3 minute read
Office negotiations can be thought of as monotonous and boring, but are crucial because it can save your business money. Below we have provided 6 suggestions that will positively increase your negotiation results.
Benjamin Franklin said, “Failing to prepare is preparing to fail.” A secret to success in negotiating tactics is being prepared and arming yourself with research. This will give you leverage in the situation, and the person with leverage in negotiations is in control.
The most common thing you will be negotiating is the price, but just asking for a lower rent is not convincing enough to the landlord. You need to equip yourself with statistics and information that will persuade them and give the landlord value as well. Don’t make it seem like you need their office, leverage the fact that the landlord needs you to fill his vacancy.
These statistics can be in the form of researching similar office units in the area, reviewing market trend reports and observing details of the office building and unit itself.
Negotiating in person is more effective than on the phone or through email. The main reason for this is negotiating in person you can convey facial expressions and get a reading on the situation.
It is much easier for the landlord to say no to your request over the phone or in email compared to in person.
Recall the last time somebody called you on the phone and tried to sell you their product? You most likely hung up the phone without even responding to them. Compare that to the last time somebody came knocking on your doorstep in person and tried to sell you something. It’s much harder to walk away without responding in the second case.
3) Nobody Ever Died Asking
There is a common misconception that negotiation skills are something that you’re born with, but in fact there is nothing farther from the truth. With practice and study you can pick up key tactics for negotiating your office space.
The fear of failure is the number one reason why you will not get what you want in negotiations. If you don’t ask what you’re looking to receive it is impossible for you to receive it, the worst thing that can happen is the landlord will say no.
When asking for lower rent, research has shown not to ask for a price range or round, but instead give a specific number. This will give the landlord less options to deny your request.
4) It’s Not All About Price
Asking for a price reduction is the most common request in office negotiations; however there are more components to the office rental then just price though.
Amenities like unlimited printer/scanner use, storage lockers, access to private meeting rooms, accessible food and drink options can all be overlooked in the negotiation process but can be important to your office.
5) Stay Calm
Your IQ is important when negotiating, but your EQ, or emotional intelligence is even more important. Research conducted at Carnegie Institute of Technology showed that “85% of your success is due to skills in human engineering, which is the collection of your personality and ability to negotiate, lead, and persuade.”
Try reading your landlords emotions when negotiating. Being conscience of your own emotion as well as the landlord will have a positive effect on the outcome of your office negotiations.
6) Ask For A Lower Price Than You Are Willing to Pay
When asking for a price reduction in the monthly rental agreement, have a set number in mind that you are willing to pay. Keep that number in mind and ask for a price that is lower than the set number.
Whatever offer you make, the landlord is going to counteroffer it, meaning if you ask for your set rent target, the landlord will counter with a higher price.
By asking for a lower rental price than your bottom line, you have a higher chance of receiving it. Don’t offer too low though otherwise your offer won’t even be considered.
Quikspaces is not a landlord, but we have many office spaces available on our website. We don’t have long contracts that make it confusing for you, and believe making renting office should be easy and affordable for you. Our platform enables you to find affordable and flexible office space without brokerage fees.
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