all negotiations work out, and you need to understand that it is okay to walk away from the table without a deal. Clayton Perlman has seen hundreds of deals never leave the negotiation table and understands that this is merely part of doing business. Walking away could also help you end up with a better deal in the future. When the other party understands that you are serious about your terms, they will learn to respect you more in negotiations.
(4) Always Get Something in Return
It is standard negotiation practice to never give something away without getting something in return. No matter how small it is, giving away something for free tells the other party you are not confident in your bargaining position.
Clayton Perlman advises people to always adhere to these four negotiation principles. Each negotiation will look different, but it is a good idea to understand your position, take your time, say no, and always get something in return. Clayton Perlman believes these four tips will help you become the best negotiator you can.