Making Deals

"Making deals" is often used as an alpha salesperson's expression to try and say that one is a great businessman. Unfortunately, the top of my mind when using such an expression is Donald Trump. It says a lot about his ability to create a brand, although, for anyone who knows, making a deal with Trump might be a zero-sum game where he will try to take an advantage over you.

In my naive mind, making a deal is more about getting two or more parts together, discussing what each wants to achieve, and finding a middle ground. Often, it will not be about selling or buying something but understanding what each party wants to achieve and involving things other than price into the mix. I wrote about that in my negotiation post a few weeks ago.

During the last few years, I've encountered such scenarios several times:

• A client wants to create a software project with a specific budget.
• I want to rent a house, and the renter has published it for a specific monthly price that is "non-negotiable."
• I'm helping broker a real estate deal, and the buyer makes an offer to buy at a certain price while the seller is not even sure they want to sell.

In these situations, making a deal involves understanding what both parties want to achieve and working towards a common goal. It's not just about price but also other factors such as timelines, quality, and agreement terms.

For the client looking to create a software project, it's important to understand their budget and what they want to achieve with the project. It's also important to communicate the limitations of the budget and what can be completed within that budget. This may involve finding creative solutions or compromises to meet their needs while staying within budget.

When renting a house, it's important to understand why the renter has set a non-negotiable price. They may have other offers or are confident in the value of their property. In this case, finding different ways to add value to the deal may be necessary, such as agreeing to a longer lease, paying certain months in advance, or offering to take care of certain maintenance tasks.

In brokering a real estate deal, it's important to understand the motivations of both the buyer and the seller. The buyer may be interested in the property for a specific reason, such as its location or potential for renovation. The seller may have sentimental or financial ties to the property. Finding common ground may involve offering creative financing options, such as a lease-to-own agreement, or other ways to sweeten the deal for both parties.

Ultimately, making a deal is about finding a win-win situation for both parties. It's not about taking advantage of the other person but creating a positive outcome for everyone involved. When done right, making a deal can lead to long-term business relationships and mutual success.