(NEGOTIATING) Negotiation Is Perspective

10-11-2012

I love the art of negotiation. I love finding a common ground whereby both sides have the opportunity to come out on top and the potential exists for a win/win. But I am astonished at how many deals today fall apart. And once you hear the stories afterwards, and apply the simple solutions which could have saved the deal, one is left shaking their head. Business is perspective, and if neither side is able or willing to grasp the perspective of the other, nothing can be accomplished.

Both talent and station management have the potential to fail equally in this endeavor. I chuckled when, a few years ago, I heard that a talent had rejected an offer because it was lower than the they had anticipated and that they had a ?lifestyle? to maintain. Huh? What lifestyle? I had a lifestyle too before I had children and serious bills to pay and college to save for. That was years ago, and for even the youngest of you in the midst of this type of lifestyle, this too shall change.

Now I have a lifestyle alright, it?s called Responsibility. Responsibility for my young children and their present and future needs; mortgage payments, car payments, clothes, food, life insurance, health insurance, etc. In other words, responsibility to stay employed at the best company for my skill-set.

And as such, talent has a responsibility to maintain a realistic viewpoint of what is attainable. I have visited many broadcast facilities and companies, and have yet to see a money tree growing out back.

I cringe when I hear that station management asks talent to take a pay cut; that they should expect to make less because revenues are down ?X? percent. Okay, but the talent, particularly on-air talent who dictate serious revenue for a station, are not (in most cases) working any less. More often than not they are working harder than ever. They do not control the market economy; they only control what is within their grasp. Like talent, station management has a Responsibility to keep the best talent on-air, for their advertisers, their listeners, their group owners, and shareholders.

And like talent, station management has a responsibility to maintain a realistic viewpoint of what is acceptable. I have visited many broadcast facilities and companies, and have yet to see a talent tree growing out back.

This assumes that the station and the talent want to consummate a deal. If they do, talent has to be realistic aboutthe economy today, and management has to be realistic about giving the talent the opportunity to get back to where they were when times were better, and to surpass that level when warranted. This is accomplished through incentives. If the base compensation must remain the same as before, or decrease in a new deal, is there a built-in opportunity, through incentives, for the talent to achieve growth? Where do the ratings and revenue need to be for the station to justify paying the talent at the level they were before, and is there an opportunity to grow beyond that watermark? This permits the talent to win only if the station wins. Stations can?t expect the talent to cut back when times are bad, but not reciprocate when times are good. 

With an open mind and some mathematical calculation, this can be achieved. Based on the Cost-Per-Point and overall available revenue in the market, where do the ratings for a particular show need to be to achieve the necessary revenue growth to justify acceptable compensation to the talent? What revenue level is required of that show to validate a return to the higher dollars they received during the last term? Furthermore, is there a mechanism in the proposed deal that allows for talent to exceed those levels? It is helpful to educate the talent as to the economic realities of the station and the marketplace, and to discuss where the station needs to be to achieve the success that then permits the company to offer greater dollars. Most talent wants to be informed, they want to be involved, and they want to help.

If the two sides creatively work together to re-build the business, a win/win can be achieved. But first understand the perspective of the other, and understand that in a winning scenario everyone should see a clear path to greater success.

Matt Miller is the Vice President of Miller Broadcast Management, Inc. Email him at matt@millerbroadcast.com

Add a Comment Send This Story To A Friend

View the original article here

SALES)7 High Impact Negotiating Techniques

3-9-2012

Recently, I attended a speaker?s convention on rather late notice. I arrived one day after the convention started without a hotel reservation. I tend to become very parsimonious towards my expenses. I try to negotiate the best deals. Surveying the convention site, I selected my target. Using these seven techniques, I was able to stay at this hotel for less than half of what other attendees paid. These same techniques can easily be applied when a client attempts to negotiate with you.

1. Always attempt to negotiate from a position of power. From the hotel across the street, I called the manager of the targeted hotel. I explained that I was checking prices, and I wanted to know if she would beat the rate I was quoted. She said yes. Moral: If you show clients that you are weak, they will continue to beat you down on rate.
2. Always negotiate like you care, but not that much. She gave me a rate, and I responded that it was too high. I told her that I would go back to the other hotel. Moral: If you are too enthusiastic, the client may think they got swindled.
3. Never be afraid to walk. She then asked me what rate range I needed. I told her, and she said that she was not prepared to accept that price. I thanked her for her time. At that point she said that she would be willing to accept that price for a second night of my two-night stay. I would need to pay the regular rate for the last night. I said we were getting close, and I put by billfold back in my pocket. Moral: If you are willing to walk, it shows you stand firmly behind your product and your rate.
4. Determine your client?s interests. I knew because of low registration (homework before the call) that the hotel had rooms available. Most of us do not take the time to learn the true motives of the people with whom we negotiate. By listening and looking at the client?s body language, you can also find clues to the client?s real issues. Her look of dejection after my third ?thanks for your time,? told me she would be willing to knock down a few more dollars. Moral: A prepared sales call gives you confidence.
5. Be ready to offer options. She asked what I thought was reasonable. I told her the second night was fine, but that I wanted a two-digit first night rate. If she was able to do meet that price, I told her that I would use the hotel for all of my meals. She agreed to the terms, 40 percent off the daily rate for the first night, and 60 percent off the daily rate for the second night. Moral: You might need to work out a payment plan more beneficial to the client, or attempt to place them in a better position on rotation of ads. Flexibility without compromising the price can be achieved. Do not deprive the client of an opportunity to access your readers/viewers/listeners.
6. There is always room for a little more. I said I had to walk across the street and pick up my things. Walking across the street would make me late for a conference call. Maybe it was better if I stayed across the street. She said, ?I?ll throw in a free dinner coupon to the restaurant if it is too much of an inconvenience.? I thanked her, told her I appreciated her persistence, and we consummated the agreement. Moral: Why not bring up a sponsorship or feature if the client bites?
7. Make sure you can deliver the goods once you agree. Your credit card should clear. In my case, my card had expired unbeknownst to me. Moral: Make sure your schedules and placement run as ordered.

For more sales articles from Sean Luce GO HERE
You may also like sales articles by Theresa Merrill HERE

Sean Luce is the Head National Instructor for the Luce Performance Group and can be reached at sean@luceperformancegroup.com.

Add a Comment Send This Story To A Friend

View the original article here